Managing cash flow in Primavera P6 - Oracle Primavera P6 Collaborate 14
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This document discusses managing cash flow projections in Primavera P6. It describes a model using user defined fields (UDFs) to track project revenues, expenditures, and cash flow in one P6 project. Key activities include defining revenue and expenditure milestones linked to the project schedule, inputting financial data, running background jobs to calculate aggregated values, and generating reports in BI Publisher. The goal is to provide executives with cash flow projections and alerts directly in P6 for improved financial planning and decision making.
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Managing cash flow in Primavera P6 - Oracle Primavera P6 Collaborate 14
- 1. REMINDER Check in on the COLLABORATE mobile app Managing Cash Flow in Primavera P6 Prepared by: Luka Novosel, PMP Primavera Implementation Consultant Primakon Ltd. How to Track Project Revenues and Expenditures in One P6 Project Session ID#: 15465
- 2. About me… ■ Masters degree in Electrical Engineering ■ Primavera functional & technical consultant since 2006 ■ PMI PMP certified since 2010 ■ Oracle Primavera P6 & P6 R8 Implementation Specialist ■ Oracle Primavera EPPM trainer ■ PMP preparation trainer ■ Primavera EPPM API application designer & developer ■ Primavera EPPM SDK application designer & developer
- 3. About us… ■ Primakon is privately owned consulting company ■ 15+ years of experience in Primavera implementations ■ Offers customer tailored education in the area of PM methodologies and Primavera products ■ References in wide area of industries (from finance sector to construction) ■ Present on markets in EU & SE Europe
- 4. Presentation overview ■ The business need (NUMIP case) ■ Solution analysis ■ Model description ▪ Model overview ▪ Data entry ▪ Background jobs ▪ Primavera reports ■ BI publisher data model ■ BI reports ■ Conclusion and what’s next
- 5. The business need (NUMIP case) This is a subtitle or bulleted list
- 6. The business needs … ■ About company ▪ NUMIP, privately owned engineering company, ▪ Working in different process industries such as: — Nuclear Industry — Pharmaceutical Industry — Paper Industry ▪ Present in USA & Europe ▪ Project oriented company ■ Business needs: ▪ Long-running recession ▪ Huge pressure on profit margin ▪ Optimization of internal processes
- 7. Requirements … ■ Primavera P6 as management tool ■ Detailed project plans in Primavera ▪ All activities with roles in planning phase for cost projections ▪ Resource and material assignments with planned and actual values for cost tracking ■ All project expenditures in one place ■ Cash flow projections in Primavera P6 ■ Executive reports on future cash flow projections ■ Email alerts for invoices
- 8. Key problems … ■ Primary role of P6 is to help project managers in managing projects ■ Additional requirements mustn’t interfere with primary role ■ Invoice due dates depend on contract definitions ■ The moment when the job is done (and money earned) is different from the moment when the invoice is paid ■ Management request is to have both informations in P6 and in correlation to project schedule
- 9. Solution analysis: Why cost User Defined Fields (UDF)?
- 10. Cost UDF Model and what’s behind it ■ WBS node called Cash Flow ■ Milestones with predecessor links to project plan ▪ Lag on relationship defines invoice due date period (i.e 30 days) ▪ Activity Cost UDF’s : — Revenue — Expenditure ▪ Milestone calendar: 7-day workweek ■ Milestone date gives UDF time dimension ■ Project Cost UDF’s summarizes activity level UDF’s (background job) one field for every month / type
- 11. Automatic Project Cost UDF creation ■ Background job creates project UDF’s ■ Two prefixes (data type and value type) ■ Data Type ▪ PLI – planned value ▪ BLI – baseline value ■ Value type ▪ EXP – expenditure ▪ INC – revenue ▪ CF – cash flow
- 12. Key benefits of this Model Why Cost UDF’s? ■ Financial fields do not interfere with managing project costs ■ No specific filtering is needed ■ Data is dynamically related to project schedule ■ Background job is updating project fields on predefined intervals ■ Simple project reports in P6 Web ■ Simple Project Portfolio analysis ■ Default Primavera Project Cost analysis (i.e total costs) is not affected ■ Designed as an add-on to regular project plans ■ Easy copy / paste export to Excel
- 14. Data input process ■ In project planning phase : Project Manager and Commercial department official define planned project cash flow. ■ Revenue and expenditure milestones are linked to project management schedule ■ In P6, financial department officers have special Project and Global Security setup ▪ Read / Write access to WBS nodes with cash flow and invoice milestones ▪ Read + add relationships on project level ■ This way they have authority to define new milestones if necessary during projects execution
- 15. Data input process cont. ■ In P6 web special user interface view + layout are defined for financial department
- 16. Data input process cont. 2 ■ Assigning relationships and monetary value to milestones
- 17. Project Cost UDF creation Background job description ■ Every UDF expenditure / revenue activity is paired with the assigned milestone date ■ With that, every expenditure / revenue is getting time distribution variable ■ Background job based on Java and P6 API summarizes all UDF’s from activity level to project level ■ In that process time variable is used to make time distribution of cost UDF’s on project level
