Oracle Project Accounting/Contracts

Presentation
Integration Overview
 What does OKE stand for?

OKE is an acronym for Oracle Project Contracts

O Oracle

K Contracts (legal abbreviation for)

E Engineer to Order

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 OKE Project Scope

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

Processes: Technology:
Business
Document
Management

Requisition/ Project
Contract Project
Execution
Purchase
Closeout
Contracts
Order

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

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 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

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 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
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 Background

Systems view Oracle

Accounts
Payable
Invoices
Reporting
Unposted Invoices
& Actuals Actuals

Actuals at company
level
Oracle General
EDW HFM Actuals Maximo
Ledger

Unconsolidated
forecast, Budget Actuals
Depreciation, Additions,
Retirements, & Capitalized
Actuals at the Actuals
interest Payroll
company level,
Consolidated
forecast Fixed asset balances,
depreciation & CWIP
for non-constr. capital Actuals
projects Actuals
PowerPlant
Hyperion Oracle Project Forecast Oracle Project
Asset
Planning Accounting "Trends" Contracts
Management
CWIP for
construction Projects Capitalized Interest
Commitments &
Budget Actuals
Commitments

Purchase
Bid Models in Orders
Oracle
Excel
Purchasing
Spreadsheets

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 High-level Execution/Management Process

Contract Execution
• Enter letter of intent and contract
Business information in OKE
Document • Utilize approval workflows
Management • Access contract documents via
Documentum
Business Document Management
Requisition/
Contract Project • Send and receive business documents
Purchase
Execution Closeout • Enter business document information in OKE
Order
• Access business documents in Documentum
Requisition/Purchase Order
• Initiate requisitions via OKE
• Import and autocreate requisitions into
Change POs in Oracle Purchasing
Management
Change Management
• Enter trends, internal contract adjustments,
and change orders
Reporting and Analysis
Project Closeout
• Closing contracts and the project
Reporting and Analysis
• Inquire on contract data
• Run contract reports
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 Integration Points of OKE with Other Systems

Documentum

Document Images

Oracle
Oracle Project
Project
Contracts
Contracts
Trends Requisitions

Oracle Project Commitments Oracle

Accounting Purchasing

Oracle
Actuals 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 Project
happens at
the lowest
level task Task 1 Task 2
only
Task 1.1 Task 1.2 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
01
00 02
Sitework &
Indirect Accounts Concrete
Demolition

Sub-
000
Tasks Home Office
010
020
Site Prep, Grading &
Administrative Powerhouse Concrete
Improvement
Charges

Lowest
0204000
Level 0200000 0203000
Misc. Powerhouse
Sub-Tasks Boilerhouse HRSG Turbine / Generator
Equipment
Slabs Equipment Foundation
for 020 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)

Sub- Business Ops &

Finance Equipment Construction
Projects Dev Maint

Tasks Business
Finance
Operations &
Equipment
Construction
Development Maintenance Tasks
Tasks Tasks
Tasks Tasks (Cost Codes)

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 Changes in Project Accounting Example
- Contract to PO

Mirant agrees to buy engineered equipment from a vendor for $35M.

Oracle Project Contracts Oracle Purchasing Oracle Project Accounting

Contract Deliverables Tracking System Requisition PO Commitments

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget Forecast to Forecast at
Project Budget Commitments Actuals Complete Completion Variance
BD $X $X $X $X $X $X
Construction $X $X $X $X $X $X
Finance $X $X $X $X $X $X
O&M $X $X $X $X $X $X
Equipment $40M $35M $0M $0M $35M $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 Forecast to Forecast at
Project Budget Commitments Actuals Complete Completion Variance
BD $X $X $X $X $X $X
Construction $X $X $X $X $X $X
Finance $X $X $X $X $X $X
O&M $X $X $X $X $X $X
Equipment $40M $25M $10M $0M $35M $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 Oracle Project Accounting

Trend Deliverables Tracking System Forecast to Complete

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget
Forecast to Forecast at
Project Budget Commitments Actuals Complete Completion Variance
BD $X $X $X $X $X $X
Construction $X $X $X $X $X $X
Finance $X $X $X $X $X $X
O&M $X $X $X $X $X $X
Equipment $40M $25M $10M $5M $40M $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 Oracle Oracle Project

Trend Change Order Deliverables Tracking
Purchasing Accounting
System PO Commitments

Project Status Inquiry (PSI) in Project Accounting

Board Approved
Project Budget Forecast to Forecast at
Project Budget Commitments Actuals Complete Completion Variance
BD $X $X $X $X $X $X
Construction $X $X $X $X $X $X
Finance $X $X $X $X $X $X
O&M $X $X $X $X $X $X
Equipment $40M $29M $10M $0M $39M $1M
Parent $40M $29M $10M $0M $39M $1M
(Updated Nightly) (Updated Weekly) (Updated Nightly)

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