- This KBA focuses on internal revenue for recharge operations and other external revenue
- In IFIS Revenue was tracked in the Operating Ledger
- In Oracle, Revenue resides in the General Ledger (GL) as there is one main ledger
- Recharges refers to when one department provides services/products for a fee to another department within UCSD
- The department providing the service/product will have recharge cost recovery, referenced here as internal revenue and sometimes referred to as recharge income
Q: Where is the equivalent to legacy's Operating Ledger in Oracle?
- Legacy Operating Ledger consists of Revenues and Expenses and these now reside in Oracle's General Ledger
- Oracle's General Ledger includes Assets, Liabilities, Equity, Revenue and Expenses
- Revenue is posted on the General Ledger at the Project level
- Note that Task is not a field in the General Ledger
- Task is only in PPM, which is a subledger to the General Ledger, which means that data in PPM flows into General Ledger
- PPM is designed to track costs (expenses) and have budgets for performance management tracking
- PPM is not the replacement for legacy Operating Ledger
Q: How do you see external revenue on a Project in General Ledger?
Q: What type of revenue can be seen in PPM?
- Overall, PPM's inherent functionality is to track costs (expenses)
- There are limited scenarios where revenue can be seen in PPM's
- The scenarios where revenue can be seen in PPM:
- Approved recharges post internal revenue (recharge cost recovery) in PPM as negative project costs because it offsets the recharge expense in Project Costs
- Cost recovery is a contra-expense account and a credit to an expense
- PPM generates external revenue on contracts (Oracle PPM's native functionality - the WOW)
- Misc receipts and gift revenue are reflected in PPM Project Costs as negative costs, (Note that this is not PPMs normal functionality)
Q: What is internal revenue (cost recovery)? And why is it in PPM?
- Internal revenue (which is actually cost recovery) is referring to revenue (recovery) a UCSD department receives from another UCSD department for providing services/products
- In our legacy system, these recharges were tracked by transfer accounts that were outside of the P&L statements, whereas external revenue was on P&L statements
- Recharge internal revenue is classified differently than external revenue on financial statements because it is accounted for as cost recovery, rather than revenue
- In addition, the net impact of recharges on UC system will always be zero because one UCSD department will incur an expense for receiving a service/product and another UCSD department will incur the equivalent cost recovery (internal revenue) for being the service provider
- PPM module for Oracle is used for tracking costs/expenses
- Due to the nature and accounting of recharges, internal revenue (cost recovery) is being accounted for in PPM as negative Project costs
Q: Can all revenue on Projects be seen at the task level?
- No, revenue that is in PPM Project Costs can be seen at the Task level
- All other revenue transactions are seen in the General Ledger at the Project level
Q: Will external revenue on a contract be on Manage Project costs or Project Cost Reports?
Q: Where in PPM can external revenue from a contract be seen?
A: Go to Contract Management > Contracts > Enter Contract number
Click on the Contract > Select Lines tab > Associated Projects tab, see screenshot below
Q: Will revenue generated in ISIS be in PPM?
A: No, All revenue generated in ISIS will post to the General Ledger at the Project level and would not be shown in PPM
Q: Can external and internal revenue by task be seen together?
A: Currently, no, a report is currently under development, at the moment, PPM module is detailed reporting for expenses and not revenues
Q: When/Where can I find more reports and details to track net performance?
A: Teams are working on reporting to bring data together for departments, they are also having conversations for long term solutions
Q: Why can't PPM just be changed to include revenue or change the General Ledger?
A: There is a mix of theory and Oracle intended and inherent functionality that needs to work together, some areas need to stabilize before revisiting change request so it does not create inaccurate financial reporting or confusion