- 18. Project Cost UDF creation Accessing Baseline UDF values ■ Using P6 API, it is possible to read „baseline” activity UDF values. That data are not visible in P6 application. ■ With this, background job creates baseline time distributed values as project code UDF-s Activity rescheduled Baseline Project value
- 19. Project Cost UDF Naming Conventions ■ Automatically created UDF’s follow predefined naming conventions ▪ VALUE TYPE + space + DATA TYPE + space + month.year ■ In this implementation VALUE TYPES are: ▪ EXP -> for expenditures ▪ INC -> for revenues ▪ CF -> for cash flow (revenue – expenditure) ■ DATA TYPES are: ▪ BLI -> baseline values ▪ PLI -> planned values ▪ ACI -> actual values (to be implemented) ■ These properties can be altered to suite specific implementation needs
- 21. Primavera Web reports ■ Porftolio with active projects ■ Portfolio views based od project cost UDF’s ■ P6 Web summarizes project UDF’s ■ Different scorecards can be created ■ Quite limited report options directly from the web ■ Limit of 28 fields per scorecard ■ Export to Excel option
- 22. Primavera Client reports ■ Generally P6 Client is not used for reporting ■ Export to Excel option is used from the P6 Client ■ No limitation in number of fields per layout ■ Easy copy / paste of fields to MS Excel for further analysis ■ Special layout is designed for that purpose
- 23. BI Publisher Cash Flow Report
- 24. BI Publisher reports New reporting in P6 ■ BI Publisher is selected as main reporting source for reports in this model ■ Data model is developed to support requested reports ■ P6 desired look and feel is implemented ■ Reports are accessible via P6 web
- 25. BI Publisher Data Model ■ List of Values(LOV) is created for Projects ■ Parameter p_project_id is defined to use this LOV ■ Data sets are defined
- 26. BI Publisher - Data Model - Data Set ■ Data set is defined to support reporting needs ■ In this example SQL query will create number of fields from our Project Cost UDF names ■ Main fields are: ▪ DATA_TYPE — sql: trim(SUBSTR(P6UDFTYPE.TITLE,4,4)) ▪ VALUE_TYPE — sql: trim(SUBSTR(P6UDFTYPE.TITLE,1,3)) ▪ VALUE_DATE — sql: trim(SUBSTR(P6UDFTYPE.TITLE,-7)) ▪ SORT_DATE — sql: trim(SUBSTR(P6UDFTYPE.TITLE,-4)) ||'.'|| trim(SUBSTR(P6UDFTYPE.TITLE,-7,2))
- 27. BI Publisher - Data Model - Data Set cont. ■ The query result will hold one record for every sort_date- data_type-value_type pair with appropriate value and sum value to date Value Date Sort Date Value Value Type Data Type Cum Value 12.0142014.01 90000CF Baseline 90000 42.0142014.04 -21312CF Baseline 68688 72.0142014.07 0CF Baseline 68688 12.0152015.01 0CF Baseline 68688 12.0142014.01 -31200EXP Baseline -31200 42.0142014.04 -21312EXP Baseline -52512 72.0142014.07 0EXP Baseline -52512 12.0152015.01 0EXP Baseline -52512 12.0142014.01 121200INC Baseline 121200 42.0142014.04 0INC Baseline 121200
- 28. BI Publisher - Data Model - Data Set Running totals Data sort for running totals Data sort for running totals Grouped by value type Running total per group
- 29. BI Publisher - Data Model - Data Set SQL query String month.year and year.month fields for grouping Case when for data_type – this is done to make chart legend more readable
- 30. BI Publisher - Data Model - Data Set SQL query cont. Running totals are created to enable cashflow S-curve. Partition is done by: 1. data_type 2. value_type All sorted by sort_date Three tables are used in SQL join: • P6UDFTYPE • P6PROJECT • P6PROJECT_UDFVALUE
- 31. BI Publisher - Data Model - Data Set SQL query cont. 2 In WHERE statement, project UDF fields are filtered by value_type values (EXP, INC, CF) UDF field with TOTAL instead of sort_date is excluded from this data set Parameter value is used in WHERE part of the statement That can be one or list of project ID’s
- 32. BI Publisher - Data Model - Data Set SQL query cont. 3 Grouping in SQL statementGrouping in SQL statement is done according to SQL standard requirements
- 33. BI Publisher - Data Model - Data Set Sample XML data and Report editor ■ After data set definition, XML sample data set is created ■ Report is designed in Web Report editor ■ Word .rtf templates are not used in this case ■ The goal was to create report in Web Editor only and to test it’s limitations ■ 4 layouts are defined ▪ Cumulative Graphical ▪ CashFlow Report ▪ Revenue Report ▪ Expenditure report
- 34. P6 Web Report Access Template selection ■ 4 report layouts defined in BI Publisher are available as templates in P6 ■ Same names as Layouts in BI
- 35. P6 Web Report Access Project selection ■ In this data model project data is summarized ■ Possible uses of reports: ▪ One project ▪ Cumulative reports on portfolios
- 36. Report examples Cumulative graphical report
- 37. Report example CashFlow report ■ Table and chart filter ▪ Value_type=„CF” ■ Project List
- 38. Report example Revenue report ■ Table and chart filter ▪ Value_type=„INC” ■ Project List
- 39. Report example Expenditure report ■ Table and chart filter ▪ Value_type=„EXP” ■ Project List
- 41. Plans for future … ■ Data integration with financial system on several key points ▪ i.e. invoice number assigned to milestones ■ New Actual fields ▪ When milestone has actual date, value in UDF (expenditure / revenue) is declared as actual value ■ New reports for key stakeholders ■ Additional forecast analysis ▪ i.e. Preset and Net Present Values
- 42. Questions ? Contact Information: Luka Novosel, M.Eng , PMP Primakon ltd ln@primakon.com www.primakon.com
- 43. Please complete the session evaluation We appreciate your feedback and insight You may complete the session evaluation either on paper or online via the mobile app