Oracle Project Accounting/Contracts

Presentation
Integration Overview

What does OKE stand for?

OKE is an acronym for Oracle Project Contracts

O
K
E

Oracle
Contracts (legal abbreviation for)
Engineer to Order

OKE Project Scope

Defining, implementing, and training employees on standard processes and technology for
integrated contract execution and management

Processes:

Technology:
Business
Document
Management

Contract
Execution

Requisition/
Purchase
Order

Project
Closeout

Project
Contracts

Contract
Change
Management
Reporting and Analysis

Converting active contract data

Converting contract data related to active Construction projects from legacy system and Oracle
Purchasing to OKE (8 Construction Projects)
Scanning those contracts and related documents and saving them to Documentum

What is OKE?

OKE is...

A repository for contract financials and reporting information

A structure for executing and managing contracts and their related documents (e.g. letters of intent, business documents, and change orders)

A tool to link to contracts and business documents in Documentum

OKE is not...

A tool for contract creation--you cannot print out your final contract from OKE

Generating additional work

Intuitive--it will take some practice to get used to its functionality

Benefits
How will you benefit from OKE?

Consistent contract processes and technology

Automated reminders to facilitate contract compliance

Single data entry point for contract information

One version of the truth

Real-time access to comprehensive contract data in a single contract

repository

Enhanced reporting capabilities

Compliance with Sarbanes-Oxley Act

Intensive use of Oracle Workflow for approval authorizations

5

Background
Systems view

Oracle
Accounts
Payable

Reporting

Unposted Invoices
& Actuals
Actuals at company
level

EDW

Unconsolidated
forecast, Budget
Actuals at the
company level,
Consolidated
forecast

Actuals

Oracle General
Ledger

HFM

Invoices

Actuals

Maximo

Actuals
Depreciation, Additions,
Retirements, & Capitalized
interest

Fixed asset balances,

depreciation & CWIP
for non-constr. capital
projects
Hyperion
Planning
CWIP for
construction Projects

Actuals

Payroll

Actuals
PowerPlant
Asset
Management

Actuals
Oracle Project
Accounting

Forecast
"Trends"

Oracle Project
Contracts

Capitalized Interest

Commitments &
Actuals

Budget
Commitments
Bid Models in
Excel
Spreadsheets

Oracle
Purchasing

Purchase
Orders

High-level Execution/Management Process

Contract Execution
Enter letter of intent and contract
information in OKE
Utilize approval workflows
Access contract documents via
Documentum

Business
Document
Management

Contract
Execution

Requisition/
Purchase
Order

Business Document Management

Project
Closeout

Send and receive business documents

Enter business document information in OKE
Access business documents in Documentum

Requisition/Purchase Order
Change
Management

Reporting and Analysis

Initiate requisitions via OKE

Import and autocreate requisitions into
POs in Oracle Purchasing

Change Management
Enter trends, internal contract adjustments,
and change orders

Project Closeout
Closing contracts and the project

Reporting and Analysis

Inquire on contract data
Run contract reports

Integration Points of OKE with Other Systems

Documentum
Document Images

Oracle
Oracle Project
Project
Contracts
Contracts
Trends

Oracle Project
Accounting

Actuals

Requisitions

Commitments

Oracle
Purchasing

Oracle
Accounts
Payable
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What is a Project?

A Project is a body of work to which costs are charged and

tracked

A Project can be made up of one or many tasks, which identify

the specific breakdown of the project work
The hierarchy of tasks is called the Work Breakdown Structure (WBS)

Coding
happens at
the lowest
level task
only

Project
Task 1
Task 1.1

Task 1.2

Task 2
Task 2.1

Task 2.2
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What is a Project Template?

