Business Units in Fusion Project Portfolio
Management
Adopting the Applications Enterprise Structures -
Business Units Architecture - Fusion Project
Portfolio Management enforces consistent project
management practices across multiple Business
Units.
An Oracle White Paper
August 2011
EXECUTIVE OVERVIEW
Fusion Project Portfolio Management will introduce Business Units to
enforce consistent project management practices for projects across
multiple Business Units. Today, within an enterprise, there are different
project management needs for different lines of business. For example, a
consulting services line of business may need to track project deliverables
as well as labor costs and expenses in order to drive billing through
contracts. On the other hand an R&D line of business may only need to
track issues and deliverables but not project costs. Also, a Consulting
project may have a different lifecycle than an R&D project. Rather than
repeating the setups for each Business Unit, you can set up project
management options for different kind of projects once and are able to
use them in multiple Business Units.
Whilst similar structures exist in other Applications products, such as the
Organization Hierarchy in Oracle E-Business Suite, the way in which
Fusion Application’s Enterprise Structures are set up and implemented is
much enhanced, and this paper gives an overview of the basics involved
from the viewpoint of Oracle Fusion Project Portfolio Management.
Business Units in Fusion Project Portfolio Management Page 2
Table of Contents
Table of Contents .............................................................................................. 3
1. Introduction ................................................................................................... 4
1.1. Reference Data Sets.......................................................................... 4
1.2. Business Units ................................................................................... 4
1.3. Project Units ...................................................................................... 5
2. Setting up Business and Project Units ....................................................... 6
2.1. Business Unit Setup .......................................................................... 6
2.2. Projects Unit Setup ........................................................................... 7
3. The usage of Project Business Units and Project Units .......................... 9
4. Conclusion ................................................................................................... 10

Business Units in Fusion Project Portfolio Management Page 3


Fusion Project Portfolio Management uses
Reference Data Sets and Business Units to
differentiate between Reference Data and
Transaction Data.
You can map multiple Business Units to a
single Reference Data Set and vice-versa.
1. Introduction
Fusion Project Portfolio Management is uptaking the concept of
Business Unit to replace the Oracle EBS 11i and R12 implementation of
operating units.
In Fusion Applications a difference is made between Transaction Data
and Reference Data.
1.1. Reference Data Sets
Reference Data is setup data that can be used across the application, e.g.
payment terms or project statuses. The Reference data is owned by an
organization unit called Reference Data Set. Tables storing the reference
data e.g. PJF_PROJ_STATUSES_B_ST are holding a SET_ID to identify
the Reference Data Set.
1.2. Business Units
A Business Unit in Fusion is a unit of an enterprise that performs one or
many business functions (such as Payables Invoicing, Requisitioning,
Project Accounting, Order Management etc.) The Business Unit of an
enterprise can be consolidated in both a managerial and legal hierarchy.
All transaction data will belong to a Business Unit. You are able to define
a mapping between the Business Unit and the Reference Data Sets. If
you would like to have a Reference Data Set specific to one Business
Unit, then you can map them 1to1. If you would like “n” different
Business Units to use the same set of reference data, then you can map it
that way as well.
In the database the FND_SETID_ASSIGNMENTS table stores the mapping
between Business Units and Reference Data Sets.
This means that business units could for example have their own
reference data sets for Project Statuses (stored in
PJF_PROJ_STATUSES_B_ST), but still point to a single shared set for
Work Types (stored in PJF_WORK_TYPES_B_ST).
Business Units in Fusion Project Portfolio Management Page 4
1.3. Project Units

A Project Unit is an operational subset of your enterprise, such as a line

of business that conducts its business operations using projects and
needs to enforce consistent project planning, management, analysis and
reporting throughout. You can define Project Units that enable you to
plan projects and gather business data according to your needs, without
the constraints of the enterprise’s standard accounting procedures for
financial reporting and posting.

Attributes that are specific to the Project Business Unit will be

implemented using the Fusion Project Portfolio Management specific
system option tables PJF_BU_IMPL_ALL.

Figure 1: Mapping between Project Business Units and

Project Units Data Model Diagram:
PJF_BU_IMPL_ALL PJF_PU_BU_RELATIONSHIP PJF_PU_IMPL

Primary Key Name: Primary Key Name: Primary Key Name:

PJF_BU_IMPL_ALL_ PJF_PU_BU_RELATIONSHIP_PK PJF_PU_IMPL_PK
PK Primary Key Attr.: ORG_ID Primary Key Attr.: PU_ID,ORG_ID Primary Key Attr.: PU_ID

Business Units in Fusion Project Portfolio Management Page 5

2. Setting up Business and Project Units
2.1. Business Unit Setup

Business Units are centrally defined. The setup is managed via the
Functional Setup Manager (FSM).
Figure 2: Project Business Units setup in FSM:

A Business Unit does nothing on its own, it must be granted one or

more Business Functions like Payables Invoicing, Marketing or Project
Accounting in order for it to be used during processing.

