Oracle Projects 11i & R12 – AutoAccounting – Concept & Overview


How does AutoAccounting work?

For each accounting transaction, you define rules to determine the appropriate account to charge. Each accounting transaction is identified by an AutoAccounting function. AutoAccounting functions are components of programs that you submit to generate accounting entries.

How do you implement AutoAccounting?

The steps are as follows:
a). Design your AutoAccounting setup based on your implementation data.
b). Define lookup sets. Navigation – Setup/AutoAccounting/Lookup Sets.
To define a lookup set, you specify pairs of values. For each intermediate value, you specify a corresponding account segment value. One or more related pairs of intermediate values and segment values form a lookup set.
You may need several lookup sets to map organizations to cost centers, expenditure types to account codes, event types to account codes, or for other situations where the segment value depends upon a particular predefined parameter.
You can use a lookup set more than once; several AutoAccounting rules can use the same lookup set.
You define and modify lookup sets using the AutoAccounting Lookup Sets window.
c). Define rules. Navigation – Setup/AutoAccounting/Rules.
Each AutoAccounting rule you define supplies one Accounting Flexfield segment value at a time. Thus, you need to specify one AutoAccounting rule for each segment in your Accounting Flexfield for each AutoAccounting transaction you want to use.
Some of the AutoAccounting rules you define can be quite simple, such as always supplying a constant company code or natural account. Others can draw upon context information (parameters), such as the revenue category for a particular posting or the organization that owns a particular asset. You can even use multiple parameters to provide a segment value.
You can reuse the same AutoAccounting rules for many different functions and their transactions.
You define rules based on project information that you enter. You can use these AutoAccounting parameters as input values to your rules. Note: AutoAccounting does not use Flexfield security rules when determining a valid account combination. You must define your AutoAccounting rules to determine the appropriate account based on the rules required by your company.
d). Assign rules for each function. Navigation – Setup/AutoAccounting/ Assignments.
When you are assigning rules to an AutoAccounting function, you may want to assign different rules to different conditions. For example, you may want to account for indirect projects using one set of rules, and use two different sets of rules for billable items and nonbillable items on contract projects.
To make it easy to do this, Oracle Projects provides function transactions to each function, which identifies commonly used conditions in which you may want to assign different rules.
You can assign rules to function transactions for each AutoAccounting function.
You complete the following steps to assign AutoAccounting rules to AutoAccounting functions and transactions:
Enable each transaction you want to use
For each transaction you enable, you specify an AutoAccounting rule for each segment of your Accounting Flexfield

How does AutoAccounting compare to Workflow Account Generator?

Both the account generation processes in Oracle Workflow and AutoAccounting in Oracle Projects can create account numbers dynamically, based on transactions in Oracle Projects. This section compares the Account Generator to AutoAccounting, and provides directions for:
Assigning a constant or lookup value to a segment
Assigning an attribute parameter to a segment
Deriving a segment value
Learning more about SQL functions to generate account codes

 

ACCOUNT GENERATOR TERMS OR FUNCTIONALITY

EQUIVALENT IN AUTOACCOUNTING

Workflow or Item Type Function

Function

Process

Defining and assigning rules to segments

Attribute

Parameter

Assigning a constant to a segment

Assigning a constant AutoAccounting rule to a segment

Assigning an attribute parameter to a segment

Assigning an AutoAccounting rule that uses a parameter, which becomes the value (a lookupset is not used)

Assigning a lookup set value to a segment

Assigning an AutoAccounting rule that passes a parameter to a lookup set to determine the segment value

Deriving a segment value by using SQL statements or If conditions

Using an AutoAccounting rule that derives the intermediate value or segment value via a SQL statement.

 

I have an AutoAccounting Error – where do I start?

In most cases, when a user encounters an AutoAccounting error when processing Oracle Projects transactions, you will utilize the debug log file to find the source of the error. Most AutoAccounting errors are specific and will provide you with enough information for troubleshooting purposes.  Setting the Profile Option ‘PA: Debug Mode’ = Yes will provide more detail information in the log file.

 

How can I find out which parameters are valid for an AutoAccounting Function?

Run the IMP: AutoAccounting Functions report.

Can I create or edit existing AutoAccounting transactions?

Oracle Projects predefines AutoAccounting transactions; you cannot modify them, or define additional transactions.

Overview – Oracle Projects


Last few days I have been involved with the Oracle Projects module. I’ll try and put forth some basic learning of this module.

Oracle Projects is meant primarily for organizations that are project-oriented. Using this module, it becomes easy to track costs, budget and track the project status.

 

Oracle Projects consists of the following products:

• Oracle Project Costing

• Oracle Project Billing

• Oracle Project Connect for Microsoft Project

• Oracle Activity Management Gateway

• Oracle Project Analysis Collection Pack

 

Prior to Oracle Projects Setup, one has to setup the Set of Books in GL, setup Organization and Organization hierarchy in Oracle HRMS, define employees and job in HRMS and create customer in Oracle Receivables. However if Oracle Projects is being installed as a standalone package then one needs to define all above in Oracle Projects itself. Some other mandatory setups include defining locations, defining implementation options, defining Project Accounting periods, defining expenditure types and categories, define revenue categories, etc. Also one has to create a burdening hierarchy in Oracle HRMS which may vary from the Project or Task Organization hierarchy.

 

Invariably a Project is broken into a hierarchy of tasks as per Work Breakdown Structure (WBS, a hierarchy of tasks that rollup into a project) to manage project and task related information. One can define as many levels of tasks in a hierarchy in Oracle Projects. However, proper naming conventions need to be followed while naming projects, tasks and sub-tasks. An organization has to be associated with a project and a Task, which may be same or different.

 

One can have three different Project Types for managing the cost of a project: Indirect, Capital and Contract. An Indirect Project Type is used to track the overhead costs and labor hours for overhead activities like Admin, Legal, etc. Capital Project Type is selected to track costs and labor hours related to asset development activities which ultimately results in an asset for the organization. A Contract Project Type is selected in case the costs are reimbursed by a client.

 

Oracle Costing is the used for processing of expenditures for finding out costs which can be attributed to projects and tasks which can then be posted to GL corresponding to different account lines. There are two cost amounts associated to each transaction: Raw and Burdened. The raw cost is the actual cost of the work performed, and the burden cost is the indirect cost or overhead of work performed, like administrative cost. The Burden cost is calculated by multiplying Raw Cost with the Burden Multiplier. The burdened cost is the total cost that is incurred, i.e., the sum of raw cost and burden cost.

Burden Cost = Raw Cost x Burden Multiplier

Burdened Cost = Raw Cost + Burden Cost

More on Oracle Projects, primarily I’ll try and provide inputs on Burdening Cost and Oracle Project Billing in subsequent days.