Category Archives: Oracle Functional

Oracle BPA – Bill Presentment Architecture – No more AR Invoice Print customization – How


Oracle BPA – Bill Presentment Architecture – No more AR Invoice Print customization – How

Every Financial implementation expect change in standard AR Invoice template layout. Now with BPA ( Bill Presentment Architecture ) , we can avoid any customization along with quite good handy feature…

have you seen  a new button available for completed transactions in the Transactions Workbench. The button opens a web-based window that shows the transaction details. this icon in the Transactions Workbench is for a Bill Presentment Architecture (BPA). The setup and wording of the window can be customized through the Bill Presentment Architecture module.

BPA is a module that allows you to retrieve billing data from multiple data sources for presentment on a bill. This means that the physically presented bill is no longer limited to information contained within Oracle Receivables. BPA provides template-based configuration of online and printed bills, giving you the ability to select the content of the bill, choose the layout design, display parent billing lines and drilldown details, and then set up the assignment of these billing templates by defining rules based on criteria you specify. By separating bill presentment from transaction accounting, Oracle BPA allows for more understandable and comprehensive bills, increasing the likelihood and timeliness of bill payment.

BPA provides the architecture to retrieve billing data from multiple sources, including transaction flexfields and other data not interfaced and stored in Oracle Receivables. Because bill presentment is not limited to transaction accounting information, you can present bills that are more comprehensive and meaningful to your customers.

With BPA, you first indicate the data sources that you want to collect billing data from. BPA provides a framework for collecting billing data stored in:

  • Oracle Receivables
  • Oracle applications seeded in BPA, such as Oracle Order Management and Oracle Service Contracts
  • Other Oracle applications
  • Legacy systems and other non-Oracle applications

You then design billing templates for each transaction class, choosing the layout and content to determine how you want billing data to appear in an online or printed bill, and assign the templates to customers or customer categories. You can print bills individually or in batches from your billing templates created within BPA or uploaded from external sources.

Customizing the bills that your customers see helps them reconcile bills with purchase requests and facilitates timely bill payment.

Your customers can view summarized billing information and drill down using hyperlinks to detailed billing information and other related details necessary to understand and pay the bill.

Here are the steps involve in summary :

  • Design layout and select content for a bill
  • Display on bills information that is not stored in Oracle Receivables
  • Create hyperlinks that enable access to related billing information
  • Display summary and child lines
  • Provide online drilldown to transaction line details
  • Upload external templates
  • Incorporate attachments on online bills
  • Assign bill formats to specific customers or user-defined customer categories
  • Print transactions and bills
  • Preview billing templates using real-time data

I will prepare more detail article with steps but in case if you are implementation AR Invoice printing then do reach out me to use this feature.

 

R12 Oracle Project Accounting: Few Basic Concepts


Once we understand the basic terminologies of PA it would be easier to move ahead with the process.

Project: A project is a primary unit of work that can be broken down into one or more tasks.

Task: It is the small unit of work created under the project against which transaction can be created.

Note: we cannot create transaction/expenditure items directly on the project, hence it is mandatory for each project to have at least one task.

 Project Classes:

Oracle PA has provided three pre defined project classes.

  • Indirect projects – Track overhead activities and costs of the organization. Note: Does not generate revenue and invoicing process.
  • Capital projects – Track asset development activities and costs, and costs are capitalized as one or more assets.
  • Contract projects - Contract projects created with external customer to track cost, revenue, and billing.

 Project Type:

The project type controls how Oracle Project Foundation creates and processes projects, and is a primary classification for the projects your business manages. You must set up at least one project type to create projects. You must set up project types for each operating unit.

  •  Examples of Indirect project: Admin Project, Transport Facility etc.
  • Example of Contract project: External Project, Intercompany project etc.

Expenditure category: It is the category created to classify the different types of cost an organization may incur.

Revenue category: It is the category created to classify the different types of revenue an organization may earn.

Expenditure type:It is the identification of cost that is associated to an expenditure item.It is assigned to the expenditure category and revenue category during the setups.

Expenditure class: It is the classification for an expenditure type as how the expenditure type can be used to create transaction. When an expenditure type is classified for a certain type then only those expenditure class transactions are allowed to enter.

