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D76116GC10
Edition 1.0
September 2012
D78925
Author Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

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Contents
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1 Project Financial Planning Overview


Objectives 1-2
Oracle Hyperion Planning 1-3
Planning Components 1-4
Product Integration 1-6
Planning Architecture 1-7
Client Tier 1-8
s a
Middle Tier 1-9 ) h a
Data Tier 1-10
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External Services 1-11
r a cle uide
Oracle Project Financial Planning 1-12
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Project Financial Planning Features 1-13 ia den
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Project Financial Planning Process 1-15

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Step 1: Entering Project Details 1-16

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Step 2: Planning for Expenses 1-17
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Step 3: Planning for Revenue 1-18

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Step 4: Reviewing Financials 1-19
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Step 5: Managing Funding 1-20
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Step 6: Submitting Plans for Approval 1-21
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Project Financial Planning Business Scenario 1-22
M no Training Environment 1-24
Quiz 1-25
Summary 1-27
Practice 1-1 Through 1-4 1-28

2 Administration Tasks
Objectives 2-2
Lesson Agenda 2-3
Initial Implementation Tasks 2-4
Loading Required Dimensions and Members 2-6
Loading Data 2-7
Templates Overview 2-9
Extracting Template Files 2-10
Template Format 2-11
Data Load File Order 2-12

iii
Running the Import Utility 2-14
Setting Substitution Variables 2-15
Managing Smart Lists 2-17
Selecting User Variable Members 2-18
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Lesson Agenda 2-20


Project Administration 2-21
Project Administration Task List Tasks 2-22
Project Assumptions 2-23
Setting Discount Rates and Taxes 2-24
Project Scoring 2-26
Investment Criteria 2-28
Defining Weightage for Criteria 2-30
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Defining Weightage for Financial Goals 2-31
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Defining Weightage for Subjective Groups 2-32
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Defining Weightage for Subjective Goals 2-33
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Overhead Assumptions 2-34
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Overhead Assumptions: Indirect Costs 2-35
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Overhead Assumptions: General and Administrative Costs 2-36
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Allocation Basis Assumptions 2-37
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Approval Settings 2-38
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Key Performance Indicators 2-39
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Intercompany Partners 2-40
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Preparing Base Forecast Data 2-41
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Lesson Agenda 2-43
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Workforce Administration 2-44
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Importing Employees 2-47
Calculating Employee Compensation 2-48
Lesson Agenda 2-49
Capital Asset Administration 2-50
Importing Existing Assets 2-51
Asset Class and Asset Detail 2-52
Setting Capital Assumptions 2-54
Rolling Up Asset Expenses 2-56
Verifying Loaded Depreciation and Amortization 2-57
Calculating Asset Related Expenses 2-58
Quiz 2-59
Summary 2-61
Practice 2-1 Through 2-4 2-62

iv
3 Creating Projects
Objectives 3-2
Determining a Project Type 3-3
Capital Projects 3-4
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Types of Capital Projects 3-5


Contract Projects 3-6
Types of Contract Projects 3-7
Indirect Projects 3-8
Preparing Project Tasks 3-9
Entering New Project Details 3-10
Capital Projects: Adding Projects 3-11
Capital Projects: Adding Project Details 3-12
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Capital Projects: Adding Capital Sub-Projects 3-13
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Contract Projects: Adding Projects 3-14
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Contract Projects: Adding Project Details 3-15
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Indirect Projects: Adding Projects 3-17
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Indirect Projects: Adding Project Details 3-18
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Viewing Project Proposals 3-19
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Capital Projects: Deleting Project Proposals 3-20
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Contract Projects: Deleting Project Proposals 3-21
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Indirect Projects: Deleting Project Proposals 3-22
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Changing Project Status 3-23
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Project Status Runtime Prompts 3-24
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Reconciling Projects 3-25
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Moving Projects 3-26
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Summary 3-30
Practice 3-1 Through 3-4 3-31

4 Planning for Project Expenses


Objectives 4-2
Expense Planning: Task Overview 4-3
Assigning and Calculating Labor Expenses 4-4
Adding Labor 4-5
Calculating Labor Expenses 4-8
Reviewing Labor Expenses 4-9
Assigning and Calculating Equipment Expenses 4-10
Adding Equipment 4-11
Calculating Equipment Expenses 4-13
Reviewing Equipment Expenses 4-14
Adding and Calculating Material and Other Requirements 4-15

v
Adding and Calculating Material and Other Resources 4-16
Calculating Material and Other Expenses 4-18
Reviewing Material and Other Expenses 4-19
Entering Direct Project Expenses 4-20
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Calculating Overhead Expenses 4-21


Reviewing Indirect and G&A Expenses 4-22
Reviewing Total Expenses 4-24
Quiz 4-25
Summary 4-27
Practice 4-1 Through 4-7 4-28

5 Planning for Contract Project Revenues


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Objectives 5-2
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Revenue Planning: Task Overview 5-3
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Entering Revenue Drivers for Cost Plus Projects 5-4
Adding and Removing Revenue Assumptions 5-6
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Calculating Revenue for Cost Plus Projects 5-8
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Quiz 5-9
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Entering Revenue Drivers for Time and Materials Contract Projects 5-11
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Viewing Standard Hourly Rates 5-12
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Copying the Base Billing Rate 5-13
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Calculating Labor Revenue 5-14
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Calculating Material Revenue 5-15
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Calculating Equipment Revenue 5-16
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Calculating Total Project Revenue 5-17
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Entering Direct Project Revenue 5-20
Revenue Recognition 5-21
Summary 5-22
Practice 5-1 Through 5-2 5-23

6 Reviewing Project Financials


Objectives 6-2
Reviewing Project Financials Overview 6-3
Performing Calculations 6-4
Reviewing Project Financial Statements 6-5
Reviewing Project Metrics and KPIs 6-6
Reviewing Project Justification 6-8
Reviewing Project Score 6-9
Requesting Project Funding 6-10
Adding and Canceling Funding Requests 6-12

vi
Reviewing Allocated Funds 6-14
Quiz 6-15
Summary 6-18
Practices 6-1 Through 6-8 6-19
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7 Managing Intercompany Projects


Objectives 7-2
Managing Intercompany Projects 7-3
Limitations of Intercompany Projects 7-4
Tasks for Intercompany Projects 7-5
Calculating Cost Plus Intercompany Revenue 7-6
Calculating Project Data 7-7
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Reviewing Intercompany Reconciliations 7-8
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Summary 7-9
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Practices 7-1 Through 7-9 7-10
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8 Managing Existing Projects
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Objectives 8-2
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Managing Existing Projects 8-3
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Process for Managing Existing Projects

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Managing Existing Projects Task to 8-5
List Tasks
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Quiz 8-7
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Summary 8-9
Z aka ble li
Practices
m f era 8-8 8-10
ed 8-1sThrough
h9am - t r anand Approving Projects
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M non Reviewing
Objectives 9-2
Lesson Agenda 9-3
Process for Reviewing Projects 9-4
Calculating Departmental Financial Statements 9-5
Reviewing Project Proposals 9-6
Reviewing Existing Projects 9-7
Comparing Project Scores 9-8
Reviewing Project Performance 9-9
Reviewing Departmental Financial Performance 9-10
Reviewing the Impact on Financial Statements 9-11
Lesson Agenda 9-12
Project Financials Overview 9-13
Finance Analysis Task List 9-14
Running Rollups 9-15
Viewing the Financial Overview 9-16

vii
Financial Overview: Allocating Funds 9-17
Financial Overview: Changing Funding Status 9-19
Financial Overview: Reviewing the Impact on Financial Statements 9-20
Financial Overview: Reviewing Project KPIs 9-21
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Performing Detailed Analysis 9-22


Reviewing Project Funding 9-23
Approving Projects 9-24
Submitting Plans for Approval 9-25
Reviewing Projects 9-27
Quiz 9-29
Summary 9-32
Practices 9-1 Through 9-4 9-33
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10 Analyzing the Workforce
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Objectives 10-2
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Analyzing the Workforce 10-3
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Driver-Based Planning for Workforce Costs 10-4
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Required Metadata and Data Overview 10-5
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Analyzing Workforce: Task Overview 10-7
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Task Lists for Workforce Analysis and Planning 10-8
Rolling Up Data 10-9 o
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Reviewing the Resource Manager Dashboard 10-10
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Utilization Trend Chart 10-11
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Hiring Plan Chart 10-12
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Project Staffing Request – FTE 10-13
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Reviewing Resource Utilization 10-15
Reviewing Resource Requests Across Projects 10-16
Staffing Projects 10-17
Requesting New Hires 10-19
Recalculating Compensation Costs 10-20
Reviewing Total Compensation 10-21
Reviewing Employee Headcount and FTE 10-22
Quiz 10-23
Summary 10-26
Practices 10-1 Through 10-8 10-27

11 Analyzing and Planning for Capital Assets


Objectives 11-2
Analyzing Capital Assets 11-3
Required Metadata and Data Overview 11-4

viii
Analyzing Capital Assets and Equipment 11-6
Task Lists for Capital Asset Analysis and Planning 11-7
Reviewing Equipment 11-8
Reviewing Equipment Utilization 11-9
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Asset Utilization Calculation Examples 11-10


Reviewing Equipment Requests Across Projects 11-11
Assigning Equipment to Projects 11-12
Requesting New Equipment 11-13
Recalculating Equipment Costs 11-14
Reviewing the Impact on Financial Statements 11-15
Capital Planning 11-16
Reviewing Existing Assets 11-17
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Reviewing and Updating Asset-Related Expenses 11-19
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Adding New Assets 11-20
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Adding New Leased Assets 11-21
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Reviewing Construction-In-Progress Assets 11-23
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Calculating Asset-Related Expenses 11-24
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Reviewing Asset Per Unit Cost Detail 11-25
Quiz 11-26
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Summary 11-29
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Practices 11-1 Through 11-7 11-30
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ix
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Project Financial Planning Overview

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Objectives

After completing this lesson, you should be able to:


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• Describe Oracle Hyperion Planning (Planning) and its


components
• Identify the main components of the Planning architecture
• Describe the features of Oracle Project Financial Planning
(Project Financial Planning)
• Describe the Project Financial Planning process s a
) h a
• Describe the business scenario om
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Oracle Project Financial Planning 11.1.2: Create Projects 1 - 2


Oracle Hyperion Planning

Oracle Hyperion Planning:


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• Streamlines data entry through web and Excel interfaces


• Provides a calculation engine to promote business
modeling with complex business rules and allocations
• Enables annotations at multiple levels to capture budget
details
• Accommodates potentially sophisticated budget review as a
processes m )h
• Facilitates dynamic reporting by using Financiall e ฺco eฺ
Reporting
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Oracle Hyperion
a a n (Planning) is a budgeting and planning solution that provides
m trPlanning
h
o onmethods
streamlined - for entering data through web and Excel interfaces. Planning supports
M n plans that are based on global assumptions, such as interest rates and headcount,
driver-based
and promotes modeling with complex business rules and allocations. It enables users to annotate
and justify data at multiple levels to capture budget details. It enables decision makers and
managers to collaborate with budget holders during potentially complex budget review processes,
and provides the tools to create and publish dynamic financial reports by using Oracle Hyperion
Financial Reporting (Financial Reporting).

