Adding Operating Units

Many of the steps you perform to implement your first Oracle Projects operating unit define parameters and features that are shared across all operating units. To set up additional operating units, you only need to perform the steps that control parameters for an individual operating unit. Similarly, some Oracle Projects setup steps define parameters that are shared across operating units associated with the same business group. You need perform these steps only once for each business group.

For guidance on which steps in the Oracle Projects Implementation Checklist you must repeat for each operating unit, see: Implementation Steps.

If your implementation requires that you integrate Oracle Projects with other Oracle applications, you must set up the other applications for each operating unit that you want to integrate. For comprehensive implementation information for each product, refer to the corresponding product implementation instructions and Multiple Organizations in Oracle Applications.

If your organization structure includes multiple business groups, complete the setup for each business group before you perform the setup steps for the related operating units. For instructions on setting up business groups, see the Human Resources setup steps section in the Oracle Projects Foundation Implementation Checklists, Oracle Projects Implementation Guide.

If your organization uses cross charging and intercompany billing, see: Setting Up for Cross Charge Processing, Oracle Projects Implementation Guide, and the Oracle Projects Implementation Checklist, Oracle Projects Implementation Guide.

Implementation Steps

For each operating unit you want to add, perform the following steps:

1. Define implementation options

See: Implementation Options, Oracle Projects Implementation Guide.

Each operating unit has its own implementation options. The options determine how data is interfaced with other Oracle applications and controls cross-charging and internal billing across operating units.

Automatic Project Numbering. If you use automatic project numbering, note that project numbers (including project template numbers) are unique across operating units. If a value is entered for next project number, all operating units that use the automatic project numbering method will display the same number.

Automatic Invoice Numbering. Unlike project numbers, invoice numbers are unique within an operating unit, not across operating units. If you use automatic invoice numbering, the next invoice number is specific to the operating unit.

Note: If you are implementing Project Billing, the Invoice Batch Source field (under the Billing tabbed region) is required; Oracle Projects uses the batch source as a context value in the Invoice Transaction flexfield. The default is the Oracle Receivables batch source Project Invoices and two transaction types, PA Invoice and PA Credit Memo. For new operating units, the Receivables batch source Projects Invoices is replicated automatically.

2. Define PA periods

See: Defining GL and PA Periods, Oracle Projects Implementation Guide.

You define the PA periods you want to use in the calendar associated with your ledger. When the PA period type is defined for the operating unit, the system copies accounting periods from the calendar of the ledger. For more information on defining the period type and accounting periods, see the Oracle General Ledger Implementation Guide.

Each operating unit maintains its own PA period status. You use the Maintain PA Periods Status window to maintain the period status and the current reporting period. You can copy additional PA Periods from the calendar by choosing the Copy from GL button. Once a transaction is posted to a PA period from any of the operating units, you cannot change the period date range in the Calendar window.

Note: You must open and save a period before you can define it as the current reporting period.

3. Define cost rates for expenditure types

See: Defining Cost Rates for Expenditure Types, Oracle Projects Implementation Guide.

Expenditure types are set up once and are shared across all operating units. However, the cost rates for expenditure types are specific to each operating unit. Each operating unit must have cost rates for the expenditure types in which expenditures are expected to be incurred. The cost rates are defined in the functional currency of the ledger assigned to the operating unit.

4. Define usage cost rate overrides

See: Defining Usage Cost Rate Overrides,Oracle Projects Implementation Guide.

Non-labor resources are set up once and are shared across all operating units. For each of the non-labor resources that an operating unit may put in service, you must set up a cost rate for the associated expenditure type. If you want to have non-labor resources with different cost rates in different operating units, define usage cost rate overrides for organizations in the business group associated with an operating unit. The cost rates are defined in the functional currency of the ledger assigned to the operating unit.

5. Define labor costing overrides

See: Labor Costing Overrides, Oracle Projects Implementation Guide.

Employees are associated with a business group. An employee’s work can be charged to any of the operating units that are associated with the employee’s business group. If your business process allows an employee to work in a subset of these operating units, set up labor rates for each of the operating units in which the employee works. You can set up different labor rates for the same employee in different operating units.

6. Define bill rate schedules

See: Rate Schedule Definition, Oracle Projects Implementation Guide.

