Oracle 1z0-1057-22 Oracle Project Management Cloud 2022 Implementation Professional Exam Practice Test

Reference https://docs.oracle.com/cd/E37583_01/doc.1116/e22598/F45890 0AN13D82.htm

How Resource Mapping Is Calculated

You can track the cost impact of every resource that has been assigned to a project task and use the resource breakdown structure to view the breakdown of these costs. Oracle Fusion Projects associates the costs of the resources used for tasks with branches and levels in the resource breakdown structure. The process for determining the correct association is managed by rules of precedence.

Oracle Fusion Projects uses the following rules to associate cost amounts with resources:

• Select the lowest level in the resource breakdown structure to which a transaction can map.
• If there is only one level to which the transaction maps, the cost amounts are mapped to that level.
• If the transaction maps to more than one level, Oracle Fusion Projects sums the precedence numbers for all resource types in the branch and gives precedence to the resource element in the branch with the lowest sum.
• If more than one branch has the lowest precedence number at the lower level, the application uses the precedence number of the next level up.
• If the sum of precedence numbers is the same for more than one branch, precedence is given to the branch with the lowest number at the lowest level.
• If one branch contains a user-defined resource type, precedence is given to the branch that does not contain a user-defined resource type.

Note Oracle Fusion Projects gives more precedence to a lower precedence number. For example, a resource element with a precedence number of 1 is given precedence over a resource element with a precedence number of 10.

Reference http://www.oracle.com/us/products/applications/fusion/fusion-proj-port-mang-solut-brief-173079.pdf

(Page 2) Flexible Contract-Based Billing

Traditional contract and billing systems enforce a rigid relationship between a project and a funding agreement, which can constrain project setup and execution. Oracle Fusion Project Portfolio Management provides a highly flexible approach to project contract-based billing via a non-exclusive

relationship between multiple projects and tasks with contracts and contract lines. This means that you will have full control over defining contracts, rates and limits, and when and how to recognize revenue and generate invoices while segregating the planning and execution of your projects.

The project resource search index is used to store and retrieve information about project resources such as their availability, qualifications, preferences, etc. The project resource search index is used for three purposes:

• Display resource details: The project resource search index provides the resource details such as name, email, job title, organization, etc. that are displayed on the resource search page.
• Filter counts while you search for resources: The project resource search index provides the filter counts that show how many resources match each filter criterion on the resource search page.
• Calculate Resource Qualification Scores: The project resource search index provides the qualification information such as skills, certifications, languages, etc. that are used to calculate the Resource Qualification Scores for each resource based on their match with the resource request. The project resource search index does not provide absence details for resources or calculate Resource Availability Scores. These are provided by other components such as Oracle Fusion Absence Management and Oracle Fusion Human Capital Management. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-resources.html#OAPFM2356181

Project classifications are used to group and report on projects based on different criteria. A project template can have one or more project classifications, which can be either required or optional. When a project is created from a template, the required project classifications must be entered, while the optional ones can be left blank. A project class category in a project classification must be associated with a set code, which determines the list of values for the project class. Project classification is not a mandatory field on a project template, but it is recommended to use it for reporting purposes. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-plans.html#OAPFM2355961

Ref: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19a/fapfm/implementing-pr oject-financial-management-applications.html#FAPFM969761

Topic - Entering Planning Resource Breakdown Structure Details

• Click Navigator > Setup and Maintenance, and search for the Manage Planning and Billing Resource Breakdown Structures task.
• Click the Manage Planning and Billing Resource Breakdown Structures link.

Use the Manage Planning and Billing Resource Breakdown Structures page to create new planning resource breakdown structures and to review existing planning and billing resource breakdown structures.

