Lesson-2-Defining a Contract Project.ppt

Editor's Notes

• #4: Overview of Contract Projects A contract project is a project associated with a project type that has a project class of contract. You use contract projects to track activities, cost, revenue, and billing for services performed for and reimbursed by a customer. A contract project is the primary billing unit where you specify the following information: Revenue Accrual Method Billing Method Billing Cycle Other Billing Information Note: There should be a project manager for the entire duration of the contract project, without which the contract project cannot be approved.
• #5: Overview of Projects and Tasks You can create a project with one structure defined for workplan management purposes and another defined for financial management purposes, or you can use one structure for both purposes: Workplan Management The workplan management functionality in Oracle Projects helps project managers and team members deliver projects on time. Financial Management Financial management functionality helps project and financial administrators and managers track billing, costs, budgets, and other financial information for projects. You can use three predefined project classes that track the following types of information: Contract projects: Contract projects track cost, revenue, and billing. Indirect projects: Track overhead activities and costs. Capital projects: Track product/asset development activities and costs, and costs that are capitalized as one or more assets.
• #6: Overview of Project Templates A project template includes the following elements: Basic project information Project Structures: financial and/or workplan Agreement and funding (optional) Project and task options Budgets and forecasts (optional) Quick Entry fields which specify fields to enter when creating a new project Project Option controls -- these control the project options to display or to hide for projects created from a template In a multi–organization environment, project templates belong to only one operating unit. Project templates can only be maintained and copied within an operating unit. However, project template numbers must be unique across operating units. A project template number cannot duplicate any project or project template number within the Oracle Projects installation.
• #7: Project Classes and Project Templates You cannot change the project class when you copy a project from a template. You can never change the project class of a project. You may find it most efficient to create a project template for each project type that your company uses, so that you can set up the appropriate parameters for each project type in each template.
• #8: Defining Project Templates To create a project template, navigate to the Projects, Templates window or to the Project Templates page. Define a new project template or copy an existing project template. Enter project and task information as needed on the project template. If you copy an existing project or project template to create a new project template, the project and task information associated with the source project or project template is copied onto the new project template.
• #9: Defining Projects A project is a primary unit of work that can be broken down into one or more tasks. To create a new project, you find a template or an existing project that best matches your project needs. You then copy the template, use Quick Entry to modify information unique to the new project, and modify or add tasks and any other project options that are required for your project definition. When you create a project from a template or another project, Oracle Project Foundation copies the project, its project structure, and all of the project and task options to the new project. It also copies the budget amounts to the new project’s budget. If you copy from a template with an agreement, funding, and baselined revenue and cost budget, Oracle Project Foundation copies them to the new project. If you copy a project from an existing project that has an attachment, the attachment is copied to the new project. Oracle Project Foundation does not copy any transactions associated with the source project to the new project; these transactions include expenditure items, requisitions, purchase orders, supplier invoices, and billing events (contract projects).
• #11: Project Classes and Project Types Oracle Project Foundation predefines project classes, but you define project types as part of your implementation. The project type controls how Oracle Project Foundation creates and processes projects, and is a primary classification for the projects your business manages. You must set up at least one project type to create projects in Oracle Project Foundation. You must set up project types for each operating unit. Project Type Setup Steps specific to contract projects Billing Information Billing Assignment Distribution Rules
• #12: Billing Information Tab Oracle Project Billing provides you with the ability to define revenue and invoicing rules for your projects, generate revenue, create invoices, and integrate with other Oracle Applications to process revenue and invoices. Oracle Project Billing also integrates with Oracle Receivables. You use contract projects to track activities, cost, revenue, and billing for services performed for and reimbursed by a customer. Define the billing information that will be used for contract projects: Funding Level: The level at which you allow funding for contract projects of this project type. You can choose from the values of Project, Top Task, or Both. Billing Job Group: Enter a default job group for billing purposes. The job group you enter serves as the default Billing Job Group when you define a contract project with this Project Type. Bill Rate Schedules – Labor: Select Bill Rate Schedule or Burden Schedule for labor billing. When calculating labor revenue and invoicing, the system looks first for the employee–based bill rate schedule. If an employee–based rate is not specified, or if one is not available, the system then looks for a job–based bill rate. If Oracle Project Resource Management is installed, you must specify a job–based bill rate schedule. Bill Rate Schedules – Non–Labor: Select Bill Rate Schedule or Burden Schedule for non–labor billing. Invoice Formats: Select the default labor and non-labor invoice formats. Billing Cycle: Select the default billing cycle for projects of this type. First Bill Offset Days: Enter the default number of days that elapse between the project start date and the date of the project’s first invoice. Baseline Funding without Budget: Enable this check box if you want to automatically create a revenue budget when you baseline the funding. Revaluate Funding: Enable this check box if you want to revaluate (revalue) funding before generating revenue and invoices. Funding Revaluation Includes Gains and Losses: This option can be enabled only if the Funding Revaluation includes Gains and Losses option is enabled in the Implementation Options window and Revaluate Funding is enabled for the project type. Check this box if you want your revaluation to include gains and losses in project revenue. If this functionality is not enabled, the revaluation process only considers the funding backlog amount. Realized Gains and Losses Event Types: If the Funding Revaluation Includes Gains and Losses option is enabled, define new gains and losses event types. These event types record the realized gains and losses events while processing funding revaluation.
