Projects Segment in GL or not?
This question comes up at some stage on most Oracle implementations where Projects and GL are involved. Every implementer has an opinion. So how do you come up with decision, without endless meetings and writing papers to highlight advantages and disadvantages, etc.? Well, I think the decision can be crystalised into a couple of salient points.
- If you have a Project segment in GL, which application has primacy for reporting by Project? By any measure this has always got to be Oracle Projects, and if not there is little point in implementing OP at all. There will almost certainly be constant disputes between the applications user community about which application is correct for project reporting - it is OP.
- There must be some significant advantage if an organisation wants to have a Project segment in the GL. One reason often given is to simplify reconciliation between OP and GL. A Project segment in GL will not simplify reconciliation and it will not help keep GL and OP the same from a Cost and Revenue perspective. A good reconciliation report will do this without a Project segment in GL.
No further examination into specific advantages and disadvantages is required.
I am interested to hear people’s experiences and views on this.
I posted a similar question on a LinkedIn Group discussion - Oracle Projects Application Gurus. The post got lots of excellent responses, which I am happy to share on request. Or if you want to join the forum, go to Oracle Projects Application Gurus Group. Once you have joined go to Project Segment in the GL or Not?
Barry,
As a qualified accountant I do struggle sometimes to understand why the Project Number (and Award Number in GMS)cannot be incorporated into the GL AFF with ease. After all the published company accounts are prepared and audited from this data source. FSG reports by Project Number would be very useful.
Yet performance constraints are mentioned or worse the PA/GMS module is quoted as a “memo ledger only”. However, why should GL users have to commission and run custom reports to analyse and reconcile GL balances?
The requirement to have GL key data by Project Number easily available, preferably on screen, ready for financial review and audit is pretty fundamental.
Having said that. I have wondered whether there are other disciplines that can be employed during implementation to mitigate this issue:
(1) Ensure that certain AFF segment values are used exclusively for project transactions?
(2) Look to populate the reference fields in the GL tables with the project (and award) numbers?
Finally, I would like to ask the following question:
Will the introduction of R12 Sub Ledger Accounting deliver a solution to this issue?
Best regards,
Patrick Sharkey