Asset Line Grouping Configurator

By default, Oracle Project Portfolio Management Cloud groups project cost

transactions into asset lines by project, task, and CIP account name. Use Project
Process Configurator to group asset lines using additional grouping criteria. This
grouping is useful while assigning assets to projects.

For example, you can create a configurator to specify that the application must
group asset line costs using project attributes, such as inventory item or funding
source, or a user-defined descriptive flex-field. You can also combine attributes to
create specifications for more complex grouping scenarios, such as expenditure
category and expenditure organization.

Create Asset Line Grouping Using Project

Process Configurator
To create asset line grouping using Project Process Configurator:

1. In the Setup and Maintenance work area, use the Manage Project Process
Configurator task.
2. On the Manage Project Process Configurator page, click Create in the Search
Results section.
3. On the Create Project Process Configurator page, enter a Name for your
configurator.
4. Select Asset Line Grouping in the Business Process drop-down list.
5. In the Configurator section, move the grouping sources that you want to use
to group asset lines from the Available Grouping Sources list to
the Selected Grouping Sources list.
6. Verify that the Active check box is enabled.
7. Click Save and Close.

If you want to manage an existing configurator, use the Search Results section to
view and update its details, or to delete it.

Considerations for Asset Line Grouping

Configuration
Keep the following considerations in mind while creating the asset line grouping
Configurator:

 You can create multiple configurators for asset line grouping, but only one of
them can be active.
 You can only select up to ten grouping sources.
 When you create a new asset line grouping method or update an existing one,
the application groups all subsequent asset lines created using the active
grouping method.
 You can update grouping methods at any time, and all new asset lines will use
the active criteria.
 When you create asset line grouping criteria using the Project Process
Configurator, the application applies the new criteria on top of the default
grouping criteria. For example, if you create a configurator that groups asset
lines by Expenditure Organization and Expenditure Type, the application
groups asset lines by the following sources.
o Project
o Task
o CIP Account
o Expenditure Organization
o Expenditure Type

Process configurator is useful way to extend functionality in some areas by out of the box
configuration. As an example, you have limited choices on project type for asset line grouping but if
you choose process configurator as grouping method, you have additional choices. Similarly, it could
be used to generate events for cogs recognition and loss booking. There is no direct SQL involved but
you can write expressions to derive amounts, using available standard sources and apply filters as per
business logic.

19c

PREDICT LOSS ON FIXED PRICE CONTRACTS USING BILLING EVENTS

Define business-specific calculations to create billing events to accrue predicted losses on fixed price contracts
using the project process configurator.

Accounting standards require you to accrue the full estimated loss on fixed price contracts in the current
accounting period that the estimated loss is calculated. To achieve the automatic loss accrual, you can configure
multiple sets of rules to create revenue-applicable billing events that can be accounted as loss accruals. These
sets of rules are called project process configurators. When you assign these project process configurators to a
revenue method, select the revenue method on a revenue plan, assign the revenue plan to a contract line, and run
the Generate Revenue process, the application automatically creates revenue-applicable billing events. When
you run the Create Accounting process for the applicable contract business unit, the revenue-applicable billing
events create and post accounting entries in your general ledger that accrue the estimated losses on fixed price
contracts to an expense account on your income statement. This feature lets you accurately report corporate
level profitability, while ensuring you don’t overstate project contract revenue in project subledger.

STEPS TO ENABLE

Let’s walk through the steps for a fixed price contract line that uses percent complete as the basis for
revenue recognition:

1. Using the Manage Project Process Configurator task in Setup and Maintenance, create the following
new project process configurators:
a. Revenue Configurator, which calculates the amount of revenue to recognize in the current
period.
b. Cost of Goods Sold Configurator, which calculates the amount of cost to move from the
Project Work-in-Process to the Project Cost of Goods Sold account.
c. Contra Cost of Goods Sold Configurator, which calculates a negative amount of cost to
reverse the effect of the Cost of Goods Sold Configurator, ensuring you don't overstate
revenue in the project subledger.
d. Loss Accrual Configurator, which calculates the amount of cost to accrue in the current period
for the estimated loss.
e. Contra Loss Accrual Configurator, which calculates a negative amount of cost to reverse the
effect of the Loss Accrual Configurator, ensuring you don't overstate revenue in the project
subledger.
2. Using the Manage Billing Methods task in Setup and Maintenance, create a new revenue method,
assigning the newly created project process configurators.
3. Using the Manage Account Rules task in Setup and Maintenance, modify existing account rules,
specified on the Event Revenue and Event Revenue Adjustment Journal Line Rules, to add conditions
to ensure the billing events created by the Cost of Goods Sold, Contra Cost of Goods Sold, Loss
Accrual, and Contra Loss Accrual project process configurators create the expected journal entries. For
example, when accounting for an event with an event type associated to the Loss Accrual configurator,
debit the Project Estimated Losses on Fixed Price Contracts expense account and credit the Project
Loss Accrual liability account.  When accounting for an event with an event type associated to the
Contra Loss Accrual configurator, debit and credit a clearing account.
4. Using the Edit Contract page in the Contracts work area, amend an existing fixed price contract and
create a new revenue plan, selecting the new revenue method and assigning the new revenue plan to an
existing contract line.

See the What’s New content for the Record Cost Accrual Using Billing Events feature for details on the
Revenue Configurator, Cost of Goods Sold Configurator, and Contra Cost of Goods Sold Configurator.

LOSS ACCRUAL CONFIGURATOR

The following image illustrates a project process configurator to calculate the amount of cost to accrue as an
estimated loss on fixed price contracts for the period, using the following sources:

1. Associated Project Funding Amount in Contract Currency

2. Calculation Level Percent Complete
3. Calculation Level Labor Burdened Cost in Project Functional Currency - ITD
4. Calculation Level Labor Burdened Cost in Project Functional Currency - Run
5. Calculation Level Nonlabor Burdened Cost in Project Functional Currency - ITD
6. Calculation Level Nonlabor Burdened Cost in Project Functional Currency - Run
7. Calculation Level Planned Burdened Cost in Project Functional Currency. Include a Plan Type Filter
for this source that is the Plan Type containing the At Completion cost amount.
8. Calculation Level Event Amount in Contract Currency - ITD.  Ensure you apply an Event Type Filter
to this source that is the Transaction Type assigned to this configurator on the applicable revenue
method.
Loss Accrual Configurator

CONTRA LOSS ACCRUAL CONFIGURATOR

The following image illustrates a project process configurator to reverse the impact on project contract revenue
of the Loss Accrual Configurator, using the following sources:

1. Associated Project Funding Amount in Contract Currency

2. Calculation Level Percent Complete
3. Calculation Level Labor Burdened Cost in Project Functional Currency - ITD
4. Calculation Level Labor Burdened Cost in Project Functional Currency - Run
5. Calculation Level Nonlabor Burdened Cost in Project Functional Currency - ITD
6. Calculation Level Nonlabor Burdened Cost in Project Functional Currency - Run
7. Calculation Level Planned Burdened Cost in Project Functional Currency. Include a Plan Type Filter
for this source that is the Plan Type containing the At Completion cost amount.
8. Calculation Level Event Amount in Contract Currency - ITD.  Ensure you apply an Event Type Filter
to this source that is the Transaction Type assigned to the Loss Accrual Configurator. 

NOTE: This configurator should be identical to the Loss Accrual Configurator with one exception – the
calculated amount should be multiplied by -1.
Contra Loss Accrual Configurator

NEW REVENUE METHOD

The following image illustrates the creation of a new revenue method with project process configurators
assigned to recognize revenue, transfer cost, and accrue losses:

Loss Accrual Revenue Method

TIPS AND CONSIDERATIONS

 The inception to date and period to date sources don't include the revenue amounts for transactions
being recognized in the current process.
  The amounts values used in the configurator formulas can be further refined by using the filters for a
source.
 The event type to use for events created by a configurator are assigned on the revenue method.
 Use conditions in the Account Rules associated to the Event Revenue and Event Revenue Adjustment
Journal Line Rules to ensure that the resulting accounting entries are based on the event type.