• #13: Billing Assignments Tab Billing extensions allow you to implement and automate company–specific billing methods. With billing extensions, you can automatically calculate summary revenue and invoice amounts during revenue and invoice generation based on unique billing methods. These billing amounts are created using events. To implement your company–specific billing methods, you design and write rules to calculate billing amounts using PL/SQL procedures. You then enter the billing extension definition in Oracle Projects to specify additional information, such as the procedure name to call. Assign billing extensions to project types using the Billing Assignments tab. Enter information in the following fields: Name: Select billing extensions to be used in revenue accrual or invoicing, or both. Currency: Enter the currency for the billing extension. Amount and Percentage: Enter an amount or percentage to be used in the billing extension calculation. Active: Deselect to disable the billing assignment.
• #14: Distribution Rules Tab You use distribution rules to determine how contract projects will generate revenue and bills. Distribution rules are in the format of Revenue Method/Billing Method. For each contract project type, you must select at least one distribution rule from the predefined list. Select the distribution rule information using the following fields: Name You select the distribution rules that will be allowed for any project of this project type. Distribution rules are predefined in Oracle Projects. Select one or more distribution rules on the Distribution Rules tab. Default Enable this check box if you want to use the distribution rule as the default value for projects of this project type. You can only have one default distribution rule for each project type. Refer to Guided Demonstration – Create a Contract Class Project Type [LAB3CFCY] Refer to Guided Demonstration – Create a Project Template [LAB3CFDY]
• #16: Customers A customer is an organization or person with whom you have a selling relationship. This selling relationship can result from the purchase of products and services or from the negotiation of terms and conditions that provide the basis for future purchases. You can assign one or more customers to a project. You use customers, contacts, and addresses defined in Oracle Receivables. You can also assign customers to indirect projects with Oracle Project Billing. You can assign internal customers for interproject billing. You define customers in either the Customers or Customer Summary window. Customers can be defined either in Oracle Receivables or in Oracle Projects.
• #17: Project Customer Relationships Project customer relationships help you manage projects that involve multiple clients by specifying the various relationships your customers can have with a project. A customer has exactly one relationship with a given project; one or more customers can have the same relationship with a project. For example, most projects have a single customer who is the main client on the project; you can define a relationship with a name such as Primary to indicate the major client on a project. You can specify the revenue and billing contribution of a paying customer for project work, define the relationship of a customer to this project, and enter other information about this project’s customer. The customer you choose must be an active customer in the Oracle Receivables database. You must enter at least one customer on a contract project to fund the project, accrue revenue, invoice the customer. The contribution percentage must sum to 100%. You enter project customer and contact information at the project level only. Note: Implementing customer relationships is not a part of project setup. Important: When you have the selected the Default Top Task Customer option, the contribution of each task will be equal to 100% at the top task level.
