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Overview on Oracle
Capital Projects

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Section 1
Capital Projects
Projects

Process flow

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Creating a Capital Project

Defining Assets
Accumulate CIP cost
Placing a CIP Asset in Service
Generate Asset Lines
Interface Asset Lines to FA

Overview of Capital Projects

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Comprehensive online inquiry and reporting

Define projects
Identify
business
terms and
rules

Define
assets

Enter
project

Enter
budget

Baseline
budget

Collect costs
Enter
Reqs/
POs in
PO

Place
Placeasset
asset
in
in service
service
Interface

Enter
supplier
invoices

External
Trans.

Trans.
Import

Enter Time

Upload

Enter
preapproved
expenditures

Import to
G/L

Generate
Generate
asset
asset
lines
lines
Review
Review
&&adjust
adjust
asset
asset
lines
lines

Interface
Distribute
costs

Interface
Interface
totoOracle
Oracle
Assets
Assets

Adjustments
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Purpose of Capital Projects

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Use capital projects to collect construction in

process (CIP) and expensed costs for assets you are
creating using internal resources.
These internal resources can include:
Labor
Equipment
Misc.
Inventory
Allocation

Capitalizing Project Costs

Send non-CIP
assets

Send purchasing
details

Oracle
Purchasing

Oracle
Assets

Oracle
Payables
Send
project
costs

Send expense
report costs

Oracle
Projects

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Send CIP
asset costs

Post asset
costs and
clear CIP
accounts

Post invoice
CIP and
expensed
costs

Post CIP and expensed

costs

Oracle
General Ledger
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Functional Overview of Capital Projects

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You can use Oracle Projects to collect all costs
associated with a capital project. The following are
characteristics of CIP costs:
CIP costs are eligible for capitalization within a given
capital project.
CIP costs are associated with the assets the project is
building
When the assets are ready to be placed in service,
the CIP costs are summarized and interfaced into
Oracle Assets, becoming depreciable fixed assets.

Capitalization Controls

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Project-level and task-level transaction controls can be

used to indicate which kinds of expenditures are
allowable for capitalization. You must decide at which
level you want to specify capitalizable costs.
Control Levels

Control Windows

Entire task
Specific employee

Task Details window

Transaction Controls window

Specific expenditure category

Transaction Controls window

Specific expenditure type

Transaction Controls window

Specific nonlabor resource

Transaction Controls window

Specific expenditure item

Expenditure Inquiry window

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Transaction Controls

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Capital Project Options

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10

Asset Definition

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11

Defining Multiple Assets

Project 1

Asset A

OK!

Project 2

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Asset A

Asset B

Project 1

Asset C

Project 2

Asset D

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Capital Projects Window

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Placing a CIP Asset in Service

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Comprehensive online inquiry and reporting

Define projects
Identify
business
terms and
rules

Define
Define
assets
assets

Enter
project

Enter
budget

Baseline
budget

Collect costs
Enter
Reqs/
POs in
PO

Place
Placeasset
asset
in
inservice
service
Interface

Enter
supplier
invoices

External
Trans.

Trans.
import

Enter Time

Upload

Enter
preapproved
expenditures

Import to
G/L

Interface
Distribute
costs

Generate
Generate
asset
asset
lines
lines
Review
Review
and
andadjust
adjust
asset
asset
lines
lines
Interface
Interface
to
toOracle
Oracle
Assets
Assets

Adjustments

14

Placing a CIP Asset in Service

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Placing a CIP asset in service involves the following

steps:

Finish building the project asset.

Record the actual placed-in-service date.
Complete the asset definition (if required).
Generate asset lines.
Review/adjust/assign asset lines (as needed).
Interface assets to Oracle Assets.

Once project assets are interfaced, the assets are

imported into Oracle Assets using the Mass Additions
process.

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Assets Window

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Creating Asset Lines

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Interfacing Asset Lines

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For Oracle Projects to send an asset line to

Oracle
Assets, the following conditions must be met:
The actual date in service must be in the current or a
prior Oracle Assets accounting period.
Expenditure items related to the summarized lines
must be interfaced with Oracle General Ledger.
Expenditure items for supplier invoice adjustments
must be interfaced with Oracle Payables.
An asset name must be assigned to the asset line .
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Adjustments

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You can make the following adjustments to

expenditure items on a capital project:

Change from capitalizable to non-capitalizable.

Change from non-capitalizable to capitalizable.
Recalculate raw and burden costs.
Add or change expenditure item comment.
Split expenditure item into two items.
Transfer item to another project or task.

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Thank you

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