The table below illustrates a simple example of the revenue and predicted loss amounts calculated as the
estimate at completion and percent complete change over time.

ITD
Estimate at Estimate to Funded Percent ITD Actual
Period Actual
Complete Complete Amount Complete Revenue
Cost

January 80 0 80 100 0 0

February 80 20 60 100 25 25

March 105 52 53 100 50 50

April 110 83 27 100 75 75

May 110 110 0 100 100 100

Estimate to Complete = Estimate at Completion – ITD Actual Cost

ITD Actual Revenue = Funded Amount * (Percent Complete/100)

Remaning ITD Profit ITD Loss Total Profit Period Loss Contra Period
 Period
Revenue (Loss) Accrual (Loss) Accrual Loss Accrual

 January  100  0  0  0  0  0

 February  75  5  0  0  0  0

 March  50  -2  -3  -5  -3  3

 April  25  -8  -2  -10  1  -1

 May  0  -10  0  -10  2  -2

Remaning Revenue = Funded Amount - ITD Actual Revenue

ITD Profit (Loss) = ITD Actual Revenue – ITD Actual Cost

ITD Loss Accrual = Remaning Revenue – Estimate to Complete

Total Profit (Loss) = ITD Profit (Loss) + ITD Loss Accrual

Period Loss Accural = ITD Loss Accrual – ITD Loss Accrual (from prior period)
Contra Period Loss Accural = –1*Period Loss Accural

ROLE INFORMATION

To use this feature, you need these roles:

 Job Role Name and Code:

o Project Application Administrator
(ORA_PJF_PROJECTS_APPLICATION_ADMINISTRATOR_JOB)
o Customer Contract Administrator
(ORA_OKC_CUSTOMER_CONTRACT_ADMINISTRATOR_JOB)
o Customer Contract Manager (ORA_OKC_CUSTOMER_CONTRACT_MANAGER_JOB)

19b

DEFINE ADVANCED REVENUE METHODS

Define complex calculations for advanced revenue recognition requirements. You can assign these calculations
to revenue methods for consistent treatment of revenue recognition across contracts.

You can define a calculation using the project process configurator. The formula for the calculation is based on
the predefined set of sources.

The following page shot illustrates a Project Process Configurator to calculate administrative fee for labor
revenue:
The project process configurator is assigned to a revenue method, which is the basis for calculating required
revenue amounts during revenue processing.

Automatic billing events are generated for the amount calculated by the formula. These events are generated
either for a contract line or associated project based on the calculation level defined at the revenue method. The
event type of the automatic event is also defined at the revenue method.

STEPS TO ENABLE

You can create a new project process configurator using the Setup and Maintenance work area:

1. Click the Navigator, and then click Setup and Maintenance.

2. Click the Tasks panel tab, and then click Search.
3. On the search page, search for the Manage Project Process Configurator task.
4. Click on the Manage Project Process Configurator task in the search result to create a new
project process configurator.
5. Click on the Done button on Manage Project Process Configurator and return to the setup task page.
6. On the search page, search for the Manage Revenue Methods task.
7. Click on the Manage Revenue Method task in the search result to create a new revenue method.
8. On Create Revenue Method page, select Process Configurator Based as Method Assignment Type to
assign a Project Process Configurator to the revenue method.

The following page shot illustrates the assignment of project process configurator to a revenue method:

Create Revenue Method

TIPS AND CONSIDERATIONS

 The amount values of the sources are in contract currency.

  The inception to date and period to date sources don't include the amounts that are being processed
by the current process.
 The amounts values can be further refined by using the available filters for a source.

ROLE INFORMATION

 Project Application Administrator

(ORA_PJF_PROJECTS_APPLICATION_ADMINISTRATOR_JOB)
 Customer Contract Administrator
(ORA_OKC_CUSTOMER_CONTRACT_ADMINISTRATOR_JOB)
 Customer Contract Manager (ORA_OKC_CUSTOMER_CONTRACT_MANAGER_JOB)

20D