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 3


Planning Components
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Relational
Database
s

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Planning User Application Server
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The application
a a n provides the environment for running Planning applications. Oracle
h
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WebLogic n-in theis Planning
the application server provided with Planning. It facilitates user access to non-
M
numericndata relational database and to numeric data in Oracle Essbase
databases.
Planning requires a system database and a database for each deployed application. The Planning
application database is used primarily to store the application’s definition.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 4


The following information is stored in relational databases:
• Smart lists
• Approvals hierarchies
• Approvals details
• Annotations, comments in cells, and supporting details
• Task lists
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• Preferences
• Application setup
• Data forms and data form validation rules
• User variables
• Non-numeric data
The following information is stored in Essbase databases:
• Smart lists numeric values
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• Numeric data
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• Currency calculation scripts
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• Substitution variables
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Oracle Project Financial Planning 11.1.2: Create Projects 1 - 5


Product Integration

• EPM System: Profitability and Cost Management,


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Performance Scorecard, Strategic Finance, Financial


Management, and FDM
• ERP systems: Oracle E-Business Suite, Oracle
PeopleSoft Enterprise, and Oracle Fusion Applications
• Oracle Business Intelligence Suite, Enterprise Edition
for dashboards and real-time reports a
h a s
• Data management applications: Oracle Data Integrator )
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and ERP Integrator (FDM module) leฺc ฺ e
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Planningm
a can
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integrated with the following products:
h -Enterprise Performance Management System (EPM System) product suite,
M•o Oracle’s
non
including Oracle Hyperion Profitability and Cost Management, Oracle Hyperion Performance
Scorecard, Oracle Hyperion Strategic Finance, Oracle Hyperion Financial Management, and
Oracle Hyperion Financial Data Quality Management (FDM).
• Enterprise resource planning (ERP) systems, including Oracle E-Business Suite, Oracle
PeopleSoft Enterprise, and Oracle Fusion Applications
• Oracle Business Intelligence Suite, Enterprise Edition for interactive dashboards and real-
time reports
• Data management applications, including Oracle Data Integrator and Oracle Hyperion
Financial Data Quality Management ERP Integration Adapter for Oracle Applications (ERP
Integrator; FDM module)

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 6


Planning Architecture
Client Tier
Workspace: Microsoft Office Web Analysis
Administration
Planning, EPMA, Integration Studio and
Services Console,
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Reporting and Reporting Studio


Smart View Essbase Studio
Analysis Clients

Middle Tier

Application Server Web Server Services


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ism
Planningm n application that combines the advantages of Essbase (a multidimensional
a multitier
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- a relational database to optimize performance and maintenance.
o oand
database)
M n n
The slide illustrates the client, middle, and data tiers as well as external services that integrate
with Planning.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 7


Client Tier

• Workspace for accessing the Planning web interface,


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creating and deploying classic and Performance


Management Architect applications, and creating and
publishing reports
• Smart View for entering Planning data in Excel
• Administration Services Console and Essbase Studio for
modifying multidimensional outlines and calculation scripts a
h a s
• Reporting Studio for developing and running financial )
reports ฺ c om ฺ
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Client Tier o r G
Workspace:
i a @ n t
Planning, Microsoft Office
k a r ude Studio
Administration
Web Analysis
Performance Integration
ฺ z a Services S t
Console,
and
Management
Architect, Reporting ed e thEssbase
Smart View is Studio Reporting Studio
Clients
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a m contains
The client tier
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h
M on- Smart View
o Hyperion
Oracle
Consolen(Administration
for Office (Smart View), Oracle Essbase Administration Services
Services Console), Oracle Essbase Studio (Essbase Studio), Hyperion
Web Analysis Studio, and Oracle Hyperion Financial Reporting Studio (Reporting Studio).
You access and manage Planning applications, Oracle Hyperion Enterprise Performance
Management Architect (Performance Management Architect) applications, and reports in
Workspace.
On the client tier, Planning administrators and users enter data, perform approvals tasks, manage
users and security, launch business rules, copy versions, develop data forms, work with Financial
Reporting, and perform other administrative tasks, such as updating Essbase outlines.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 8


Middle Tier

• Application server for running applications


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• Supported web servers for handling HTTP requests from


Planning
• Services for Performance Management Architect, Essbase
Studio, and Financial Reporting

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The middle tier
r a n of Oracle WebLogic Server (the application server) for running Planning
h -
o onsupported
applications, web servers for handling Hypertext Transfer Protocol (HTTP) requests
M n and the required services for Performance Management Architect, Essbase Studio,
from Planning,
and Financial Reporting.
The web server can be on a separate machine or on the same machine as the Planning
application server. The web server enables you to access Planning applications from a web client
through a browser. The web server uses HTTP as the communications protocol.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 9


Data Tier

• Relational databases store data for Shared Services,


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Performance Management Architect, Calculation Manager,


Reporting and Analysis, Administration Services, and
Planning.
• Essbase databases store security, Planning data and
metadata, and calculation scripts.

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Data Tier
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Relational
h a m
Databases u s Essbase Databases
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Z
m ed sfera
The datam
a tier consists
t r a n of the relational (non-numeric) and Essbase (numeric) databases.
h
o following -components require a relational database:
non
The
M
• Oracle Hyperion Shared Services
• Oracle Hyperion Performance Management Architect
• Oracle Hyperion Calculation Manager
• Oracle Hyperion Reporting and Analysis
• Oracle Essbase Administration Services
• Oracle Hyperion Planning

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 10


External Services

• Integration with Oracle and other systems


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• Oracle Data Integrator and ERP Integrator for data and


metadata integration
• ERP systems integration for drill-back capabilities

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External Oracle Data Integrator/ed t i Systems
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To load m me and
metadata n s fe
data from Oracle and other systems into Planning applications, you can
o
work
a several
hwith n - traexternal services, including Oracle Data Integrator, ERP Integrator, and, for
M no
classic applications, Outline Load Utility.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 11


Oracle Project Financial Planning
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Project Financial
a n bridges the gap between the detailed projects an organization
m traPlanning
h
o onand- the overall corporate impact/resources. It gives organizations a high-level
undertakes
M
snapshotnof how their assets and resources are allocated, and then it monitors performance and
provides information about return on investment.
Project Financial Planning addresses planning for the various tasks and resources for any project
initiative with an underlying multidimensional database. Specific functionality was built to handle
various scenarios and calculations that are typically used in Project Financial Planning.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 12


Project Financial Planning Features

Project Financial Planning features enable you to:


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• Perform planning for Indirect, Capital, and Contract


projects
• Import metadata and data (using the provided template
files)
• Perform expense planning at detail level or account level
(labor, material, equipment)
• Allocate workforce resources and capital assets to projects s a
• Calculate driver-based overheads for projects ) ha
m
• Perform different types of revenue planning andlerevenue ฺco eฺ
recognition based on the type of Contract o rac G(Time
projects uid
and Material, Fixed Price, Cost Plus,riOther)
a @ ent
• View the impact on financial statements
z a ka Sfrom
t ud a project
ฺ Loss,
level or an entity level (Profit
m e dand
e this Cash Flow, key
am us
performance indicators(KPIs))
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nsand/or its affiliates. All rights reserved.
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Z
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Project Financial
a n leverages core Planning features to enable you to accomplish the tasks
m traPlanning
h
o on the
listed -
slide.
M non

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 13


Project Financial Planning Features

• Rank and approve projects based on a project score using


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financial measures and subjective measures (net present


value, return on investment, payback, lifetime investment,
risk assessment, strategic assessment, business
assessment, organization missions)
• Perform planning for intercompany projects and reconcile
them a
• Request funding h a s
m )
o
• Track the project approval flow
c l eฺc deฺ
• Use out-of-the-box reports o ra Gui
r i a @ ent
• Leverage from sample projects forka tud technology
information
ฺ za is S
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h a m tran Planning features listed are a continuation from the previous slide.
The Project Financial

Mo non-

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 14


Project Financial Planning Process

1 2 3
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Enter project details. Plan for expenses. Plan for revenue


(Contract projects only).

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Submit the plan for Managem ed e thi Review the financials.
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h a m tran Planning process includes the following steps:
The Project Financial

M1.o Enter - details.


non
project
2. Plan for expenses.
3. Plan for revenue (Contract projects only).
4. Review the financials.
5. Manage funding.
6. Submit the plan for approvals.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 15


Step 1: Entering Project Details

Enter project details:


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• Determine the project type: Capital, Indirect, or Contract.


• Enter any new project details, such as new project
assumptions and supplemental information.

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You canm me anproject
propose s fe by launching the Enter New Project Details task to open the New
o haProposals
Project n - traform. You use the New Project Proposals form to gather basic project
M nosuch as type of project, project start and end dates, project location, and project
information
manager. You can add properties to the application, as needed.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 16


Step 2: Planning for Expenses

Expense planning:
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• Add labor.
• Add equipment.
• Add material and other resources.
• Enter direct project expenses.
• Apply overheads.
a
• Review indirect and general and administrative (G&A) has
m )
allocated expenses. o
l e ฺc eฺ
• Review total expenses. ra c uid 2
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You usem
a the tasks in
t r a nthe Expense Planning task list folder to guide you through the process of
h
o odetails
providing - about the expense components of a project.
M n n

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 17


Step 3: Planning for Revenue

Revenue planning:
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• Enter revenue drivers:


– Cost Plus
– Time and Materials
– Unit Price
• Enter direct project revenue.
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h a m us (Contract projects only).

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You usem
a the tasks in
t r a nthe Revenue Planning task list folder to guide you through the process of
h
M on-based
o details
entering
differentnways
about the revenue components for a Contract project. Revenue can be derived in
on the category of the project (Cost Plus, Time and Material, and Unit Price).
Note: Revenue planning can only be performed for projects classified as Contract projects.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 18


Step 4: Reviewing Financials

Review the project financials:


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• Calculate the financial statements.


• Review the impact on the financial statements.
• Review the project KPIs.
• Review the project justification.
• Review the project score.
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You usemthemtasks in nthe Review Project Financials task list folder to review the project impact on
h a
theocompany - t r a
financial statements.
M non
These tasks are discussed in Lesson 9, “Reviewing and Approving Projects.”

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 19


Step 5: Managing Funding

Review project funding:


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• Request the funding.


• Review the allocated funds.

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You usem
a the tasks in
t r a nthe Project Funding task list folder to manage funding.
h
Mo non-

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 20


Step 6: Submitting Plans for Approval

Submit the plan for approval:


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• Promote the plan for approval.


• Review the plan’s approval status.

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a have
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h
o oand
statements n- requested funding, you can promote your plan to another user for approval. You
M
use the n
“Submit Plan for Approval” task list to promote your plan.
Project approval is separate from plan approval.
Consider the following layers of approval:
• Labor request approval
• Equipment request approval
• Funding request approval
• Project approval
• Planning unit approval
Labor, equipment, and funding requests are typically approved when the request is fulfilled.
Project approval locks the project for editing, sets the status, and copies over project information
to the Final and Forecast Final intersections. Plan approval goes through the planning unit review
cycle.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 21


Project Financial Planning Business Scenario

ABC Training Corporation recently purchased Oracle’s EPM


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System and implemented Project Financial Planning and


supporting tools. Project Financial Planning will enable the
company to manage projects in line with its efforts to expand its
business and track training development projects.

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Build classrooms
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Deliver end-user
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Copyright © 2012, Oracle
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a m its efforts
In line with
t r a nto expand its business and track training development projects, Project
h
o oPlanning
Financial - will enable ABC Training Corporation to manage the following projects:
M • n n
Capital project: Build classrooms in a newly purchased training facility.
• Contract project: Deliver end-user training to Miller Corporation.
• Indirect project: Develop a Scope and Track system to monitor billing hours.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 22


The following stakeholders are involved in these projects:
• Martha Jones, Program Manager Head Office: Responsible for creating, tracking, and
managing projects required for the expansion.
• Will Mott, Program Manager Human Resources: Responsible for tracking the utilization of
employees across projects, review new hire requests, forecast work orders, and manage the
schedule and use of resources.
• Thomas Martin, Program Manager Asset Management: Responsible for tracking the
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utilization of assets across projects, manage the use of existing assets, approve asset
requisitions, and reconcile Construction In Progress assets, new assets, leased assets with
existing assets.
• Mickey Smith, Application and Budget Administrator: Responsible for approving projects
and budgets before they are submitted to Finance for funding.

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Oracle Project Financial Planning 11.1.2: Create Projects 1 - 23


Training Environment
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Planning and Data Sources Third-Party Software Web Application


Product Components and Web Servers

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h a m tran is a single-server compact deployment that combines all tiers on one
The training environment

M o oOracle
machine.
who rolln
n- recommends this configuration for a development environment or for customers
out Planning to a very limited number of users.
For a list of products and modules that are included in the training environment, see “Planning
Architecture” in this lesson.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 24


Quiz

Select three Planning components.