 In Oracle Project Costing we have predefined expenditure classes.

 Labor:

Straight Time: For standard time entry. We use the cost rate multiple with number of hours.

Overtime: Labor cost calculated using a premium cost rate multiplied by hours.

 Non-labor project costs:

Expense Reports – Expense reports from Oracle Payables or Oracle Internet Expenses. You cannot enter expense reports directly into Oracle Project Costing. Expense reports that you import into Oracle Project Costing must be fully accounted prior to import.

Usages – You must specify the non-labor resource for every usage item you charge to a project. For each expenditure type classified by a Usage expenditure type class, you also define non-labor resources and organizations that own each non-labor resource.

Supplier Invoices – Supplier invoices, discounts, and payments from Oracle Payables or an external system, and receipt accruals from Oracle Purchasing.

Miscellaneous Transaction – Miscellaneous Transactions are used to track miscellaneous project costs. Examples of uses for miscellaneous transactions are:

  • Fixed assets depreciation
  • Allocations
  • Interest charges

Burden Transaction – Burden transactions track burden costs that are calculated in an external system or calculated by Oracle Project Costing as separate, summarized transactions. These costs are created as a separate expenditure item that has a burdened cost amount, but has a quantity and raw cost value of zero. You can adjust burden transactions that are not system-generated.

Work In Process – You use this expenditure type class for Oracle Project Manufacturing WIP transactions that you interface from Manufacturing to Oracle Project Costing. You can also use this expenditure type class when you import other manufacturing costs via Transaction Import or when you enter transactions via pre-approved batch entry.

 Inventory – This expenditure type class is used for the following transactions:

  • Oracle Project Manufacturing transactions that you import from Manufacturing or Oracle Inventory.
  • Oracle Inventory Issues and Receipts that you import from Oracle Inventory in a manufacturing or non-manufacturing installation.

 Example:

Sr No Expenditure Category Revenue category Expenditure type Expenditure Class
1 Labor Time Labor Revenue Standard_Time Straight Time
2 Vendor Cost Service Revenue Supplier_cost Supplier Invoices
3 Travel Cost Travel Revenue Travel Cost Expense Report & Supplier Invoices
4 Misc Cost Misc Revenue Misc_Transactions Miscellaneous and usages

In the above examples for line number 1, time can be entered for expenditure type “Standard_Time”.

Similarly for line number 2 & 4 the respective expenditure class transactions can be entered.

For line number 3 supplier invoices & expense reports can be entered as it has been classified for two different classes.

Types of Currencies

Transaction amounts are stored in the following currencies:

  • Transaction Currency:The currency in which a project transaction occurs.
  •  Expenditure Functional Currency: The functional currency of the expenditure operating unit.
  • Project Functional Currency: The functional currency of the operating unit that owns the project.
  • Project Currency: The user–defined project currency.

When you enter transactions in a currency that is different from functional currency or project currency, Oracle Project Costing must convert the transaction amount to the functional and project currencies. To convert transaction currencies, Oracle Project Costing must first determine the exchange rate type and exchange rate date.

 Task Type:

  • Billable Item: It is a functionality associated at the task level identifying the expenditure items created against the task to be billed to the client.
  • Non Billable Item: It is functionality associated at the task level identifying the expenditure items created on the task is only to record the cost incurred against it.

Note: We can adjust the task at the expenditure item window to make the non billable as billable and vice versa. This is called as expenditure item adjustments.

Employee/Job bill rate Override: Incase a different rate needs to be updated for a particular job or employee the same can be updated at the project or task level.

The employee name needs to be entered along with the bill rate, currency and period applicable. The rate at the task level overwrites the rates at the project level and the rates at the project level overwrites the rate of the bill rate schedule attached at the project level.

Cost rate: It is the rate defined at the job or employee level to derive at the basic cost for a particular expenditure item. The cost rate scheduled are defined in the OU functional currency.

The cost rate can be defined at two levels:

  • In the setups -> Expenditure -> Rate schedule.
  • Overrides: Labor Costing Overrides

( Navigation: PA Responsibility->Setup->Costing->Labor->Labor Costing Overrides.)

