Process Configurator Feature has been around for a while. You can check out Oracle’s documentation here.
Though there are various uses for the Configurator – one of the lucrative uses is for defining custom ‘Revenue Method’s to achieve Percent Complete Revenue along COGS Clearing. (There is a vanilla “Percent Complete Revenue” Oracle provides out of the box. However it lacks the COGS Clearing aspect. Link to my earlier article on COGS)
Choose “Project Revenue” when creating the below Project Process Configurators as below
Am going to go into a few example scenarios below to illustrate
Scenario 1 : Simple COGS Clearing (Requirement to clear COGS every time Revenue Generation is run)
You can start your experimentation with the below simple’r concept.
a) Events : “COGS Accrual” & “COGS Adj” (there is one more event in screenshot – it will be used in Scenario 3)
b) Process Configurators : “COGS Accrual” & “COGS Adj”
c) Revenue Method : “Amount Based with Clearing”
Attaching the Revenue Method “Amount Based with Clearing” to a Contract line will prompt the system to take the Revenue as per manually entered Event & all COGS until that point will be clearing through the COGS events (a classical method when we use 2 revenue events which will create special accounting to clear the WIP getting collected on Projects to COGS through a 4 legged journal)
Scenario 2 : Scenario 1 + COGS to be cleared only when Revenue Exists
a) Events : (same as Scenario 1)
b) Process Configurators : “COGS Accrual – Only when Revenue exists” & “COGS Adj – Only when Revenue Exists”
in case you are wondering what the mumbo jumbo is on the above with LEAST & GREATEST in the same sentence (err formula)
LEAST(
1,
GREATEST( ( “CalculationLevelRevenueinContractCurrencyRun” + “CalculationLevelRevenueinContractCurrencyITD”),0)
) — will result in 0 when no revenue exists, will result in 1 when Revenue Exists.
*
(“CalculationLevelNonlaborRawCostinProjectFunctionalCurrencyITD”
+ “CalculationLevelLaborRawCostinProjectFunctionalCurrencyITD”
– “CalculationLevelEventRevenueinContractCurrencyITD”) — Usual COGS to be cleared
mimic to create “COGS Adj – Only when Revenue Exists”
c) Revenue Method : (same as Scenario 1) ; but use above Process Configurators instead.
Scenario 3 : Custom Percent Spent Revenue along with COGS Clearing.
a) Events : (same as Scenario 1)
b) Process Configurators : same as Scenario1/2 + “% Spent Revenue with Clearing”
COGS Clearing & COGS Adj – similar as Scenario 1/2
you might be tempted to use
((
( “CalculationLevelLaborRawCostinProjectFunctionalCurrencyITD” + “CalculationLevelNonlaborRawCostinProjectFunctionalCurrencyITD”) — Cost
/ “CalculationLevelPlannedRawCostinProjectFunctionalCurrency”) — Cost Budget
* “AssociatedProjectFundingAmountinContractCurrency”) — Funding Amount
– “CalculationLevelEventRevenueinContractCurrencyITD” — Prior Revenue
but soon you will realize that we need to cap the Revenue to Funding Amount (in almost all scenarios) & will switch to
LEAST(( (
( “CalculationLevelLaborRawCostinProjectFunctionalCurrencyITD” + “CalculationLevelNonlaborRawCostinProjectFunctionalCurrencyITD”) –Cost
/ “CalculationLevelPlannedRawCostinProjectFunctionalCurrency”) –Cost Budget
* “AssociatedProjectFundingAmountinContractCurrency”) –Funding Amount
– “CalculationLevelEventRevenueinContractCurrencyITD” –Prior Revenue
— When Cost > Cost Budget – above will result is excess Revenue, hence the below
, (“AssociatedProjectFundingAmountinContractCurrency” – “CalculationLevelEventRevenueinContractCurrencyITD”) — (Funding Amount – Prior Revenue = Max Revenue that can be taken in this Run)
)
c) Revenue Method : “Percent Spent Revenue – limited to 100%”
That is a high level introduction to what can be made feasible with Project Process Configurators in Oracle Fusion PPM
While you can see that for the most part – Configurator functionality looks like a Boon, it does not always work in all scenarios.
Especially when you have multiple currencies – it really becomes a pain to handle requirements through configurators.
There was reason when EBS R12 had so much rich functionality wrt Billing/Revenue Extensions. It is a complicated myriad world & the above is too simple to take care of business.
I will draft another Article to explain the various issues with multi currency situations wrt Fusion PPM.