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a. Dimension Services
b. Application Server
c. Essbase databases
d. Relational databases

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Answer:
h a m dtran
b, c,
Mo non-

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 25


Quiz

Revenue planning is required for all types of projects:


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a. True
b. False

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Answer:
o h am -tran
b
M non only.
Contract Projects

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 26


Summary

In this lesson, you should have learned how to:


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• Describe Oracle Hyperion Planning (Planning) and its


components
• Identify the main components of the Planning architecture
• Describe the features of Oracle Project Financial Planning
(Project Financial Planning)
• Describe the Project Financial Planning process s a
) h a
• Describe the business scenario om
c l eฺc deฺ
o ra Gui
r i a @ ent
z a ka Stud
e dฺ this
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n
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M no

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 27


Practice 1-1 Through 1-4

The practice covers the following topics:


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• Starting EPM Services


• Identifying Your Server Name
• Preparing the Browser
• Reviewing the Business Scenario, Users, and Roles

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Oracle Project Financial Planning 11.1.2: Create Projects 1 - 28


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Administration Tasks

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Objectives

After completing this lesson, you should be able to:


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• Identify project administration tasks


• Enter values for user variables
• Set discount rates
• Set investment criteria
• Enter overhead assumptions
s a
• Select approval settings
) h a
• Set KPIs o m
c l eฺc deฺ
• Identify intercompany partners o ra Gui
• Set workforce and capital asset global r i a @ ent
rates
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 2


Lesson Agenda

• Application Administration
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• Project Administration
• Workforce Administration
• Capital Asset Administration

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h a m trantasks discussed in this lesson are divided into the following sections:
The administration
- Administration
Mo• Application

non
Project Administration
• Workforce Administration
• Capital Asset Administration

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 3


Initial Implementation Tasks

1. Install and configure Project Financial Planning.


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2. Create and initialize the Project Financial Planning


application.
3. Load the required dimensions and dimension members.
4. Refresh the application.
5. Load data.
6. Set values for substitution variables. s a
) h a
7. Manage Smart Lists. o m
l e ฺc eฺ
8. Set user variables. ra c uid
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From a m meAdministrator
Global n s fe standpoint, you must perform the tasks listed on the slide prior to
o
working n tra Financial Planning.
ha in Project
-
MInitial project,
no workforce, and capital assumptions can be loaded using the utilities specified in
the next sections. You can then manage these assumptions through the administration task
lists covered in this lesson.
Installing and Configuring Project Financial Planning
See the Oracle Enterprise Performance Management System Installation and Configuration
Guide.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 4


Creating and Initializing the Project Financial Planning Application
To create a new Project Financial Planning application using Planning application
administration, see the Oracle Hyperion Planning Administrator’s Guide. When using the
Planning Application Wizard to create a Project Financial Planning application, select the
Oracle Project Financial Planning application type. You can select to initialize the application
with the IT Industry sample.
Note the following when initializing Project Financial Planning:
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• If you are creating a basic Project Financial Planning application, select None. You will
then be prompted to define the application calendar, set currency options, and set the
customizable plan types, if required.
• If you are creating an information technology (IT) industry-specific Project Financial
Planning application, select Information Technology. You will not be prompted to define
the application calendar, currency, and plan types. They will be set automatically with
predefined settings. For details about creating, loading security for, and loading data for
an IT industry–specific Project Financial Planning sample application, see Appendix B, s a
) h a
“Sample Project: Information Technology” of the Oracle Project Financial Planning User’s
Guide.
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 5


Loading Required Dimensions and Members

Load the required dimensions and members that correspond to


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the following metadata in your organization:


• Entity
• Job
• Employee (Existing Employees)
• Asset Class
• Asset Detail s a
) h a
• Existing Projects c o m
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Note them me nwhen
following s feloading dimensions:
o
• - tra You do not need to bring every asset into the application. Project Financial
haAssetnClass:
M no Planning enables you to group together similar assets. For example, if your organization
is using 1,000 laptops, you do not need to add 1,000 members to the Asset Detail
dimension. You can add just one Laptop member to the Asset Detail dimension and while
loading the data corresponding to this asset, specify the Asset Units as 1000.
• Existing Projects: Ensure that you are loading the project under the correct project
classification hierarchy. For example, before loading a project in Project Financial
Planning, if it is determined to be a Contract project, it should be added under the Existing
Contract Project hierarchy. Failing to do so may result in loss of functionality associated
with the project.
Refreshing the Application
After loading metadata (dimensions and members), you must refresh the application to
synchronize it with Oracle Essbase.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 6


Loading Data

Before you import data, you must ensure that the members in
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the data load files are specified in the data load settings of your
Project Financial Planning application.

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Project m me Planning
Financial n s fe provides utilities that leverage the Outline Load Utility in Planning.
htoa loading
- a with the PFPImportUtility, you ensure that driver members are specified on
trdata
o
Prior
Mthe Planningn
no Data Load Administration page.
You import the following Workforce, Capital Asset, and Project data into your application:
• Assumptions
- Capital Assumptions
- Overhead Assumptions
- Workforce Assumptions
• Asset Depreciation and Amortization
• Project Details
- Existing Project
- New Project
• Project Actuals
- Project Expenses
- Project Revenues

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 7


• Employee Project Assignments
• Asset Project Assignments
• Project Material Requirements
• Existing Employee Data
• Existing Major Asset Data
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 8


Templates Overview

Project Financial Planning provides import utilities and sample


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template files that you can use to import data and metadata into
your application.

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mExport
Import m
a and
t r a nUtilities
h -
o ExportPFPTemplates
MThe non utility extracts the sample template files to a user-defined root folder.
The PFPImportUtility imports the data and metadata into the Project Financial Planning
application.
Sample Template Files
After extracting the sample template files, you use them to format your metadata and data in
order to load it to a Project Financial Planning application. The template files are saved in a
comma-separated values (CSV) file type.
After preparing your metadata and data using the template files, you use the PFPImportUtility
to load the information into your application.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 9


Extracting Template Files
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a m trsample
You extract the a n template files from the HspPPIT.JAR file using the
h
o on-
MExportPFPTemplates
n
utility.
To extract the sample template files:
1. Open a command prompt, and navigate to the Planning installation location. For example,
if your Oracle instance is C:\Oracle, navigate to
C:\Oracle\Middleware\user_projects\epmsystem1\Planning\planning1.
2. Enter ExportPFPTemplates.cmd <root folder location> <language>, where <root folder
location> is the directory where you want to extract the sample template files and
<language> is the language code of your Planning locale (for example, fr for French, en
for English, or zh_cn for Simplified Chinese). Use lowercase letters for the language
code.
3. Navigate to the <root folder location> and review its contents.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 10


Template Format

This sample data row loads Laptop Lenovo T400 data to the
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Capex cube at Plan (Scenario), Working (Version), Laptop


(Asset Class), Contract Project 1 (Project), USA (Entity), FY11
(Year), Jan (Period), Local (Currency).

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The firstm mine a sample
row n s fe template file contains the header records, which identify the member
ha and - a values to load. The header records include the budget item (for example,
trthe
o
properties n
MEntity, Asset
no Class, Employee, or Project), the data load cube name, the kind of data to be
loaded (for example, project start and end dates, asset descriptions, or employee types), and
the point of view (POV) to which you are loading data. The POV column contains information
about the budget to which you are loading data (the scenario and version) and the artifacts that
are associated with the data that you are loading (such as entity, position, employee, and so
on).

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 11


Data Load File Order

When loading metadata and data using templates, consider the


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following:
• Create and test CSV load files using a copy of the current
application in a test environment prior to running them in
your production environment.
• Load metadata first, and then data using the order
specified in the next section. a
h a s
• Load data only to level 0 members, and then roll up the)
data to parent members as required. ฺ c om ฺ
r a cle uide
• All dates should be in the format mm-dd-yyyy o fort Gthe CSV
@ n
file data. aria de ak s Stu
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To ensure that a nsource data loads correctly, metadata and data are loaded in this order by
h
o when n-you use the PFPImportUtility script:
Mdefault n o
• Smart List: SmartList.csv
• Asset Detail metadata: AssetMem.csv
• Employee metadata: EmployeeMem.csv
• Entity metadata: EntityMem.csv
• Project metadata: ProjectMem.csv
• Capital Assumptions: ImportGlobalCapitalAssumptions.csv
• Overhead Assumptions: ImportOverheadAssumptions.csv
• Workforce Assumptions: ImportWFPAssumptions_1.csv
• Asset Depreciation and Amortization data: Asset Depreciation and Ammortization.csv
• Existing Project data: ProjectDetails.csv
• New Project data: NewProjectDetails.csv
• Project Actual Expense data: ProjectActualsExpense.csv

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 12


• Project Actual Revenue data: ProjectActualsRevenue.csv
• Existing Employees’ Assignment to Projects: ImportEmployeeProjectAssignment.csv
• New Employees’ Assignment to Projects: ImportNewEmployeeProjectAssignment.csv
• Existing Asset Assignment to Projects: ImportProjectAssetAssignments.csv
• Material Requirements for Projects: ImportProjectMaterialRequirements.csv
• Existing Employee data: ImportExistingEmployees.csv
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• Existing Major Asset data: ImportAssets.csv


Note: After loading metadata and before loading data, you must refresh your application to
synchronize it with Oracle Essbase.

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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 13


Running the Import Utility
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After creating
t r a n files, you can run the PFPImportUtility.bat. Ensure the data load file has
load
h
osameoname - as the template file and that the format of the data load file is the same format
Mthe n n template.
as the provided
To import the CSV data load files:
1. Navigate to the Planning installation location. For example, if your Oracle instance is
C:\Oracle, navigate to
C:\Oracle\Middleware\user_projects\epmsystem1\Planning\planning1.
2. Run PFPImportUtility.bat.
3. When prompted, enter the application, username, and the location for the root folder that
contains the data load files, password, and language code.
4. When finished, open your Project Financial Planning application and verify that the data
was loaded.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 14


Setting Substitution Variables

Essbase Administration Console Planning


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h a m tran are used in Project Financial Planning forms and in predefined reports.
Substitution variables
- the application, you must set values to the following substitution variables:
o to accessing
MPrior
• non
LastYr: Set this to the previous year (for example, FY11).
• CurYr: Set this to the current year. For example, if the current year is 2012, set this to
FY12.
• NextYear: Set this to the next year (for example, FY13).
• Yr2: Set this to the year after NextYear (for example, FY14).
• Yr3: Set this to the year after Yr2 (for example, FY15).
• Yr4: Set this to the year after Yr3, for example, FY16.
• ThisMonth: Set this to the current month.
• CurScenario: Set this to the current scenario (for example, Current).
• CurVersion: Set this to the current version (for example, Working).
• ActVersion: Set this to the actual version (for example, Prior FCST).

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 15


• ForVersion: Set this to the forecast version (for example, Prior FCST).
• PlanVersion: Set this to the working version (for example, Working).
Ensure that these values are existing dimension members in your application.
You can use Essbase Administration Console to manage substitution variables.
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 16


Managing Smart Lists

You must update the following Smart Lists based on your


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business needs:
• AssignmentLocation
• Customer
• FundingSource
• PhysicalLocation
• ProjectCostLevel s a
) h a
• ProjectManager o m
l e ฺc eฺ
• SkillSet c
ra Guid
o
@ ent
• Grade r i a
• Project Billing Level z a ka Stud
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a m trcustom
Smart Lists are a n drop-down lists that users access from form cells. When you click cells
h
o members - are associated with a Smart List (as a member property), you select items
Mwhose non lists instead of entering data.
from drop-down
Note: You cannot type in cells that contain Smart Lists.
Oracle recommends using the Project Financial Planning template and import/export utility
delivered with the product to load Smart List values. After you load Smart Lists to the
application, you manage the values using the Manage Smart Lists page.
To create or work with Smart Lists:
1. In your application, select Administration, then Manage, and then Smart Lists.
2. Perform one of the following actions:
- To create a Smart List, click Create, enter the name, and click OK.
- To change a Smart List, select it and click Edit.
- To delete Smart Lists, select them, and click Delete and OK. Deleting Smart Lists
also deletes any associated mappings with dimension members and reporting
applications.
- Optional: Click Synchronize to synchronize Smart Lists between an application that
uses Planning application administration and a reporting application.
Note: Data cells can display only one Smart List. If multiple Smart Lists intersect at cells, set
which one takes precedence.
Oracle Project Financial Planning 11.1.2: Create Projects 2 - 17
Selecting User Variable Members

You select user variable members before accessing Project


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Financial Planning forms.