• Click the Create icon in the Planning Resource Breakdown Structures section.
• Use the Create Planning Resource Breakdown Structure: Basic Information page to provide basic resource breakdown structure information including the name, active dates, and project unit.
• Enter a planning resource breakdown structure name and select a date from which the resource breakdown structure is available for use.
• Optionally, provide a description and a date to which the planning resource breakdown structure is available for use.
• Select a project unit. Only projects created for the selected project unit can use this planning resource breakdown structure.
• If you want to allow project managers to add planning resources at the project level, then select the Allow resource changes at project level check box.

Tip: Changes at the project level don't move back to the parent planning resource breakdown structure. Deselect this option to ensure all project using the planning resource breakdown structure use the same resources.

• Optionally, select a Job Set as a source of jobs for creating planning resources on your planning resource breakdown structure.
• Click Save.

Reference https://docs.oracle.com/cloud/latest/projectcs_gs/OAPJF/OAPJF1121937.htm#OAPJF1121937

When the invoice is created, the unbilled receivables balance is reduced and the accounts receivables balance is increased by the invoice amount. This is because the revenue has already been recognized and the invoice is just a request for payment from the customer. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/project-accounting.html#OAPFM2355710

Some of the main benefits of using the implementation projects within Functional Setup Manager are:

• Implementation Project helps in assigning responsibility of managing setup data to a broad group of users. You can assign tasks to different users who are responsible for entering and validating setup data for different functional areas of the offering.
• Implementation Project helps you to monitor progress of the setup tasks. You can track the status and completion percentage of each task and view the dependencies and prerequisites among tasks. Implementation Project does not give you the flexibility to set up different functional areas of the offering at different times, as this is determined by the configuration package that you select for your implementation. Implementation Project does not help you to use the manage setup data entry in bulk option, as this is a separate feature that allows you to import and export setup data across instances using spreadsheets. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/implement-project-financial-management-applications.html#OAPFM2356051

Status tracking is a feature that allows you to track the progress and history of project invoice approval notifications. Status tracking provides information such as who approved or rejected the invoice, when and why they took the action, who is currently assigned to approve or reject the invoice, etc. Three of the information that can be tracked as status tracking for project invoice approval notifications are:

• Person assigned for approval: This shows the name of the person who is currently assigned to approve or reject the invoice notification.
• Prior actions: This shows the list of actions that have been taken on the invoice notification by previous approvers or rejectors, such as approve, reject, request information, etc.
• Persons with whom it is still pending approval: This shows the list of persons who are still in the approval chain for the invoice notification and have not taken any action yet. Pre-approval activities and date-wise updates to the document are not information that can be tracked as status tracking for project invoice approval notifications. Pre-approval activities are tasks that need to be performed before submitting an invoice for approval, such as validating or transferring the invoice. Date-wise updates to the document are changes that are made to the invoice document after it has been submitted for approval, such as adjusting or reversing the invoice. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-invoices.html#OAPFM2356291

To enable a task as a business object for social networking, you need to select the task and the project attributes. These attributes allow you to identify the task and the project it belongs to, and to view the social conversations related to them. Task number and creation date are not available as attributes for social networking. Project number is available, but it is not required to enable a task as a business object. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-tasks.html#OAPFM2355891

Ref: https://docs.oracle.com/cd/E48434_01/fusionapps.1118/e49622/F1125394AN6D254.htm

Primavera P6 Enterprise Project Portfolio Management and Oracle Fusion Project Portfolio Management: How They Work Together

Use Oracle Fusion Project Integration Gateway to integrate Oracle Fusion Project Portfolio Management with Primavera P6 Enterprise Project Portfolio Management. The integration enables project accountants, project billing specialists, and executives to centrally perform project costing, billing, accounting, and executive reporting tasks in Oracle Fusion Project Portfolio Management while enabling each project manager to perform detailed project planning and scheduling in Primavera P6 Enterprise Project Portfolio Management.

Oracle Fusion Project Integration Gateway ensures data security, integrity, and efficiency by defining a set framework in which data is exported from and imported into Oracle Fusion Project Portfolio Management.