• #18: Customer Relationships Implementation Option You can control the ability to view and select related customers of the project customer for billing and shipping purposes at the operating unit level. You make this selection in the Billing tab of the Implementation Options window. The choices are: Yes: You can choose a Bill To and Ship To customer based on the project customer or a related customer defined in Oracle Receivables. No: You can choose a Bill To and Ship To customer from any customer of the project customer only. All: You can choose a Bill To and Ship To customer from any customer defined in Oracle Receivables.
• #19: Project Customer Information You enter the following customer and contact information in the Project Customers window: Customer Details Customer Name and Number Relationship Contribution Bill To Name or Bill To Number Billing Address Default Top Task Customer Ship To Name or Ship To Number Shipping Address Inter-Project Billing Details Bill Another Project Receiver Project Receiver Task Invoice Currency Options Allow Rate Type User Code Rate Date Rate Type Exchange Rate Contact Details Type Name Job Title
• #20: Default Top Task Customer When you define a project’s customer information, you can select a customer to be the default customer for all the top level tasks of the project. The default top task customer is used as the primary customer when you create a new project by copying the existing project. You must enable this option for at least one of the customers if the Customer at Top Task option is enabled in the project-level Billing Setup window. At any given point in time only one customer can be specified as the default top task customer. You can change the default top task customer at any point in time, however, it applies only to tasks created after the setting has been changed.
• #21: Project Contact Information Each customer must have one primary bill-to address, one primary ship-to address, and one primary bill-to contact. The primary bill-to contact must be entered in the Primary Bill-To Contacts Role window and in the Business Purpose Details window. Contact Types Contact types specify how the contacts of a particular customer are involved with a project. You can use project contacts to direct certain pieces of correspondence, such as invoices, to the appropriate customer contact. Refer to Guided Demonstration – Review key Setup Steps on an Existing Customer [LAB3CFFY]
• #23: Currency Options When a new project is created, the default value for the project currency code is copied from the functional currency defined in the Implementation Options for the project-owning operating unit. You can enter conversion attributes for the project in the Billing tab of the Currency window. Billing Currency Options In the Billing tab of the Currency window, you can: Enable multi-currency functionality Select the currency type(s) to use for the revenue transaction currency Select the currency type(s) to use for the invoice processing currency Define currency conversion attributes Currency option checkboxes: Enable Multi Currency Billing Invoice by Bill Transaction Currency Use Project Functional Currency Conversion Attributes for Receivables Functional Currency Bill Transaction Currency for Cost Based Revenue: This is the currency of revenue and billing amounts for expenditure items or events. When Oracle Projects generates revenue, it calculates revenue and billing amounts for expenditure items and events in the billing transaction currency. Search for and select one of the following options: Expenditure Functional Currency Expenditure Transactional Currency Project Currency: This is the user-defined project currency. This currency can differ from the functional currency of the operating unit that owns the project. You can select any active currency defined in Oracle General Ledger. Project Functional Currency: This is the principal currency you use to record transactions and maintain accounting data for your ledger. Revenue Transaction Currency: Select one of the following: Project Functional Currency Only Project Functional and Invoice Transaction Currency Invoice Processing Currency: Select between the project functional currency, the project currency and the funding currency as the invoice processing currency for the project. Funding and invoice amounts are converted to this currency and used to check against funding and to evaluate hard and soft limits when generating invoices. Note: You can select funding currency as the invoice processing currency for a project only if all past and future funding allocated to the project has the same currency. Conversion Attributes: Define the following conversion attributes to the project functional currency, project currency, and the funding currency: Currency Rate Date Type Rate Type Rate Date Rate
• #24: Multi-Currency Billing When multi-currency billing is enabled, you can: Enter agreements, bill rates, and events in any currency regardless of the project functional currency Define a project currency that is different from the project functional currency Designate the project functional currency, project currency, or funding currency as the invoice processing currency for a project. Note: The invoice processing currency cannot be changed after you have processed invoices for a project. Designate the project functional currency and the invoice transaction currency as the revenue transaction currency Define currency conversion attributes for converting revenue and invoicing amounts to the project currency, project functional currency, and funding currency Define currency conversion attributes for converting funding amounts to the project functional currency, and the project currency Define a default invoice currency for a project customer that is different from the project functional currency and assign conversion attributes for deriving revenue in this currency The multi-currency billing option can be set either at the operating unit level or at the project level. You set the options at the operating unit level from the Billing tab of the Implementation Options window. If you enable multi currency billing at the operating unit level, you can disable it for an individual project template or project. If you do not enable multi currency billing at the operating unit level, you can enable it for an individual project template or project. You must select the Enable Multi Currency Billing check box in the Currency window for the project template or project to enter events, assign bill rate schedules, enter bill rate overrides, add billing assignments, enter invoice currency for a project customer and fund the project template or project in any currency.