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You setm me to the
values n s fe
following user variables to limit the number of displayed members in
h a t r a
- Planning forms:
o Financial
MProject
• non
Scenario View
• Version View
• Entity View
• Reporting Currency
To select user variable members:
1. In your application, select File, and then Preferences.
2. Click the Planning icon, and then select User Variable Options.
If a user variable is set, an entry displays in Selected Member.
3. To select members, click the Select Members icon.
4. Select members from the left pane.
5. Click the Expand All icon or the Collapse All icon to expand or collapse the list.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 18


6. In Member Selection, perform one of the following actions:
To select, click the Add icon.
To remove, click the Remove icon.
To remove all members, click the Remove All icon.
7. Click Save.
8. In User Variable Options, click OK.
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 19


Lesson Agenda

• Application Administration
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• Project Administration
• Workforce Administration
• Capital Asset Administration

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h a m trantasks discussed in this lesson are divided into the following sections:
The administration
- Administration
Mo• Application

non
Project Administration
• Workforce Administration
• Capital Asset Administration

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 20


Project Administration

Administrators perform the following tasks:


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• Setting discount rate and tax rates


• Setting investment criteria
• Entering overhead assumptions
• Setting approval settings
• Setting KPIs
s a
• Managing intercompany project partner relationships
) h a
• Preparing base forecast data o m
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The Project Administration task list guides administrators through the project administration
- tasks and instructions to ensure that all relevant data is collected and
o byonlisting
Mprocessn
calculated.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 21


Project Administration Task List Tasks
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d Za rable
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h a m tranthe Project Administration Tasks List Tasks:
The slide displays
Mo• Set -
non
Discount Rate and Tax Rate: Enter values for discount rate and tax rate
assumptions.
• Set Investment Criteria: Enter investment criteria, including defining weight and
reviewing criteria.
• Enter Overhead Assumptions: Enter overhead assumptions, including indirect cost and
general and administrative cost assumptions.
• Approval Settings: Set the approval status for labor, asset, and funding requests.
• Import Projects: Import projects and refresh the application.
• Set KPIs for Projects: Set key performance indicators (KPIs) for projects.
• Intercompany: Add intercompany partners for a project and review intercompany
reconciliations.
• Prepare Base Forecast Data: Prepare and clear base forecast data.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 22


Project Assumptions

Administrators enter the following assumptions at the entity


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level:
• Discounting approach and related information used to
derive the effective discount rate
• Taxes applicable for the entity
• Predefined rules for apportioning to projects the entity’s
indirect and general and administrative expenses s a
) h a
• Setup requirements for intercompany projects m
o
• Upper and lower limits for KPIs for project evaluation
c l eฺc deฺ
o ra Gui
• Rules for processing large amounts ofadata @ en nmasse
t for
r i e
forecasting, indirect expenses, and
z a S t ud for the
kacalculations
Essbase database edฺ this m se
h a m u
o t o
i a (m nse
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The project administration process enables administrators to set up the required assumptions
n- that will
o information
Mand noinformation
the setup
be used for project planning and forecasting. Administrators can import
from transactional systems or they can add it manually.
The setup information is used as defaults for planning newly created projects or for forecasting
existing projects. Assumptions provided here are entered at the entity level and, when a project
is created for an entity, these assumptions are used as a starting point when you begin your
planning.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 23


Setting Discount Rates and Taxes

Administrators provide the discount and tax rate information


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using the Set Discount Rate and Tax Rate task:

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Administrators
a a nthe Set Discount Rate and Tax Rate task to open the Global Discount Rate
h
o Tax Rate -Assumptions form to define values for the following:
Mand
• non
Tax Rate: Enter the rate at which taxes are paid for the given period.
• Discount Rate Approach: Select the approach for discounting your project’s cash flows
to determine their NPV. There are two predefined approaches: Direct Discount Rate
Approach, whereby you input the discount rate, and Capital Asset Pricing Model (CAPM),
which considers the systematic risk or market risk of the project in the industry.
• Discount Rate: Enter the rate of return that could be earned on an investment in the
financial markets with similar risk.
• Beta: Enter the expected rate of return and risk-free return.
• Riskless Rate: Enter the minimum return the business expects for an investment.
• Market Risk Premium: Enter the difference between the expected return on a market
portfolio and the risk-free rate. Market risk premium is equal to the slope of the security
market line (SML), a capital asset pricing model.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 24


• Debt Ratio: Enter the proportion of debt your company has relative to your assets.
• Cost of Borrowing: Enter the interest rate paid for funds that the business spends in
total for goods or services including money, time, and labor.
The Effective Discount Rate value is the interest rate used in discounted cash flow analysis to
determine the present value of future cash flows. The value can be calculated either by Direct
Discount Rate Approach or CAPM (Capital Asset Pricing Model).
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The effective discount rate drives the following accounts:


• Discounting factor
• Present value (PV) of cash flow
• Net present value (NPV)
The rates entered in the Global Discount Rate and Tax Rate Assumptions task are the default
for all new projects created in Project Financial Planning if the rates are not defined at the
project level. The details entered can be overridden later for a specific project.
To set discount rates and taxes: s a
) h a
1. If task lists are not displayed, select View, then Task List, and then Task List.
ฺ c om ฺ
2. In the Task List Tasks – All content area, expand Expand Project Administration.
r a cle uide
3. For Set Discount Rate and Tax Rate, click the Launch Tasklist Wizard icon in the Action
column. @ o tG
a r ia den
ฺ z ak s Stu
4. Verify the Scenario and Version selections.
ed e thi
5. Select an Entity for the page dimension.
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6. Click Go.
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 25


Project Scoring

Project scoring tracks a project’s performance against a


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predefined set of targets at the entity and project level and


scores projects based on subjective and financial factors.

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mthese
You canm
a use
t r a nscores to rank a project and analyze the performance of a project with
h
o tooother - projects and to a predefined set of limits. Financial scores are dependent on
Mrespect n nmetrics and factors of the project, and are based on financial planning, while
the financial
subjective scores are based on qualitative factors and responses to some predefined questions
and their assessment by the entity head. You can review project scores for individual projects
and across projects.
Process for Project Scoring
1. The entity head defines the weightings for the components of the project score. These
weightings are defined at the subjective and financial level, and the subjective weightings
are further divided into components and subcomponents. Subjective scoring is based on
the questions that are defined by the entity head and which pertain to the project’s
performance.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 26


2. After the project manager completes financial planning for the project, details about
calculated financial metrics and parameters help in calculating the financial scores
automatically. For subjective scores, the project manager must answer a set of predefined
questions and, based on the responses, the entity head can determine the project’s
subjective score.
3. The combination of financial and subjective scores is used to rank the project. Project
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ranking helps the entity, Finance, and corporate management to determine whether to
approve of a project and fund it.

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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 27


Investment Criteria

Administrators define investment criteria based on financial and


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strategic factors:
• Weightage for criteria
• Weightage for financial goals
• Weightage for subjective groups
• Weightage for subjective goals
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h a m tranweights for scoring the projects are defined at the organization level, taking
These predefined
- the corporate strategic plan and goals. They help to determine the factors
o consideration
Minto nothenproject performance based on the parameters defined at corporate level.
affecting

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 28


Investment Criteria

Administrators use the Set Investment Criteria task to open the


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Investment Criteria form:

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Administrators
a a nthe Set Investment Criteria task to open the Investment Criteria form and
h n- criteria in terms of detailed financial and strategic factors for scoring the
o investment
Mdefine byogiving weights to them.
project n
The Investment Criteria contains four sections, which are discussed in the succeeding sections.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 29


Defining Weightage for Criteria
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d Za rable
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m trdefine
Administrators
a a n weightage for the following criteria:
h - Criteria enables weighting and evaluating based on the financial metrics and
Mo• Financial
non
factors of the project, and financial planning.
• Subject Criteria enables weighting and evaluating a project’s value beyond its financial
(objective) merits alone. Examples of Subjective Criteria: how strongly a project expands
a product line or contributes to meeting a company strategy.
• Investment Criteria allows projects to be evaluated against other projects on the basis of
objective financial measures, such as its NPV or Benefit Cost Ratio, and subjective
measures.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 30


Defining Weightage for Financial Goals
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s a
) h a
ฺ c om ฺ
r a cle uide
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d Za rable
m e sfe
m trdefine
Administrators
a a n weightage for the following financial goals:
h - Value (NPV) is an indicator of how much value an investment or project
Mo• Net
non
Present
adds to an organization. It is calculated as a sum of all net cash flows over the years
discounted to their present value.
• Return on Investment (ROI) is a performance measure used to evaluate the efficiency of
an investment or to compare the efficiency of a number of different investments. To
calculate ROI, the benefit (return) of an investment is divided by the cost of the
investment; the result is expressed as a percentage or a ratio.
• Payback Period is the amount of time taken to break even on an investment.
• Benefit Cost Ratio (BCR) is an indicator of the overall value of a project, based on the
ratio of the benefits of a project or proposal, expressed in monetary terms, relative to its
costs, also expressed in monetary terms.
• Lifetime Investment (LI) is a KPI that measures the amount of a project’s funding over
the project’s life.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 31


Defining Weightage for Subjective Groups
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s a
) h a
ฺ c om ฺ
r a cle uide
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d Za rable
m e sfe
h a m tranis divided into the following groups. Administrators define the weightage for
Subjective criteria
Mtheofollowing -groups:
• non
Risk Assessment/Impact is used for scoring the project based on various risks, such as
schedule, cost, resource, time to market.
• Strategic Assessment/Impact is used for assessing projects based on alignment to
business unit or corporate strategy.
• Business Assessment/Impact is used for scoring based on revenue potential.
• Organization Missions is used to assess the project based on how it will help improve
the process efficiency in the organization. Organization missions are commonly used in
Indirect projects.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 32


Defining Weightage for Subjective Goals
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s a
) h a
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r a cle uide
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ฺ z ak s Stu
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d Za rable
m e sfe
a m tscores,
For subjective
r a n the project planner must answer a set of predefined questions and,
h
o onothe -responses, the entity head can determine the project’s subjective score.
Mbased n nis entered in the Define Weightage for Subjective Goals section of the Investment
Weightage
Criteria form.
The objective weights correspond to questions answered in the Detailed Justification task. The
project administrator defines the subjective score for the corresponding questions. If no data is
entered for a goali n the Define Weightage Subjective Goals section, that item is not included in
project scoring.
For example in the slide, there is no weightage entered for Resource and Time to Market.
These goals are not included in project scoring even if the project planner enters responses to
these questions in the Detailed Justification task.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 33


Overhead Assumptions

You enter overhead assumptions for indirect expense, and


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general and administrative expenses by using the Enter


Overhead Assumptions task:

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Overheads
a are a n
m trexpenses necessary for the performance of a job or continued functioning of the
h
o obutn-cannot be specifically attributed to a project. Examples of overhead expenses are
Mbusinessn expenses, direct material expenses, and facilities allocation expenses.
direct labor

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 34


Overhead Assumptions: Indirect Costs

Project Financial Planning provides the following indirect cost


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pool categories:
• Labor Overhead
• Engineering Overhead
• Manufacturing Overhead
• Material Overhead
• Information System Overhead s a
) h a
• Training Overhead o m
l e ฺc eฺ
• Fringe Overhead c
ra Guid
o
@ ent
• Common Overhead Pool r i a
• Facilities Allocation z a ka Stud
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Indirect m meare necessary
costs n s fe to a job but are difficult to assign to a project. Costs to a project
o
are
a -based
hallocated
n tra on the Indirect Cost Rate (ICR) and an ICR can be set for different types of
Mexpenses.noThe project administrator sets the indirect cost pool and allocation basis for each
overhead line item, and then provides the ICR.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 35


Overhead Assumptions:
General and Administrative Costs
General and administrative costs are:
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• Related to the entire company


• Necessary to run the business but cannot be assigned to a
specific job or project
• Used to calculate the general and administrative cost rate
(GACR) for each general and administrative cost pool
Project Financial Planning provides one general and s a
h a
administrative cost pool category: Corp G&A m)
l e ฺco eฺ
o rac Guid
r i a @ ent
z a ka Stud
e dฺ this
m m se
o h a t o u
i a (m nse
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m e sfe
h a m tran sets the general and administrative cost pool and allocation basis for
The project administrator
o general
Meach -and administrative element, and then provides the GACR.
non

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 36


Allocation Basis Assumptions

Project Financial Planning provides the following allocation


Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ

basis options for indirect cost assumptions and for general and
administrative cost assumptions:
• Total Direct Labor Cost
• Total Direct Labor Hours
• Total Direct Material Cost
• Total Number of Employees s a
) h a
• Total Direct Costs o m
• Total Square Footage c l eฺc deฺ
o ra Gui
• Total Machine Hours r i a @ ent
• Value Added Cost Input z a ka Stud
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n
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M no

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 37


Approval Settings

You use the Approval Settings task to set whether the project
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can be approved directly without first obtaining the approval of


the resource, asset, or finance manager:

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h a m tranis set to Yes, the project can be approved without the resource, asset, or
If the auto approval
o manager’s
Mfinance - approval. The project status is set to Approved.
non
f the auto approval is set to No, the resource, asset, or funding must be approved before the
project can be approved.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 38


Key Performance Indicators

Key performance indicators (KPIs) are high-level snapshots


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of a project based on specific predefined measures.