The following table and diagram provide an overview of the flow of information.

Information Type

From Application

To Application

Global integration information

Oracle Fusion Project Portfolio Management

Primavera P6 Enterprise Project Portfolio Management

Projects and task definition

Oracle Fusion Project Portfolio Management

Primavera P6 Enterprise Project Portfolio Management

Summarized project actual quantity and cost

Oracle Fusion Project Portfolio Management

Primavera P6 Enterprise Project Portfolio Management

Project plans and progress

Primavera P6 Enterprise Project Portfolio Management

Oracle Fusion Project Portfolio Management

Billing events

Oracle Fusion Project Portfolio Management

Primavera P6 Enterprise Project Portfolio Management

Event completion

Primavera P6 Enterprise Project Portfolio Management

Oracle Fusion Project Portfolio Management

Ref: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/oapjs/update-project-perfor mance-data-and-generate-kpis.html#OAPJS16654

Performance Status Indicator

Performance status indicators give an immediate picture of the status of a project, such as critical, at risk, and on track. Each distinct icon indicates the status and severity of performance. During KPI definition, you first associate status indicators with performance statuses:

• Critical
• Severe
• At risk
• On track
• Ahead

You then associate these statuses with threshold levels. When KPI values are generated for a project, each value is compared to the defined thresholds and the corresponding status indicator for the KPI appears on project performance reports.

A status can identify negative performance so that you can take the appropriate actions to prevent or quickly resolve problems. Conversely, a status can identify positive performance to help you track expected or excellent performance.

https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/fapfm/implementing-project-financial-managemen t-applications.html#FAPFM975706

Create Key Performance Indicators

Create key performance indicators (KPI) to measure how well your organization performs an operational, tactical, or strategic activity that is critical for the current and future success of the organization.

Note: To create KPIs you must enable a project unit to track key performance indicators.

Use the Threshold Levels section to specify thresholds to indicate the health status of a KPI. Select one of the following options:

• Multiple threshold levels
• Single threshold level value
• Single threshold level range

Reference https://docs.oracle.com/cloud/farel8/projectcs_ gs/OAPEX/F1082603AN23E61.htm

Manage Project Enterprise Labor Resource Maintenance Conditions

Project Enterprise Labor Resources: How They Are Automatically Created and Maintained

Run the Maintain Project Enterprise Labor Resources process to create resources, remove resource availability for staffing, and maintain the resource search index.

Settings That Affect the Maintain Project Enterprise Labor Resources Process

Create and maintain project enterprise labor resources by defining a set of conditions that specify the employees and contingent workers in Oracle Fusion Human Capital Management (HCM) to create as resources in Oracle Fusion Project Portfolio Management. Define the resource attribute values, such as the resource calendar and primary project role, to assign to the new resources.

The following table lists the criteria that you define for selecting HCM persons to create as project enterprise labor resources.

Selection Criteria

Description

Person type

Select the HCM person type for the process to use as criteria when selecting HCM persons to create as resources. Available person types are employees, contingent workers, or both employees and contingent workers.

Option to select people based on job

Select this option for the process to create resources for HCM persons with specific jobs.

Caution If you do not select job criteria for this condition, the process will create resources for all eligible people based only on the person type.

Jobs

If you selected the option to select people based on job, then select the jobs for the process to use as HCM person selection criteria.

The following table lists the attributes for which you specify values to assign to resources that are created for the condition.

Resource Attribute

Description

Option to manage resource availability and staffing

Select this option for resource managers to manage the availability and project staffing of resources who are created based on the condition. Resources who are managed in Oracle Fusion Project Resource Management are eligible to fulfill project resource requests.

Calendar

Select the resource calendar for resources that are created based on the condition. The resource calendar defines the work schedule for project enterprise labor resources, and includes working days and hours and any exceptions, such as holidays.

Primary project role

Select the primary project role for resources that are created based on the condition. Project roles are maintained in Oracle Fusion Project Management.

