Deriving Physical Percent Complete for Financial Structures

A project can have two sets of physical percent complete values, financial physical percent complete and workplan physical percent complete. While you can enter financial percent complete manually for the financial structure, you also have the option to update financial physical percent complete using workplan physical percent complete.

You use financial physical percent complete to accommodate the needs of financial management. You can base revenue accrual, invoicing, and financial reporting on financial physical percent complete. This financial functionality is distinct from the work management functionality that is related to the workplan structure.

For example, Oracle Projects uses financial physical percent complete values to perform revenue and invoicing calculations using the following predefined billing extensions:

Note: The number of decimal places that Oracle Projects stores and displays for physical percent complete depends on whether you are viewing the workplan structure or the financial structure.

For workplan structures, Oracle Projects stores and displays physical percent complete to two decimal places. However, Oracle Projects uses the complete physical percent complete figure, not just two decimal places, to calculate earned value. After completing the calculation, it rounds the calculated earned value to two decimal places.

For financial structures, Oracle Projects stores and displays physical percent complete to four decimal places. When you transfer physical percent complete from a workplan structure to a financial structure, Oracle Projects transfers two decimal places to the financial tasks. As physical percent complete rolls up the financial structure, Oracle Projects stores and displays physical percent complete to four decimal places.

Updating Financial Physical Percent Complete

You can always manually enter financial physical percent complete for financial tasks. Oracle Projects can update physical percent complete for the financial structure using workplan physical percent complete depending on the integration between the workplan and financial structures for a project. The relationship between the workplan and financial structures for a project affects the ability to update financial physical percent complete as follows:

For information on integrating project structures, see: Integrating Workplan and Financial Structures.

Example of Updating Financial Physical Percent Complete

This example shows how Oracle Projects updates financial physical percent complete when a project has non-shared structures with task based mapping. For this example, the currency is U.S. Dollars.

The task hierarchy for the workplan structure has three levels. Task 1.0 has a single subtask, task 1.1. In turn, task 1.1 has two subtasks, task 1.1.1 and task 1.1.2. The following table shows the planned cost and workplan physical percent complete values for workplan task 1.1.1 and workplan task 1.1.2.

Workplan Tasks Baseline Planned Cost Workplan Physical Percent Complete
1.1.1 100 14%
1.1.2 80 50%

The task hierarchy for the financial structure has only two levels. Financial task 1.0 has a single subtask, financial task 1.1. Workplan task 1.1.1 and workplan task 1.1.2 both map to financial task 1.1.

Oracle Projects updates the financial percent complete for financial task 1.1 as 30%. This value is calculated as follows:

{[(100 * 14%) + (80 * 50%)] / (100 + 80)} * 100 = 30%

Rolling Up Financial Physical Percent Complete

You can use a financial physical percent complete rollup method of Cost or Effort to rollup financial physical percent complete. You specify the financial physical percent complete rollup method when you define the financial structure setup information.

Oracle Projects calculates the financial percent complete for a summary task in terms of either cost or effort using the following formula:

Financial Physical Percent Complete = [Sum (Financial Physical Percent Complete for Each Subtask * Budgeted Cost or Effort for Each Subtask) / Sum (Budgeted Cost or Effort for All Subtasks)] * 100

Oracle Projects takes the budgeted cost or effort from the current baseline version of the approved cost budget. If a current baseline version does not exist, then Oracle Projects uses the current working version to roll up financial physical percent complete.

Oracle Projects rolls up financial physical percent complete each time you update physical percent complete values for the lowest task.

Attention: To enable Oracle Projects to correctly roll up financial physical percent complete information to summary tasks, you must ensure that budget amounts are entered for lowest tasks.

Oracle Projects can derive different physical percent complete values for the financial structure as it rolls up physical percent complete using the budget as the basis for weighting. This can happen even with shared structures. Other financial elements that are not included in the workplan, such as contingency amounts and change orders, can cause the budget for the financial structure to differ from the planned amounts for the workplan structure. This difference causes the workplan and financial structures to have different physical percent complete values.

Related Topics