Bill rate: It is the rate defined at the job or employee level to derive at an amount which will be billed to the client.

The bill rate can be defined at two levels:

  1. In the setups -> Expenditure -> Rate schedule.
  2. Overrides: At the project level as employee or job override.
  •  For employee override: Navigation: Project -> Options -> – Bill Rates and Discount Overrides -> Employee Bill Rate and Discount Overrides
  •  For job override: Navigation: Project -> Options ->   Bill Rates and Discount Overrides -> Job Bill Rate and Discount Overrides

Transfer Price Rules and Schedule: Transfer price rules control the calculation of transfer prices for labor and non-labor cross charged transactions. To drive transfer price calculation for cross charge transactions between the provider and receiver, use the Transfer Price Schedule window to assign labor or non-labor (or both) transfer price rules to the provider and receiver pair on a schedule line

ICB: It is a process, where we have different legal entities involved, and the OUs under these LE owns the employees and projects.

  • The OU to which the employee is assigned is called PROVIDER OU.
  • The OU to which owns the project is called RECEIVER OU.

 Note: In ICB process, an internal invoice is generated in provider OU.

Borrowed And Lent: It is a process, where we have one legal entity involved, and the OUs under the LE owns the employees and projects. The employee and project can be in the same OU or different OU but the LE has to be same.

Note: No internal invoice is generated in B&L process, only accounting happens to post cost.

Labor: When an employee enters time on a specific project it is known as charging efforts of the employee on the project for a given time frame. This time further has some cost defined to calculate the actual cost incurred by the employees on the project.

The calculation process of the raw cost for such labor/time entered is called as Labor Cost.

The time can be entered via a third party tool or via the PA pre approved batch.

 Overtime – Labor cost calculated using a premium cost rate multiplied by hours.

 Non labor expenditure types: The expenditure items created via supplier invoices or expense reports are called as non labor expenditure types. The expenditure types created need to be added in the non labor expenditure schedules.

Navigation: PA -> Setups -> Expenditure -> Rate schedule.

 

Thanks.

 

Introducing : Neeta Shelar : New Author & Contributor : Oracle Projects Accounting


Here i like to introduce New author and contributor on this blog. Her name is Neeta Shelar.

She is  having a total experience of 12 years, out of which 7 and half are in IT sector. She has been working as functional for Oracle Projects (primary skills) , AP & AR modules. In PA , She has worked on new roll outs, enhancements & R12 upgrade project.

She is having very practical and hands on expertise in Oracle and I am sure, All reader will get benefits of her knowledge and expertise in Oracle Projects Accounting, Billing, Costing and Oracle EBS in general.

Thanks – Shiv

Video : Oracle Unified Method ( OUM ) – An Overview


A video tutorial on Oracle Unified Method ( OUM ) – This helps in supporting complete enterprise IT Lifecycle. This Tutorial includes: definition of OUM, OUM focus areas and scope of OUM

R12 : Oracle Projects : Project Accounting : PA Labor Cost


Labor Cost

DEFINITION:

When an employee enters time on a specific project it is known as charging efforts of the employee on the project for a given time frame. This time further has some cost defined to calculate the actual cost incurred by the employees on the project.

The calculation process of the raw cost for such labor/time entered is called as Labor Cost.

The time can be entered via a third party tool or via the PA pre approved batch.

To initiate the process of cost calculation, there are few setups to be created at OU level.

Pre requisite setups to initiate time entry.

  1. Implementation option to be defined in the costing tab.

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The option “ Interface Employee Labor Costs” is enabled, the labor cost lines accounting is interfaced to GL.

2.    Rate schedule to be defined for cost rates.

Cost Rate: The cost rates is the basic cost defined at the employee or job level in the functional currency. This is the cost used to calculate or derive the raw cost for each expenditure item of type labor/time.

Note: For time the Unit of measure is always hours.

To define the rate schedule,

Navigation: Setup->Expenditure Rate Schedule.

Calculation:

Example: cost rate = 100 USD time entered for a day = 8 hours.

Raw Cost = Quantity X cost rate, hence raw cost would be 100USD X8 hours.

