Oracle Project Accounting/Contracts Presentation

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Oracle Project Accounting/ContractsPresentation

• Integration Overview

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What does OKE stand for?
OKE is an acronym for Oracle Project Contracts
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OKE Project Scope

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

Processes
Technology
Business Document Management
Contract Execution
Requisition/ Purchase Order
Project Closeout
Contract Change Management
Reporting and Analysis
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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
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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

• Business Document Management
• Send and receive business documents
• Enter business document information in OKE
• Access business documents in Documentum

Project Closeout
Contract Execution
Requisition/ Purchase Order

• Requisition/Purchase Order
• Initiate requisitions via OKE
• Import and autocreate requisitions into POs in
  Oracle Purchasing

Change 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 Project Contracts
Trends
Requisitions
Oracle Purchasing
Commitments
Oracle Project Accounting
Oracle Accounts Payable
Actuals
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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)

Project
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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
00 Indirect Accounts
01 Sitework Demolition
02 Concrete
Sub- Tasks
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)
Sub- Projects
BusinessDev
Finance
Ops Maint
Equipment
Construction
Tasks
Business Development Tasks
Finance Tasks
Operations Maintenance Tasks
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 Accounting
Oracle Project Contracts
Oracle Purchasing
Contract
Deliverables Tracking System
Requisition
PO
Commitments
Project Status Inquiry (PSI) in Project Accounting
Board Approved Project Budget
Forecast to Complete
Forecast at Completion
Budget
Commitments
Actuals
Variance
Project
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
BD Construction Finance OM Equipment
40M
35M
0M
0M
35M
5M
Parent
(Updated Weekly)
(Updated Nightly)
(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 Complete
Forecast at Completion
Budget
Commitments
Actuals
Variance
Project
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
BD Construction Finance OM Equipment
40M
25M
10M
0M
35M
5M
Parent
(Updated Weekly)
(Updated Nightly)
(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
Forecast to Complete
Trend
Deliverables Tracking System
Project Status Inquiry (PSI) in Project Accounting
Board Approved Project Budget
Forecast to Complete
Forecast at Completion
Budget
Commitments
Actuals
Variance
Project
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
BD Construction Finance OM Equipment
40M
25M
10M
5M
40M
0M
Parent
(Updated Weekly)
(Updated Nightly)
(Updated Nightly)
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Changes in Project Accounting Example - Change
Order
Mirant and Vendor agree the equipment will cost
39M.
Oracle Purchasing
Oracle Project Accounting
Oracle Project Contracts
Change Order
Deliverables Tracking System
Trend
PO
Commitments
Project Status Inquiry (PSI) in Project Accounting
Board Approved Project Budget
Forecast to Complete
Forecast at Completion
Budget
Commitments
Actuals
Variance
Project
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
BD Construction Finance OM Equipment
40M
29M
10M
0M
39M
1M
Parent
(Updated Weekly)
(Updated Nightly)
(Updated Nightly)