Accounting in PPM: A Brave New World

Project Auto Accounting gone
Project Supplier Invoice Account Generation gone
PO Account Generator gone
PO Requisition Account Generator gone

SLA Lives!

What has changed with Project Accounting in Fusion? In this document we will outline accounting for Projects in the Cloud.

Overview

  • AutoAccounting is not in Fusion, all accounting is done through SLA
  • If you have specific accounting rules for Projects in your subledger, you create rules and conditions in the subledger to meet your accounting needs
  • In PPM, you configure the following accounting events for SLA:
    • Labor Cost
    • Miscellaneous Cost
    • Borrowed and Lent Cost
    • Intercompany Revenue

SLA Components 

See Oracle 20A SLA Document  for detail information on configurations

Below is a brief description of the Key SLA components

Mapping Sets:

Mapping Sets are a method to map input values (e.g. expenditure types, expenditure organizations) to an output value (e.g. Account Combination, Natural Account, Balancing Segment, Cost Center).

Commonly uses mapping sets we see:

  • Expenditure Types to Accounts
  • Project Types to Accounts
  • Organizations (Expenditure or Project) to Cost Center or Company

Accounting Rules

GL Segment Values or Value Set. You can create as many rules as you need with the rule Accounting Rules:that is used based on conditions.

Example of a rules and conditions:

  • If the expenditure is capitalizable use Account xyz, if the expenditure is indirect use Account abc
  • The Project Type of the project on the transaction determines the Account
  • The Expenditure Organization of the transaction derives the Balancing Segment and / or Cost Center
  • The Employee Type of the Labor Transaction derives the Labor Cost / Clearing Accounts

Subledger Journal Entry Rule Sets

Journal Entry rules are the rules you define for an Accounting Event. For example, for Labor Costing you duplicate the seeded Labor Costing Journal Entry Rule. You assign a default account combination and for any segment you need a different segment value than the default combination rule you assign a Accounting Rule.

Typically, we see custom rules used for deriving Balancing Segment, Cost Center and Natural Account.

Accounting Methods

Accounting Methods are the Journal Entry Rule Sets that are assigned to your Ledger.  Your Financial lead will typically, create a duplicate Accounting Method for Standard Accrual.  In the new Accounting Method, you will end date the seeded Journal Entry Rule Set and add the Journal Entry Rule Set you have created.

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