• #25: Currency Conversion Attributes You enable the multi-currency billing functionality and define the currency conversion attributes for a project in the Billing region of the Currency window accessed from the Project Options. Oracle Projects uses currency conversion attributes to convert revenue and billing amounts to the project functional currency, project currency, and funding currency, and to convert the funding amounts to the project functional currency and project currency. By default, the system uses the conversion attribute information defined for the project to which the transaction is assigned to calculate the project currency amounts. Note: When you enable Invoice by Bill Transaction currency, or when the invoice transaction currency is the same as the project functional currency, the process of converting invoice amounts to invoice transaction currency ignores the conversion attributes defined for a customer. When you enable Project Functional Currency and Invoice Transaction Currency as your revenue transaction currency, the conversion of revenue to invoice transaction currency uses the invoice transaction currency conversion attributes that you assign to a customer. You update the currency conversion attributes when you want to: Assign a project or task a rate schedule in a currency that is different from the project functional currency Create event transactions for a project in a currency that is different from the project functional currency Enter an agreement in a currency that is different from the project functional currency and fund the project with that agreement Define a project currency that is different from the project functional currency
• #26: Multi-Currency Options Available for Contract Projects Project Functional Currency: The functional currency of the operating unit that owns the project. Project Currency: This is a user-defined currency to which all transactions of a project are converted for processing and summarization. Funding Currency: The currency or currencies in which the project is funded. Billing Transaction Currency: The currency of revenue and billing amounts for expenditure items or events. When Oracle Projects generates revenue, it calculates revenue and billing amounts for expenditure items and events in the billing transaction currency. When the Invoice by Billing Transaction functionality is enabled for a project, separate invoices are generated for each billing transaction currency, even though one or more invoices may be funded by the same agreement. Invoice Processing Currency: The common currency that summarizes billing transactions and funding amounts and performs fund checking when generating invoices. Revenue Transaction Currency: By default, Oracle Project Billing selects the Project Functional Currency Only option for revenue transaction currency. This ensures that the Generate Draft Revenue concurrent program generates revenue in project functional currency. To enable the Generate Draft Revenue concurrent program to additionally derive revenue in invoice transaction currency, select the Project Functional Currency and Invoice Transaction Currency option. When you select this option for revenue transaction currency, the Generate Revenue Accounting Events process calculates unbilled receivables and unearned revenue amounts in invoice transaction currency.
• #27: Project Functional Currency and Project Currency Project functional currency is defined by Oracle General Ledger. It is assigned to a project’s operating unit. Project functional currency is the default invoice processing currency. Oracle Projects allows you to define a project currency for each project. This currency can differ from the functional currency of the operating unit that owns the project. You can select any active currency defined in Oracle General Ledger. In a multinational business environment, employees from locations across the world can report to one operating unit. Therefore, an operating unit can own projects being managed and implemented from various remote sites. The project managers of these projects need the ability to report project costs and revenues in the local currencies of the countries where the work is being performed. To accomplish this, you have the ability to define a project currency that differs from the functional currency of the operating unit owning the project.
• #28: Funding Currency Project funding refers to money allocated to a project from agreements. Funding represents potential revenue for the project. The project funding currency is always the same as the agreement currency. However, a project can be funded from several agreements that have different currencies. When a project is funded by amounts that are in more than one currency, the funding amounts must be converted to a common currency to determine a project’s total funding across all agreements. The processes that generate revenue and invoices for a project use this total amount. During revenue and invoice processing, the system performs funds checking using the total funding amount in the project functional currency (revenue) and invoice processing currency (invoice). Note: The funding currency can be used as the invoice processing currency only when all funding amounts are in the same currency.