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Administrators
a a nthe Set KPIs for Projects task to define the upper and lower limits of KPIs
h n- attargets.
oall projects
Mfor nolevel
with entity
the entity level. These limits will be used for tracking performance of projects
If projects are not within these limits, warnings will result.
You set KPI limits to the following:
• NPV
• ROI
• Payback Period (Years)
• Benefit Cost Ratio
• Lifetime Investment

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 39


Intercompany Partners

Administrators perform the following intercompany tasks:


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• Adding intercompany partner relationships


• Rolling up intercompany transactions
• Reconciling intercompany transactions

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a r a n
m tpartnerships
Intercompany arise when the scope of the work requires multiple entities to work
h - to complete it. Intercompany partnerships consist of:
Monothe project
• non
An owning entity, who assigns the project work and is responsible for the overall delivery
of the project
• A service-provider entity, who completes the project work within the time line provided by
the owning entity.
The service-provider entity charges the owning entity for the expense incurred on the project.
The reimbursement for these expenses are considered intercompany revenue to the service
provider and become an intercompany expense for the owning entity. At the corporate level,
these intercompany charges are eliminated.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 40


Preparing Base Forecast Data

The following business rules help you prepare base forecast


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data: PrepareDetailForecastBaseData,
PrepareHighLevelForecastBaseData, and ClearForecastData.

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d Za rable
Project m me Planning
Financial n s fe helps you prepare base forecast data by copying the actual data and
a to the
hdata - a
trspecified
o
plan
Mon factors n forecast version. Then, you can adjust created forecast version based
nolike pending work and resource availability. You can set the actual data to read-only
by setting the start and end period or year for the scenario. Forecasting can occur at a high
level or at the detailed assignment level of the project.
Note: Actual data must be loaded to the Actual scenario for “Direct Cost Input” and “Revenue
Direct Input.”
Preparing Forecast Data with Assignment Details
The Preparing Forecast Data with Assignment Details task launches the
PrepareDetailForecastBaseData business rule, which helps you prepare the data for
forecasting project expenses and revenues at a detailed resource level.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 41


This business rule does the following:
• The rule deletes existing data in the “Prior FCST” forecast version.
• The rule copies data from the “Final” forecast version and moves it into the “Prior FCST”
forecast version.
• The rule copies detailed data (including employee, asset, and material assignments) from
the “Final” actual version into the “FORECAST VERSION” version.
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• If data is not available in the “FORECAST VERSION” version, the rule copies the data
with assignment details from the “Final” plan version into the “FORECAST VERSION”
forecast version for the remainder of the budget cycle.
• The rule copies assumptions from the “Prior FCST” forecast version to the “FORECAST
VERSION” version.
Preparing Forecast Data Without Assignment Details
The Preparing Forecast Data without Assignment Details task launches the
PrepareHighLevelForecastBaseData business rule, which helps you prepare the data for s a
) h a
forecasting project expenses and revenues at a high level. Assignment details are not copied.
This business rule does the following: ฺ c om ฺ
r a cle uide
• The rule deletes existing data in the “Prior FCST” forecast version.
@ o tG
a r ia den
• The rule copies data from the “Final” forecast version and moves it into the “Prior FCST”
forecast version.
ฺ z ak s Stu
VERSION” version. m ed e thi
• The rule copies high-level data from the “Final” actual version into the “FORECAST

o ham to us
• If future data is not available in the “FORECAST VERSION” version, the rule copies high-
i a (m nse
level data from the “Final” plan version into the “FORECAST VERSION” version for the
a r l i ce
remainder of the budget cycle.
k
Za rable
• The rule copies assumptions from the Prior FCST forecast version to the “FORECAST
d
me sfe
VERSION” version.
hamForecast
Clearing - t r anData
o
M non
This task launches the ClearForecastData business rule, which deletes the data from the
selected Forecast Version.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 42


Lesson Agenda

• Application Administration
Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ

• Project Administration
• Workforce Administration
• Capital Asset Administration

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ฺ z ak s Stu
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l i ceOracle and/or its affiliates. All rights reserved.
d Za rable
m e sfe
h a m trantasks discussed in this lesson are divided into the following sections:
The administration
- Administration
Mo• Application

non
Project Administration
• Workforce Administration
• Capital Asset Administration

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 43


Workforce Administration

The Workforce Administration task list enables administrators


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to:
• Set global rates
• Import employees
• Calculate compensation

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h a m tran represents one of a company’s largest expenses and its most critical
Employee compensation
o oAsn-you prepare plans to help manage future expenses, you can use Workforce
Mresource.
n to manage and prioritize resources.
Planning
Administering workforce expenses involves planning or forecasting employee compensation
expenses. The Workforce Administration task list includes tasks involved in this process:
• Importing Employees: Track whether this process has completed.
• Set Global Rates: Set and update workforce compensation assumptions (also called
“global rates”) that drive various expense calculations and include such elements as
salary, health care expenses, merit increases, taxes, and default working days, hours,
and standard hourly rates
• Calculate Compensation: Calculate and roll up compensation by Entity, Scenario,
Version, and Year to aggregate expense totals

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 44


Setting Workforce Global Rates

Administrators use the Set Global Rates task under Workforce


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Administration to enter assumptions for the following:


• Midpoint salary compensation assumptions
• Employee benefits assumptions
• Default working days and hours
• Standard hourly labor rates
• Base billing rate s a
) h a
These assumptions are set at the entity or the No Entity o m
level,
but can be changed at the project level. c l eฺc deฺ
ra i o t Gu
r @
ia den
a
ak s Stu
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m ed e thi
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m traused
Global rates
a are n in various calculations to derive costs. These assumptions are often set
h n- and,byforgrade,
oa high olevel
Matmidpoint
nsalaries
certain assumptions, can be changed at a lower level. Administrators set
employee benefits assumptions, default working days and hours,
and standard hourly rates.
The following forms are included in the Set Global Rates task under Workforce Administration:
• Set Mid Salary Compensation Assumptions enables the administrator to enter
midpoint salaries by grade. The form displays 13 predefined grade levels. Administrators
can add, edit, and delete grade levels by using the Grade Smart List and Assumption
Input member under Workforce Planning - Accounts of the Account dimension.
• Set Employee Benefits Assumptions enables the administrator to enter benefit rates
used to calculate for annual salary increases, merit increases, health care costs, and
merit increases.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 45


• Set Default Working Days and Hrs enables you to enter default number of hours per
week and number of working days.
• Enter Standard Hrly Labor Rates enables you to enter standard hourly compensation
for employee positions.
• Set Base Billing Rate enables you to set the different billing rates for the project. Three
predefined levels allow you to bill based on varied levels. Administrators can add, edit,
delete billing levels.
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Note: At the project level, Project managers can only override values to the billing rates.
Values for Mid Salary Compensation Assumptions, Employee Benefit Assumptions, Default
Working Days and Hrs, and Standard Hrly Labor Rates must be set by Project Administrators
at the entity level.
If the assumptions are set at the entity level, they will be used for calculations; otherwise, the
assumptions set for the organization will be used.

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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 46


Importing Employees

You must import employee metadata and data to integrate


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Workforce Planning with Project Financial Planning.

s a
) h a
ฺ c om ฺ
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Workforce primarily requires you to import z k Stufor the Employee
amembers
and Job dimensions.

ed e this
m
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d Za rable
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o h am -tran
Employee Dimension
MTo noninto
perform
employees
detailed employee planning in Project Financial Planning, you must upload existing
Project Financial Planning, including the existing employee structure and
employee properties account members such as Grade or Salary.
Job Dimension
To perform high-level employee planning in Project Financial Planning with the Job dimension,
ensure that all the positions present in the organization are present in Project Financial
Planning as members of Job dimension. When importing the data for existing employees from
the company’s HRMS, the data should be imported at the correct intersection of the Job and
Employee.
For more information on loading metadata and data, see “Initial Implementation Tasks” in this
lesson.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 47


Calculating Employee Compensation

You complete the Calculate Compensation task to view the


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updated total compensation for an entity.

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) h a
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mCalculate
You runm
a the
t r a n Total Employee Compensation business rule associated with the
h n- execute thetask
o oCompensation
MCalculate
n can
data. You
to calculate employee compensation by entity, based on expense
Calculate Total Employee Compensation business rule either in a
batch process after loading employee data from the source HRMS or after you plan resources
for an entity.
To calculate employee compensation:
1. Under the Workforce Administration task list, select Calculate Compensation.
2. Click the Launch button to run the Calculate Total Employee Compensation business
rule.
3. In the Calculate Total Employee Compensation runtime prompt, enter the required
values.
4. Click Launch.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 48


Lesson Agenda

• Application Administration
Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ

• Project Administration
• Workforce Administration
• Capital Asset Administration

s a
) h a
ฺ c om ฺ
r a cle uide
@ o tG
a r ia den
ฺ z ak s Stu
m ed e thi
o ham to us
i a (m nse
k a r © 2012,
Copyright
l i ceOracle and/or its affiliates. All rights reserved.
d Za rable
m e sfe
h a m trantasks discussed in this lesson are divided into the following sections:
The administration
- Administration
Mo• Application

non
Project Administration
• Workforce Administration
• Capital Asset Administration

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 49


Capital Asset Administration

The Capital Administration task list enables administrators to:


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• Import existing assets


• Set capital assumptions
• Run rollup rules
• Verify loaded depreciation and amortization
• Calculate asset-related expenses
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a m tcapital
Administering
r a n assets begins with setting several company assumptions for capital
h n- depreciation methods, useful life of assets, depreciation conventions, and
o including
Massets noassumptions.
other key
Oracle recommends that you update existing asset category and asset detail data (dimensions
and data) before preparing financial plans, either Plan or Forecast. After you update the two
dimensions and refresh the application, you can execute asset-related expense calculations to
consolidate up-to-date asset-related expenses for plans or forecasts.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 50


Importing Existing Assets

Capital planning typically starts by loading existing major


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assets from your company’s source fixed asset system.