Bill rate schedules work similarly to cost rates. Each operating unit must have its own bill rates. You can have different bill rates for the same resource in different schedules of each operating unit. The bill rates in a bill rate schedule are denominated in the functional currency for the operating unit. For project billing, you can select the bill rate schedule only within the project operating unit. However, you can select any operating unit’s bill rate schedule for a transfer price rule.

7. Define project types

See: Project Types, Oracle Projects Implementation Guide.

Set up project types for each operating unit. Each project type is specific to the operating unit and has it own attributes to control project processing by operating unit.

8. Define project templates

See: Defining Project Templates, Oracle Projects Implementation Guide.

Like project types and projects, project templates belong to a single operating unit. For each project type class, you must define at least one project template in order to define a project with that project type class. Project templates can only be maintained and copied within an operating unit. However, project template numbers are unique across operating units. A project template number cannot duplicate any project or project template number within the Oracle Projects installation.

9. Set up AutoAccounting for costs

AutoAccounting rules for costs are set up once for each chart of accounts. However, accounting rule assignments are specific to each operating unit. The multi-organization Replicate Seed Data process will replicate system-defined function transactions in each operating unit you set up. For each operating unit, you must enable cost function transactions and assign proper accounting rules for Oracle Projects to use when automatically generating your cost accounting entries.

Oracle Projects uses AutoAccounting to generate default accounts. If you define your own detailed accounting rules in Oracle Subledger Accounting, then Oracle Subledger Accounting overwrites default accounts, or individual segments of accounts, that Oracle Projects derives using AutoAccounting. For information about setting up AutoAccounting and Oracle Subledger Accounting for Oracle Projects, see: Accounting for Costs, Oracle Projects Implementation Guide.

Note: If you use SQL statement rules for your AutoAccounting or Account Generator, then use partitioned tables (ending in _ALL). Because accounting rules can depend on data elements across operating unit boundaries, using the _ALL tables maintains your ability to use the cross-charging feature supported by Oracle Projects in a multiple organization installation.

10. Set up AutoAccounting for revenue and billing

AutoAccounting rules for revenue and billing are set up once for each Chart of Accounts. However, accounting rule assignments are specific to each operating unit. The multi-organization Replicate Seed Data process will replicate system-defined function transactions in each operating unit you set up. For each operating unit, you must enable the revenue and billing function transactions and assign proper accounting rules for Oracle Projects to use when automatically generating your revenue and billing accounting entries.

Note: If you use SQL statement rules for your AutoAccounting or Account Generator, then use partitioned tables (ending in _ALL).

11. Define indirect projects for cost collection

See: Accounting for Indirect Costs, Oracle Projects Implementation Guide.

Projects are owned by an operating unit. If you want to use Oracle Projects to track costs your operating unit incurs, including work that is not directly associated with project work, you can define as many indirect projects as you need to record indirect costs.

12. Specify profile option values

See: Profile Options in Oracle Projects, Oracle Projects Implementation Guide.

Profile options specify default values that affect system processes, system controls, and data entry. In a multi-organization environment, you can confine a profile option value to a specific operating unit by defining the profile options at the responsibility level. Review the following Oracle Projects profile options to determine if you want to define their values at the responsibility level.

PA: Cross-Project User – Update
PA: Cross-Project User – View
PA: Debug Mode
PA: Default Expenditure Organization in AP/PO
PA: Default Public Sector

Additional Steps for Operating Units Associated With a New Business Group

You must perform the following implementation steps for each business group:

1. Define project burdening organization hierarchy

See: Assigning Burdening Hierarchies

Oracle Projects uses the project burdening hierarchy defined for each business group to compile burden schedules. Each business group must have a single version of the organization hierarchy designated as its project burdening hierarchy.

2. Define burden schedules

See: Burden Schedules, Oracle Projects Implementation Guide.

Set up and compile burden schedules for each business group. Burden schedules are shared among operating units associated with the same business group. If organization burden multipliers are not explicitly defined in the Define Burden Schedule window, they will use the next higher level organization in the Project Burdening Hierarchy defined for the business group as the default.

3. Define resource lists

See: Resources and Resource Lists, Oracle Projects Implementation Guide:

Set up resource lists for each business group. Resource lists are shared among operating units associated with the same business group. You can define a resource list by copying it from an existing resource list in the same business group.