Budgeting at granular level in Oracle Project Management
Guest post by
Rajan Gupta, Senior Consultant, Infosys
Budgeting is one of the key features of Oracle Project Management (PJT) to maintain the financial control on the Project. Different plan types and versions can be created to do the what-if scenarios. Budgeting and forecasting helps Project Managers/Controllers to keep tab on financial health of the Project. Unless budget is accurate, forecast figures will not be correct. Budgeting in PJT can be done based upon resource allocation of resources, financial categories, material items consumption.
Budget can be created manually or by copying from source (Staffing Plan, Financial plan or Work plan) or from an existing source of the budget. Oracle provides lot of flexibility in planning the elements either at Project level, top task or lowest level either by Organization, Job, and Position etc. However if planning is done at that granular level and budget is generated automatically from the source as Work plan that it has implications as can be understood in below examples:-
- Labour resource assignments
Resources can be planned at lowest level tasks but actuals can be entered by resources on different tasks. If there are no controls enabled in system then it is quite possible that resources book hour in the unplanned task. Therefore implementer should either enable transaction controls to restrict the users or customize the views of time entry system so that only relevant tasks are visible to users. That way planning and actuals can be attained in the correct task and unplanned cost can be avoided.
- BOM (Assembled Item) Resource Assignments
BOM Material resources can be planned at lowest level tasks but actuals that are imported into Projects are rolled up by equipment cost and inventory cost. Therefore there will be unplanned cost in Projects for this scenario as actual cost from WIP and Inventory do not roll up against planned material item (BOM) in work plan. BOM related items need to be carefully planned so that planned items and actual items are mapped in a one-one relationship. To overcome this issue, total BOM cost can be segregated by individual planning cost elements and assigned to the task accordingly. That means planning should be done by segregating material cost, equipment cost (non-labor), financial cost and labor cost rather than directly assigning the BOM at the task level.
Taking into consideration above of the scenarios, implementer can consider following options:-
- Enable budgeting/forecasting at top task/project level rather than planning at lowest level.
- Enable controls in the system so that planned and actuals costs are appeared in a one on one relationship at resource assignment level. For example:- Enable inclusive Transaction Control, Modify OTL Views(PA_ONLINE_TASKS_V)
- Customize Client extension of budgeting and forecasting so that child element cost is rolled up to the parent planning element.
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