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h a m tran and expensing existing assets to projects, Project Financial Planning
To facilitate assigning
o oimport
Mprovides n- utilities and sample template files that you can use to import data and metadata
n application.
into your
Note the following when importing existing assets:
• Oracle recommends loading data from external systems for future periods because
depreciation and amortization for existing assets are typically calculated for future periods
in the source system (for example, the fixed asset ledger). To accurately reflect the
impact of purchases and retirements on depreciation and amortization, you must regularly
refresh this data from the source system.
• You must regularly maintain the Asset Detail dimension to reflect newly-acquired assets
and remove retired assets.
• Oracle recommends that you not load every asset from your fixed asset system into
Project Financial Planning. You need load only those assets that will be used in projects.
• After updating capital asset information, you synchronize the application with Oracle
Essbase by refreshing the application.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 51


Asset Class and Asset Detail
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d Za rable
m e sfe
o h am -tran
Asset Class
MThe Asset n dimension details the different categories of assets that a company owns. You
noClass
update the following asset class members:
• Tangible assets (furniture and fixtures, machinery and equipment, computers, and so on)
• Intangible assets (leasehold improvements, software rights, goodwill).
The Asset Class dimension contains a list of standard equipment that you may request for use
on projects. When you request for resources, you can only specify the type of equipment
needed for the project.
The Standard Equipment member provides a concise list of material assets that are requested
for use on a project. Other types of assets should not be included.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 52


You must add Standard Equipment to the application before using Project Financial Planning
and that you update Standard Equipment data (dimensions and data) before you prepare
financial plans, either Plan or Forecast.
Asset Detail
You can perform detailed asset planning in Project Financial Planning. The process involves
uploading existing assets into Project Financial Planning, including asset properties (Account
members) such as Useful Life, In Service Date, Capacity, and Cost should
Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ

Oracle recommends that you update existing major equipment information (dimensions and
data) before preparing financial plans, either Plan or Forecast.
You load asset details by using a data file with the same format as the AssetMem.csv template
load file. For more information on loading metadata and data, see “Initial Implementation
Tasks” in this lesson.

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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 53


Setting Capital Assumptions

Administrators use the Set Capital Assumptions task under


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Capital Administration to enter rates for the following:


• Tangible assets
• Intangible assets
• Equipment
If no assumptions are set at the entity level, global assumptions
will be used in calculations. a
as )h
m
l e ฺco eฺ
o rac Guid
r i a @ ent
z a ka Stud
e dฺ this
m m se
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d Za rable
m e sfe
m truse
Administrators
a a nthe Set Capital Assumptions task to work with asset information, set drivers
h
Mby on- global
oestablishing
or for allntangible
assumptions for each asset class (for example, buildings or machinery)
or intangible assets.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 54


Setting Capital Assumptions

Set drivers by entering global assumptions for each asset class


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(for example, buildings or machinery) or for all tangible or


intangible assets. You can set these default assumptions at the
entity level or at the “No Entity” (global) level.
• Useful life of assets
• Depreciation methods
• Depreciation conventions s a
) h a
• Amortization methods m
o
• Taxes (%) c l eฺc deฺ
o ra Gui
• Insurance expenses (%) a @ ent
a r i d
• Repairs and maintenance expenses zak (%)Stu dฺ this
m see
h a m u
o t o
i a (m nse
k a r © 2012,
Copyright
l i ceOracle and/or its affiliates. All rights reserved.
d Za rable
m e sfe
a m rates
The standard
t r a nfor equipment that you set in this form are used to calculate the cost of
o h - to a project. The standard rate is multiplied by the units requested by the
Mequipment
project.no
nusage

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 55


Rolling Up Asset Expenses

Before reviewing asset expenses, you must launch the


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business rule to consolidate the data in the assets hierarchy.

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) h a
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d Za rable
m e sfe
a the a n
m trRollupCapexCube
You launch business rule to calculate and consolidate asset data.
h n- asset expenses:
MTooroll up
nocapital
1. Under the Capital Administration task list, select Run Rollup Rules.
2. Click the Launch button.
3. Enter the required runtime prompt values.
4. Click Launch.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 56


Verifying Loaded Depreciation and Amortization

You view the loaded depreciation and amortization values


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using the Verifying Loaded Depreciation and Amortization task.

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) h a
ฺ c om ฺ
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d Za rable
m e sfe
a m and
After loading
t r a n up capital asset expenses, you verify existing assets for each period
rolling
h
o entityobyn-launching the Verify Loaded Depreciation and Amortization on Existing Assets
Mand n task enables you to review depreciation and amortization amounts by period for
task. This
existing tangible assets.
To verify loaded depreciation and amortization:
1. Under the Capital Administration task list, select “Verify Loaded Depreciation and
Amortization.”
2. Review the Verify Loaded Depreciation and Amortization form.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 57


Calculating Asset Related Expenses

To view the total expenses for asset related expenses, launch


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the Calculate Asset Related Expenses business rule from the


Calculate Asset Related Expenses task.

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d Za rable
m e sfe
a m tAsset
The Calculate
r a n Related Expenses task enables asset managers to calculate the asset
h
o expensesn- (Taxes, Insurance, Repairs and Maintenance) based on the assumptions
Mrelated
definednatothe entity level for the asset and asset class combination. Taxes, Insurance, Repairs,
and Maintenance expense are entered as a percentage of the asset value. The rates are
defined on a yearly basis.
To calculate asset related expenses:
1. Under the Capital Administration task list, select Calculate Asset Related Expenses.
2. Click the Launch button.
3. Enter the required values in the runtime prompt.
4. Click Launch.

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 58


Quiz

Administrators enter which of the following assumptions at the


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entity level and when a project is created for an entity?


a. Discounting process and factors
b. Predefined debt ceilings at the project level
c. Average cost of revenue
d. Taxes applicable for the entity
e. Predefined rules for apportioning to projects the entity’s has
a
indirect and general and administrative expenses om)
c l eฺc deฺ
o ra Gui
r i a @ ent
z a ka Stud
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m m se
o h a t o u
i a (m nse
k a r © 2012,
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l i ceOracle and/or its affiliates. All rights reserved.
d Za rable
m e sfe
Answer:
h a m td,raen
a, b,
Mo non-

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 59


Quiz

Only administrators can set up intercompany partner


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relationships.
a. True
b. False

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d Za rable
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ham n-tra
Answer: a
o
M no

Oracle Project Financial Planning 11.1.2: Create Projects 2 - 60


Summary

In this lesson, you should have learned how to:


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• Identify project administration tasks


• Enter values for user variables
• Set discount rates
• Set investment criteria
• Enter overhead assumptions
s a
• Select approval settings
) h a
• Set KPIs o m
c l eฺc deฺ
• Identify intercompany partners o ra Gui
• Set workforce and capital asset global r i a @ ent
rates
a d ak s Stu
ฺ z
m ed e thi
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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 61


Practice 2-1 Through 2-4

The practice covers the following topics:


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• Accessing Project Financial Planning from Workspace


• Setting User Variable Options
• Reviewing Project Administration Tasks
• Accessing Essbase Administration Services Console

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Oracle Project Financial Planning 11.1.2: Create Projects 2 - 62


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Creating Projects

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Objectives

After completing this lesson, you should be able to:


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• Describe project types


• Create projects
• Prepare for project task lists and tasks
• Enter new project details

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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 2


Determining a Project Type

Project Financial Planning enables you to propose new


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contracts for the following types of projects:


• Capital
• Contract
• Indirect

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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 3


Capital Projects

Capital projects are long-term and capital-intensive, resulting in


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the creation of a new company asset.

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h a m traisna long-term investment project undertaken for construction of a capital asset
A Capital project
- bridges, and roads).
o as obuildings,
M(such n n
If a project has a classification of Capital, you can perform only expense budgeting for the
project. Project Financial Planning tracks the incurred expenses for a Capital project as
Construction in Progress (CIP) on the Balance Sheet while the assets are being developed.
Once a Capital project is placed in service and the assets are ready, the CIP assets must be
reconciled with existing assets.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 4


Types of Capital Projects

Project Financial Planning supports two types of capital


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projects:

s a
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Single-Asset Capital Projects Multiple-Assetra cle uProjects
Capital ide
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m trnew
When creating
a a nCapital projects, you must select a project type, also referred to as a
h
o Project n- Asset property:
MCapital n o
• Single-Asset Capital projects are projects that consist of building one Capital asset
using different resources.
• Multiple-Asset Capital Projects are projects that consist of building a group of assets
called sub-projects. The parent project is used to track the budget for all of the sub-
projects.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 5


Contract Projects

A Contract project is work performed for a customer and the


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customer reimburses the company.

Expenses

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h a m tranis work performed for and reimbursed by a customer. Contract projects
A Contract project
o oboth
Mgenerate n- expenses
n revenue,
expenses,
and revenue based on an underlying contract. The Contract project
and billing can be for services performed and reimbursed by a customer.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 6


Types of Contract Projects
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Time and Materials Cost Plus

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Z
m ed sfera
Project m
a t r n
FinancialaPlanning supports the following types of Contract projects:
h - Materials: A project billing type whereby the customer is charged for all of the
Mo• Time
non
and
hours of work performed, for asset expenses, for any direct expenses incurred, and for
materials purchased during project delivery. Examples of Time and Materials
arrangements are typically found in the construction industry, for contractors, and for
consulting firms.
• Cost Plus: An agreement to pay a company for a job based on the expenses required to
complete the job (for example, materials and labor), plus an added payment (or margin).
You can set different Cost Plus margins for different expenses (for example, set a
different margin for labor, materials, and equipment).
• Fixed Price: A project billing type whereby the customer is charged a set negotiated price
for the work performed on the contract (for example, sales revenue with a specified value
of $200,000). This contract type places upon the contractor maximum risk and full
responsibility for all costs and resulting profit or loss.
• Other: A project billing type that can be used for complex contract terms. For example, a
customer may be charged a fixed price for some services delivered as part of a project
while they may also be charged time and material or a markup on expenses.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 7


Indirect Projects

Indirect projects are also known as administrative projects.


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They have a cost impact but do not generate r ia revenue.d e n
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Indirect m me arensalso
projects
fe known as administrative projects and have a cost impact but do not
o ha revenue.
generate n - tra For example, you create a project for your IT department to create a
Msolution/portal
no for the Human Resources team to track personal details of employees.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 8


Preparing Project Tasks

As a Project Manager, you perform the following tasks to create


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projects:
1. Enter new project details.
2. Plan for expenses.
3. Plan for revenue for contract projects.
4. Review project financials.
5. Manage funding. s a
) h a
6. Submit project for approval. c o m
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Project m me nperform
managers s fe the following tasks to create projects:
o
1.
ra and enter any new project details, such as new project assumptions and
haCreaten-atproject
M no supplemental information.
2. Perform expense planning, such as adding labor resources, project equipment, material
and other requirements, entering direct project expenses, applying overheads to the
project, reviewing indirect and general and administrative allocated expenses, and
reviewing total expenses.
3. For Contract projects only, perform revenue planning, such as entering revenue drivers
and entering direct project revenue.
4. Review the project’s financials, such as calculating financial statements and reviewing the
project’s impact on financial statements, reviewing project KPIs, providing a detailed
project justification, and reviewing the project score.
5. Request project funding and review allocated funds.
6. Submit the project for approval.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 9


Entering New Project Details

Enter New Project Details


for Capital Projects
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Enter New Project Details


for Contract Projects

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Enter New Project Details
for Indirect Projects
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Project m meare grouped
tasks n s fe by project type. To create a new project, you launch the Enter New
ha Details - a under the project type that you want to propose.
trtask
o
Project
M no n

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 10


Capital Projects: Adding Projects
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Right-click a row and select Add Project.

s a
Select to add Capital or
) h a
sub-projects.
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m e sfe
m traEnter
By selecting
a the n New Project Details task for Capital projects, you launch the New Project
h
o o–nCapital-
MProposals
n
form.
To add a Capital project in the form, right-click a row and select Add Project and select one of
the following:
• Add Capital Project: To create a parent single-asset or multiple-asset project.
• Add Capital Sub Project: To create a sub-project associated with a parent multiple-
asset project.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 11


Capital Projects: Adding Project Details

You add project details in the Add Project runtime prompt:


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a the
r a n information in the Add Project runtime prompt:
m tfollowing
You enter
h -Enter a name for the project.
Mo• Name:
non
• Description: (Optional) Enter a description for the project to describe its purpose.
• Capital Project Asset: Select Single Asset or Multiple Asset
• Project Start Date and Project End Date: Enter the start and end dates for the project.
• Project Location: Select from a predefined list of locations.
• Project Manager: Select from a predefined list of managers.
The predefined list of locations and managers are based on Smart Lists prepared by the project
administrator.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 12


Capital Projects: Adding Capital Sub-Projects

You enter sub-project details for multiple-asset Capital projects


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in the Add Sub Project runtime prompt:

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a the
r a n information in the Add Sub Project runtime prompt:
m tfollowing
You enter
h - Project: Select a parent project. For multiple-asset Capital projects, you must
Mo• Enter
non
Base
select a Base CPx base project.
• Name: Enter a name for the project.
• Description: (Optional) Enter a description for the sub-project to describe its purpose.
• Project Start Date and Project End Date: Enter the start and end dates for the sub-
project. If you do not specify a start and end date for the sub-project, the values default to
the base project’s start and end dates.
The base project is the parent Capital project that contains the project properties, including
Start Date, End Date, and so on. You should not use the base project for budgeting expenses.
When planning expenses for each asset, you should use the corresponding sub-project.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 13


Contract Projects: Adding Projects
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Right-click a row and select


Add Contract Project .

