You must fund a project before the project can accrue revenue and be billed. Funding is the step that allocates an amount associated with a  customer agreement to a specific project. The total amount of allocated project funding must equal the current approved project revenue budget amount in order to successfully baseline the project. Optionally, top tasks on projects can be individually funded. If top tasks are funded, then the same requirement of matching budget amounts to funding amounts applies at the top task level of the project.

In Oracle Projects, an agreement represents any form of contract, written or verbal, between you and one of your customers. For example, an agreement may correspond to a purchase order, a continuing service agreement, or a verbal authorization.

Fund Across Operating Units
You can fund different projects across operating units by enabling the Allow Funding Across Operating Units functionality in the Billing tab of the Implementation Options window.

Fund at the Project Level
There are many different ways to link agreements, projects and tasks. You should learn the benefits and consequences of each method to create clear policies.

One Customer, One Agreement
Use one agreement when you have one customer and one contract. This should be your most frequent case. All revenue is accrued and all invoices billed against the same agreement. The same agreement may fund other projects without changing the operation of the system.

Multiple Customers, One Agreement Per Customer
Use one agreement per customer when you have multiple paying customers, no additional contracts with any of the customers, and a requirement to invoice by contract.
All revenue and invoice amounts are divided between each customer according to the percentage splits defined for the project in the Customers and Contract Project options. Each run of generate revenue creates one draft revenue per customer, and each run of generate invoice creates one draft invoice per customer. The draft revenue and invoices for all customers contain the same items, but with prorated amounts. Oracle Projects supports only one percentage split between customers over the life of a project. You cannot change an existing percentage split.

One Customer, Multiple Agreements
Use multiple agreements when you have one customer, but several contracts, and a requirement to invoice by contract.
For example, a project that was originally funded by one purchase order is subsequently funded by another purchase order. The customer has requested that each invoice reference a specific purchase order. In this case, you would fund the project from two agreements, one for each purchase order. The PRC: Generate Draft Invoice process produces two invoices — one against each purchase order agreement from which funding is used.

When revenue is generated, hard limit agreements are used first in order of expiration date, followed by soft limit agreements in order of expiration date. When revenue fills one agreement and starts on the next, all of the items in the current revenue run are prorated between the two agreements.

Multiple Customers, Multiple Agreements Per Customer
Use multiple agreements per customer when you have multiple paying customers, multiple contracts with one or more of the customers, and a requirement to invoice by contract.

This method is a combination of the two above. Revenue is prorated between the customers according to their percentage split. For each customer, revenue is placed on agreements by the same rules as for multiple agreements and a single customer.

Fund at the Task Level
One Customer, One Agreement
Use one agreement when you have one customer and one contract. Use this method only if you want to accrue revenue cost–to–cost at the task level or impose hard or soft revenue limits at the task level. Task level funding with one agreement does NOT create separate task invoices. However, you can define an invoice format to group expenditure items by task.

Case Study: Funding for Hard Limits at the Task Level Fremont Corporation has a contract with XYZ Company for $100.000.
There are three phases to the project, each with a separate hard limit.
Each phase is set up as a top task, and funded with a hard revenue limit:
• Task 1: Design ($20,000)
• Task 2: Programming Services ($60,000)
• Task 3: QA/Testing ($20,000)

One Customer, Multiple Agreements
Use multiple agreements when you have one customer, but a requirement to create a separate invoice for each top task. You can use this method to accrue revenue cost–to–cost or impose hard or soft revenue limits by task, as well as automatically create separate invoices by task.

To create separate invoices by task, you must use a different agreement to fund each task. If you use more than one agreement for a single task, the agreements are used according to the precedence described earlier for projects.
For any agreement, you can review the revenue and billing activity associated with the agreement, such as the amount of revenue accrued, the amount invoiced, and the amount of funding that is allocated and has a baseline.