Contract Projects Life Cycle

Contract Projects
Oracle Projects comes with 3 basic type of projects namely Indirect, Capital and Contract
Projects. Here we will look at the Contract Projects.
Contract Projects are typically used in the Professional Services industry wherein the Vendor
provides services to the end clients. Vendor invoices the clients and recognizes the revenue.
Create a Contract Project in Oracle Projects for the Customer
Contract Projects are Client Facing Projects wherein the both the parties ( Vendor and the Client)
agree on certain terms and sign the contract. This contract is the basis for the Project. In Projects
Module we create a Project of the Contract Project type for a particular customer.
Create an Agreement for the Project Customer
After the Contract Project is created, we will need to create an Agreement for the customer with
the agreed upon amount and terms.
Fund the Project using the Client Agreement
Once the agreement is created in the system, using the agreement we need to fund the Contract
Project. Note that one agreement can fund multiple projects. Typically when a Client has
multiple projects going on with the same vendor. The funding created is in draft mode and has to
be baselined.
Revenue Recognition
Revenue First and Bill Next
In Some companies, the revenue is recognized as and when needed irrespective of whether the
customer has been invoiced or not. In those cases, we generate revenue and interface it to GL
( this is what it means revenue recognition).
Process Flow:
Generate Revenue -> Review Revenue -> Release Revenue -> Interface Revenue to GL ->
Generate Invoice -> Approve/Release Invoice -> Interface Invoice to AR -> In AR, run Auto
Invoice Import -> In Projects, Run the Tieback Invoice Process.
Bill First and Revenue Next

In some companies, the revenue is not recognized until the customer has been billed. In this case,
the invoice will be generated first and send to AR. Then the revenue is generated. To achieve this
we will need to create Automatic Revenue Events for the interfaced billed amount. This can be
done using Projects Billing Extensions ( for more info, check out the Projects interface/Client
Extensions Guide).
Process Flow:
Generate Invoice -> Approve/Release Invoice -> Interface Invoice to AR -> In AR, run Auto
Invoice Import -> In Projects, Run the Tieback Invoice Process -> Generate Revenue -> Review
and Release Revenue -> Interface Revenue to GL