Project Financials Management Cloud 1z0-1057-24 Oracle Study Notes

When an invoice is entered with an invoice date in the open project accounting and closed accounting periods, the accounting date is the same as the original invoice date, but the project accounting date is the first day of the first open project accounting period. This ensures that the invoice is accounted in the correct accounting period and recognized in the correct project accounting period.Reference:

Ref: tml#OAPJB70183

Bill Plan –Create a bill plan within a contract that uses the invoice method you require. Assign the bill plan to one or more contract lines. A set of instructions on a contract that define how to invoice a customer. Multiple contract lines on a contract can use the same or different bill plans. Invoice Method is used in creating Bill Plan – not a separate setup.

Billing Controls –Contract feature that controls the types of transactions, dates, and amounts a customer may be invoiced for and revenue can be recognized for a contract or contract line. Define billing controls at the contract or contract line level.

Topic -Creating a Contract for Percent Spent Invoice and Revenue Methods: Worked Example

This example describes a scenario where transactions for a contract line need to be invoiced and the revenue recognized using the percent spent method.

What are the revenue and invoice method classifications?Percent Spent

What is the billing extension calculation level for the contract line and project association?Project level

Summary of the Tasks

Create a contract, create the percent spent contract lines, create the bill plan, create the revenue plan.

Prerequisites

Create a project.

Create the project plan for percent spent revenue. Specify the plan type on the percent spent billing extension.

Create an approved cost budget.

Create cost and burden rates.

Enter labor and expense transactions for the project.

Collect costs for the transactions.

Configuration Steps

Creating the Contract

Creating the Percent Spent Contract Lines

Creating the Bill Plan - A set of instructions on a contract that define how to invoice a customer. Multiple contract lines on a contract can use the same or different bill plans.

Creating the Revenue Plan - Common set of instructions for recognizing revenue within a contract. Multiple contract lines on a contract can use the same or different revenue plans.

Invoice method classifications determine how transactions are invoiced. The invoice method determines how invoice amounts are derived.

Enter an invoice method on a bill plan, which you create for a contract and assign to contract lines to provide a set of instructions for creating an invoice.

Createbilling controlsfor a contract or contract line to define the valid transaction dates, billing resources, and amount limits for transactions associated with the contract.

Generate invoices to calculate the invoice amounts for a contract.

The following figure illustrates the components of a project and a contract that determine invoice amounts, and the relationships between the components.

Project and contract components used to determine invoice amounts and generate invoices.

Ref: o-management/19b/oapjb/manage-project-contract-revenue.html#OAPJB164173

Associated Project Percent Spent Example

The following formula calculates the percent spent revenue for the associated project.

((Sum of ITD Actual Cost for every subtask that is part of the associated task/Sum of Total Budgeted cost for every task that is part of associated task)

xAssociated Project Funded Amount) – Sum of Existing Invoice Event Amounts for the Associated Project

((60/300) x750) – 80 =70

((Actual Cost / Budgeted Cost) x Budgeted Revenue) – Sum of Revenue Event Amount

Ref:

Predefined Spread Curves

Name

Description

Dist. Factors

Even

Linear distribution of financial or project plan values across periods.

10-10-10-10-10-10-10-10-10-10

Prorated Even

Linear distribution of financial or project plan values across periods, with an exception of the first period and last period in the financial plan. Financial or project plan values for the first period and last period are prorated based on the number of days in the period.

10-10-10-10-10-10-10-10-10-10

Back Loaded

Back-loaded distribution of financial or project plan values across periods. Assigned amounts increase over succeeding periods.

0-5-10-15-20-25-30-35-40-45

Front Loaded

Front-loaded distribution of financial or project plan values across periods. Assigned amounts decrease over succeeding periods.

45-40-35-30-25-20-15-10-5-0

S Curve

S-shaped distribution of financial or project plan values across periods.

18-10-8-10-15-17-18-17-15-8

Bell Curve

Bell-shaped distribution of financial or project plan values across periods. Assignment of plan values is highest in the middle periods.

0-4-10-12-14-12-10-4-0-0

Daily Spread Analysis

Spread is based upon the number of days in each financial period throughout the duration of the task assignment. Amounts are proportionally distributed throughout all periods for the duration of the task assignment

None