Oracle Project Accounting Interview Questions
What is project accounting in oracle.
Project Accounting is the one of the module which the entire details of project got structured, for example consider an construction company and this const. company have diff costumers. for eg consider Govt organization has given a project to build apartments for their employees to this construction company. In order to move forward with project given by Govt client couple of entities will be placed between company to company. In Project Accounting these named as. Project type(what type of project it is), Tasks(Work breakdown structures, assigning the work in diff level of tasks),Customers and contacts(information about customers and there contact lists), Agreement and Funding(Bonding between company to company which comes under project billing),Budgets(cost related, multiple types),Events(generates revenue and buildings),expenditures(extra accounts),Key members(key role members for the project like Project manager, Architecture,.), Transactions controls.
Explain in few words about Project Costing
Project Costing module helps in calculating the cost and accounting of a project. It also interacts with other modules such as Payables, purchasing to interface costs related to a project.
Explain in few words about Project Billing
Project Billing module helps in calculating the revenue and billing of a project. It helps in generating invoice for a customer project based on the customer agreement on that project, typically based on agreed upon bill rates, payment terms etc. Invoice is generated to the customer based on the number of hours worked on the project. Project Billing also helps to perform milestone billing based on the percent of work done. Revenue and Invoice accounting also done using project billing.
Explain in few words about Project Management
Project Management module helps project managers to manage the project effectively by providing them the visibility of a project.
Financial Plans help project managers to effectively plan the budget of a project. Using Change management, the financial plans can be managed effectively. Status Reporting feature helps to communicate the project status to the stake holders of the project.
Explain in few words about Project Resource Management
Project Resource Management module helps project managers to effectively manage the schedule of the project using the available resources. It helps in scheduling of the resources across various tasks of the project based on the resource availability. It also provides capabilities to staff various resources in an organization to a project by raising resource requirements. Project managers also can raise resource requirements for a open position in a project and can also mention the resource competencies required for that position.
How Project accounting interacts with Accounts Payables module?
Project related Supplier invoices are created in Accounts Payables module. This is a cost against the project and hence must be transferred from payables to oracle projects. To interface the supplier costs, PRC: Interface Supplier Costs process can be run. This process fetches all the approved and yet to be interfaced invoices to the projects module.
These invoices are transferred to Projects module as expenditure items. Each eligible invoice distribution in an invoice is transferred as an expenditure item to projects module. The cost of the item is same as the invoice distribution amount.
Explain about the cost distribution process in project costing
Project costing module calculates costs for expenditure items which are not yet costed. For example, the timesheets transferred from OTL module are interfaced as uncosted expenditure items. The cost for those timesheets are yet to be calculated.
Cost can be derived using cost rates setup against the project. Cost rates can be setup against a specific organization, Job or an employee. For example, if 8 hours is worked on a project in a day and the cost rate for the timesheet’s employee is 100 USD / hour. Then the cost of that employee on that day is 8 x 100 = 800 USD.
There can be additional costs associated with a project. For example, to perform the 8 hours of work on that day, an employee might have used additional resources such as internet, telephone, electricity etc. These costs are called as indirect costs or burdened costs.
How Project accounting interacts with Purchasing module?
Project related Purchase Orders are created in Oracle Purchasing module. This is a cost against the project and hence must be transferred to oracle projects.
There are 2 ways to do this.
Create a Supplier invoice against the PO. Then interface the supplier invoice to projects module.
Incase when we cannot wait for an invoice to be create, we must transfer the PO cost directly to projects. This can be done by creating a Purchase receipt against that PO. Then interface the receipts directly to projects module.
To interface the Purchase Receipts, PRC: Interface Supplier Costs process can be run. This process fetches all the receipts matched against the project related PO.
Receipt distributions are interfaced to projects module as expenditure items.