3.    Cost rate schedule to be assigned at the OU level.

Navigation: Setup->Costing->Labor->Oraganization Labor Costing Rules

 

4. Transaction source definition for time entry.

Navigation: Setup->Expenditure->Transaction Sources

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Note: In an organization when a third party tool is used by employees to enter time, a customized transaction source can be defined for same.

 There are various functionalities available for treating the expenditure items created via the transaction source.

Few of them used in common are as follows:

  1. Purge After Import: The expenditure item once created will be automatically purged from the PA interface table.
  2. Allow Reversals: The expenditure items/batches created via the source can be reversed in PA.
  3. Adjustments: The expenditure items created via the source can be adjusted in PA.

Note: The other can be enabled as per the business requirements.

Once the above setups are created, we shall now see how to enter time for a project via a pre approved batch.

Step1: The entry of time via a pre approved batch

Navigation: PA responsibility -> Expenditure -> Pre Approved Batch

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In the form, we need to enter the OU, batch name, ending date & class. We shall create the batch for time entry.

Click on Expenditure Items: Enter employee details.

It will take you in the below section of the form where we need to enter the date of the expenditure (expenditure item date), project code, task code and the expenditure type and quantity.

Note1 : The project should be in approved status, employee should be assigned to the same OU in which we are entering time.

Note2: When we have employees entering time on projects from other OU of different LE it is included in the ICB scope and if time entered in different OUs within same LE it is included in Borrowed And Lent Functionality Scope.

Step2: Pre Approved Batch To Be Released

Once the time has been entered the pre approved batch needs to be in status “Released” for the further costing process.

Note1: There are three statuses in the preapproved batch

Working: The transaction is being entered and the batch is still open for making changes.

Submitted: The batch has been eligible for the next process of being released, however if more changes are required, the button “Working” can be clicked to make changes as required in the same form.

Released: Once the batch is in submitted status it is eligible for getting released.

Once a batch has been released no changes will be allowed to the batch (the working button is disabled).

If changes are required in the batch at this stage the batch can be reversed.

Note2 The batches with released status is eligible for cost distribution.

Step3: Cost Distribution Process:

The new expenditure items are created and now in the cost distribution process, the raw cost (also known as basic cost in PA) has to calculated.

The newly/existing expenditure items can be viewed from the below screen.

Navigation: Expenditure->Expenditure Inquiry-> Project.

Process to calculate the cost: Execute the following program to distribute cost and interface to GL.

A streamline process “PRC: Submit Interface Streamline Processes” with parameter DXL can be executed.(DXL = Distribute labor cost and interface to GL)

The streamline process calls for the following program:

PRC: Distribute Labor Costs (The program distributes cost for all the eligible expenditure items. The cost distributed flag is checked when cost distribution flag is successfully distributed.)

PRC: Generate Cost Accounting Events (The cost events is created for process “Labor Cost“)

PRC: Create Accounting (The accounting is generated)

Accounting Program

Journal Import (Journal is imported in GL)

Posting: Single Ledger

Update Subledger Accounting Balances

Note: The above programs can be executed as single concurrent programs as well.

PRC: Distribute Labor Costs (The program distributes cost for all the eligible expenditure items. The cost distributed flag is checked when cost distribution flag is successfully distributed.)

PRC: Generate Cost Accounting Events (The cost events is created for process “Labor Cost“)

PRC: Create Accounting (The accounting is generated and interfaced to GL, posting also done if the parameter Post To GL = Yes )

In the expenditure inquiry window we can query the project and check the expenditure items entered and the cost generated for the expenditure items in the column “Project Functional Raw Cost”.

Note: Once the cost distribution has been completed successfully the cost distributed flag is auto checked by the system for the expenditure item ids. The further process ie, revenue is generated only if this cost distributed flag has been checked ie the billable expenditure items are eligible for revenue and invoice process if the cost distribution has been completed.

Note: To check additional fields in the expenditure item window, we can select it from

toolbar-> folder->show field-> cost distributed & billable fields to check the status.

Note: The non billable expenditure items incur only cost, no revenue or invoice process required for non billable items.

Cost Override:

In cases where we need the cost calculation at a different rate then the cost rate defined in the rate schedule the cost override functionality can be used.

Navigation: PA Responsibility->Setup->Costing->Labor->Labor Costing Overrides.

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Enter the costing rule, override type, rate & currency. The rates would be applicable for the period as per the start and end date defined for the employee.

Thanks.

How To Identify Where An Expense Report Is In the Process


You wish to identify where in the Expenses Process an Expense Report is by looking at the EXPENSE_STATUS_CODE in the table ap_expense_report_headers_all

The values for the column EXPENSE_STATUS_CODE in the table ap_expense_report_headers_all come from the Payables Lookup Code EXPENSE REPORT STATUS

Code

Lookup Code Meaning

CANCELLED

Cancelled

EMPAPPR

Pending Individual’s Approval

ERROR

Pending System Administrator Action

HOLD_PENDING_RECEIPTS

Hold Pending Receipts

INPROGRESS

In Progress

INVOICED

Ready for Payment

MGRAPPR

Pending Payables Approval

MGRPAYAPPR

Ready for Invoicing

PAID

Paid

PARPAID

Partially Paid

PAYAPPR

Payables Approved

PENDMGR

Pending Manager Approval

PEND_HOLDS_CLEARANCE

Pending Payment Verification

REJECTED

Rejected

RESOLUTN

Pending Your Resolution

RETURNED

Returned

SAVED

Saved

SUBMITTED

Submitted

UNUSED

Unused

WITHDRAWN

Withdrawn

Table: AP_EXPENSE_REPORT_HEADERS_ALL

Column

Value

Meaning

SOURCE

‘NonValidatedWebExpense’

Expense report transaction has been inserted into the expense report transaction tables but have not passed the Payables Validation Function in the Server Side Validation Process of the Expense Report Workflow process. This transaction is not viewable in the Oracle Payables Enter Expense Reports Window.

 

‘WebExpense’

Expense Report transactions has successfully passed the Payables Validation function in the Expense Report Workflow Server Side Validation Process and is viewable in the Oracle Payables Enter Expense Reports Window.
Transaction has not completed the Expense Report Workflow yet.

 

‘XpenseXpress’

(10.7 – 11.0.2)
If Expense Report was created through the Web Interface (identified by the workflow_approved_flag), expense report transaction has successfully completed the Expense Report Workflow process and is ready to be picked up by Oracle Payables Invoice Import program.

 

‘SelfService’

(11.0.2+)
Expense Report transaction has successfully completed the expense Report Workflow process and is ready to be picked up by Oracle Payables Invoice Import program.

WORKFLOW_APPROVED_FLAG

NULL

If Expense Report transaction is created from the web (check the source), then expense report has been submitted, but not been manager or payables approved. Expense Report transactions not created from the web will have workflow_approved_flag = NULL.

 

‘S’

Expense Report transaction has been saved and not yet fully completed or submitted.

 

‘I’

Implicit save, in OIE.K/R12 there is an implicit save when navigating from one page to another.

 

‘R’

Expense Report transaction has been Manager rejected.

 

‘M’

Expense Report transaction has been Manager approved.

 

‘P’

Expense Report transaction has been Payables approved.

 

‘A’

Expense Report transaction has been ‘Automatically’ approved, i.e. Manager approved but Payables approval not needed because expense report didn’t need payables to check for receipts or policy.

 

‘W’

Expense Report has been Withdrawn.

 

‘Y’

Expense Report transaction has been both Manager and Payables approved.

Introducing : Muthu Vadde – New Author and Contributor for Oracle Technical


Hi ,

Here i like to introduce New author and contributor on this blog. Her name is Muthu Vadde.  I am sure now we can put more technical and techno functional articles so it can help more people. 

She is having more than 10 Years in Oracle. She is expert in many tools. I am sure she will be great help for everyone in Oracle Technical areas like

  • SQL
  • PLSQL
  • Oracle Reports
  • Oracle XML Reports
  • Oracle Discoverer Reports
  • Oracle Form personalizations
  • Oracle Workflow
  • Oracle Application Framework
  • Oracle Application Development Work
  • Oracle SOA

Be free to keep writing me for any help or questions. thanks – Shiv