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By selecting
a the n New Project Details task for Contract projects, you launch the New
m traEnter
h
o Proposals - – Contract form.
MProject non
To add a Contract project, in the form, right-click a row and select Add Contract Project.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 14


Contract Projects: Adding Project Details

You add project details in the Add Contract Project runtime


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prompt:

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a m tfollowing
You enter the
r a n information in the Add Contract Project runtime prompt:
h -Enter a name for the project.
Mo• Name:
non
• Description: (Optional) Enter a description for the project to describe its purpose.
• Project Start Date and Project End Date: Enter the start and end dates for the project.
• Project Type: Select Time and Material, Cost Plus, Fixed Price, or Other.
• Revenue Cash Flow Incidence: Select how cash will be collected from revenues: Before
2 Months, Before 1 Month, Same Month, Next Month, After 2 Months, After 3 Months, or
After 4 Months. The selection directly impacts the cash flow statement. If the same month
is selected, the cash flow statement will show an inflow of cash from customers in the
amount of the contract revenue in the same period. If the next month is selected, the cash
flow statement will show an inflow of cash from the customer with a one month lag. Two
months will be a two month lag, and so on.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 15


• Revenue Recognition: Select when revenue will be recognized: Monthly, Quarterly,
SemiAnnual, After Completion, or When Billed. The default, Monthly, recognizes revenue
in the month the work is performed. If Quarterly is selected, the revenue is recognized in
the last month of each contract quarter. If SemiAnnual is selected, revenue is recognized
in the sixth and twelfth month of the contract. If After Completion is selected, revenue is
recognized after the last month of the contract. If revenue can only be recognized when a
milestone is reached or there is no predefined time frame, select When Billed.
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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 16


Indirect Projects: Adding Projects
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Right-click a row and select Add


Indirect Project .

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m traEnter
By selecting
a the n New Project Details task for Indirect projects, you launch the New
h
o Proposals - – Indirect form. To add an Indirect project, in the form, right-click a row and
MProject nonIndirect Project.
select Add

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 17


Indirect Projects: Adding Project Details

You add project details in the Add Indirect Project runtime


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prompt:

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a the
r a n information in the Add Indirect Project runtime prompt:
m tfollowing
You enter
h -Enter a name for the project.
Mo• Name:
non
• Description: (Optional) Enter a description for the project to describe its purpose.
• Project Category: Select Annual by Fiscal Year if a project must be annually closed out,
justified, or approved. Select Multi-Year if the project can continue year after year.
• Project Start Date and Project End Date: Enter the start and end dates for the project.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 18


Viewing Project Proposals

View proposed projects by selecting the Review Project


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Proposals task:

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a m projects,
After creating
t r a n you view them by selecting the Review Project Proposals task under the
h
o Projects n- updating
MReview noand
white cell
task list folder. You can edit project details on this form by double-clicking a
the information.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 19


Capital Projects: Deleting Project Proposals

Right-click a project and


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select Delete Project.

s a
) h a
ฺ c om ฺ
Select to delete Capital or

r a cle uide
sub-projects.

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a Capital n
m traprojects,
To delete in the New Project Proposals – Capital form, right-click a project and
h
o Delete -Project. Then, select one of the following:
Mselect
• non
Delete Capital Project
• Delete Sub Capital Project

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 20


Contract Projects: Deleting Project Proposals
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Right-click a project and select


Delete Contract Project.

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h a m tranprojects, in the New Project Proposals – Contract form, right-click a project
To delete Contract
- Contract Project.
o selectoDelete
Mand n n

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 21


Indirect Projects: Deleting Project Proposals
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Right-click a project and select


Delete Indirect Project.

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a Indirect n
m traprojects,
To delete in the New Project Proposals – Indirect form, right-click a project
h - Indirect Project.
o selectoDelete
Mand n n

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 22


Changing Project Status

In the New Project Proposals form for Capital, Contract, and


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Indirect projects, right-click a row and select Change Project


Status.
Right-click a project and select
Change Project Status.

s a
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Then, select a newoprojecttstatus.G
i a @ n
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Project m me isnseparate
approval s fe from plan approval. Approving the project sets the status of the
o
project n tra and locks the project for editing. You cannot make any changes to
hato Approved
-
Mapprovednoprojects.
The approved project will be copied to current scenario Final and to the Forecast Final
intersections.
To start updating the project status, right-click a project and select Change Project Status.
Then, select Approve Project, Disapprove Project, or Put Project on Hold.
The project status must be changed by the approving authority before promoting the project
through the Approvals process.
Note: You can change the project status if you have access permissions for this task.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 23


Project Status Runtime Prompts
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m e sfe
After selecting
a n status, the corresponding runtime prompt is displayed. In the runtime
m taraproject
h
o verify - the project name, (optionally) enter comments, and click OK.
Mprompt, non

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 24


Reconciling Projects

Reconciling a project moves the new project to an existing


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project:
For Capital projects, right-click and select
Reconcile Capital Project.

Enter and verify the source (proposed) project


and existing (imported) projects in the
Reconcile Project runtime prompt.
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d Za rable
m e sfe
When you
h a m tran projects, the data for the source project is moved to an existing project in
reconcile
n- and
osameoentity,
Mthe n projects
reconcile
then the source project is deleted from the entity. For example, you
to assign a true project number (existing project) to a temporary project. This
moves the data from the (source) temporary project to the existing (destination) project, and
then deletes the source project.
To reconcile Capital, Contract, and Indirect projects in their corresponding New Projects
Proposals forms, right-click a project and select Reconcile Capital Project. Then, enter and
verify the source and destination projects.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 25


Moving Projects

Right-click and select Move


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Projects.

Select the project, existing version,


and destination version in the Move
Projects runtime prompt.

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) h a
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d Za rable
You canm mea project
move n s fefrom one version to another. For example, from Working to Final.
o hayou move
When n - traprojects, the selected projects will be deleted from the source version and
Mmoved ntoothe destination version.
For example, in a use case scenario, you can move projects with a status of On-hold or
Unapproved from the Working version so that the entity-level financials will reflect only those
projects that are Proposed or Approved.
Note: You must have rights to move a project to perform this task.

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 26


Quiz

As a Project Manager, you perform which of the following tasks


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to create projects?
a. Enter existing project details.
b. Plan for expenses.
c. Plan for revenue for contract projects.
d. Submit plan for approval.
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d Za rable
m e sfe
Answer:
h a m tdran
b, c,
Mo non-

Oracle Project Financial Planning 11.1.2: Create Projects 3 - 27


Quiz

When you reconcile a project, you transfer it from one version


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to another.
a. True
b. False

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Answer: b
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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 28


Quiz

You enter sub-project details for multiple-asset Capital projects.


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a. True
b. False

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Answer: a
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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 29


Summary

In this lesson, you should have learned how to:


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• Describe project types


• Create projects
• Prepare for project task lists and tasks
• Enter new project details

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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 30


Practice 3-1 Through 3-4

The practice covers the following topics:


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• Capital Project: Furnishing Classrooms


• Contract Project: Delivering Training to Miller Corporation
• Contract Project: Developing Scope and Track
• Indirect Project: Training for Scope and Track

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Oracle Project Financial Planning 11.1.2: Create Projects 3 - 31


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Planning for Project Expenses

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Objectives

After completing this lesson, you should be able to:


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• Assign and calculate labor expenses


• Assign and calculate equipment expenses
• Assign and calculate material and other requirements
• Enter direct project expenses
• Calculate overhead expenses
s a
• Review indirect and G&A expenses
) h a
• Review total project expenses o m
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Oracle Project Financial Planning 11.1.2: Create Projects 4 - 2


Expense Planning: Task Overview

You use the Expense Planning task list to guide you through
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the process of providing details about the expense components


of a project, including the following:
• Add labor
• Add equipment
• Add material and other resources
• Enter direct project expenses s a
) h a
• Apply overheads o m
l ฺc eฺ
e(G&A)
• Review indirect and general and administrative c
ra Guid
allocated expenses o
@ ent
a r i a d
• Review total expenses zak Stu
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M no

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 3


Assigning and Calculating Labor Expenses

When assigning labor, you perform the following tasks:


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• Add labor
• Calculate labor expenses
• Review labor expenses

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Oracle Project Financial Planning 11.1.2: Create Projects 4 - 4


Adding Labor

You add labor to projects by using the Add Labor task.


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You canm me ornsdecrease
increase
fe labor hours, add more resources to the project, change the
h a t r a
- frame, and so on. Changes made here are reflected in the revised Total Labor
o ontime
Massignment
n for the project.
Expense
To assign labor resources to a project:
1. Navigate to one of the new project proposal task lists.
2. Expand Expense Planning, and then expand Add Labor.
3. Under the Add Labor task list folder, select Add Labor.
4. Review the Labor Assignment Details form.
5. Right-click a row and select Add Labor Assignment.
.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 5


6. Enter the following information in the Add Labor Resource runtime prompt:
- Select Job: Select the type of job required for the project from a predefined list of
jobs.
- Enter Headcount: Enter the number of resources needed to accomplish the work. If
more than 1 is entered, the hours are calculated.
- Enter Skill Sets: Select the skills needed to perform the job from a predefined list of
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skills. This field is informational and does not impact the labor calculations. You can
customize this field by adding new members to the Smart List. Adding additional
values to the Smart List will not impact the business rules.
- Assign for Project Duration (Y/N): The default is Yes. Select Yes if the resource
will be assigned for the duration of the project. If Yes is selected, you do not need to
enter the assignment start and end dates. The rule will automatically take the project
start and end dates. Select No if the resource will not be assigned for the duration of
the project. If No is selected, you must enter the assignment start and end dates for
the resource. If a resource is used sporadically, enter the resource start and ends a
h a
dates for the first period of the project to add the resource line item to the form. Then
)
ฺ c om ฺ
expand the year in the form to add additional hours for the resource by period.

r a cle uide
- Assignment Start Date/Assignment End Date: If the resource will not be
o tG
assigned for the project duration, you must enter the start and end dates. If the start
@
a r ia den
and end dates are not completed, the rule assumes the resource will be assigned
for the duration of the project.
ฺ z ak s Stu
ed e thi
- Allocation Percentage: (For Capital and Indirect projects only) Enter the
m
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percentage of time a labor resource is allocated to a project. The Allocation
o
Percentage drives the labor expense of that resource to a project.
a (m nse
- Enter Labor Hours per Headcount: (For Capital and Indirect projects only) If
i
k a r l i ce
requesting more than one headcount, enter the number of hours per headcount for
Za rable
the calculation.
d
m e sfe
- Onsite Labor Hours: (For Contract projects only) Enter the number of hours the
n
o ham n-tra
resource will perform project work onsite. Onsite labor hours is used in the Contract
M no revenue calculation.
- Offsite Labor Hours: (For Contract projects only) Enter the number of hours the
resource will work on the project. Offsite labor hours is used in the Contract revenue
calculation.
- Non-Billable Hours: (For Contract projects only) Enter the number of labor hours
that needs to be included on the project but cannot be billed to the customer. Non-
billable hours is used in the labor expense calculation, but is excluded from the
Contract revenue calculation.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 6


- Spreading Logic: Select the logic that determines how values are distributed:
Fill: Copies the value entered to all of the cells in a grid. For example, if a value of 200
hours is entered for a project, then the values for each month between the start and end
dates of the project are set to 200.
EvenlySplit: Divides the value entered between all of the cells in a grid. For example, if a
value of 200 hours is entered for a project, then the 200 is divided over the number of
months between the start and end dates.
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- Comments: (Optional) Enter comments about the labor assignment.