A Project Template is a pre-defined WBS structure that can be

copied and modified to create new projects

Mirant has various groups of templates/projects

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Template Example - Construction

Template

Construction

Tasks

SubTasks

00
Indirect Accounts

01
Sitework &
Demolition

02
Concrete

000
Home Office
Administrative
Charges

010
Site Prep, Grading &
Improvement

020
Powerhouse Concrete

Lowest
Level
Sub-Tasks
for 020

0200000
Boilerhouse HRSG
Slabs

0203000
Turbine / Generator
Equipment Foundation

0204000
Misc. Powerhouse
Equipment
Foundations
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What is a Parent Project?

Organization of multiple sub-projects under a primary project

Allows inquiry across sub-projects

Parent (Master)

SubProjects
Tasks

Business
Dev

Finance

Business
Development
Tasks

Finance
Tasks

Ops &
Maint
Operations &
Maintenance
Tasks

Equipment

Construction

Equipment
Tasks

Construction
Tasks
(Cost Codes)

12

Changes in Project Accounting Example

- Contract to PO
Mirant agrees to buy engineered equipment from a vendor for $35M.
Oracle Project Contracts
Contract

Deliverables Tracking System

Oracle Purchasing
Requisition

PO

Oracle Project Accounting

Commitments

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget

Project

Budget

Commitments

Actuals

Forecast to
Complete

Forecast at
Completion

Variance

BD
Construction
Finance
O&M
Equipment

$X
$X
$X
$X
$40M

$X
$X
$X
$X
$35M

$X
$X
$X
$X
$0M

$X
$X
$X
$X
$0M

$X
$X
$X
$X
$35M

$X
$X
$X
$X
$5M

Parent

$40M

$35M

$0M

$0M

$35M

$5M

(Updated Nightly)

(Updated Weekly)

(Updated Nightly)

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Changes in Project Accounting Example Invoice

Vendor sends Mirant a progress billing for $10M.
Oracle Purchasing

Oracle Payables

Oracle Project Accounting

PO

Invoice

Actuals

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget

Project

Budget

Commitments

Actuals

Forecast to
Complete

Forecast at
Completion

Variance

BD
Construction
Finance
O&M
Equipment

$X
$X
$X
$X
$40M

$X
$X
$X
$X
$25M

$X
$X
$X
$X
$10M

$X
$X
$X
$X
$0M

$X
$X
$X
$X
$35M

$X
$X
$X
$X
$5M

Parent

$40M

$25M

$10M

$0M

$35M

$5M

(Updated Nightly)

(Updated Weekly)

(Updated Nightly)

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Changes in Project Accounting Example

- Trend
Mirant realizes the equipment may cost $40M instead of $35M.
Oracle Project Contracts
Trend

Oracle Project Accounting

Deliverables Tracking System

Forecast to Complete

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget

Project

Budget

Commitments

Actuals

Forecast to
Complete

Forecast at
Completion

Variance

BD
Construction
Finance
O&M
Equipment

$X
$X
$X
$X
$40M

$X
$X
$X
$X
$25M

$X
$X
$X
$X
$10M

$X
$X
$X
$X
$5M

$X
$X
$X
$X
$40M

$X
$X
$X
$X
$0M

Parent

$40M

$25M

$10M

$5M

$40M

$0M

(Updated Nightly)

(Updated Weekly)

(Updated Nightly)

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Changes in Project Accounting Example Change Order

Mirant and Vendor agree the equipment will cost $39M.
Oracle Project Contracts
Trend

Change Order

Deliverables Tracking
System

Oracle
Purchasing

Oracle Project
Accounting

PO

Commitments

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget

Project

Budget

Commitments

Actuals

Forecast to
Complete

Forecast at
Completion

Variance

BD
Construction
Finance
O&M
Equipment

$X
$X
$X
$X
$40M

$X
$X
$X
$X
$29M

$X
$X
$X
$X
$10M

$X
$X
$X
$X
$0M

$X
$X
$X
$X
$39M

$X
$X
$X
$X
$1M

Parent

$40M

$29M

$10M

$0M

$39M

$1M

(Updated Nightly)

(Updated Weekly)

(Updated Nightly)

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