• #29: Billing Transaction Currency For work-based billing: The billing transaction currency is the expenditure’s transaction currency if billing amounts are based on cost and use cost markups (bill rate schedules) or multipliers (burden schedules). The billing transaction currency is the bill rate schedule currency if billing amounts are based on bill rate schedules and no project or task rate override is entered. The billing transaction currency is the user-entered bill rate currency from employee, job, or non-labor bill rate overrides if billing amounts are based on bill rate schedules and project or task overrides are specified. For event-based billing events: The billing transaction currency is the user-entered event transaction currency for manually entered events. The billing transaction currency is the project functional currency for automatic revenue or invoice events that are created when the Cost/Cost billing method is used Billing Transaction Currency Calculations When Oracle Projects generates revenue, it calculates revenue and billing amounts for expenditure items in the billing transaction currency. The following illustrates how currency, rates, and amounts are determined during revenue generation. Type of Transaction: expenditure items that use bill rates Billing Transaction Currency = rate schedule currency Billing Transaction Bill Rate = billing schedule rate Billing Transaction Revenue, Raw Revenue, or Billing Amount = billing transaction bill rate * quantity Type of Transaction: expenditure items that use bill rate overrides Billing Transaction Currency = currency of the bill rate override Billing Transaction Bill Rate = rate override Billing Transaction Revenue, Raw Revenue, or Billing Amount = billing transaction bill rate * quantity Type of Transaction: expenditure items with markups (multi-currency billing enabled) Billing Transaction Currency = expenditure transaction currency Billing Transaction Bill Rate =raw revenue or bill amount/quantity Billing Transaction Revenue, Raw Revenue, or Billing Amount = markup applied on expenditure transaction currency cost Type of Transaction: expenditure items with burden multipliers (multi-currency billing enabled) Billing Transaction Currency = expenditure transaction currency Billing Transaction Bill Rate = raw revenue or bill amount/quantity Billing Transaction Revenue, Raw Revenue, or Billing Amount = burden multiplier applied on expenditure transaction currency cost Type of Transaction: events Billing Transaction Currency = event transaction currency Billing Transaction Bill Rate = n/a Billing Transaction Revenue, Raw Revenue, or Billing Amount = event revenue or bill amount in the event transaction currency Note: When multi-currency billing is not enabled, the billing transaction currency for an expenditure item cost that uses markups or burden schedule multipliers is the same as the project functional currency, although the expenditure item transaction currency can be a currency other than the project functional currency. The markup or burden multiplier is applied to the expenditure cost in the project functional currency.
• #30: Invoice Processing Currency You can designate one of the following currencies as the invoice processing currency: Project Functional Currency Project Currency Funding Currency Funding currency can be designated as the invoice processing currency for a project only if all of the funding allocated to the project has the same currency. If funding currency is selected as the invoice processing currency, you can fund the project using only one currency.
• #31: Revenue Transaction Currency Oracle Project Billing generates invoice amounts in the invoice transaction currency. The invoice transaction currency is an attribute that you define for each customer. On a multi-currency project the invoice transaction currency can be a foreign currency. To support revaluation of your unbilled receivables and unearned revenue accounts in Oracle General Ledger, Oracle Projects enables you to derive revenue in invoice transaction currency. You can select one of the following currencies as a project’s revenue transaction currency: Project functional currency, if you enable the Invoice by Bill Transaction Currency check box and select the Project Functional Currency Only option Project functional and invoice transaction currency, if you do not enable the Invoice by Bill Transaction Currency and select the Project Functional Currency and Invoice Transaction Currency option
• #32: Rate Schedules and Overrides in Any Currency Bill rate schedules maintain the rates and percentage markups over cost that you charge clients for labor and non-labor expenditures. You can define bill rate schedules for your entire organization, or define separate bill rate schedules for individual business units. Rate schedules are created and maintained in the rate schedule currency. This currency applies to all the rates in a rate schedule. When multi-currency billing is enabled for an operating unit, you can enter and maintain bill rate schedules in any currency. All bill rates in the schedule are in the rate schedule currency. You can override bill rates at the project or task level in any currency regardless of your project functional currency, when multi-currency billing is enabled for an operating unit.
