Oracle Project Accounting: What is PA AutoAccounting and How Does it Work?

2. Oracle Project Accounting:What is PA AutoAccounting and How Does it Work? Suzana Ferrari DARC Corporation

3. Presentation Agenda • How Does AutoAccounting Work? • Accounting Concepts and Terms • Implementation Planning • Setup Steps • Troubleshooting • Q & A

4. Overview • Projects: AutoAccounting • Part of Project Accounting Implementation Setup • One of the last setup steps in Projects • AutoAccounting implementation depends on the Projects application setup, hence accounting requirements should be determined before starting the Projects setup • Determines General Ledger Accounts

5. How Does It Work? • Project Accounting Processes • When processes are run in Projects, the defined rules determine which valid account combinations are debited and credited. • AutoAccounting Rules and Rules Assignment • Users define and assign rules • Accounting Flexfield Structure • Account combination is based on values setup in the accounting flexfield structure

6. AutoAccounting Concepts and Terms • AutoAccounting Rules • AutoAccounting Parameters • AutoAccounting Functions • AutoAccounting Transactions • AutoAccounting Assignments

7. AutoAccounting Rules • Setup>AutoAccounting>Rules • By setting up the rules in Project Accounting, we define valid value for each accounting flexfield segment

8. Assigning AutoAccounting Rules • Setup>AutoAccounting>Assign Rules • For each accounting transaction within the accounting function, the defined accounting rule is assigned

9. AutoAccounting Functions • Function names are predefined types of transactions

10. AutoAccounting Function Transactions • A Function can have more than one accounting transaction, affecting different General Ledger account

11. Example of Function Transactions • Contract, All • Contract, Private, Billable • Contract, Private, Non-Bill. • Contract, Public, Billable • Contract, Public, Non-Bill. • Indirect, All • Indirect, Private

12. Which Process Invokes Which Accounting Function? Example: • PRC: Distribute Labor Costs • Calculates the cost based on the employee labor cost rate, and then uses Labor Cost Accounting to debit the appropriate account, based on enabled function transaction rule assignment. • PRC: Interface Labor Costs to General Ledger • Uses Labor Cost Clearing Accounting to credit the labor account and offset the debit side entry.

13. AutoAccounting Setup for Labor Costs Function – Labor Cost Account

14. AutoAccounting Implementation • Planning • Test Environment Setup and Testing • Production Implementation • Controlled Roll Out

15. AutoAccounting Implementation Planning • AutoAccounting implementation depends on the Project Accounting application setup, and accounting requirements should be determined before starting the Project Accounting setup • Determine type of accounting transactions taking place in Projects • Gather and document requirements

16. High Level Requirements • In absence of Projects, what determines which GL account is impacted? • Example, where are the costs charged? • Which accounts are valid revenue accounts? • Which GL departments (Organizations in PA) are enabled to have revenue and cost of sales? • Are our revenue accounts based on type of business sold?

17. Gathering and Documenting Requirements • Documenting the Projects business requirements and accounting impact of the business requirements • The AutoAccounting rule setup requirement is to have a rule for each accounting flexfield segment • The rule can be defined as constant, lookup set, or SQL select statement • The simplest way to start is to create spreadsheet with two columns: Business Requirement and Accounting Requirements

18. Requirements Example • Ability to enter billable labor • DR – WIP Account & CR – Labor Transfer – Employee • Ability to enter non billable labor • Entry needs to debit and credit same account since labor is non-billable should have no P&L impact • Revenue / COS • Each task has a service type: Accounting depends on service type assigned to a task

19. Constant • Simplest

20. Intermediate Value – Lookup Set • Flexible • Based on a Parameter

21. SQL Statements • Minimize Maintenance • Descriptive Flexfield (DFF) • LOV Contains Values Setup in General Ledger • Provides Flexibility • Incorrect Select Statements Will Cause Performance Implications

22. Intermediate Value – SQL Statement • Based on values in DFF on Organizations

23. AutoAccounting Setup Sets • Define Lookup Sets • Navigation: Setup>AutoAccounting>Lookup Sets • Define Rules • Navigation: Setup>AutoAccounting>Rules • Assign Rules • Navigation: Setup>AutoAccounting>Assign Rules

24. AutoAccounting Testing • Test Environments • Developing Test Scripts • Sufficient Testing – Test, test, test!!! • Controlled Roll Out

25. AutoAccounting Reports • IMP: AutoAccounting Functions • IMP: AutoAccounting Rule Definitions • IMP: AutoAccounting Lookup Sets • IMP: AutoAccounting Segment Rule Pairings

26. AutoAccounting Troubleshooting • Incorrect SQL Statements • Invalid Lookup Set Value • Invalid Account Combination • Incorrect Rule Assignment • Cross Validation Rules • Allow Dynamic Inserts for Accounting Flexfield is Disabled

27. Conclusion • Very Flexible • Complex • Key to Successful Implementation • Understanding How it Works • Planning • Requirements Gathering / Mapping • Testing

28. Questions

29. Thank You! www.darc.com 312-895-6035