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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
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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
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
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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 at company
level
EDW
Oracle General
Ledger
HFM
Unconsolidated
forecast, Budget
Actuals at the
company level,
Consolidated
forecast
Actuals
Actuals
Maximo
Actuals
Depreciation, Additions,
Retirements, & Capitalized
interest
Fixed asset balances,
depreciation & CWIP
for non-constr. capital
projects
CWIP for
construction Projects
Payroll
Actuals
PowerPlant
Asset
Management
Hyperion
Planning
Actuals
Actuals
Oracle Project
Accounting
Forecast
"Trends"
Oracle Project
Contracts
Capitalized Interest
Commitments &
Actuals
Budget
Commitments
Bid Models in
Excel
Spreadsheets
Oracle
Purchasing
Purchase
Orders
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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
• Initiate requisitions via OKE
• Import and autocreate requisitions into
POs in Oracle Purchasing
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 Project
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)
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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
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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