• #33: Currency Attributes Use the Currency tab in the Implementation Options window to control the default values for currency attributes at the operating unit level. Oracle Projects uses the currency attributes to calculate currency exchange rates. Rate Type: The type of exchange rate used to convert one currency amount to another currency amount. The default value is derived from the project setup. Rate Date: The date of an exchange rate used to convert one currency amount to another currency amount. The default value is derived from the project setup if the exchange rate type defined for the project is Fixed Date. It can be updated if the rate date type defined for the project is Fixed Date. Exchange Rate: This is the rate that represents the amount one currency can be exchanged for another, at a specific point in time. Oracle Applications can access daily, periodic, and historical rates. These rates are used for foreign currency transaction conversion. Refer to Guided Demonstration – Demonstrate Where Currency Options are Defined [LAB3D12Y] Refer to Guided Demonstration – Demonstrate Where Invoice Currency is Set Up for Customers on a Project [LAB3D00Y]
• #35: Bill Rates A bill rate is an amount or percentage that is applied to a unit to calculate revenue and invoicing. Bill rates are used for projects that use cost-based billing. You can specify the following bill rates in Oracle Projects: Employee Bill Rates: Standard hourly bill rates or percentage markups assigned to employees. You can assign a different bill rate to each employee for customer invoicing. Job Bill Rates: Standard hourly bill rates assigned by job title. For example, all System Administrators can have one bill rate, while all Consultants can have a different bill rate. Non-Labor Bill Rates: Standard bill rates or standard markups assigned to non-labor expenditure type or non-labor resources. Dates and Bill Rates All bill rate schedules and overrides are specified with start and end dates. To determine the effective bill rate date, Oracle Projects uses one of the two dates to compare with the start and end dates of a particular bill rate. Otherwise, the expenditure item date is used. Burden Schedules for Revenue and Invoicing You can define one or more schedules for different purposes of costing, revenue accrual, and invoicing. Oracle Projects applies the burden multipliers to the raw cost amount of an expenditure item to derive an amount; this may be the total cost, revenue amount, or bill amount. Employee and Job Bill Rate Schedules When you create the Billing Schedules during setup, you specify if the schedule is based on employee or job criteria. When you set up a contract project, you can specify an employee–based bill rate schedule, or a job–based bill rate schedule, or both. When calculating revenue, the system first looks for an employee–based rate, if one is specified for the project. If no employee–based rate is specified or if none is available for the employee, a job–based bill rate is used. Bill Rates and Discount Overrides You can assign and override a job’s standard bill rate for a project or lowest task by rate or discount. When you override a job’s standard bill rate by rate override, the new job bill rate becomes the job’s bill rate for this project or lowest task.
• #36: Labor Bill Rate Precedence Example of Labor Bill Rate Overrides Primary employee assignments John Doe is Principal. Betty Jones is Staff. Standard job bill rate schedule used on project Principal bills at $145/hr. Staff bills at $90/hr. Senior bills at $105/hr. Job bill rate override at project level Staff bills at $100/hr. Job assignment override at project level John Doe is assigned as Senior. Result: John Doe bills as Senior at $105/hr. Betty Jones bills as Staff at $100/hr.
• #37: Refer to Practice – Define a Rate Schedule [LAB3D01Y] Refer to Practice - Enter Bill Rate Overrides for the Tasks [LAB3D02Y]
• #38: Credit Receivers You classify credit receivers with a credit type. Examples of credit types: Quota (predefined by Oracle Projects) Marketing Credit types are defined during implementation. The credit receiver must be a salesperson in Oracle Receivables, and the credit type must be a sales credit type in Oracle Order Management.