7. Click OK.
Note: For Contract projects, the project billing level is unspecified by default. Update it to
correct the billing level, if required. This is used for calculating revenue.
From the form, you can use the shortcut menus to add and remove labor assignments,
calculate project labor, change labor assignments, view the standard hourly cost, and remove
an employee assignment.
Removing a Labor Assignment s a
) h a
or to remove a labor assignment that was added by mistake. ฺ c om ฺ
You use the shortcut menu to remove a labor resource that is no longer required on the project

Changing Assignments r a cle uide


@ o tG
ia dYou
You use the shortcut menu to make changes to a labor assignment.
r e ncan extend or shorten
the labor assignment, change the headcount, or change a a tu of hours assigned to the
kthe number
ฺ z
project. The spreading logic field indicates how todapply theis
S
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Oracle Project Financial Planning 11.1.2: Create Projects 4 - 7


Calculating Labor Expenses

Calculating project labor is a critical step for costing the project.


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After completing the Assign Labor Resources task, you must


launch the business rule that calculates labor expenses.

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h a m traaren calculation based on the hours per month and standard hourly labor rates,
Labor expenses
Masoshown - formula:
in this
non
Hours per month * Standard Hourly Rates of Labor = Project Labor
To calculate labor for new projects:
1. Navigate to one of the new project proposal task lists.
2. Expand Expense Planning, and then Add Labor.
3. Select the Calculate Labor Expenses task.
4. Launch one of the following business rules:
- For Contract projects: CalculateProjectLaborExpenses-Contract
- For Capital and Indirect projects: CalculateProjectLaborExpenses-Other
5. Enter the required information in the runtime prompt.
6. Click OK.
Alternatively, you can use the shortcut menu on the Labor Assignment Details form (Add Labor
task) to calculate labor expenses for the project.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 8


Reviewing Labor Expenses

You review labor resource requests and their financial impact in


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the Project Labor Detail form.

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a m tlabor
To review the
r a nexpense:
h - to one of the new project proposal task lists.
Mo1. Navigate
non
2. Expand Expense Planning, and then Add Labor.
3. Launch the Review Labor Expense task.
4. Review the Project Labor Detail form.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 9


Assigning and Calculating Equipment Expenses

You can request use of equipment for a project based on


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project requirements. When assigning equipment, you perform


the following tasks:
• Add equipment
• Calculate equipment expenses
• Review equipment expenses
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You canm mefor related
plan n s feproject expenses and to update assumptions about the use of the
ha nFor - a
trexample,
o
equipment.
Mequipment you can increase, decrease, or remove equipment hours. The
nocost to the project is based upon the standard rates for equipment.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 10


Adding Equipment

You specify the equipment requirements for the project by


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using the Add Equipment task.

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h a m tran based on values defined in the Standard Equipment member. For
You assign equipment
o oyou
Mexample, -can request for laptops by selecting the Laptop standard equipment member.
nunits
Specifynthe required and the duration of the assignment.
To assign project equipment:
1. Navigate to one of the new project proposal task lists.
2. Expand Expense Planning, and then expand Add Equipment.
3. Under the Add Equipment task list folder, select Add Equipment.
4. Review the Add Equipment form.
From the form, you can use the shortcut menu to add, remove, and change equipment
requisitions, calculate equipment expenses, and view standard equipment rates.
To add equipment to a new project:
1. Open the Add Equipment form.
2. Right-click a row and select Add Equipment Requisition.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 11


3. In the Add Equipment Requisition runtime prompt, specify or select the settings that are
applicable for your project:
- Standard Equipment: Select the equipment needed from a predefined list of
equipment.
- Equipment Description: (Optional) Provide details about equipment specifications.
- Equipment Units: Enter the number of equipment units needed for the project. For
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example, if two cranes are needed for 200 hours per month, enter 2 in this field and
200 in the Equipment Usage/Unit field.
- Equipment Usage/Unit: Enter the number of hours per equipment unit for the
calculation. This is optional and you need only enter usage per unit if it is required
for the project. For example, if three laptops are needed per month, enter 3 in the
Equipment Units field and leave this field blank.
- Assign for Project Duration (Y/N): The default is Yes. Select Yes if the equipment
will be assigned for the duration of the project. If Yes is selected, you do not need to
enter the assignment start and end dates. The rule automatically takes the project s a
) h a
start and end dates. Select No if the equipment will not be assigned for the duration
ฺ c om ฺ
of the project. If No is selected, you must enter the assignment start and end dates

r a cle uide
for the equipment. If the equipment is used sporadically, enter the equipment start
o tG
and end dates for the first period of the project to add the resource line item to the
@
a r ia den
form. Then expand the year in the form to add additional hours for the equipment by
period.
ฺ z ak s Stu
ed e thi
- Assignment Start Date/Assignment End Date: If the equipment will not be
m
ham to us
assigned for the project duration, enter the start and end dates. If the start and end
o
dates are not entered, the rule assumes the equipment will be assigned for the
i a (m nse
project duration.
k a r l i ce
- Spreading Logic: Select the logic that determines how values are distributed in a
d Za rable
grid:
m e sfeFill: Copies the value entered to all of the cells in a grid. For example, if a value of
n
o ham n-tra 200 hours is entered for a project, then the values for each month between the
M no start and end dates of the project are set to 200.
EvenlySplit: Divides the value entered between all of the cells in a grid. For
example, if a value of 200 hours is entered for a project, then the 200 is divided
over the number of months between the start and end dates.
Note: If the start and end dates are not completed, the Spreading Logic will use
the full project duration to populate the months appropriately.
- Justification: Provide a reason why the equipment is needed.
4. Click OK.
Removing Equipment Requisitions
You use the shortcut menu to remove an equipment requisition that is no longer required on the
project or to remove an equipment requisition that was added by mistake.
Changing Equipment Requisitions
You use the shortcut menu to make changes to an equipment assignment. You can extend or
shorten the assignment, or change the equipment units assigned to the project.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 12


Calculating Equipment Expenses

After equipment requisitions have been entered or modified,


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you must run calculations to derive the project expenses for


equipment usage based on equipment units and standard
equipment rates.

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m e sfe
When the
h a m tran is executed, it determines the cost for all equipment assigned to the
calculation
o forothe
Mproject - duration of the project based on the following formula:
n n
Equipment Usage * Equipment Standard Rate = Equipment Expense
If there is no Equipment Usage, then Equipment Units will be used instead and Equipment
Expense will be calculated as follows:
Equipment Units * Equipment Standard Rate = Equipment Expense
To calculate project equipment expenses:
1. Navigate to one of the new project proposal task lists.
2. Expand Expense Planning, and then expand Add Equipment.
3. Select Calculate Equipment Expense.
4. Launch the CalculateProjectAssetExpenses business rule.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 13


Reviewing Equipment Expenses

You review expenses for the assigned equipment for a project


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in the Project Expense for Equipment – Detail form.

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m e sfe
a project n
m traequipment
To review expenses:
h - to one of the new project proposal task lists.
Mo1. Navigate
non
2. Expand Expense Planning, and then expand Add Equipment.
3. Select Review Equipment Expenses.
4. Review the Project Expense for Equipment – Detail form.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 14


Adding and Calculating Material
and Other Requirements
With the Add Material and Other Resources task list, you
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manage project materials, subcontractors, and other expenses


resources.

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Oracle Project Financial Planning 11.1.2: Create Projects 4 - 15


Adding and Calculating
Material and Other Resources
You add materials, subcontractors, and other resources for
Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ

project expenses by using the Add Material & Other Resources


task.

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To add m me andnsother
material
fe resources to a project:
o
1.
haNavigate
n - trtoaone of the new project proposal task lists.
M no
2. Expand Expense Planning, and then expand “Add Material and Other Resources.”
3. Select Add Material & Other Resources.
4. Review the Material and Other Requirement form.
From the form, you can use the shortcut menu to add and remove material and other
requirements, and calculate material and other resources.
You use this task to enter labor and material resources not available within the organization.
For example, you can hire a subcontractor as a potential labor resource and rent an asset that
you do not need to purchase.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 16


To add material and other requirements to a project:
1. Open the Material and Other Requirement form.
2. Right-click a row and select “Add Material and Other Requirements.”
3. In the Add Material and Other Requirements runtime prompt, specify or select the settings
that are applicable for your project:
- Enter Resource Name: Enter the name of the material or other expense to be
Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ

added.
- Resource Descriptions: (Optional) Provide details about the resource being
added.
- Resource Class: Select from the following predefined resource classes: Material,
Subcontractor, and Other.
- Assign for Project Duration (Y/N): The default is Yes. Select Yes if the resource
will be assigned for the duration of the project. If Yes is selected, you do not need to
enter the requirement start and end dates. The rule will automatically take the
s a
) h a
project start and end dates. Select No if the resource will not be assigned for the

ฺ c om ฺ
duration of the project. If No is selected, you must enter the requirement start and
end dates for the resource. If the resource is used sporadically, enter the
a cle uide
requirement start and end dates for the first period of the project to add the resource
r
o tG
line item to the form. Then expand the year in the form to add additional units for the
@
resource by period. a r ia den
ฺ z ak s Stu
- Requirement Start Date/Requirement End Date: If the requirement will not be
ed e thi
assigned for the project duration, enter the start and end dates. If the start and end
m
o ham to us
dates are not completed, the rule assumes the requirement will be assigned for the
duration of the project.
i a (m nse
k a r l i ce
Note: The requirement start and end dates must occur within the project start and

d Za rable
end dates. Assignments cannot start before the project start date nor can they end
after the project end date.
m e sfe
n
ham n-tra
- Spread Logic: Select the logic that determines how values are distributed in a grid:
o
M no Fill: Copies the value entered to all of the cells in a grid. For example, if a value of
200 hours is entered for a project, then the values for each month between the
start and end dates of the project are set to 200.
EvenlySplit: Divides the value entered between all of the cells in a grid. For
example, if a value of 200 hours is entered for a project, then the 200 is divided
over the number of months between the start and end dates.
- Units Required: Enter the number of units required for the material or other
expense.
- Cost UOM: Select from a predefined list the unit of measure for the cost.
- Cost/Unit: Enter the cost per unit for the material and other expense. The materials
and other expenses calculation will be based on Units Required × Cost/Unit.
4. Click OK.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 17


Calculating Material and Other Expenses

You run business rules to calculate the expenses for materials


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and other expenses. This calculation multiplies the number of


units entered by the cost per unit on a monthly basis for the
duration of the project.

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d Za rable
m e sfe
h a m tran and other expenses for a project:
To calculate material
Mo1. Navigate- to one of the new project proposal task lists.
2.
non
Expand Expense Planning, and then expand Add Material & Other Resources.
3. Select Calculate Material & Other Expenses.
4. Launch the CalculateMaterialExpenses_Ruleset business rule.
5. In CalculateMaterialExpenses_Ruleset, specify or select the settings that are applicable
for your project.
6. Click Launch.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 18


Reviewing Material and Other Expenses

You review summaries of the total material and other expenses


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associated with a project in the Total Material and Other


Expenses form.

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d Za rable
m e sfe
h a m tranand other expenses for a project:
To review material
- to one of the new project proposal task lists.
Mo1. Navigate
non
2. Expand Expense Planning, and then Add Material & Other Resources.
3. Select Review Material & Other Expenses.
4. Review the Total Material and Other Expenses form.
You can use the shortcut menu to calculate project expenses.

Oracle Project Financial Planning 11.1.2: Create Projects 4 - 19


Entering Direct Project Expenses

You enter lump sum amounts for expenses that do not have
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