Pass the Oracle E-Business Suite Project Management 1z0-511 Questions and answers with CertsForce

Note:

Revenue and Billing Information

When you enter revenue information for your project, you specify a revenue distribution rule for the revenue accrual method and the billing method for this project. When you enter billing information, you specify invoice formats, bill cycle days, and other invoicing information.

The project type determines which revenue distribution rule appears as the default value for this field, and which other revenue distribution rules you can choose from. Oracle Projects predefines the following revenue distribution rules:

Cost/CostAccrue revenue and bill using the ratio of actual cost to budgeted cost (percent spent).

Cost/EventAccrue revenue using the ratio of actual cost to budgeted cost (percent spent), and bill based on events.

Cost/WorkAccrue revenue using the ratio of actual cost to budgeted cost (percent spent), and bill as work occurs.

Event/EventAccrue revenue and bill based on events.

Event/WorkAccrue revenue based on events, and bill as work occurs.

Work/EventAccrue revenue as work occurs, and bill based on events.

Work/WorkAccrue revenue and bill as work occurs.

*Integrating Projects with Inventory without Project ManufacturingYou can implement Inventory to Projects integration so that you can issue from inventory to projects without installing Project Manufacturing. To implement this integration, follow these steps:

Enable Project Cost Collection. In the Organization Parameters window in Oracle Inventory, enable the Project Cost Collection Enabled box. See Defining Costing Information,Oracle Inventory User's Guide.

Create a Project-Enabled Transaction Type. 

Set the INV: Project Miscellaneous Transaction Expenditure Type Profile Option. In Oracle Inventory, set the value of this profile option to User Entered. With this setting, You must enter expenditure types for project miscellaneous transactions.

Create an Inventory Expenditure Type. In Oracle Projects, create an expenditure type with the transaction type class Inventory. 

*Oracle Inventory Integration

The following stepsarerequired for Oracle Inventory integration:

Install and implement Oracle Inventory

Define project-related transaction types in Oracle Inventory

You can use rates to calculate amounts for costing, billing, and workplan and financial planning. Oracle Projects determines rates from a combination of rate schedules and rate overrides. You can define the following four types of rate schedules in Oracle Projects:

*Employee: Use this type of rate schedule to define standard hourly rates or percentage markups by employee. You can use employee rate schedules as planning schedules(B), cost rate schedules(C), and bill rate schedules(D).

* Job: Use this type of rate schedule to define standard hourly rates by job title. When you enter a job-based rate schedule, you enter a job group to indicate which jobs are used to determine rates. You can use job schedules as planning rate schedules, cost rate schedules, and bill rate schedules.

* Resource Class : Use this type of rate schedule to define planning rates by resource class, or as a combination of resource class and organization.

*Nonlabor: Use this type of rate schedule to define rates or percentage markups by nonlabor expenditure type or a combination of nonlabor expenditure type and nonlabor resource. You can use nonlabor rate schedules as planning rate schedules, cost rate schedules, and bill rate schedules.

Organizations within your enterprise are not required to use the same job definitions. You can define job groups for specific purposes and define unique jobs for each group. You can then map a job from one group to a job in another group. For example, the job titles you need for your European operating units may be different from the job titles you need for your U.S. operating units. For global projects you can define a global job set and map your European and U.S. jobs to the appropriate global jobs. These global jobs can then be used by your global projects to provide accurate and consistent billing and reporting.

Job Assignment Overrides

You can override both an employee's job assignment and an employee's billing title for this project or lowest level task.

When you override an employee's job assignment, the new job assignment determines bill rates for the employee's billing on this project or lowest task (if this task uses job bill rates). You can choose any active job in the Oracle Applications database.

When you override an employee's primary billing title, the new billing title appears on future invoices for this employee's billing (if this project's labor invoice format displays an employee billing title).

Any job assignment override you enter for this project or lowest task takes precedence over any project job assignment override.

C:If you enable the Allow Adjustments option for a predefined transaction source for supplier costs, you must complete at least one of the following setup steps:

/(C)Specify the default supplier cost credit account for supplier cost adjustments in Oracle Projects implementation options for each operating unit.

/Define a rule in Oracle Subledger Accounting to determine the supplier cost credit account.

This setup is required for the process PRC: Create Accounting to successfully create accounting for supplier cost adjustments. Oracle Projects displays a message asking you to validate the setup each time that you enable the Allow Adjustments option for a predefined transaction source for supplier costs.(B)

E:You can adjust the supplier cost expenditure items in Oracle Projects to transfer or split the items. Oracle Projects processes these supplier invoice adjustments using the Supplier Invoice Cost Account AutoAccounting function.

Implement AutoAccounting to charge appropriate expense accounts

When you implement AutoAccounting, you can charge straight time costs to a labor expense account and overtime costs to an overhead or overtime expense account.

To charge straight time and overtime to different accounts, you define an AutoAccounting rule based on expenditure type, expenditure category, service type, compensation rule, or labor cost multiplier.

Note:

*Labor Cost Account Function

When you run the PRC: Distribute Labor Costs process, Oracle Projects calculates labor cost amounts based upon employee labor cost rates and compensation rules. After calculating labor costs, Oracle Projects uses the Labor Cost Account transactions to debit an expense account for raw labor costs.

*You need to define at least one overtime expenditure type. You use the Expenditure Types window to define overtime expenditure types classified by the Overtime expenditure type class.

Revenue

Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.

AccountDebitCredit

Unbilled Receivables and/or Unearned Revenue200.00

Revenue200.00

A:Project Classifications (Class Categories and Class Codes)

You define project classifications to group your projects according to categories you define. A project classification includes a class category and a class code. The category is a broad subject within which you can classify projects. The code is a specific value of the category.

B:In a multi-organization environment, you must set up project types for each operating unit. It is possible to have the same project type names in multiple operating units. However, each project type has it own attributes to control project processing by operating unit.

E:In a multi-organization environment, expenditure types are set up once and are shared across all operating units.

*Defining Retention Terms

Retention Terms determine how amounts are withheld from project invoices and how the withheld amounts are billed to the project customer. Retention terms include:

Withholding Terms

Withholding Terms by Expenditure Category

Withholding Terms by Event Revenue Category

Billing Terms

*Witholding Terms

These terms apply to all sources of project invoice amounts for the specified project or top task. For each term, you can define a withholding percentage or amount. Optionally, a threshold amount can be defined to determine the maximum amount to be withheld per term.