Figure 3: Business Unit Function setup in FSM:

After the Project Accounting function has been assigned the setup in
Fusion Project Portfolio Management needs to be completed.

Business Units in Fusion Project Portfolio Management Page 6

 Configure the Business Unit Implementation Options.

Figure 4: Business Unit Implementation Option:

Assign the Project Task Owning Organization and Expenditure

Organizations. Set up the Calendar and optionally enable Maintain
Common Accounting and Project Accounting Periods. Choose the
Default Asset Book and optionally enable Retirement Processing and
Overtime Calculations. Define the Costing Currency Conversion. Select
one or more Project Units that you want to associate with your Business
Unit. Finally define Cross Charge.

2.2. Projects Unit Setup

You need to set up at least one Project Unit in order to use

functionalities in Fusion Project Portfolio Management. Navigate to the
Project Units Implementation Options and make the settings that are
specific to the individual Project Units.

There is a one to many relationship between the

Business Unit and the Project Unit. One Business
Unit can be related to multiple Project Units.

Business Units in Fusion Project Portfolio Management Page 7

These settings include:
General Properties: Default Set (this is the Reference Data Set), Project
Numbering and Full-Time Equivalent Hours, Daily and Weekly.

Related Business Units: In this region you relate Business Units with
enabled Project Accounting business functions (Project Accounting
Business Units) to this Project Unit. Each Project Accounting Business
Unit can be associated with one or more Project Units.
Please note that you can view / maintain this relation between Project
Unit and Business Unit from both perspectives. In the Project Units
Implementation Options you can define the relationship from the
perspective of a Project Unit. In the Business Unit Implementation
Options you are defining the reciprocal relationship from the perspective
of a Business Unit, i.e. relating Project Units to a Business Unit.

Reporting Setup: Summarization, Performance Reporting and

Embedded Analytics Options set up.

Business Units in Fusion Project Portfolio Management Page 8


During Project creation the Business Unit and the
Project Unit are defaulting from the project
template.
3. The usage of Project Business Units and
Project Units
The introduction of Project Units supports a project management
partition in Fusion Project Portfolio Management. Some of the setup
that in Oracle EBS R12 is made at the Implementation Options (Setup:
System: Implementation Options) like Project Numbering, Full-Time
Equivalent Hours are not set at Business Unit Level, but at the Project
Unit in Fusion Applications. This allows a finer definition of rules and
options for creating and managing all aspects of projects, including
project definition, cost capture, budgeting and forecasting, project
collaboration etc.
The project creation for example is impacted by the Business and Project
Units in the following way:
All projects start from a template (or a copy of another project that had
its origins starting from a template).
It is key to have complete and usable project templates to enable project
managers to get their projects up and running efficiently.
Setting up the template gives two List of Values (LOV) to pick the
Business Unit and Project Unit from. First the Business Unit is chosen.
Only those Business Unit’s that the user is associated with and that have
the Project Financials function enabled will be available in the LOV. The
Business Unit cannot be changed once the template has been saved.
Next the Project Unit is selected. The LOV for the Project Unit depends
on what was selected as Business Unit. Only Project Units that are
associated to the Project owning organizations and where the user can
create projects are available. Every project created from the template will
have this default combination of Business and Project Unit.
Projects created with the same Business Unit share the settings from the
Business Unit implementation options like the Costing Currency
Conversion information.
At the same time projects that are associated with different Project Units
can follow different rules for the project numbering as these are defined
at the Project Unit level. Also the reporting for example performance
reporting or the embedded analytics can be run for the Project Units.
All period end processing on the other hand is done at the Business Unit
level. The calendar and Project Accounting Periods are maintained at the
Business Unit and as part of the period closure process the Business Unit
will post all its transactions to one primary ledger.
Business Units in Fusion Project Portfolio Management Page 9
4. Conclusion
With partition available from Business Units, Project Units and
Reference Data Sets in Fusion Project Portfolio Management the project
management is more reliable and flexible in Fusion. The benefit of the
new Business Unit architecture is that for companies with a networked
infrastructure, each of the business units can be a different logical entity
within the enterprise, allowing Fusion Project Portfolio Management to
be configured to meet different combinations of real-world business
scenarios.

Business Units in Fusion Project Portfolio Management Page 10

Business Units in Fusion Project Portfolio Management
Author: [Joerg Wiechers]
Contributing Authors: [Nitin Sureka]

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