• #41: Defining the Retention Level and Terms Retention provisions in contracts can vary greatly. Contracts may require that the withholding and billing of retained amounts for a project customer be managed at either the project or top task level. Contracts for work-based billing may require that amounts be withheld by expenditure category, while those for event-based billing require that amounts be withheld by event category. Contracts may also include a variety of conditions for the billing of withheld amounts. For each project customer, you can define retention terms at either the project level or the top task level to reflect the granularity of the terms specified by the contract with the project customer. You cannot change the retention level after an amount has been withheld for the project customer. Defining Retention Terms Retention terms determine how amounts are withheld from project invoices and how the withheld amounts are billed to the project customer. Retention terms include: Withholding Terms: These terms apply to all sources of project invoice amounts for the specified project or top task. For each term, you can define a withholding percentage or amount. Optionally, a threshold amount can be defined to determine the maximum amount to be withheld per term. Each term represents a distinct retention withholding basis. This basis is used to determine the grouping of retention lines on project invoices. You can choose to define more detailed withholding terms by expenditure category for work-based billing and event revenue category for event-based billing. Withholding Terms by Expenditure Category: You define withholding terms for specific classifications of cost, such as labor or materials. The following expenditure classifications are available for this definition: Expenditure category Expenditure type Non-Labor resource Terms defined at a more granular level take precedence over those defined at less granular levels. For example, a term defined for an expenditure category of Labor and an expenditure type of Regular Time will take precedence over a term defined only for the expenditure category of Labor. Withholding Terms by Event Revenue Category: You define withholding terms for specific types of milestone events such as fees or incentives. The following classifications are available for this definition: Revenue category Event type Terms defined at a more granular level take precedence over those defined at less granular levels. For example, a term defined for a revenue category of Milestone and an event type of Fee will take precedence over a term defined for only the revenue category of Milestone. Billing Terms: Retention invoices bill project customers for previously withheld retention amounts. Billing terms control the timing and calculation of retention invoices. You define retention billing terms at the same retention level as retention withholding terms. To define a billing term, select one of the following retention billing methods: Total Withheld Amount Percent Complete Billing Cycle Retention Billing Client Extension
• #43: Billable Status Control All expenditure items charged to the task default to the billable indicator based on the task billable status and transaction controls. You can change the billable status of an item.
• #44: Billability and Work Types PA: Transaction Billability Derived from Work Type profile option This profile option determines whether a transaction is billable based on the assigned work type. This profile option is optional. Available values are listed below: Yes: Transaction is billable based on the assigned work type No: Transaction is not billable based on the assigned work type The default value for this option is No. Internal name: PA_TRXN_BILLABLE_WORK_TYPE
• #45: Billable Transaction Control You can use transaction controls to specify whether to allow charges, further controlling the allowable charges. You can define some transaction controls to allow charges and others not to allow charges to record exceptions. Inclusive transaction controls limit charges to only the transaction controls entered; Oracle Projects then rejects any charges that are not listed as chargeable in the transaction controls. Exclusive transaction controls allow all charges except those that are specified as non–chargeable in the transaction controls. Using transaction controls, you can also specify which items are nonbillable. Otherwise, the billable status of the item is determined from the task billable status. Transaction Control Extension To define more complex rules for implementing company–specific expenditure entry policies, you may need to use the transaction control extension. Some examples of rules that you may define are: All entertainment expenses are non–billable. You cannot charge new transactions to projects for which the work is complete; you can only transfer items to these projects. Refer to Practice – Create a Contract Project [LAB3CFEY]
• #47: Modifying Contract Projects The two types of project changes that you can make are: Unrestricted changes Conditional changes Unrestricted changes These include changes to the following: Bill Offset Days Invoice Currency Invoice Comment Invoice Format Retention Burden and Bill Rate Schedule Information Defaults to new task; only lowest task schedule is used Billing assignments Conditional Changes to Contract Project Definition Project number:   Change is allowed only before transactions are charged to a project, revenue is generated, invoices are generated, or a budget baseline is created. Transactions include timecards, usage logs, supplier costs, purchase orders, and requisitions. Change is allowed only if manual project numbering is used. Project Type: You can change the project type of a project if the following requirements are met:   The new project type belongs to the same project class as the current project type. The project does not have any cost distribution lines. The project does not have any draft revenue or draft invoice items.
• #49: Modifying Tasks The two types of task changes you can make are: Unrestricted Changes Changes to billable flag Changes to Standard bill rate schedule and burden schedule information Changes to Billing assignments Changes to customer work site Chargeable flag: allowed only at lowest-level task Conditional Changes to Task Number Change is allowed only before charging expenditure items to the task and/or entering budget amounts on the task and generating revenue and invoice. Change is allowed for tasks without transaction controls or overrides.