Cost rate and currency

Enter the cost rate and currency for resources that are created based on the condition.

Bill rate and currency

Enter the bill rate and currency for resources that are created based on the condition.

The expenditure type class that is recommended for the expenditure types that need to be defined for work order labor and equipment resource transactions is Work In Process. This class indicates that the transactions are related to work orders that are performed as part of a project-driven supply chain solution. This class also allows the transactions to be processed by Oracle Fusion Manufacturing applications and transferred to Oracle Fusion Project Costing applications. Supplier Invoice is not a valid expenditure type class for work order labor and equipment resource transactions. This class indicates that the transactions are related to supplier invoices that are entered in Oracle Fusion Payables applications and transferred to Oracle Fusion Project Costing applications. Usages is not a valid expenditure type class for work order labor and equipment resource transactions. This class indicates that the transactions are related to material usages that are entered in Oracle Fusion Inventory Management applications and transferred to Oracle Fusion Project Costing applications. Inventory is not a valid expenditure type class for work order labor and equipment resource transactions. This class indicates that the transactions are related to inventory movements that are entered in Oracle Fusion Inventory Management applications and transferred to Oracle Fusion Project Costing applications. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-costs.html#OAPFM2356311

The Allow Override option for the Default Capitalized Interest Rate Schedule is specified on the Manage Project Type page. This option allows you to override the default capitalized interest rate schedule for a project or task that uses the project type. The default capitalized interest rate schedule is used to calculate the capitalized interest amount for a project or task based on the interest rates and dates defined in the schedule. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-costs.html#OAPFM2356031

Ref: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/oapjb/create-customer-contract.h tml#OAPJB70183

Bill Plan – Create a bill plan within a contract that uses the invoice method you require. Assign the bill plan to one or more contract lines. A set of instructions on a contract that define how to invoice a customer. Multiple contract lines on a contract can use the same or different bill plans. Invoice Method is used in creating Bill Plan – not a separate setup.

Billing Controls – Contract feature that controls the types of transactions, dates, and amounts a customer may be invoiced for and revenue can be recognized for a contract or contract line. Define billing controls at the contract or contract line level.

Topic - Creating a Contract for Percent Spent Invoice and Revenue Methods: Worked Example

This example describes a scenario where transactions for a contract line need to be invoiced and the revenue recognized using the percent spent method.

What are the revenue and invoice method classifications?Percent Spent

What is the billing extension calculation level for the contract line and project association?Project level

Summary of the Tasks

Create a contract, create the percent spent contract lines, create the bill plan, create the revenue plan.

Prerequisites

• Create a project.
• Create the project plan for percent spent revenue. Specify the plan type on the percent spent billing extension.
• Create an approved cost budget.
• Create cost and burden rates.
• Enter labor and expense transactions for the project.
• Collect costs for the transactions.

Configuration Steps

• Creating the Contract
• Creating the Percent Spent Contract Lines
• Creating the Bill Plan - A set of instructions on a contract that define how to invoice a customer. Multiple contract lines on a contract can use the same or different bill plans.
• Creating the Revenue Plan - Common set of instructions for recognizing revenue within a contract. Multiple contract lines on a contract can use the same or different revenue plans.

Invoice method classifications determine how transactions are invoiced. The invoice method determines how invoice amounts are derived.

• Enter an invoice method on a bill plan, which you create for a contract and assign to contract lines to provide a set of instructions for creating an invoice.
• Create billing controls for a contract or contract line to define the valid transaction dates, billing resources, and amount limits for transactions associated with the contract.
• Generate invoices to calculate the invoice amounts for a contract.

The following figure illustrates the components of a project and a contract that determine invoice amounts, and the relationships between the components.

Project and contract components used to determine invoice amounts and generate invoices.

Reference https://docs.oracle.com/cd/E60665_ 01/common/OAFSM/OAFSM1166430.htm#OAFSM1166426