Basics of PPM Costing
Definitions
- Project Cost: This is generally an expense or a charge
- PPM Manage Project Costs: Within the Oracle Financial Cloud, transactions are accounted for in the General Ledger (GL) but can be tracked at a more granular level within Oracle Project Portfolio Management (PPM). Project Costs is designed to track detailed transactions and gives departments ability to granularly track costs/charges/expenses for a particular activity/purpose.
- POETAF: To code transactions to the PPM subledger, Project number, Organization, Expenditure Type, Task, Award, and Funding source must be provided. All transactions in PPM have four required fields and two (sometimes) optional fields:
Name | Description | Required for |
---|---|---|
Project Number</strong |
The unique number that describes a project. These identical values will also appear in the COA in the Project segment. |
All transactions in PPM |
Expenditure Organization |
Organization generating the expense. Does not drive accounting-only reporting |
All transactions in PPM |
Expenditure Type |
The specific type of expense being incurred. The expenditure type is used to derive the account segment value in the COA, but expenditure types are more granular. Use the Project Information Lookup Report to see all Expenditures. There can be multiple expenditure types associated with a single account code, each with a different description. |
All transactions in PPM |
Task Number |
The number that represents the project task incurring the expense. |
All transactions in PPM |
Award number |
The award to be used for this transaction. The base award number matches the Kuali Research (KR) award number. |
Transactions against projects that have awards. |
Funding Source |
Name of the sponsor in KR for the external funding source. This is NOT the same as the Fund in the CCOA. This is also the name of any Internal Funding Sources (used for Cost Sharing) |
Transactions against projects that have awards. |
Accounting Period in Manage Project Costs
The accounting period in the Manage Project Costs Search screen should be considered a “most recently accounted for” accounting period.
What is meant by this? This means that if any costs are recalculated (change billable/non-billable, recalculate rate schedules, etc.), the system will “update” the accounting period. The GL entries create an "in and out" (credit/debit) in that month. The Cost reports that Sponsored Projects Finance (SPF) uses to bill sponsors shows the “original accounting period” to ensure a match with how sponsors are billed.
Reminder, this is important when reconciling costs looking at the expenditures by month. Please be careful when you rely on the accounting period in the Manage Project Costs Search results. The Transaction Details report has a filter to search by Original Accounting Period or "Most Recent"
Understanding Dates
Costs must be incurred during award/project/task dates. In other words, the Expenditure Item date of the transaction(s) must be within the start and end dates of the task being charged.
- Expenditure Item (EI) date: Date a cost was incurred (service or good provided). This is not necessarily the same as the Accounting period
- Accounting Period: Period in which the cost was accounted to the GL
- Project End Date: Date project ends. This is equal to the latest task end date.
- For more information on Dates, see PPM User Guide section 2.2.8.
How do costs get into PPM?
Costs are posted to PPM in a variety of ways:
- Through Oracle Accounts Payable (AP) and PPM sub-ledgers
- Oracle Fusion Payables source includes Concur, POs, REQs, non-PO invoices
- Oracle Fusion Projects source includes IDC (burden) costs that are system generated
- Through non-Oracle subledgers/systems (integrations)
- ISIS
- UCPath
- Recharge Systems
- Approved Recharge Facilities Integration tools
- Approved Auxiliary Facilities Integration tools
- RMP Recharge App (Recharge system built by RMP and opened up to smaller, approved recharge facilities that do not have resources to build their own integration)
- Miscellaneous Cost Imports directly in PPM Project Costs – limited to central office users (SPF, ICA, FinOps, Advancement, Health)
- Unprocessed Cost Batches in the UI
- Miscellaneous Cost Imports FBDI File
- Miscellaneous Cost Imports ADF File Integration
How does accounting work on PPM costs?
- Project Portfolio Management (PPM) creates accounting for costs imported from outside Oracle Fusion Payables through Subledger Accounting rules (SLAs). Examples of expenses processed this way include UCPath and recharge facilities' internal billing
- An expense (cost) is an item requiring an outflow of money, or any form of fortune in general, to another person or group as payment for an item, service, or other category of costs
- PPM cost is a single cost in PPM but creates a 2 line journal to the General Ledger.
- The Cost in PPM represents the “raw cost” or the expense or the natural debit of the transaction
- Behind the scenes, SLAs drive the credit/liability or raw cost clearing
- The raw cost clearing account is 773046 for most costs that are accounted in PPM.
- Exceptions include Payroll, tuition remission and a few other costs in which they have other SLAs for different liability accounts.
- This Raw Cost Clearing account must net to zero. As long as cost creators ensure that billing and income (or the plus/minus of cost distribution) net to zero by batch, this clearing account will be zero. This should be reconciled monthly, but no later than Fiscal Year end.
- Note that most day-to-day users will never need to know this information. But this is important for users that work in a recharge operation, auxiliary or other self supporting activity
- Cost transactions created from source systems outside of OFC and PPM include, but are not limited to; Student Information System (ISIS), EPIC, and Financial Control
- Entries will import into the general ledger (GL) via journal entry
- Transactions are subsequently posted to PPM-Project Costs through an import file with a Transaction Source Document that makes the transactions "costed and accounted" to avoid a duplicate journal entry in the GL
- Costed and accounted transactions only post to the PPM sub-ledger; they do not impact the GL
- The import file data contains the POETAF + chart strings. The chart strings should represent the original GL journal entry
- Transactions are subsequently posted to PPM-Project Costs through an import file with a Transaction Source Document that makes the transactions "costed and accounted" to avoid a duplicate journal entry in the GL
- Entries will import into the general ledger (GL) via journal entry
- PPM adjustments such as a transfer, split, etc., impact the GL. Note: As of August 2021, the SLAs use the chart strings from the original transaction instead of the project setup information to derive the accounting entries
- PPM adjustments generally have three transactions: original, reversal, and new. The accounting of the reversed transaction now originates from the initial transaction and uses the accounting string from the initial cost transaction
- The new transaction uses the data elements in the project setup to derive the accounting chart strings
For more information, read the How to Identify and Correct Costed and Accounted PPM Adjusted Costs KBA.
Who approves access to the APIs and/or RMP applications?
- BFS Internal Controls and Accounting
- Currently manual S&S ticket
- Long term, the goal is to have an automated S&S form
- BFS Costing Policy and Analysis for Recharge Operation initial setup. Additional users are requested by the charging department
How do I get setup with RMP application access?
Submit a ticket to PPM SD with the approval from CP&A (Costing Policy & Analysis) or ICA (Internal Controls & Accounting) included. View the categories listed in the How to Process Transactions in the RMP Recharge Application KBA.
Who do I contact about costs from an integration or manually created?
For support: