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Oracler Project Costing
User Guide Release 11i

Part No. B1085501
April 2004
Oracle Project Costing User Guide, Release 11i Part No. B1085501 Copyright E 1994, 2004, Oracle. All rights reserved. Author: Stephen A. Gordon Major Contributing Authors: Janet Buchbinder, Halina Matyla, Juli Anne Tolley Contributors: Peter Budelov, Nalin Chouhan, Barbara Fox, Neeraj Garg, Danielle Hafdal, Dinakar Hituvalli, Jeanne Lowell, Cedric Ng, Murali Sundaresan The Programs (which include both the software and documentation) contain proprietary information; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent, and other intellectual and industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. This document is not warranted to be errorfree. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose. If the Programs are delivered to the United States Government or anyone licensing or using the Programs on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS Programs, software, databases, and related documentation and technical data delivered to U.S. Government customers are commercial computer software or commercial technical data pursuant to the applicable Federal Acquisition Regulation and agencyspecific supplemental regulations. As such, use, duplication, disclosure, modification, and adaptation of the Programs, including documentation and technical data, shall be subject to the licensing restrictions set forth in the applicable Oracle license agreement, and, to the extent applicable, the additional rights set forth in FAR 52.22719, Commercial Computer SoftwareRestricted Rights (June 1987). Oracle Corporation, 500 Oracle Parkway, Redwood City, CA 94065. The Programs are not intended for use in any nuclear, aviation, mass transit, medical, or other inherently dangerous applications. It shall be the licensees responsibility to take all appropriate failsafe, backup, redundancy and other measures to ensure the safe use of such applications if the Programs are used for such purposes, and we disclaim liability for any damages caused by such use of the Programs. The Programs may provide links to Web sites and access to content, products, and services from third parties. Oracle is not responsible for the availability of, or any content provided on, thirdparty Web sites. You bear all risks associated with the use of such content. If you choose to purchase any products or services from a third party, the relationship is directly between you and the third party. Oracle is not responsible for: (a) the quality of thirdparty products or services; or (b) fulfilling any of the terms of the agreement with the third party, including delivery of products or services and warranty obligations related to purchased products or services. Oracle is not responsible for any loss or damage of any sort that you may incur from dealing with any third party. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
Contents
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Chapter 1
Overview of Project Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overview of Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Costing in Oracle Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Costing Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculating Labor Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculating Cost for Expense Reports, Usages, and Miscellaneous Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculating Burden Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculating Cost for Supplier Invoices . . . . . . . . . . . . . . . . . . Distributing Labor Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Selecting Expenditure Items . . . . . . . . . . . . . . . . . . . . . . . . . . . Processing Straight Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating Overtime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Processing Overtime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Generating Labor Output Reports . . . . . . . . . . . . . . . . . . . . . . Calculating and Reporting Utilization . . . . . . . . . . . . . . . . . . .
11 12 12 15 17 17 18 19 19 1 10 1 11 1 12 1 13 1 14 1 15 1 16
Chapter 2
Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overview of Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenditure Classifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenditure Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21 22 22 22
Contents
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Expenditure Entry Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenditure Item Validation . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenditure Rejection Reasons . . . . . . . . . . . . . . . . . . . . . . . . . Processing PreApproved Expenditures . . . . . . . . . . . . . . . . . . . . Entering PreApproved Expenditure Batches . . . . . . . . . . . . Entering Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Entering Currency Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Uploading Expenditure Batches from Microsoft Excel . . . . . Copying an Expenditure Batch . . . . . . . . . . . . . . . . . . . . . . . . . Verifying Control Totals and Control Counts . . . . . . . . . . . . . Submitting an Expenditure Batch . . . . . . . . . . . . . . . . . . . . . . . Reviewing and Releasing Expenditure Batches . . . . . . . . . . . Reversing an Expenditure Batch . . . . . . . . . . . . . . . . . . . . . . . . Correcting Expenditure Batches . . . . . . . . . . . . . . . . . . . . . . . . Controlling Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Using Transaction Control Extensions . . . . . . . . . . . . . . . . . . . Inclusive and Exclusive Transaction Controls . . . . . . . . . . . . Determining if an Item is Chargeable . . . . . . . . . . . . . . . . . . . Determining if an Item is Billable or Capitalizable . . . . . . . . Examples of Using Transaction Controls . . . . . . . . . . . . . . . . . Viewing Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Viewing Expenditure Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . Viewing Accounting Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenditure Items Windows Reference . . . . . . . . . . . . . . . . . . Adjusting Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Audit Reporting for Expenditure Adjustments . . . . . . . . . . . Types of Expenditure Item Adjustments . . . . . . . . . . . . . . . . . Restrictions for Adjusting Converted Items . . . . . . . . . . . . . . Adjusting Expenditure Items . . . . . . . . . . . . . . . . . . . . . . . . . . Mass Adjustment of Expenditures . . . . . . . . . . . . . . . . . . . . . . Transferring Expenditure Items . . . . . . . . . . . . . . . . . . . . . . . . Splitting Expenditure Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjustments to MultiCurrency Transactions . . . . . . . . . . . . Adjustments to Burden Transactions . . . . . . . . . . . . . . . . . . . . Adjustments to Related Transactions . . . . . . . . . . . . . . . . . . . . Marking Items for Adjustments . . . . . . . . . . . . . . . . . . . . . . . . Processing Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results of Adjustment Processing . . . . . . . . . . . . . . . . . . . . . . Adjustments to Supplier Invoices . . . . . . . . . . . . . . . . . . . . . . .
23 23 25 2 10 2 12 2 15 2 19 2 22 2 23 2 24 2 25 2 25 2 26 2 27 2 29 2 30 2 30 2 32 2 35 2 36 2 45 2 45 2 47 2 49 2 53 2 53 2 54 2 59 2 60 2 62 2 62 2 63 2 65 2 66 2 66 2 69 2 71 2 72 2 76
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Oracle Project Costing User Guide
Chapter 3
Burdening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overview of Burdening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Burden Calculation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building Up Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example of Cost Buildup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Using Burden Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Burden Structure Components . . . . . . . . . . . . . . . . . . . . . . . . . Using Burden Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Types of Burden Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defining Burden Schedule Versions . . . . . . . . . . . . . . . . . . . . . Assigning Burden Multipliers . . . . . . . . . . . . . . . . . . . . . . . . . . Assigning Burden Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defining Burden Schedules for Project Types . . . . . . . . . . . . . Assigning Burden Schedules at the Project and Task Level . Assigning Fixed Dates for Burden Schedules . . . . . . . . . . . . . Changing Default Burden Schedules . . . . . . . . . . . . . . . . . . . . Overriding Burden Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . Determining Which Burden Schedule to Use . . . . . . . . . . . . . Storing, Accounting, and Viewing Burden Costs . . . . . . . . . . . . . Storing Burden Cost on the Same Expenditure Item . . . . . . . Storing Burden Costs as a Separate Expenditure Item on the Same Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Storing Burden Cost as Summarized Expenditures on a Separate Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Choosing a Burden Storage Method . . . . . . . . . . . . . . . . . . . . Setting Up The Burden Cost Storage Method . . . . . . . . . . . . . Accounting for Burden Costs . . . . . . . . . . . . . . . . . . . . . . . . . . Processing Transactions After a Burden Schedule Revision . Reporting Burden Components in Custom Reports . . . . . . . Revenue and Billing for Burden Transactions . . . . . . . . . . . . . Reporting Requirements for Project Burdening . . . . . . . . . . . . . . . GL and Upper Management Reporting . . . . . . . . . . . . . . . . . . Middle Management Reporting . . . . . . . . . . . . . . . . . . . . . . . . Project Management Reporting . . . . . . . . . . . . . . . . . . . . . . . . . Setting Up Burden Cost Accounting to Fit Reporting Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31 32 33 37 37 3 10 3 11 3 14 3 14 3 15 3 16 3 19 3 19 3 19 3 20 3 20 3 21 3 22 3 23 3 23 3 25 3 27 3 27 3 28 3 29 3 37 3 42 3 43 3 45 3 45 3 55 3 56 3 60
Chapter 4
Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 Overview of Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 Understanding the Difference Between Allocation and Burdening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2
Contents
Creating Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defining Allocation Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Allocating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Releasing Allocation Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Viewing Allocation Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Viewing Allocation Transactions . . . . . . . . . . . . . . . . . . . . . . . Reversing Allocation Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full and Incremental Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . About Previous Amounts and Missing Amounts in Allocation Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AutoAllocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating AutoAllocations Sets . . . . . . . . . . . . . . . . . . . . . . . . . Submitting an AutoAllocation Set . . . . . . . . . . . . . . . . . . . . . . Viewing the Status of AutoAllocation Sets . . . . . . . . . . . . . . .
44 45 46 48 4 10 4 13 4 13 4 15 4 16 4 17 4 17 4 19 4 22
Chapter 5
Asset Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overview of Asset Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . About Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Projects Processing Flow . . . . . . . . . . . . . . . . . . . . . . . Accounting for Asset Costs in Oracle Projects and Oracle Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defining and Processing Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating Assets in Oracle Projects . . . . . . . . . . . . . . . . . . . . . . Asset Attributes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Placing an Asset in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . Specifying a Retirement Date for Retirement Adjustment Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating and Preparing Asset Lines for Oracle Assets . . . . . Sending Asset Lines to Oracle Assets . . . . . . . . . . . . . . . . . . . Asset Summary and Detail Grouping Options . . . . . . . . . . . . . . . Asset Grouping Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Specifying Grouping Level Types . . . . . . . . . . . . . . . . . . . . . . . Assigning Assets to Grouping Levels . . . . . . . . . . . . . . . . . . . Reviewing and Adjusting Asset Lines . . . . . . . . . . . . . . . . . . . . . . Assigning an Asset to Unassigned Asset Lines . . . . . . . . . . . Changing the Asset Assigned to an Asset Line . . . . . . . . . . . Splitting an Asset Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusting Assets After Interface . . . . . . . . . . . . . . . . . . . . . . . . Adjusting Capital Project Costs . . . . . . . . . . . . . . . . . . . . . . . . Reversing Capitalization of Assets in Oracle Projects . . . . . . Abandoning a Capital Asset in Oracle Projects . . . . . . . . . . .
51 52 52 53 59 5 15 5 15 5 21 5 27 5 28 5 29 5 37 5 39 5 39 5 39 5 40 5 46 5 46 5 47 5 47 5 48 5 49 5 49 5 52
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Capitalizing Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overview of Capitalized Interest . . . . . . . . . . . . . . . . . . . . . . . Defining Capitalized Interest Rate Names and Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Setting Up Capital Projects for Capitalized Interest . . . . . . . Generating Capitalized Interest Expenditure Batches . . . . . . Reviewing Capitalized Interest Expenditure Batches . . . . . .
5 54 5 54 5 55 5 56 5 57 5 57
Chapter 6
Cross Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overview of Cross Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cross Charge Business Needs and Example . . . . . . . . . . . . . . Cross Charge Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cross Charge Processing Methods and Controls . . . . . . . . . . Transfer Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Processing Flow for Cross Charge . . . . . . . . . . . . . . . . . . . . . . . . . . Borrowed and Lent Processing Flow . . . . . . . . . . . . . . . . . . . . Intercompany Billing Processing Flow . . . . . . . . . . . . . . . . . . Creating Cross Charge Transactions . . . . . . . . . . . . . . . . . . . . . Processing Borrowed and Lent Accounting . . . . . . . . . . . . . . . . . . Determining Accounts for Borrowed and Lent Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Generating Accounting Transactions for Borrowed and Lent Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Processing Intercompany Billing Accounting . . . . . . . . . . . . . . . . Determining Accounts for Intercompany Billing Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Generating Intercompany Invoices . . . . . . . . . . . . . . . . . . . . . Approving and Releasing Intercompany Invoices . . . . . . . . . Interfacing Intercompany Invoices to Receivables . . . . . . . . . Interfacing Intercompany Invoices to Oracle Payables . . . . . Interface Tax Lines from Payables to Oracle Projects . . . . . . . Interfacing Cross Charge Distributions to General Ledger . . . . . Run the Interface Cross Charge Distributions to General Ledger process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusting Cross Charge Transactions . . . . . . . . . . . . . . . . . . . . . . . Overview of Cross Charge Adjustments . . . . . . . . . . . . . . . . . Processing Flow for Cross Charge Adjustments . . . . . . . . . .
61 62 63 68 6 10 6 17 6 19 6 20 6 20 6 22 6 25 6 25 6 27 6 31 6 31 6 36 6 39 6 39 6 41 6 43 6 44 6 44 6 46 6 46 6 50
Contents
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Chapter 7
Integration with Other Oracle Applications . . . . . . . . . . . . . . . . 7 1 Overview of Oracle Project Costing Integration . . . . . . . . . . . . . . 7 2 Integrating Expense Reports with Oracle Payables and Oracle Internet Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3 Overview of Expense Report Integration . . . . . . . . . . . . . . . . 7 3 Setting Up in Payables and Oracle Projects . . . . . . . . . . . . . . . 7 5 Processing Expense Reports Created in Oracle Projects . . . . 7 7 Processing Expense Reports Created in Oracle Internet Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 14 Advances and Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 18 Adjusting Expense Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 19 Purging Expense Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 21 Viewing Expense Reports in Oracle Payables . . . . . . . . . . . . . 7 21 Integrating with Oracle Purchasing and Oracle Payables (Requisitions, Purchase Orders, and Supplier Invoices) . . . . . . . 7 24 ProjectRelated Document Flow . . . . . . . . . . . . . . . . . . . . . . . . 7 24 Integrating with Oracle Purchasing . . . . . . . . . . . . . . . . . . . . . 7 25 Integrating with Oracle Payables . . . . . . . . . . . . . . . . . . . . . . . 7 27 Entering ProjectRelated Information for Requisitions, Purchase Orders, and Supplier Invoices . . . . . . . . . . . . . . . . . 7 30 Validating Purchase Orders, Requisitions, and Supplier Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 34 Accounting Transactions Created by the Account Generator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 35 Commitment Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 36 Adjusting ProjectRelated Documents in Oracle Purchasing, Oracle Payables, and Oracle Projects . . . . . . . . . . . . . . . . . . . 7 40 Integrating with Oracle Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 45 Implementing Oracle Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 46 Interfacing Assets to Oracle Assets . . . . . . . . . . . . . . . . . . . . . . 7 47 Mass Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 47 Viewing Capital Project Assets in Oracle Assets . . . . . . . . . . 7 48 Adjusting Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 49 Integrating with Oracle Project Manufacturing . . . . . . . . . . . . . . . 7 51 Importing Project Manufacturing Costs . . . . . . . . . . . . . . . . . 7 51 Integrating with Oracle Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 7 53 Entering ProjectRelated Transactions in Oracle Inventory . 7 54 Collecting Inventory Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 55 Transferring Inventory Costs to Oracle Projects . . . . . . . . . . . 7 55 Importing Inventory Transactions . . . . . . . . . . . . . . . . . . . . . . 7 55 Reviewing Imported Inventory Transactions . . . . . . . . . . . . . 7 56 Adjusting Inventory Transactions . . . . . . . . . . . . . . . . . . . . . . . 7 56
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Glossary Index
Contents
ix
Preface
Welcome to Release 11i of the Oracle Project Costing User Guide. This guide contains the information you need to understand and use Oracle Project Costing. Chapter 1, Overview of Project Costing, provides a brief introduction to project costing, including the cost accounting transactions flow. Chapter 2, Expenditures, describes how to enter and manage expenditures using Oracle Projects. Chapter 3, Burdening, describes how to use Oracle Projects to calculate and manage burden costs. Chapter 4, Allocations, describes how you can allocate costs to projects and tasks. Chapter 5, Asset Capitalization, contains an overview of capital projects and explains how to create, place in service, adjust, and account for assets and retirement costs in Oracle Projects. Chapter 6, Cross Charge, describes how Oracle Projects enables you to account for costs within an operating unit as well as across operating units and legal entities. Chapter 7, Integration with Other Oracle Applications, describes integrating Oracle Projects with other Oracle Applications to perform project costing.
Preface
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Documentation Accessibility
Our goal is to make Oracle products, services, and supporting documentation accessible, with good usability, to the disabled community. To that end, our documentation includes features that make information available to users of assistive technology. This documentation is available in HTML format, and contains markup to facilitate access by the disabled community. Standards will continue to evolve over time, and Oracle is actively engaged with other marketleading technology vendors to address technical obstacles so that our documentation can be accessible to all of our customers. For additional information, visit the Oracle Accessibility Program Web site at http://www.oracle.com/accessibility/ Accessibility of Code Examples in Documentation JAWS, a Windows screen reader, may not always correctly read the code examples in this document. The conventions for writing code require that closing braces should appear on an otherwise empty line; however, JAWS may not always read a line of text that consists solely of a bracket or brace. Accessibility of Links to External Web Sites in Documentation This documentation may contain links to Web sites of other companies or organizations that Oracle does not own or control. Oracle neither evaluates nor makes any representations regarding the accessibility of these Web sites.
Other Information Sources

You can choose from many sources of information, including online documentation, training, and support services, to increase your knowledge and understanding of Oracle Projects. If this guide refers you to other Oracle Applications documentation, use only the Release 11i versions of those guides.
Online Documentation
All Oracle Applications documentation is available online (HTML or PDF).
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Online Help Online help patches (HTML) are available on OracleMetaLink. About Documents Refer to the About Document for the minipack or family pack that you have installed to learn about new documentation or documentation patches that you can download. About Documents are available on OracleMetaLink.
Guides Related to All Products

Oracle Applications Users Guide This guide explains how to enter data, query, run reports, and navigate using the graphical user interface (GUI) available with this release of Oracle Projects (and any other Oracle Applications products). This guide also includes information on setting user profiles, as well as running and reviewing reports and concurrent processes. You can access this users guide online by choosing Getting Started with Oracle Applications from any Oracle Applications help file.
Oracle Projects Documentation Set

Oracle Projects Implementation Guide Use this manual as a guide for implementing Oracle Projects. This manual also includes appendixes covering function security, menus and responsibilities, and profile options. Oracle Projects Fundamentals Oracle Project Fundamentals provides the common foundation shared across the Oracle Projects products (Project Costing, Project Billing, Project Resource Management, Project Management, and Project Collaboration). Use this guide to learn fundamental information about the Oracle Projects solution. This guide includes a Navigation Paths appendix. Use this appendix to find out how to access each window in the Oracle Projects solution. Oracle Project Billing User Guide Use this guide to learn how to use Oracle Project Billing to process client invoicing and measure the profitability of your contract projects.
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Oracle Project Management User Guide This guide shows you how to use Oracle Project Management to manage projects through their lifecycles from planning, through execution, to completion. Oracle Project Resource Management User Guide This guide provides you with information on how to use Oracle Project Resource Management. It includes information about staffing, scheduling, and reporting on project resources. Oracle Projects APIs, Client Extensions, and Open Interfaces Reference This manual gives detailed information about all public application programming interfaces (APIs) that you can use to extend Oracle Projects functionality.
User Guides Related to This Product

Oracle Assets User Guide In Oracle Assets, you can post capital project costs to become depreciable fixed assets. Refer to this guide to learn how to query mass additions imported from Oracle Projects to Oracle Assets and to review asset information. Oracle General Ledger User Guide Use this manual when you plan and define your chart of accounts, accounting period types and accounting calendar, functional currency, and set of books. The manual also describes how to define journal entry sources and categories so you can create journal entries for your general ledger. If you use multiple currencies, use this manual when you define additional rate types, and enter daily rates. This manual also includes complete information on implementing Budgetary Control. Oracle HRMS Documentation Set This set of guides explains how to define your employees, so you can give them operating unit and job assignments. It also explains how to set up an organization (operating unit). Even if you do not install Oracle HRMS, you can set up employees and organizations using
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Oracle HRMS windows. Specifically, the following manuals will help you set up employees and operating units: Using Oracle HRMS The Fundamentals This user guide explains how to set up and use enterprise modeling, organization management, and cost analysis. Managing People Using Oracle HRMS Use this guide to find out about entering employees. Oracle Inventory User Guide If you install Oracle Inventory, refer to this manual to learn how to define projectrelated inventory transaction types and how to enter transactions in Oracle Inventory. This manual also describes how to transfer transactions from Oracle Inventory to Oracle General Ledger. Oracle Payables User Guide Refer to this manual to learn how to use Invoice Import to create invoices in Oracle Payables from Oracle Projects expense reports data in the Oracle Payables interface tables. This manual also explains how to define suppliers, and how to specify supplier and employee numbering schemes for invoices created using Oracle Projects. Oracle Project Manufacturing Implementation Manual Oracle Project Manufacturing allows your company to associate manufacturing costs and inventory to a specific project and task. Use this manual as your first source of information if you are implementing Oracle Project Manufacturing. Oracle Purchasing User Guide If you install Oracle Purchasing, refer to this user guide to read about entering and managing the requisitions and purchase orders that relate to your projects. This manual also explains how to create purchase orders from projectrelated requisitions in the AutoCreate Documents window. Oracle Receivables User Guide Use this manual to learn more about Oracle Receivables invoice processing and invoice formatting, defining customers, importing
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transactions using AutoInvoice, and Defining Automatic Accounting in Oracle Receivables. Oracle Business Intelligence System Implementation Guide This guide provides information about implementing Oracle Business Intelligence (BIS) in your environment. BIS 11i User Guide Online Help This guide is provided as online help only from the BIS application and includes information about intelligence reports, Discoverer workbooks, and the Performance Management Framework. Using Oracle Time Management This guide provides information about capturing work patterns such as shift hours so that this information can be used by other applications such as General Ledger.
Installation and System Administration

Oracle Applications Concepts This guide provides an introduction to the concepts, features, technology stack, architecture, and terminology for Oracle Applications Release 11i. It provides a useful first book to read before installing Oracle Applications. Installing Oracle Applications This guide provides instructions for managing the installation of Oracle Applications products. In Release 11i, much of the installation process is handled using Oracle Rapid Install, which minimizes the time to install Oracle Applications and the technology stack by automating many of the required steps. This guide contains instructions for using Oracle Rapid Install and lists the tasks you need to perform to finish your installation. You should use this guide in conjunction with individual product users guides and implementation guides. Upgrading Oracle Applications Refer to this guide if you are upgrading your Oracle Applications Release 10.7 or Release 11.0 products to Release 11i. This guide
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describes the upgrade process and lists database and productspecific upgrade tasks. You must be either at Release 10.7 (NCA, SmartClient, or character mode) or Release 11.0, to upgrade to Release 11i. You cannot upgrade to Release 11i directly from releases prior to 10.7. Maintaining Oracle Applications Use this guide to help you run the various AD utilities, such as AutoUpgrade, AutoPatch, AD Administration, AD Controller, AD Relink, License Manager, and others. It contains howto steps, screenshots, and other information that you need to run the AD utilities. This guide also provides information on maintaining the Oracle Applications file system and database. Oracle Applications System Administrators Guide This guide provides planning and reference information for the Oracle Applications System Administrator. It contains information on how to define security, customize menus and online help, and manage concurrent processing. Oracle Alert Users Guide This guide explains how to define periodic and event alerts to monitor the status of your Oracle Applications data. Oracle Applications Developers Guide This guide contains the coding standards followed by the Oracle Applications development staff. It describes the Oracle Application Object Library components needed to implement the Oracle Applications user interface described in the Oracle Applications User Interface Standards for FormsBased Products. It also provides information to help you build your custom Oracle Forms Developer forms so that they integrate with Oracle Applications.
Other Implementation Documentation

Oracle Applications Product Update Notes Use this guide as a reference for upgrading an installation of Oracle Applications. It provides a history of the changes to individual Oracle Applications products between Release 11.0 and Release 11i. It
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includes new features, enhancements, and changes made to database objects, profile options, and seed data for this interval. Multiple Reporting Currencies in Oracle Applications If you use the Multiple Reporting Currencies feature to record transactions in more than one currency, use this manual before you implement Oracle Projects. This manual details additional steps and setup considerations for implementing Oracle Projects with Multiple Reporting Currencies. Multiple Organizations in Oracle Applications This guide describes how to set up and use Oracle Projects with Oracle Applications Multiple Organization support feature, so you can define and support different organization structures when running a single installation of Oracle Projects. Oracle Workflow Administrators Guide This guide explains how to complete the setup steps necessary for any Oracle Applications product that includes workflowenabled processes, as well as how to monitor the progress of runtime workflow processes. Oracle Workflow Developers Guide This guide explains how to define new workflow business processes and customize existing Oracle Applicationsembedded workflow processes. It also describes how to define and customize business events and event subscriptions. Oracle Workflow Users Guide This guide describes how Oracle Applications users can view and respond to workflow notifications and monitor the progress of their workflow processes. Oracle Workflow API Reference This guide describes the APIs provided for developers and administrators to access Oracle Workflow.
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Oracle Applications Flexfields Guide This guide provides flexfields planning, setup and reference information for the Oracle Projects implementation team, as well as for users responsible for the ongoing maintenance of Oracle Applications product data. This manual also provides information on creating custom reports on flexfields data. Oracle eTechnical Reference Manuals Each eTechnical Reference Manual (eTRM) contains database diagrams and a detailed description of database tables, forms, reports, and programs for a specific Oracle Applications product. This information helps you convert data from your existing applications and integrate Oracle Applications data with nonOracle applications, and write custom reports for Oracle Applications products. Oracle eTRM is available on OracleMetaLink. Oracle Applications User Interface Standards for FormsBased Products This guide contains the user interface (UI) standards followed by the Oracle Applications development staff. It describes the UI for the Oracle Applications products and tells you how to apply this UI to the design of an application built by using Oracle Forms. Oracle Manufacturing APIs and Open Interfaces Manual This manual contains uptodate information about integrating with other Oracle Manufacturing applications and with your other systems. This documentation includes APIs and open interfaces found in Oracle Manufacturing. Oracle Order Management Suite APIs and Open Interfaces Manual This manual contains uptodate information about integrating with other Oracle Manufacturing applications and with your other systems. This documentation includes APIs and open interfaces found in Oracle Order Management Suite. Oracle Applications Message Reference Manual This manual describes all Oracle Applications messages. This manual is available in HTML format on the documentation CDROM for Release 11i.
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Training and Support

Training Oracle offers a complete set of training courses to help you and your staff master Oracle Projects and reach full productivity quickly. These courses are organized into functional learning paths, so you take only those courses appropriate to your job or area of responsibility. You have a choice of educational environments. You can attend courses offered by Oracle University at any of our many Education Centers, you can arrange for our trainers to teach at your facility, or you can use Oracle Learning Network (OLN), Oracle Universitys online education utility. In addition, Oracle training professionals can tailor standard courses or develop custom courses to meet your needs. For example, you may want to use your organization structure, terminology, and data as examples in a customized training session delivered at your own facility. Support From onsite support to central support, our team of experienced professionals provides the help and information you need to keep Oracle Projects working for you. This team includes your Technical Representative, Account Manager, and Oracles large staff of consultants and support specialists with expertise in your business area, managing an Oracle server, and your hardware and software environment.
Do Not Use Database Tools to Modify Oracle Applications Data

Oracle STRONGLY RECOMMENDS that you never use SQL*Plus, database triggers, or any other tool to modify Oracle Applications data unless otherwise instructed. Oracle provides powerful tools you can use to create, store, change, retrieve, and maintain information in an Oracle database. But if you use Oracle tools such as SQL*Plus to modify Oracle Applications data, you risk destroying the integrity of your data and you lose the ability to audit changes to your data. Because Oracle Applications tables are interrelated, any change you make using Oracle Applications can update many tables at once. But when you modify Oracle Applications data using anything other than
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Oracle Applications, you may change a row in one table without making corresponding changes in related tables. If your tables get out of synchronization with each other, you risk retrieving erroneous information and you risk unpredictable results throughout Oracle Applications. When you use Oracle Applications to modify your data, Oracle Applications automatically checks that your changes are valid. Oracle Applications also keeps track of who changes information. If you enter information into database tables using database tools, you may store invalid information. You also lose the ability to track who has changed your information because SQL*Plus and other database tools do not keep a record of changes.
About Oracle
Oracle provides an integrated line of software products for database management, applications development, decision support, and office automation, as well as Oracle Applications, an integrated suite of software modules for financial management, supply chain management, manufacturing, project systems, human resources management and customer relationship management. Oracle products are available for mainframes, minicomputers, personal computers, network computers and personal digital assistants, allowing organizations to integrate different computers, different operating systems, different networks, and even different database management systems, into a single, unified computing and information resource. Oracle is the worlds leading supplier of software for information management, and the worlds second largest software company. Oracle offers its database, tools, and applications products, along with related consulting, education, and support services, in over 145 countries around the world.
Your Feedback
Thank you for using Oracle Projects and this user guide. Oracle values your comments and feedback. At the end of this guide is a Readers Comment Form you can use to explain what you like or
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dislike about Oracle Projects or this user guide. Mail your comments to the following address or contact your Support representative. Oracle Applications Documentation Manager Oracle 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A.
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CHAPTER
Overview of Project Costing

his chapter gives you an overview of project costing in Oracle Projects.
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Overview of Costing
Costing is the processing of expenditures to calculate their cost to each project and determine the GL accounts to which the costs will be posted. Costing is performed for the following types of expenditures: Preapproved expenditures. See: Overview of Expenditures: page 2 2. Labor Expense Reports Usages Miscellaneous Transactions Burden transactions. See: Overview of Burdening: page 3 2. Expenditures submitted from Oracle Internet Expenses. See: Integrating Expense Reports with Oracle Payables and Oracle Internet Expenses: page 7 3. Supplier Invoices from Oracle Payables. See: Integrating with Oracle Purchasing and Oracle Payables: page 7 24. Imported expenditures. See: Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. Adjusted expenditures in Oracle Projects that need recosting. See: Adjusting Expenditures: page 2 53.
Costing in Oracle Projects

Figure 1 1 illustrates how costing is performed in Oracle Projects.
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Figure 1 1 Costing in Oracle Projects
13
As shown in Figure 1 1, costing includes the following major steps: 1. Enter and approve expenditures through the Oracle Projects user interface, or import transactions (for example, through Transaction Import). Distribute costs and perform accounting. The costing process performs the following tasks on uncosted expenditures: Calculates raw cost (by multiplying quantity times rate) in transaction currency Calculates burdened cost. Calls the following client extensions. See: Client Extensions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. Overtime Calculation Labor Costing Create Related Items Converts all transaction currency amounts to functional and project cost currency amounts Performs accounting to determine the account numbers to post to in General Ledger. 3. Interface costs to other applications You interface expense reports to Oracle Payables via the Oracle Payables Interface. After you transfer expense reports to the Payables Invoice Interface tables, you submit the Payables Invoice Import process to create an invoice from the expense report. You interface all other cost expenditures to General Ledger via the General Ledger Interface if the expenditures have not previously been accounted for in other applications. These costs include labor, usage, miscellaneous transactions, burden transactions, workinprocess (WIP) and inventory. The General Ledger Journal Import program takes the summary interface information stored in the General Ledger interface table and automatically creates cost and revenue journal entries for posting in General Ledger. 4. Tieback costs from Oracle Payables and General Ledger to verify your Oracle Projects data.
2.
14
Costing Processes
Figure 1 2 illustrates costing processes in Oracle Projects.
Figure 1 2 Costing Processes
As shown in Figure 1 2, create and distribution processes perform the following tasks: Calculate raw cost (quantity rate) Calculate burden and burdened cost Create and distribute raw cost distribution lines Create and distribute burden and burdened cost distribution lines Determine accounting Interface and tieback processes perform the following tasks: Accumulate raw and burdened costs in project accumulators Determine accounting Interface raw and burdened cost distribution lines to General Ledger or Accounts Payable
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Verify costs distributed to General Ledger and Accounts Payable Note: If you are not performing burdening, you can skip the processes that create and distribute burden and burdened cost.
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Calculating Costs
This section briefly describes how Oracle Projects calculates costs for expenditures. For more detailed information about the costing process, refer to the labor costing example in this chapter. See: Distributing Labor Costs: page 1 10. Each transaction has two cost amounts when processed, raw and burdened. Oracle Projects calculates these amounts for each detail transaction when you distribute costs using any of the following processes: Distribute Labor Costs Distribute Expense Report Costs Distribute Usage and Miscellaneous Costs Distribute Supplier Invoice Adjustment Costs The raw cost is the actual cost of the work performed, and the burden cost is the indirect cost of work performed. The burden costs are created to apply overhead costs to projects to provide an accurate total cost figure. The burdened cost is the total cost of the expenditure, or the sum of raw cost and burden cost. Oracle Projects calculates the burden cost using the raw cost and a burden multiplier.
Calculating Labor Cost

Oracle Projects calculates cost for labor transactions using quantity and rates as follows: Raw cost is the result of multiplying hours by a rate. Burden cost is the result of multiplying raw cost by a burden multiplier. Burdened cost is the sum of raw cost and burden cost. Note: You can define a unique labor costing algorithm using the Labor Costing Extensions. See: Labor Costing Extensions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
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See Also
Distributing Labor Costs: page 1 10 Overview of Expenditures: page 2 2 Overview of Burdening: page 3 2
Calculating Cost for Expense Reports, Usages, and Miscellaneous Transactions

Oracle Projects calculates the cost for expense reports, usages, and miscellaneous transactions as follows: Raw cost is equal to quantity (if quantity is in currency, for example, a currency amount), or alternatively, raw cost is the result of multiplying hours by a rate (if quantity is not in currency). cost rates by expenditure type, or cost rates by nonlabor resource and owning organization for usages (optional); overrides expenditure type cost rate Burden cost is the result of multiplying raw cost by a burden multiplier. Burdened cost is the the sum of raw cost and burden cost.
See Also
Overview of Expenditures: page 2 2 Overview of Burdening: page 3 2 Integrating Expense Reports with Oracle Payables and Oracle Internet Expenses: page 7 3
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Calculating Burden Cost

Oracle Projects calculates burden cost transactions, which represent only the burden or overhead cost, as follows: Quantity is zero. Raw cost is zero. Burden cost is the calculated burden cost amount. Burdened cost is equal to burden cost.
See Also
Overview of Burdening: page 3 2
Calculating Cost for Supplier Invoices

Oracle Projects calculates the raw cost for supplier invoices using the cost amount entered as the invoice amount for the invoice in Oracle Payables. Raw cost is equal to the supplier invoice amount from Oracle Payables. Burden cost is the result of multiplying raw cost by a burden multiplier. Burdened cost is the the sum of raw cost and burden cost. Oracle Projects calculates the burdened cost for supplier invoice transactions during the following processes: PRC: Interface Supplier Costs PRC: Distribute Supplier Invoice Adjustment Costs
See Also
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Distributing Labor Costs

This section illustrates the costing process using Labor Costing as an example. Oracle Projects allows you to enter detail labor transactions charged to your projects so that you can monitor labor work performed. Oracle Projects costs the items to compute the labor costs for your project, and determines the GL accounts to charge. Figure 1 3 shows the steps in the PRC: Distribute Labor Costs process:
Figure 1 3 Steps in the PRC: Distribute Labor Costs Process
The PRC: Distribute Labor Costs process handles labor items in the following order:
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Selects eligible expenditure items, based on the parameters you entered for project, employee, and week ending date. Costs the straight time items. Calls the Overtime Calculation program, if it is enabled. Costs overtime items, including overtime items created by the Overtime Calculation program. Note: If your transactions are not costing properly, you can view rejection reasons in the Expenditure Items window. From the Folder menu, choose the Show Field option to display all cost distribution rejections.
See Also
Distribute Labor Costs Process, Oracle Projects Fundamentals Labor Costing Definitions, Oracle Projects Implementation Guide
Selecting Expenditure Items

The Distribute Labor Costs program first selects all expenditure items that are eligible for costing. To be eligible for costing, an expenditure item must meet the following criteria: Classified with an expenditure type having the Straight Time or Overtime expenditure type class Included in the specified project for straight time items (if you specify a project) For the specified employee (if you specify an employee) In a week ending on or before the end date (if you specify a week ending date) In a released preapproved timecard batch Not already cost distributed (new items or items marked for adjustment) Expenditure items selected are processed in sets according to the Expenditures Per Set profile option For more information, see: Profile Options in Oracle Projects, Oracle Projects Implementation Guide.
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Processing Straight Time

Distribute Labor Costs performs three steps to process straight time: Calculate costs Run AutoAccounting Create cost distribution lines
Calculating Costs
Oracle Projects calculates straight time cost (raw cost) for expenditure items by multiplying hours worked by an employees labor cost rate. This calculation is represented in the following formula: H Straight Time Cost = (Hours Worked Rate) Employees Labor Cost
Distribute Labor Costs uses the labor cost rate that is in effect for an employee as of the week ending date for each selected expenditure item. This amount can be overridden by the Labor Costing Extension to handle unique labor costing rules. If an employees labor cost is burdened, Oracle Projects calculates the burdened cost by multiplying straight time cost times a factor equal to one plus the burden multiplier. This calculation is represented in the following formula: H Burdened Cost = (Straight Time Cost (1 + Burden Multiplier))
To determine if a labor cost is burdened, Oracle Projects checks the project type of the project to which an expenditure item is charged. The burden multiplier is determined from the burden schedule (or burden schedule override) assigned to the project or task. In addition, Oracle Projects compares the expenditure item date to the effective dates of the burden schedule to determine the burden multiplier to use.
See Also
Overview of Burdening: page 3 2 Labor Costing Extensions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
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Running AutoAccounting
After the process calculates cost for each selected expenditure item, it runs AutoAccounting to determine account codes for each cost distribution line that it will create. If an organization distribution override exists, the destination organization of the override supersedes the actual expenditure organization of affected items. When you run the cost distribution programs for labor, expense reports, or usages and miscellaneous transactions, Oracle Projects redirects the Expenditure Organization to the Override To Organization if you have specified any of the following organization distribution overrides for the organization: Incurred by Employee and Expenditure Category Incurred by Employee Expenditure Organization and Expenditure Category Expenditure Category If you do not specify any of these overrides, Oracle Projects uses the Incurred by Organization or the Expenditure Organization.
Creating Cost Distribution Lines

After the Distribute Labor Costs process runs AutoAccounting, it creates cost distribution lines. Each item originally has one distribution line for raw cost. If an item is recosted and the cost rate or account coding changes, Distribute Labor Costs creates a reversing cost distribution line and a new line for the updated cost or account coding.
See Also
Accounting Transactions for Cost, Oracle Projects Fundamentals
Creating Overtime
You can use Oracle Projects to track the cost of overtime and other premium compensation, allowing you to determine the true cost of labor.
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When an employee works overtime, in addition to charging the total hours an employee worked to the project(s) on which the employee worked, you calculate and charge the overtime hours and costs. Therefore, the employees pay includes two components: Straight time cost Overtime or premium cost
Tracking Overtime
When you enter timecards in Oracle Projects, you charge the total hours an employee worked to the project(s) on which the employee worked. You can track overtime premium costs in Oracle Projects in three primary ways: Charge to an indirect project. Charge to a project on which overtime was worked. Charge to a project on which overtime was worked and track premium amounts separately. Oracle Projects creates overtime when you enter it manually or when the Overtime Calculation program creates it automatically. If you enter overtime manually, the Distribute Labor Costs program does not create overtime, and instead proceeds directly to calculating overtime cost. If you enable the Overtime Calculation program, then the Distribute Labor Costs process calls the program to create overtime automatically.
See Also
Implementing Overtime Processing, Oracle Projects Implementation Guide Overtime Calculation Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
Processing Overtime
Distribute Labor Costs performs three steps to process overtime: Calculate costs
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Run AutoAccounting Create cost distribution lines
Calculating Overtime Cost

Oracle Projects calculates premium overtime cost (raw cost) for overtime items by multiplying an employees labor cost rate by a labor cost multiplier that corresponds to the type of overtime worked. This calculation is represented in the following formula: H Premium Overtime Cost = (Hours Worked Cost Rate) Labor Cost Multiplier Employees Labor
Overtime may or may not be burdened, depending on your burdening setup.
Running AutoAccounting
After the process calculates cost for each selected expenditure item, it runs AutoAccounting to determine account codes for each cost distribution line that the process creates. If an organization distribution override exists, then the destination organization of the override supersedes the actual expenditure organization of affected items.
Creating Cost Distribution Lines

After the process runs AutoAccounting, it creates cost distribution lines. Each item originally has one distribution line for raw cost. If an item is recosted and the cost rate or account coding changes, Distribute Labor Cost creates a reversing cost distribution line and a new line for the updated cost or account coding.
Generating Labor Output Reports

The Distribute Labor Costs process generates output reports that list detail items that were processed and exception items.
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See Also
Distribute Labor Costs Process, Oracle Projects Fundamentals
Calculating and Reporting Utilization

The utilization functionality of Oracle Project Costing and Oracle Project Resource Management enables you to generate and report on your resources actual and scheduled utilization. Using Oracle Project Costing, you can report on your resources actual resource utilization based on actual hours from timecards. For more information, see: Utilization, Oracle Projects Fundamentals.
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CHAPTER
Expenditures
his chapter describes how to enter and manage expenditures using Oracle Projects.
Expenditures
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Overview of Expenditures
An expenditure is a group of expenditure items, or transactions, incurred by an employee or an organization for an expenditure period. You charge expenditures to a project to record actual work performed or cost incurred, and you charge commitments to future, committed costs you expect to incur. You must charge all actual expenditure items and future commitments to a project and task. Examples of actual expenditures are timecards, expense reports, usage logs, and supplier invoices. Examples of commitments are requisitions and purchase orders. The following are examples of expenditures and commitments: You have worked eight hours on Monday, June 6 for project A, task 1 doing Professional work (expenditure) You travelled twenty miles on Tuesday, June 7 for project X, task 1 using your own vehicle (expenditure) You made ten copies of a blueprint on Thursday, June 9 for project Y, task 1 using copier number 1243 (expenditure) You issued a purchase order for 200 pounds of cement on Friday, June 10 for project Z, task 2.3 (commitment) You associate each expenditure item with an expenditure type class, (such as Straight Time or Supplier Invoice). The expenditure type class tells Oracle Projects how to process the expenditure item. For more information, see: Expenditure Type Classes, Oracle Projects Implementation Guide.
Expenditure Classifications
Expenditure types (such as Administrative, Hotel, or Overtime) classify the type of cost incurred. You can categorize costs and revenues by grouping the expenditure types into expenditure categories such as Materials and Labor. You define all expenditure types, expenditure categories, and revenue categories during implementation.
Expenditure Amounts
During processing, the system associates each expenditure item with a unit quantity and two cost amounts, raw and burden cost, when
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processed. The raw cost is the actual cost of the work performed; the burden cost is the indirect cost of the work performed. For example, the raw cost could be the hours multiplied by the hourly cost rate, and the burden could be the cost of the office space or benefits. The total burdened cost is the raw cost plus the burden cost.
Expenditure Entry Methods

You can create expenditure items in Oracle Projects to record actual work performed or costs incurred against a project in one of the following ways: Enter preapproved expenditure batches. See: Processing PreApproved Expenditures: page 2 10. Upload preapproved expenditure batches from Microsoft Excel. See: Uploading Expenditures from Microsoft Excel: page 2 22. Enter expenditures in other Oracle Applications, such as Oracle Payables and Oracle Inventory, and import them into Oracle Projects. See: Overview of Oracle Project Costing Integration: page 7 2. Import transactions from external sources. See: Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
Expenditure Item Validation

When you enter expenditure items, you are charging hours, expenses, or nonlabor resources to a project and a task. Oracle Projects validates expenditure items against predefined criteria and any transaction controls and transaction control client extensions that you set up during the implementation.
Standard Validation Process

The standard validation process performs the following checks: Project Expenditure item falls within project dates Project status allows transactions
Expenditures
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Transaction controls and transaction control extensions allow charges of this type Project allows crosscharges from the users operating unit in a multiorganization environment Task Expenditure item falls within task dates Task is a lowest task and chargeable Transaction controls and transaction control extensions allow charges of this type Expenditure type Expenditure type is active Is valid for multiple currencies Employee Employee is active Existing expenditure item (for adjustments only) Matching expenditure item exists (unless you enter an unmatched, negative transaction) Note: Oracle Projects validates preapproved expenditure batches as you enter expenditure item details. Expenditures created using external cost collection systems are validated during the Submit and Transaction Import processes, but before Oracle Projects creates an expenditure.
Funds Checks for Transactions

When a transaction is charged to a project, funds check processes are activated in both General Ledger and Oracle Projects. Funds checks are activated for new transactions and for adjusted transactions. You can review Oracle Projects funds check results online. The system displays results for transactions that pass a funds check and transactions that fail a funds check.
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See Also
Funds Check Activation in Oracle Purchasing and Oracle Payables: page 7 34 Funds Check Activation in Oracle Projects, Oracle Project Management User Guide Using Budgetary Controls, Oracle Project Management User Guide
Expenditure Rejection Reasons

Possible reasons for expenditure transaction rejection are listed in the following table. If you receive a rejection reason not included in the table, check with your implementation team for rejection reasons defined in the transaction control extensions. If you cannot access a window mentioned in the table, contact the key member for the project for assistance.
Rejection Reason (Error Lookup Code) Burdened cost is not valid for the given system linkage (INVALID_BURDENED_ AMOUNT) CCID for credit is NULL (INVALID_CR_CCID) CCID for debit is NULL (INVALID_DR_CCID) Cannot lock original item for reversal (CANNOT_LOCK_ ORIG_ITEM) Cross charge validation failed (CROSS_CHARGE_ PROJECT_INVALID) Troubleshooting Tips A transaction with an expenditure type class of Burden Transactions should have a burden cost of NULL. For other expenditure type classes, the burden cost should equal zero if the transaction source or project does not allow burdening. The code combination ID for the credit account cannot be NULL for transactions that have been accounted for in an external system. The code combination ID for the debit account cannot be NULL for transactions that have been accounted for in an external system. Another user or a process is currently accessing the original item to be adjusted. Try to revise the expenditure item later.. All Expenditure
GL accounted transactions GL accounted transactions All
You will get this message only if you have implemented multiple organization support and are using Transaction Import to charge expenditure items to a project owned by an operating unit that does not share your operating units set of books, PA period type, and business group. Revise the expenditure item by entering a project owned by an operating unit to which you can charge.
All
Table 2 1 Expenditure Rejection Reasons (Page 1 of 5)
Expenditures
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Rejection Reason (Error Lookup Code) Different system linkage (DIFF_SYS_LINKAGE)
Troubleshooting Tips During Transaction Import, Oracle Projects verifies that the expenditure type class of the transaction matches the expenditure type class of the expenditure type. You can either associate the expenditure type class with the expenditure type using the Expenditure Types window, or you can change either the expenditure type or the expenditure type class on the transaction so they form a valid combination. An expenditure item with the same transaction source and original system reference already exists. Change the transaction source or original system reference of the expenditure item to be imported. Enter information into the employee number field. All
Expenditure
Duplicate item (DUPLICATE_ITEM)
All
Employee is mandatory (EMP_MAND_FOR_ ER/TIME) Employee or organization is mandatory (EMP_OR_ORG_MAND Expenditure item cannot be charged to a Closed project (PA_EX_PROJECT_ CLOSED) Expenditure item date is after the expenditure ending date (EI_DATE_AFTER_END_DATE) Expenditure item date is not within the active dates of the project (PA_EX_PROJECT_DATE) Expenditure item date is not within the active dates of the task (PA_EXP_TASK_EFF) Expenditure item date is not within the expenditure week (ITEM_NOT_IN_WEEK) Expenditure organization is not active (PA_EXP_ORG_NOT_ACTIVE) Expenditure type/expenditure type class inactive (ETYPE_SLINK_INACTIVE) Expenditure type inactive (EXP_TYPE_INACTIVE)
Timecards and expense reports All except timecards and expense reports All
Enter either the employee name and number or expenditure organization in the appropriate expenditure field. Project status does not allow transactions to be charged to this project. Change the status of the project or charge the expenditure item to another project. The expenditure item date is after the expenditure ending date. Verify that both the expenditure item and the expenditure dates are correct and change, if necessary. Change the expenditure item date or the projects active dates, or charge the expenditure item to another project. Change the expenditure item date or the tasks active dates, or charge the expenditure item to another task. Verify that the expenditure item date and the expenditure date are both correct and change, if necessary. You can also create a new expenditure for the expenditure item. The expenditure organization is not active or is not within the current expenditure organization hierarchy. The combination of the expenditure type and expenditure type class is inactive as of the expenditure item date. Refer to PA_EXPEND_TYP_SYS_LINKS for valid expenditure type/expenditure type class combinations. The expenditure type has been defined, but it is either not yet effective or has already expired as of the expenditure item date. Refer to the Expenditure Types window to view all valid expenditure types and their effective dates or to change the expenditure types effective dates. A transaction that has already been accounted for in an external system must have a GL date.
All
All
All
Timecards
All
All
All
GL date is NULL (INVALID_GL_DATE)
GL accounted transactions
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Rejection Reason (Error Lookup Code) Invalid burden transaction (INVALID_BURDEN_TRANS) Invalid employee (INVALID_EMPLOYEE) Invalid ending date (INVALID_END_DATE)
Troubleshooting Tips Raw cost and quantity must equal zero or NULL for burden transactions. Oracle Projects does not recognize the employee number. Verify that you have entered the information correctly or add a new employee. The expenditure ending date does not fall on the day of the week defined as your expenditure cycle end day. Refer to the Implementation Options window (Costing) for the valid expenditure cycle start day. The expenditure type does not exist. Refer to the Expenditure Types window for a list of all valid expenditure types or to create a new expenditure type. The expenditure type class of the transaction is invalid. Refer to PA_SYSTEM_LINKAGES for valid expenditure type classes. The combination of the expenditure type and expenditure type class is invalid. Refer to PA_EXPEND_TYP_SYS_LINKS for valid expenditure type/expenditure type class combinations. The nonlabor resource does not exist. Refer to the NonLabor Resources window for a list of all valid nonlabor resources or to create a new new nonlabor resource. The nonlabor resource organization does not exist. Refer to the NonLabor Resources window for a list of all valid organizations for a particular nonlabor resource or to assign a new organization to a nonlabor resource. The expenditure organization does not exist. Refer to the expenditure organization hierarchy set up in Oracle Projects to determine all organizations defined as valid expenditure organizations. The project number does not exist. Refer to the Projects Summary window for a list of all valid projects or to the Projects, Templates Summary window to create a new project by copying an existing project or template. The project type for the given project is invalid. The task number does not exist for the project, or the task is not a lowest task. Open your project and choose the Tasks option to view all valid tasks or to create a new lowest task. Oracle Projects does not recognize the transaction source. Refer to the Transaction Sources window for a list of valid transaction sources or to create a new transaction source. There is no open or future PA period for the given expenditure item and GL dates.
Expenditure Burden transactions All
All
Invalid expenditure type (INVALID_EXP_TYPE) Invalid expenditure type class (INVALID_EXP_TYPE_CLASS) Invalid expenditure type/system linkage combination (INVALID_ETYPE_SLINK) Invalid nonlabor resource (INVALID_NL_RSRC)
All
All
All
Usage logs
Invalid nonlabor resource organization (INVALID_NL_RSRC_ORG) Invalid organization (INVALID_ORGANIZATION)
Usage logs
All
Invalid project (INVALID_PROJECT)
All
Invalid project type (INVALID_PROJECT_TYPE) Invalid task (INVALID_ TASK)
All All
Invalid transaction source (INVALID_TRX_SOURCE) No open or future PA period for the expenditure item and GL dates (INVALID_PA_DATE)
All
GL accounted transactions
Expenditures
27
Rejection Reason (Error Lookup Code) Nonlabor resource expenditure type different (NL_EXP_TYPE_DIFF)
Troubleshooting Tips The nonlabor resource is not associated with the expenditure type. Refer to the NonLabor Resources window for a listing of all valid nonlabor resources and their expenditure types or to create a new nonlabor resource. The nonlabor resource has been defined, but it is either not yet effective or has already expired as of the expenditure item date. Refer to the NonLabor Resources window for a list of valid nonlabor resources and their effective dates or to change the effective dates. A nonlabor resource has not been specified. Enter the nonlabor resource name for the rejected expenditure item in your usage log. A nonlabor resource organization has not been specified. Enter the appropriate organization name.
Expenditure Usage logs
Nonlabor resource inactive (NL_RSRC_INACTIVE)
Usage logs
Nonlabor resource mandatory for usages (NL_RSRC_MAND_ FOR_USAGES) Nonlabor resource owning organization mandatory for usages (NL_RSRC_ORG_ MAND_FOR_USAGES) No assignment (NO_ASSIGNMENT)
Usage logs
Usage logs
The employee does not have an active HR assignment to a specific organization and job as of the expenditure item date. Verify the expenditure item date and the employee assignment in Oracle Human Resources and make change, if necessary. If the transaction is an adjustment with a negative quantity, and the unmatched negative flag is not set to Yes, an original, approved, unreversed expenditure item matching the transactions employee/organization, item date, expenditure type, project, task, reversing quantity, reversing cost (if loading costed items via Transaction Import), and nonlabor resource and nonlabor organization (for usages) must exist. Also, the matching expenditure item must have been originally loaded from the same transaction source. If more than one item matches the original item, Oracle Projects uses the first one that was created. Transaction currency raw cost amount is missing. Expenditure items with a costed transaction source must include this information. The nonlabor resource has not been assigned to the nonlabor resource organization as of the expenditure item date. Refer to the NonLabor Resources window for a list of all organizations associated with the resource or to associate a new organization with the resource. The project is a template; has a transaction control that does not allow charges; does not share a business group, set of books, and PA period type with the users operating unit; or the project status does not allow new transactions. Burden transactions and transactions with burden amounts are not allowed for this project.
All
No matching item (NO_MATCHING_ITEM)
Adjusting transactions
No raw cost (NO_RAW_COST)
All
Organization does not own the nonlabor resource (ORG_NOT_OWNER_ OF_NL_RSRC) Project is not chargeable (PA_PROJECT_NOT_VALID)
Usage logs
All
Project does not allow burdening or burden transactions (PROJ_NOTALLOW_BURDEN)
All
28
Rejection Reason (Error Lookup Code) Project/Tasklevel expenditure transaction control violated (PA_EXP_PJ/TASK_TC)
Troubleshooting Tips The transaction violates the project level or task level transaction controls defined for the project. Refer to the Transaction Controls window for a list of the transaction controls on the project or task or to change the transaction controls. You can also charge the expenditure item to another project or task. The project or task does not exist, or the task does not belong to the project. Change the expenditure items project or task. The tasks Allow Charges flag has not been enabled. Enable this flag from the tasks Task Details window or charge the item to another task. Burden transactions and transactions with burden amounts are not allowed for transactions you import from this transaction source. The transaction source has been defined, but either is not yet effective or has already expired as of the expenditure item date. Refer to the Transaction Sources window for a list of all valid transaction sources and their effective dates or to change the effective dates. All
Expenditure
Project/Task validation error (PA_EXP_INV_PJTK) The task is not chargeable (PA_EXP_TASK_STATUS) Transaction source does not allow burdening or burden transactions (TRXSRC_NOTALLOW_BURDE N) Transaction source inactive (TRX_SOURCE_INACTIVE)
All All
All
All
Expenditures
29
Processing PreApproved Expenditures

Preapproved expenditures include the following items: timecards expense reports usage logs miscellaneous transactions burden transactions inventory transactions work in process transactions These entries are generally completed on paper and approved by a supervisor, then entered into Oracle Projects. Note: Transactions with an expenditure type class of Work in Process or Inventory are usually imported from a manufacturing system. Related burden transactions are usually generated and imported via Transaction Import. See: Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. You enter preapproved expenditures into Oracle Projects in a batch, submit them for review, and then release them for cost distribution. Figure 2 1 illustrates these steps.
2 10
Figure 2 1 PreApproved Expenditure Flow
Expenditures
2 11
Entering PreApproved Expenditure Batches
Enter preapproved expenditures, such as timecards, expense reports, or usage logs, in batches. If you enter expenditures in a batch, Oracle Projects processes them as a group. In addition, when you release the batch for cost distribution, Oracle Projects releases all expenditures in the batch simultaneously. Batch entry promotes accuracy and efficiency. You can use batches to: Reduce data entry. You can create a new timecard batch by copying any previously created batch. Verify accuracy by tracking variances between actual and entered totals. Easily locate a group of expenditures to correct, submit for review, or release for cost distribution. When you enter preapproved expenditures, you first create a new batch, then enter the expenditures in the batch and their associated expenditure items. When you have entered all expenditures and expenditure items, you can submit the contents of the batch. Typically, your supervisor reviews your submitted batches and releases them for cost distribution.
2 12
Note: Your implementation team can decide to allow the same person or job responsibility to enter, submit, and release preapproved expenditures. For more information, see: Security in Oracle Projects, Oracle Projects Fundamentals, and Project and Organization Security, Oracle Projects Implementation Guide.
Statuses for PreApproved Expenditure Batches

Preapproved expenditure batches can have one of the following statuses: Working The expenditure batch is not ready for review. You can enter timecards, expense reports, usages, miscellaneous transactions, burden transactions, inventory transactions, or workinprocess transactions and modify their expenditures and expenditure items. The batch is awaiting review. You can still retrieve the batch if you need to make corrections. The expenditure batch has been released for cost distribution. You can reverse incorrectly entered expenditure items within the batch. See: Correcting Expenditures Batches: page 2 27.
Submitted Released
Note: You can choose Unreleased from the Status poplist in the Find Expenditure Batches window to retrieve both Working and Submitted expenditure batches.
Entering Transactions for FutureDated Employees

You cannot enter actual project transactions for futuredated employees until they become active employees. An employee is considered active when his or her start date is equal to or earlier than the current date. However, if an expenditure batch is dated in the future, you can enter transactions for futuredated employees who are active as of the transaction dates.
Creating Automatically Reversing Expenditure Batches

You can create automatically reversing expenditure batches to record cost accruals in Oracle Projects. Frequently, items and services are received in one accounting period and invoiced in another. You can use automatically reversing expenditure batches to accrue cost in the period
Expenditures
2 13
in which it is incurred. When you receive and enter the invoice, the accrual is reversed and actual cost is recorded. To enter an automatically reversing batch, you must use a miscellaneous class. When the batch is released, Oracle Projects creates reversing entries that are accounted in the next General Ledger period. Defining Accounting Rules for Cost Accruals When you use automatically reversing expenditure batches to enter cost accruals in Projects, you can apply unique accounting rules to the accrual transactions by following these steps: 1. 2. Define a new expenditure category for accruals. Define a new expenditure type for each type of accrual you plan to enter. For example, to accrue labor and supplier costs, define two expenditure types called Labor Accrual and Supplier Cost Accrual. Assign the new expenditure types to the Miscellaneous Transaction expenditure type class. Modify the AutoAccounting rules to generate accrual accounts for transactions charged to the accrual expenditure types.
3. 4.
For more information on defining AutoAccounting rules, see: Defining AutoAccounting Rules, Oracle Projects Implementation Guide.
Creating a PreApproved Expenditure Batch

Sort paper expenditure reports into batches containing the same Expenditure Ending date and Expenditure Type Class (Straight Time, Overtime, Expense Reports, Usages, Supplier Invoices, Miscellaneous Transactions, or Burden Transactions). Suggestion: If you integrate with Oracle Manufacturing or Oracle Inventory, use function security to prevent users from entering preapproved batch items with an expenditure type class of Inventory or Work in Process.
"
To create a new batch: 1. 2. Navigate to the Expenditure Batches window. Batch. Enter a unique Batch name to identify this set of expenditures. Suggestion: Choose a unique, identifiable, and memorable batch name. For example, a timecard batch name might include
2 14
your organization code, the letter T to indicate Timecards, and the week ending date. 3. Ending Date. Enter the expenditure Ending Date for the batch. If you enter a date that is not the last day of an expenditure week, the system automatically updates the date to the next valid week ending date. Class. Choose the expenditure type class for this batch. Description. Optionally enter a Description of the batch, or leave the field blank to use the name of the expenditure type class. Reverse Expenditures In a Future Period. Optionally, check this check box to automatically reverse the batch. See: Creating Automatically Reversing Expenditure Batches: page 2 13. 7. Amounts. Optionally enter Control Totals and Control Count in the Amounts region. Use the Running Totals and Counts and the Difference column to verify actual versus entered totals. See: Verifying Control Totals and Control Counts: page 2 24. 8. 9. Choose Expenditures to enter the batch. The status of a new batch is always Working. Enter the expenditures and expenditure items in the batch. See: Entering Expenditures: page 2 15.
4. 5. 6.
10. Save your work.
See Also
Uploading Expenditure Batches from Microsoft Excel: page 2 22
Entering Expenditures
This section describes how to enter expenditures and expenditure items in Oracle Projects.
Expenditures
2 15
Entering an Expenditure
"
To enter an expenditure: 1. Employee and Organization. In the Expenditures window, enter the employee or organization that incurred the cost. For time and expense reports, enter an employee. For asset usages, miscellaneous, and burden transactions, enter an employee or organization. For all other expenditures, enter an organization. 2. Control Total. Optionally enter the total units of measure in the Control Total field. (Some companies record the total units of measure on the paper expenditure report. Record that total in the Control Total field.)
2 16
When you have entered all the expenditure items, you can compare the Control Total with the Running Total, to verify your entries. See: Verifying Control Totals and Control Counts: page 2 24. 3. Currency Fields. If the expenditure type class for the expenditure batch is Expense Reports, the currency fields are enabled. For descriptions of these fields, see: Currency Fields for Expenditures: page 2 19. Note: The currency fields are not shown in the default folder. You can modify the folder to display these fields. 4. 5. 6. Expenditure Items. Enter the expenditure items In the Expenditure Items region. See: Entering Expenditure Items: page 2 17. Optionally rework the expenditure to add or revise transactions, and save your changes. When you have completed the expenditure batch, submit the batch for review. See: Submitting an Expenditure Batch: page 2 25.
Entering Expenditure Items

Oracle Projects validates expenditure item information as you enter it. For a list of the validation criteria Oracle Projects uses, see: Expenditure Item Validation: page 2 3.
"
To enter expenditure items: For each expenditure item, enter the following information: 1. 2. 3. 4. Expenditure Item Date. The date of the expenditure item. Project Number. The Project Number to charge for this expenditure item. Task Number. The lowest level Task Number to charge for this expenditure item. Assignment Name. When Oracle Project Resource Management is installed, you can associate labor and expense report expenditures to scheduled work assignments. Refer to the Oracle Project Resource Management User Guide for more information. Work Type. You can choose any active work type. This field is required when the PA: Require Work Type Entry for Expenditures profile option has a value of Yes. Expenditure Type. You can choose any expenditure type within the current expenditure type class.
5.
6.
Expenditures
2 17
7.
NonLabor Resource and NonLabor Organization. If the expenditure type class for the batch is Usages, enter the nonlabor resource and its owning organization. This enables you to track usage of companyowned assets. Currency Fields. You can optionally display and enter the currency fields. For descriptions of these fields, see: Currency Fields for Expenditure Items: page 2 20. Quantity. The quantity of units (the unit of measure is determined by the expenditure type). For example, on a timecard, you enter the quantity for professional labor in hours. You can enter a mixture of units, such as currency and miles, for an expense report. If a currency amount is entered in this field, it is the Reimbursement Amount.
8.
9.
10. Reimbursement Amount. If the Reimbursement Currency is different from the Receipt Currency, and you enter receipt currency attributes, then the reimbursement amount is calculated automatically and displayed in this field. Alternatively, you can enter the reimbursement amount directly. If you enter a value in this field, then the receipt currency attribute fields are disabled. This is because your entry is one of the following amounts: Reimbursement Amount. As described above, no conversion attributes are required if you enter the reimbursement amount. Quantity. The quantity for an expenditure item with an associated cost rate, in which case there is no associated Receipt Currency Amount to be converted. 11. Comment. Optionally enter a free text Comment. 12. Save your work.
See Also
Uploading Expenditure Batches from Microsoft Excel: page 2 22
2 18
Entering Currency Fields

To enable you to process transactions that involve currencies other than the project currency, Oracle Projects provides currency fields for expenditures and expenditure items. Notes:
In general, when rate type, rate date, and rate fields are displayed
for a currency, you can enter the rate only if the rate type is User. Otherwise, the rate is calculated by the system based on the rate type and rate date.
The Expenditure Items window is a foldertype window, and many

of the fields are not displayed in the default folder. You may want to create folders that display the fields you need, for the types of entries you need to make. For example, you may need to display Receipt Currency fields for expense reports, if expense report items originate in a currency other than the reimbursement currency. For information on using folders, see the Oracle Applications Users Guide.
Each of the attributes is determined separately. That is, if a rate type

is overridden at one level, but no rate date is entered at that level, the entered rate type is used and the default rate date is used.
For Timecards, Oracle Projects displays currency attributes only for

the project currency. For additional information about entering multiple currency transactions, including how default currency attributes are determined, see: Converting Multiple Currencies, Oracle Projects Fundamentals.
Currency Fields for Expenditures

If you are entering an expense report, you can specify any Reimbursement Currency. You specify one reimbursement currency for the entire expenditure (rather than for each expenditure item). The following table shows expenditure currency fields for expense reports:
Expenditures
2 19
Field
Description
Functional Currency
This is a displayonly field that shows the functional currency of the expenditure operating unit. This field defaults to the functional currency. If you want to be reimbursed in a different currency from the functional currency, enter the reimbursement currency. The exchange rate date that will be used to determine the exchange rate to convert the reimbursement currency to the functional currency. You can accept the default rate date, or override it. The default value of this field depends on the value of Exchange Rate Date Type in the Currency Implementation Options: If the implementation option is set to PA Period Ending Date, no default date is displayed. You can enter a date, or the cost distribution processes will calculate the exchange rate date. If the implementation option is set to Expenditure Item Date, Oracle Projects uses the transaction date as the default date. See: Currency Implementation Options, Oracle Projects Implementation Guide
Reimbursement Currency
Functional Rate Date
Functional Rate Type
The exchange rate type that will be used to convert the reimbursement currency to the functional currency. You can accept the default rate type, or override it. The exchange rate that will be used to convert the reimbursement currency to the functional currency. If the Functional Rate Type is USER, you can enter a value in this field. Otherwise, this field is calculated by the system, based on the rate date and rate type.
Functional Exchange Rate
Table 2 2 Currency Fields for Expense Reports (Page 1 of 1)
Currency Fields for Expenditure Items

The currency fields for expenditure items are shown in the following table:
2 20
Field
Description: Expense Reports
Description: Expenditures Other than Expense Reports
Reimbursement Currency Transaction Currency
The reimbursement currency. Not displayed.
Not displayed. The transaction currency code. Enter the code for the currency in which the transaction occurred. The currency code for the functional currency (display only). The currency attributes for the functional currency.
Functional Currency Functional Rate Type Functional Rate Date Functional Exchange Rate Project Currency Project Rate Type Project Rate Date Project Exchange Rate
The currency code for the functional currency (display only). These fields are displayonly, since they are controlled for the entire expenditure in the Expenditure window region.
The currency code for the project currency (display only). If the project currency is the same as the functional currency, these fields are displayonly. They display the same values as the functional currency attribute fields. If the project currency is not the same as the functional currency, you can enter these currency attributes.
The currency code for the project currency (display only). If the project currency is the same as the functional currency, these fields are displayonly. They display the same values as the functional currency attribute fields. If the project currency is not the same as the functional currency, you can enter these currency attributes. Not displayed.
Receipt Currency
The currency in which the expenditure item originally occurred. NOTE: If a cost rate is associated with an expenditure item, the receipt currency fields are disabled for that item.
Table 2 3 Currency Fields for Expenditure Items (Page 1 of 2)
Expenditures
2 21
Field
Description: Expense Reports
Description: Expenditures Other than Expense Reports
Receipt Amount
The amount of the expenditure item in the receipt currency (the actual amount paid for goods or services in the original currency.) The exchange rate to convert from the receipt currency to the reimbursement currency.
Not displayed.
Receipt Exchange Rate
Not displayed.
Table 2 3 Currency Fields for Expenditure Items (Page 2 of 2)
Uploading Expenditure Batches from Microsoft Excel

You can enter and upload preapproved expenditure batches using Microsoft Excel spreadsheets. You can validate records during entry by connecting to the database or you can create the spreadsheet offline and allow validation to occur during the transaction upload.
"
To download an entry template 1. 2. 3. 4. 5. Using Microsoft Internet Explorer, log into Oracle SelfService Applications. Select the Project Super User Responsibility or a userdefined responsibility that includes the Microsoft entry options. Use the scroll bar on the right to access the Expenditure Entry Using Microsoft Excel menu options. Select a template. Enter data in the spreadsheet.
All fields marked with an asterisk are mandatory. If Listtext appears under the column name, then a list of values is available. To access the list of values, doubleclick in the column or select List of Values from the Oracle menu option located at the top of the spreadsheet template.
"
To upload spreadsheet entries to Oracle Projects 1. Select Upload from the Oracle menu option located at the top of the spreadsheet template.
2 22
2.
Optionally, select the Parameters button to select upload options. After viewing the Parameters window, you must select Close or Proceed to Upload to return to the Upload window. Select Upload to launch the upload process. The upload process updates the message column for each record in the spreadsheet to indicate whether the upload was successful. Note: The upload process populates the transaction import table. You can optionally use the upload parameter to run the transaction import process automatically. For more information, see: Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
3.
Copying an Expenditure Batch

If you frequently enter similar groups of timecard expenditures, you can reduce manual data entry by copying data from one week to the next. The Copy function copies all expenditures and, optionally, all expenditure items from a specified source batch. Then you need to revise only the items that are different in the new batch. There are two approaches to copying expenditure data: Create, then copy a batch template. Copy expenditures from any previously created timecard batch.
"
To create a batch template: A timecard template is a generic batch containing the most frequently used data elements. For example, if you expect timecards from certain employees to be submitted each week, you can create a template that contains just the expenditure information. Or, if employees generally perform the same tasks for the same projects week after week, you can enter expenditure items in your template as well. 1. To create a batch template, follow the normal steps for creating a batch. See: Entering PreApproved Expenditure Batches: page 2 12. Suggestion: Give the batch a name that will indicate it is a template. 2. Do not submit the batch, since the batch template does not contain real expenditures and expenditure items.
Expenditures
2 23
"
To copy a batch: 1. 2. 3. 4. 5. Navigate to the Expenditure Batches window. Enter the Batch name, Ending Date, Class, and Description. Save your new batch. Choose Copy From. In the Copy From Expenditure Batch window, enter the name and description of the batch you want to copy. If you want to copy the expenditure items associated with the batch, choose Copy Expenditure Items. Choose OK. Revise the batch information (such as the Expenditure Ending date), make any changes to individual expenditure items, and save your work.
6. 7.
Verifying Control Totals and Control Counts

When you enter a Control Total or Control Count on the Expenditure Batch window, or enter a Control Total on the Expenditures window, Oracle Projects keeps track of the running total and running count of expenditures within a batch, and the running total for expenditure items associated with an expenditure. As you enter expenditure items, the system maintains a running total of each amount. To verify that the total hours, usages, expenses, or miscellaneous, burden, inventory, or work in process transaction amounts entered for a batch match the total recorded on the paper expenditure reports, calculate the total Units of Measure in the batch and enter the result as the Control Total. Note: The Running Total field will tabulate a total only if each expenditure item in the batch uses the same Unit of Measure. To verify that the total number of expenditures entered matches the total number of expenditures in the batch, count the paper expenditure records and enter the result as the control Count. Oracle Projects verifies control totals and control counts when you submit a batch. If the running total or running count does not equal your control totals, the system does not let you submit the expenditure batch until your totals match. If you do not enter control totals, the system does not check that control totals match.
2 24
Submitting an Expenditure Batch

After entering a batch of expenditures and verifying data entry, you submit the batch for review. Your supervisor typically reviews the batch and either releases it for cost distribution or returns it to you to rework. When you rework a batch, the status changes from Submitted to Working. Note: You can choose Unreleased from the Status poplist in the Find Expenditure Batches window to retrieve both Working and Submitted expenditure batches.
"
To submit a batch for review: 1. Navigate to the Expenditure Batches window and choose the batch you want to submit. Suggestion: You can use the Find Expenditure Batches window to query a particular batch in the Expenditure Batches window. 2. Choose the Submit button. The status of the batch changes from Working to Submitted after Oracle Projects validates the control totals and counts.
See Also
Correcting Expenditure Batches: page 2 27
Reviewing and Releasing Expenditure Batches

Once submitted, batches of preapproved expenditures are reviewed and released for cost distribution or returned to the user who entered the batch for reworking. You release a batch of expenditures by changing its status from Submitted to Released. Releasing a batch automatically releases all the expenditures and expenditure items in the batch.
"
To review an expenditure batch: H Find the batch you want to review in the Find Expenditure Batches window. In the Expenditure Batches Summary window, choose the
Expenditures
2 25
batch you want to review and choose Open to review information for the batch, or choose Expenditures to review expenditure and expenditure item information.
"
To release an expenditure batch: H From the Expenditure Batches or the Expenditure Batches Summary windows, select the batch or batches you want to release and choose Release. For information on selecting multiple records, see the Oracle Applications Users Guide.
See Also
Correcting Expenditure Batches: page 2 27
Reversing an Expenditure Batch

The Reverse button is enabled only if the current batch is released. In addition, an expenditure batch can be reversed only if the transaction source of the batch allows adjustments. When you reverse an expenditure batch, all the expenditure items are reversed except the following: Related items Expenditure items that have already been reversed Reversing items (net zero adjusted items) Expenditure items that were created as a result of a transfer adjustment
"
To reverse an expenditure batch: 1. 2. 3. 4. Navigate to the Find Expenditure Batches window. Find the batch that you want to reverse. In the Expenditure Batches window, choose Reverse. In the Reverse an Expenditure Batch window, enter the name of the new reversing batch and choose OK .
2 26
When the reversal is complete, Oracle Projects displays the number of items that were adjusted and the number of items that were rejected.
See Also
Creating Automatically Reversing Expenditure Batches: page 2 13
Correcting Expenditure Batches

After you submit a batch, you can add, delete, and revise expenditures and expenditure items. You also must correct a batch if your supervisor rejects and returns a submitted batch to you. If the batch has a status of Submitted, locate the batch, return its status to Working, and change the expenditure or expenditure item before resubmitting the batch. If the batch has a status of Released, correct the individual expenditure items by reversing the full amount of the original item and then entering the correct information. For example, if you entered six hours on a timecard expenditure item when the correct number of hours is four, create a reversing item equal to a negative six hours, then add a new expenditure item of four hours. To enter the corrected items, create a new batch and then follow the normal steps for submitting and releasing expenditures.
"
To rework (correct) a submitted or returned batch: 1. 2. 3. Navigate to the Find Expenditure Batches window and find the expenditure batch you want to rework. From the Expenditure Batches window, choose Rework. The status of the batch changes from Submitted to Working. Choose the Expenditures button to display the expenditures in the Expenditures window, then make corrections to any expenditure or expenditure items in the batch. Save your work and submit the batch again. See: Submitting an Expenditure Batch: page 2 25.
4.
Expenditures
2 27
"
To correct a released expenditure item: 1. Create a new batch for the correction items. The Expenditure Ending date must identify the week that includes the expenditure item you are reversing. See: Entering PreApproved Expenditure Batches: page 2 12. Note: Optionally check the All Negative Transactions Entered As Unmatched check box if you want to enter transactions with negative amounts and do not want Oracle Projects to search for corresponding existing transactions. 2. In the Expenditure Items window, select the Reverse Original button. Note: Instead of choosing the Reverse Original button, you can enter a negative amount in the Quantity field. Negative amounts are preceded by a minus () sign. If you have checked the All Negative Transactions Entered As Unmatched check box, Oracle Projects will not search for corresponding existing transactions. Otherwise, Oracle Projects will prompt you to confirm the creation of each negative transaction that does not have a corresponding existing transaction. 3. In the Reverse Expenditure Items window, fill in all the fields to specify the item you want to reverse. Then choose the Reversal button. The system inserts a reversing (negative) expenditure item into the batch. 4. Finish entering the batch and submit the batch as usual. See: Submitting an Expenditure Batch: page 2 25. Note: Expenditure batches can contain both positive and negative transactions.
See Also
Reviewing and Releasing Expenditure Batches: page 2 25
2 28
Controlling Expenditures
This section describes how to use transaction controls to control the expenditures that can be charged to a project. Oracle Projects provides you with many levels of charge controls: Project Status Task Chargeable Status Start and Completion Dates You can use the project status to control whether any charges are allowed for the project. You can specify a lowest task as chargeable or nonchargeable, to control whether any charges are allowed for the task. You can specify the start and completion dates of a lowest task, to record the date range for which charges are allowed for the task. The start and completion dates of the project also limit when transactions can be charged. You can define transaction controls to specify the types of transactions that are chargeable or nonchargeable for the project and tasks.
Transaction Controls
Use transaction controls to configure your projects and tasks to allow only charges that you expect or plan. You can also define which items are billable and nonbillable on your contract projects. For capital projects, you can define which items are capitalizable and noncapitalizable. This proactive means to control charges to projects enables you to better manage your projects. You enter transaction controls in the Project Options and Task Options windows. See: Project and Task Information, Oracle Projects Fundamentals. You can configure transaction controls by the following: Expenditure Category Expenditure Type Employee NonLabor Resource You can create any combination of transaction controls that you want; for example, you can create a transaction control for an employee and a specific expenditure type, or you can create a combination for an employee, expenditure type, and nonlabor resource. You also specify the date range to which each transaction control applies.
Expenditures
2 29
If you do not enter transaction controls, you can charge expenditure items from any employee, expenditure category, expenditure type, and nonlabor resource to all lowest tasks on the project.
Using Transaction Control Extensions

To define more complex rules for implementing companyspecific expenditure entry policies, you may need to use transaction control extensions. See: Transaction Control Extensions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
Inclusive and Exclusive Transaction Controls

You specify whether the transaction controls you enter are inclusive or exclusive. Inclusive transaction controls limit charges to only the transaction controls entered; Oracle Projects then rejects any charges that are not listed as chargeable in the transaction controls. You make your transaction controls inclusive by checking the Limit to Transaction Controls box on the Transaction Controls window. Exclusive transaction controls allow all charges except those that are specified as nonchargeable in the transaction controls. Oracle Projects defaults to exclusive transaction controls. For either method of transaction controls, you need to enter the following information: Expenditure category Expenditure type Nonlabor resource Employee Chargeable Billable Effective from Effective to
2 30
You must specify an employee or expenditure category for each record. You can specify a nonlabor resource for usage expenditure types.
Employee Controls with Usage and Supplier Transactions

Transaction controls that you define by employee do not apply to transactions that are not associated with an employee. This includes purchasing and supplier invoice transactions entered for a supplier not associated with an employee, and usage items incurred by an organization and not an employee. If you define transaction controls to list employees who can charge to your project, Oracle Projects allows transactions from those employees. It also allows any purchasing transactions, supplier invoice transactions, and usage items incurred by an organization, and any other transactions that do not require an employee number.
Employee Controls with Expense Reports Entered in Oracle Payables

If you enter expense reports in Oracle Payables, and use suppliers associated with employees, Oracle Projects validates the transaction using the employee associated with the supplier. For example, if you specify that Donald Gray cannot charge to the project, and you enter an expense report item for the supplier GRAY, DONALD who is associated with the employee Donald Gray, Oracle Projects does not allow you to charge the item to the project, because it validates the transaction controls that you have defined.
Scheduled Expenditures Only Controls

When Oracle Project Resource Management is installed, you can specify that only employees with scheduled work assignments are allowed to charge labor and expense report transactions to your project.
Allowable Charges for Each Transaction Control

You can further control charges for each transaction control record by specifying whether to allow charges. The default value is to allow charges. You usually select Chargeable when you are using inclusive transaction controls. For example, if you wanted to allow employees to charge only labor to your project, you would check Limit To Transaction Controls to limit charges to only the transaction controls entered. Then you would
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define a transaction control with the Labor category, and allow charges to that transaction control. You usually do not select Chargeable when you are using exclusive transaction controls because exclusive transaction controls list the exceptions to chargeable transactions. You can also record exceptions by defining some transaction controls to allow charges and others not to allow charges. For example, say you want to define that employees can charge all labor except administrative labor. Select Limit To Transaction Controls to make the transaction control inclusive. You then enter one transaction control record with the Labor category that allows charges, and another transaction control record with the Labor category, Administrative type that does not allow charges.
Specifying Billable and Capitalizable Transactions

You can control what transactions for contract projects are nonbillable and what transactions for capital projects are noncapitalizable when you set the Billable/Capitalizable field. You can choose between the options of No or Task Level. You select No if you want the charges to be nonbillable or noncapitalizable; you select Task Level if you want the billable or capitalizable status to default from the task to which the item is charged. You define the billable or capitalizable status for a task in the Task Details window. This value defaults to all expenditure items charged to the task.
Specifying Effective Dates for Transaction Controls

You can define transactions as chargeable for a given date range by entering an Effective From and Effective To date for each transaction control record. You must specify a start date; Oracle Projects defaults this value to the Effective From date of the project or task. The Effective To date is optional.
Determining if an Item is Chargeable

Oracle Projects checks all levels of chargeability control when you try to charge a transaction to a project. The check is performed when you save the record. Oracle Projects checks the control when you:
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enter an online or preapproved expenditure item copy a preapproved timecard item transfer items to a new project or task enter a projectrelated requisition or purchase order distribution in Oracle Purchasing enter a projectrelated invoice distribution in Oracle Payables
Chargeability Controls
The transaction validation checks are performed using the following tests (chargeability controls): Project status allows new transactions Task is chargeable Expenditure item date is between the start and end dates for the project and task Expenditure item passes validation based on applicable project or task transaction controls If the expenditure item passes the first three chargeability controls, then Oracle Projects checks the transaction controls. The system first looks for an applicable task level transaction control. If it does not find applicable task level controls, it looks for project level controls. If the item matches an applicable transaction control at the task level, project level controls are not checked. The task level controls override the project level controls. Applicable transaction controls are all of the transaction control records that apply to an expenditure item based on the employee, expenditure category, expenditure type, nonlabor resource, and dates.
Determining the Chargeable Status of an Expenditure Item

To determine the chargeable status of an expenditure item, Oracle Projects follows the steps shown in Figure 2 2. The steps, which are explained in the paragraphs that follow, are first followed when checking transaction controls at the task level, then are repeated at the project level, if required.
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Figure 2 2 Determining the Chargeable Status of an Expenditure Item
If the Limit to Transaction Controls check box is selected and applicable transaction controls do not exist, then the transaction is not chargeable. If applicable controls do exist, then the system checks whether the controls allow charges. If the Chargeable check box is selected for an applicable control, then the transaction is chargeable. If the Chargeable check box is not selected, then the transaction is not chargeable. If the Limit to Transaction Controls check box is not selected and there are no applicable controls, then the transaction is chargeable. If
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applicable controls do exist, then the system checks whether the controls allow charges. If the Chargeable check box is selected for an applicable control, then the transaction is chargeable. If the Chargeable check box is not selected, then the transaction is not chargeable.
Determining if an Item is Billable or Capitalizable

You specify whether an item is billable for contract projects. Oracle Projects provides you with two levels of billability control. Task Billable Status Transaction Controls You can specify a lowest level task as billable or nonbillable. This billable status defaults to all expenditure items charged to that task. You can define transaction controls to specify what transactions are nonbillable.
Note: You can override the billable status of an expenditure item in the Expenditure Items and Invoice Line Details window. You control the capitalizability of transactions for capital projects just as you control the billability of transactions for contract projects. For more information, see: Specifying Which Capital Asset Transactions to Capitalize: page 5 18.
Billable Controls
If a transaction is chargeable, Oracle Projects next determines if it is billable using the following transaction validation checks: A transaction must meet ALL of the following criteria to be billable: Transaction is chargeable Task is billable Billable field must be set to Task Level in all applicable rows in Transaction Controls You can specify what is nonbillable using transaction controls. For an item to be billable, the task must be billable. You can make an item nonbillable by setting the Billable field to No for a transaction control record. You cannot mark a task as nonbillable, and then mark expenditure items as billable through transaction controls.
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Examples of Using Transaction Controls

Following are some examples of what you can do with transaction controls. You can study the example configurations to help you better understand how to use transaction controls in different business scenarios. The examples show you how you can use: A combination of employee, expenditure category, expenditure type, and nonlabor resource in your transaction controls A combination of project and task level transaction controls Transaction controls to control both billability and chargeability Note: You control capitalizability just as you control billability.
CASE 1: Limited employees charge limited expenses

In this example, only two employees can charge a project, and they can charge only labor and expenses, not including entertainment expenses. Scenario Project SF100 begins on September 1, 1999. The only people working on the project are Donald Gray and Amy Marlin; therefore, they are the only employees who can charge to the project. They can charge only labor and inhouse recoverables; however, computer expenses are not allowed. All charges are billable and reimbursable by the client. Setup You create Project SF100 and create all tasks as billable. You enter the projectlevel transaction controls shown in the following table in the options window of the Projects, Templates window. Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column
Expenditure Category Labor Labor InHouse Recoverables Expenditure Type NonLabor Resource Effective From 01SEP99 01SEP99 01SEP99 Effective To
Employee Marlin Gray Marlin
Chargeable X X X
Billable Task Level Task Level Task Level
Table 2 4 Transaction Controls Setup for Project SF100 (Page 1 of 2)
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Expenditure Category InHouse Recoverables
Expenditure Type
NonLabor Resource
Employee Gray
Chargeable X
Billable Task Level Task Level
Effective From 01SEP99 01SEP99
Effective To
InHouse Computer Recoverables Services

Logic When the transaction controls have the Limit to Transaction Controls flag set: a transaction only needs to match the listed expenditure combination on a given line OR match the listed employee, AND the transaction must not qualify under a NonChargeable condition. Resulting Transactions Any expenditure that has Amy Marlin or Donald Gray in the employee field may be charged to the project except Computer Services. Any expenditure with the expenditure category Labor or InHouse Recoverables may be charged against the project unless the InHouse Recoverable is Computer Service, in which case it is rejected. All charges are billable as defined by the billable field. Supplier invoices, expense report charges, and other costs are not allowed.
CASE 2: Different expenditures charged during different phases of a project

In Case 2, different types of expenditures should be charged to the project at different phases in the project. Scenario You have negotiated Project SF200. The project charges will include supplier invoices for material, labor, and employee travel expenses. You know that supplier invoices are charged throughout the life of the project; you know that supplier invoices will be charged before the
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work even begins since you have ordered materials that you must have before you can start the project work. The project work is scheduled to last two months; employees submit timecards each week, but are allowed a two week lag to submit their expense reports. The project is scheduled to begin on September 1, 1995. The project work, which is dependent on receiving materials purchased, is scheduled for October 1 to December 31, 1995. Expense reports can be charged until January 15, 1996, two weeks after the project ends. Setup You create Project SF200 with a duration from 01SEP95 to 15JAN 96. You create the transaction controls shown in the following table. Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column.
Expenditure Category Material Labor Labor Travel
Expenditure Type
NonLabor Resource
Employee Chargeable X X
Billable Task Level Task Level No Task Level
Effective From 01SEP95 01OCT95 01OCT95 01OCT95
Effective To
31DEC95 31DEC95 15JAN96
Administrative
X X
Resulting Transactions Supplier invoices for materials can be charged to the project from 01SEP95 to the end of the project. Labor can be charged to the project from 01OCT95 to 31DEC95. Any labor charged outside those dates is not allowed. All labor, except Administrative, is billable based on the billable field; Administrative labor is nonbillable based on the transaction control billable field. Travel expenses can be charged to the project from 01OCT95 to 15JAN96. Any expenses charged outside those dates are not allowed.
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CASE 3: Some tasks, but not all, are only chargeable for labor expenditures
Only labor can be charged to the project. There are exceptions to this rule for specific tasks, which are configured using task transaction controls. Scenario Project SF300 has been negotiated to perform an environmental study for the proposed site of a new housing development. You organize the project so that you can easily manage its status and control the charges using the project work breakdown structure shown in the following table. All tasks except Task 1 are defined as billable.
Task Number Task Name
Task 1 Task 2 Task 3 Task 3.1 Task 3.2 Task 4
Administration Purchases Analysis Onsite Analysis Inhouse Analysis Writeup
Table 2 6 Work Breakdown Structure for Project SF300 (Page 1 of 1)
Most of the charges on the project are labor. All labor is billable, except for Administrative labor. Some tasks involve charges other than labor. All administration for the project, which includes only labor and computer usage, is charged to task 1. Donald Gray, the project manager, and Sharon Jones, his assistant, are the only people handling the administration of the project. You know that you must make a few purchases to perform the analysis for the project; you will monitor the charges for the supplier invoices in task 2. You have reserved Field Equipment and a van for the onsite analysis (Task 3.1), but know that your client will not reimburse vehicle charges on this project. You have arranged for Susan Marshall from the East Coast office to fly in for a week to help with the in-house analysis since she has done this type of analysis before. She will charge her
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expenses to the same task, but your client will not be invoiced for those expenses. No other expenses are allowed on that task. In summary, the controls you want to define for your project are shown in the following table:
Project/Task Project Task 1 Administration Task Name Transaction Controls only labor allowed Administrative labor is nonbillable only labor and computer allowed only Gray and Jones can charge all charges nonbillable only supplier invoices allowed
Task 2 Task 3 Task 3.1
Purchases Analysis Onsite Analysis
labor, equipment, and van charges allowed van charges are nonbillable labor allowed no expenses allowed, except for expenses from Susan Marshall; her expenses are nonbillable only labor allowed Administrative labor is nonbillable
Task 3.2
In-house Analysis
Task 4
Writeup
Table 2 7 Transaction Control Requirements for Project SF300 (Page 1 of 1)
Setup: Project Level You create Project SF300 with your work breakdown structure. You enter the transaction controls shown in the following table at the project level. Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column.
Expenditure Category Labor Labor Administrative Expenditure Type NonLabor Resource Effective From 01SEP95 01SEP95 Effective To
Employee
Chargeable X X
Billable Task Level No
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Setup: Task 1 You enter the transaction controls shown in the following table for Task 1 (task is nonbillable). Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column.
Expenditure Category Labor InHouse Recoverables Computer Gray Jones
Table 2 9 Transaction Controls Setup for Task 1 (Page 1 of 1)
Expenditure Type
NonLabor Resource
Employee
Chargeable X X X X
Billable Task Level Task Level Task Level Task Level
Effective From 01SEP95 01SEP95 01SEP95 01SEP95
Effective To
Resulting Transactions: Task 1 Donald Gray and Sharon Jones can charge to all expenditure categories and types for this task. All other employees can only charge to Labor and to InHouse Recoverables / Computer for this task. The project transaction controls are not evaluated for charges to this task, because the Limit to Transaction Controls is selected. Setup: Task 2 You enter the transaction controls shown in the following table for Task 2. Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column.
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Expenditure Category Material Outside Services Other Expenses
Expenditure Type
NonLabor Resource
Employee
Chargeable X X
Billable Task Level Task Level Task Level
Effective From 01SEP95 01SEP95 01SEP95
Effective To
Other Invoice
Table 2 10 Transaction Controls Setup for Task 2 (Page 1 of 1)
Resulting Transactions: Task 2 Only supplier invoice expenditures can be charged to this task. The charges are billable as defined by the billable field. All other types of charges are not allowed. The project transaction controls are not evaluated for charges to this task, because the Limit to Transaction Controls is selected. Setup: Task 3.1 You enter the transaction controls shown in the following table for Task 3.1 (task is billable). Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column.
Expenditure Category InHouse Recoverables InHouse Recoverables Labor
Table 2 11 Transaction Controls Setup for Task 3.1 (Page 1 of 1)
Expenditure Type Field Equipment Vehicle
NonLabor Resource
Employee
Chargeable X
Billable Task Level No Task Level
Effective From 01SEP95 01SEP95 01SEP95
Effective To
Van
X X
Resulting Transactions: Task 3.1 The only type of inhouse recoverable expenditures allowed are Field Equipment and Vehicle. The only type of Vehicle charge allowed is the
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use of a van. The Van charges are nonbillable as defined by the transaction control. All labor can also be charged to this task. Expense report charges, supplier invoices, inhouse recoverables other than Field Equipment and Vehicle usage of a Van, and other costs (such as Miscellaneous Transactions, Inventory, Work in Process, and Burden Transactions) cannot be charged to this task, as defined by the task transaction controls using Limit to Transaction Controls selected. Setup: Task 3.2 You enter the transaction controls shown in the following table for Task 3.2 (task is billable). Transaction controls that have the Limit to Transaction Controls flag set are those with the letter X in the Chargeable column.
Expenditure Category Travel Travel Marshall X Expenditure Type NonLabor Resource Effective From 01SEP95 01SEP95 Effective To
Employee
Chargeable
Billable Task Level No
Table 2 12 Transaction Controls Setup for Task 3.2 (Page 1 of 1)
Resulting Transactions: Task 3.2 Susan Marshall can charge travel expenses, which are nonbillable as defined by the task transaction controls. No other employee can charge travel expenses to this task. All labor can also be charged to this task. Because this tasks Limit to Transaction Controls is set to No and no applicable transaction control was found at the task level for the following types of charges, the charges are evaluated based on the project transaction controls; these type of charges include: labor, supplier invoices, and inhouse recoverables. Supplier invoices, inhouse recoverables, and other costs are not allowed since they are not listed in the project level transaction controls. Setup: Task 4 You do not enter transaction controls for this task.
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Resulting Transactions: Task 4 All labor can be charged to this task. All other charges are not allowed based on the project transaction controls. All charges are evaluated based on the project transaction controls, because no transaction controls are entered for the task.
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Viewing Expenditures
This section describes use of the Expenditure Items and View Expenditure Accounting windows to review project expenditures.
Viewing Expenditure Items
Use the Expenditure Items window to review a projects expenditure items. You can see the amount and type of expenditure items charged to a project, the date an expenditure item occurred, accrued revenue, and other information. You can also drill down to Oracle Payables to view the Invoice Overview form, or to Oracle General Ledger to view Taccounts.
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To view expenditure items (perform an expenditure inquiry): 1. Navigate to the Find Project Expenditure Items or Find Expenditure Items window. Your ability to navigate to either window (by selecting Project or All) depends on your user responsibility. If you select Project, you
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can view expenditure items for a single project. If your system uses project security, you can select only projects that you are allowed to see. If you select All, you can view expenditure items across projects, and can structure your query to retrieve information across projects. No project security is enforced. 2. 3. In the Find Expenditure Items window, enter your search criteria. See: Expenditure Items Windows Reference: page 2 49. Choose Find if you want to execute the search, or choose Mass Adjust if you want to process mass adjustment of expenditures. See: Mass Adjustment of Expenditures: page 2 62. From the Expenditure Items window, choose: Run Request to create Project Streamline Requests to process adjustments. You can select multiple processes to run for your project. The requests will run in the correct order. See: Adjusting Expenditure Items: page 2 60. Totals to view the totals for the expenditure items returned based on your search criteria. Note: This window does not display events. If your project uses eventbased or costtocost revenue accrual or invoice generation, use the Events window to view the total project revenue and bill amounts. Item Details to select a window for reviewing the details of this expenditure item. The Inquiry Options window will be displayed, from which you can choose one of the following options: Choose Cost Distribution Lines to view individual transactions and the debit and credit GL accounts charged for raw and burdened costs for each expenditure item. You can also view other information about the cost lines, such as PA and GL period and interface status and the rejection reason if transactions could not be interfaced. Choose Revenue Distribution Lines to view the revenue transactions generated for a specific expenditure item. The GL account credited for the revenue is displayed. You can also see the GL and PA posting period for the revenue and the interface status. The rejection reason will be displayed for any transactions that are rejected during the interface to GL. Choose AP Invoice to drill down to the Invoice Overview form in Oracle Payables. (This option is only enabled for
4.
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expenditure items whose expenditure type class is either Supplier Invoices or Expense Reports.) Note: You can also view rejection reasons for transactions rejected during the costing or revenue generation processes from the Expenditure Items window. From the Folder menu, choose Show Field and select either Cost Distr. Rejection or Revenue Distr. Rejection.
See Also
Viewing Accounting Lines
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You can see how a transaction will affect the account balances in your general ledger by viewing the detail accounting lines for the transaction as balanced accounting entries (debits equal credits) or Taccounts.
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To view accounting lines: 1. 2. Query the expenditure transaction you want to view. From the Expenditure Items window, choose View Accounting from the Tools menu. You see the View Expenditure Accounting window. Note: The View Expenditure Accounting window is a folder form that you can customize to display additional columns. See: Customizing the Presentation of Data in a Folder, Oracle Applications Users Guide. 3. (Optional) To view the accounting detail for the selected line as Taccounts, choose TAccounts. In the Options window that opens, select from the Default Window poplist, and then choose from the window buttons to drill down in General Ledger. See: TAccounts, Oracle General Ledger User Guide
Drilling Down to Oracle Projects from Oracle General Ledger

From General Ledger, you can drill down to subledger details from the Account Inquiry, Enter Journals, or View Journals windows for journals that have specific journal sources assigned to them. For example, if a journal source is Projects, you can drill down to the transaction details in Oracle Projects. Depending on the nature of the originating Projects transaction, drilling down from General Ledger will open the Project Expenditure Accounting or Project Revenue Accounting window. From the Project Expenditure Accounting or Project Revenue Accounting window, you can drill down even further to view detail transactions or you can choose to view the underlying transaction accounting.
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To drill down to detail transactions or to view transaction accounting: 1. 2. From the Project Expenditure Accounting or Project Revenue Accounting window, select a detail accounting line. Choose the Show Transaction button to view detail transactions.
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3.
Choose the Show Transaction Accounting button to view the transaction accounting.
Expenditure Items Windows Reference

This section describes the expenditure items windows.
Find Expenditure Items Window

Use the Find Expenditure Items window to enter search criteria for expenditures and expenditure items. Set of Books Currency: The reporting set of books currency in which you want to view the expenditure items. In the windows that display expenditure items and their details, you can toggle between the primary set of books currency and the reporting set of books currency you select here. Note: You can select an alternate set of books currency only if Multiple Reporting Currencies (MRC) is enabled. See: Multiple Reporting Currencies, Oracle Projects Fundamentals. Item Dates: The date of the expenditure items you want to find. You can enter a date range, or either a start or end date. Exp Ending Dates: The expenditure ending dates of the items you want to find. You can enter a date range, or either a start or end date. Billing Status: You can choose from the following status types: Billable Billing Hold Choose Yes to view only billable expenditure items. Choose Yes to view expenditure items that are on hold indefinitely. Choose No to view items that are not on hold. Choose Both to view items that are on both onetime hold, and on hold indefinitely. Choose Once to view expenditure items that are on onetime hold from this projects next invoice. Choose Yes to view expenditure items that have ever appeared on an invoice, regardless of invoice status. When you choose this option, Oracle Projects retrieves expenditure items on a project invoices that have a status of Unapproved, Approved, Released, and Accepted.
Billed
CIP/RWIP Status: You can choose from the following status types:
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Capitalizable Choose Yes to view only capitalizable expenditure items. Grouped CIP Choose Yes to view expenditure items that have been grouped into CIP asset lines. Grouped RWIP Expensed Choose Yes to view expenditure items for tasks that are set up for retirement cost processing. Choose Yes to view only expensed expenditure items.
Processing Status: You can choose from the following status types: Costed Revenue Distributed Choose Yes to view only costed expenditure items. Choose Yes to view only revenue distributed expenditure items, or choose Partial to view expenditure items that have partially distributed revenue due to a hard limit on the agreement.
Expenditure Batch: Choose an expenditure batch name if you want to find expenditure items grouped and entered by batch. Transaction Source: The source of the imported expenditure items you want to find. Examples of transaction sources include faxed timecards and PBX. You can choose from a valid list of values. Exclude Net Zero Items: Choose this check box if you want to exclude net zero expenditure items from the items you query. Net zero items consist of an original item and a reversing item for the entire amount of the original item. Together, these two items net to zero.
Expenditure Items Window

The Expenditure Items window displays detailed information about each expenditure item. Currency Fields This window is a folder form, which allows you to set up a folder that contains the fields you need to view. For example, some of the currency fields are not visible in the default folder. Currency fields are listed in the following table:
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Currency Field
Description
Bill Amount Accrued Revenue Project Burdened Cost Transaction Currency Transaction Raw Cost Transaction Burdened Cost Functional Currency Functional Rate Type Functional Exchange Rate Functional Raw Cost Functional Burdened Cost Project Currency Project Rate Type Project Rate Date Project Exchange Rate Project Raw Cost Receipt Currency Receipt Amount Receipt Exchange Rate
The bill amount in the project currency The accrued revenue in the project currency The burdened cost in the project currency The transaction currency code The raw cost in the transaction currency The burdened cost in the transaction currency The functional currency code The rate type used to determine the functional currency exchange rate The functional currency exchange rate The raw cost in the functional currency The burdened cost in the functional currency The project currency code The rate type used to determine the project currency exchange rate The date used to determine the project currency exchange rate The project currency exchange rate The raw cost in the project currency The receipt currency code The expenditure amount in the receipt currency The receipt currency exchange rate
Table 2 13 Currency Fields in Expenditure Items Window (Page 1 of 1)
Multiple Reporting Currency Fields If you have selected a reporting set of books currency in the Find Expenditures window, then reporting currency amounts and information can also be selected for viewing in the Expenditure Items window. The reporting currency information is shown in the following table:
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Type of MRC Information
Available Fields
MRC Conversion Information MRC Transfer Price Information MRC Cost Information MRC Revenue Conversion Information MRC Revenue Information
Currency Code, Rate Date, Rate Type, Exchange Rate Rate Type, Rate Date, Exchange Rate, Transfer Price Raw Cost Rate, Burdened Cost Rate, Raw Cost, Burdened Cost Conversion Date, Exchange Rate, Rate Type Raw Revenue, Accrued Revenue, Adjusted Revenue, Bill Amount, Forecast Revenue Bill Rate, Accrual Rate, Adjusted Rate Rate Type, Rate Date, Exchange Rate
MRC Project Functional Currency: Invoice Conversion Information MRC Project Functional Currency: Forecast Conversion Information
Rate Type, Rate Date, Exchange Rate
Table 2 14 MRC Fields in Expenditure Items Window (Page 1 of 1)
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Adjusting Expenditures
Oracle Projects provides powerful features that allow you to: adjust expenditure items on your projects interface the adjustments to other Oracle applications report the audit trail of the adjustments You can make adjustments to expenditure items after the items have been costed, revenue distributed, and invoiced. Oracle Projects automatically processes the adjusted items and interfaces the adjusting accounting transactions to other Oracle Applications. The project status of a project can restrict your ability to enter adjustments to project transactions. See : Project Statuses, Oracle Projects Implementation Guide.
Audit Reporting for Expenditure Adjustments

Oracle Projects provides an audit trail of all adjustments performed on an expenditure item. The audit trail records the following information about the adjustment: The name of the user who performed the adjustment The type of adjustment action performed The date and time that the adjustment was performed The window from which the adjustment action was performed Oracle Projects also records the audit trail to the original item for transfers, splits, and corrections to approved items. With this audit trail, you can identify where an item was transferred or where an item was transferred from. You can review the expenditure adjustment audit information for a project in the AUD:Project Expenditure Adjustment Activity report. You can review the transfer activity for a project using the MGT: Transfer Activity report.
See Also
Project Expenditure Adjustment Activity, Oracle Projects Fundamentals
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Transfer Activity Report, Oracle Projects Fundamentals
Types of Expenditure Item Adjustments

This section describes the types of adjustments you can make to expenditure items. Whether you can adjust expenditure items depends on: The project status of the project charged. The transaction source (if the expenditure item was imported via Transaction Import). Except where noted, you can also adjust project invoice lines. See: Adjusting Project Invoices, Oracle Project Billing User Guide.
See Also
Restrictions for Adjusting Converted Items: page 2 59 Project Statuses, Oracle Projects Implementation Guide Transaction Sources, Oracle Projects Implementation Guide
Correct Approved Expenditure Items

You can correct the following attributes of an approved expenditure item using the PreApproved Expenditure Entry windows. date expenditure type project task amount You make the corrections by reversing the original item and then creating a new item using the correct information. You cannot correct these items using the Expenditure Items window. You can also change the project and task assignment of an expenditure item by selecting the Transfer adjustment action.
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You cannot correct the amount, date, expenditure type, or supplier of supplier invoice items in Oracle Projects. You must correct these attributes of supplier invoice item in Oracle Payables. You must correct expenditure items imported from Oracle Inventory or Oracle Manufacturing in their respective systems. You cannot reverse or correct expenditure items from these applications in Oracle Projects.
Change Billable Status

Use the adjustment actions Billable to NonBillable and NonBillable to Billable to change the billable status of an expenditure item. A billable item accrues workbased revenue and can be invoiced. A nonbillable item does not accrue workbased revenue and is not invoiced. You may want to check the setup of the billable status of your project to reduce the number of items you need to adjust for billable classification. You can define tasks as billable or nonbillable. You can further specify which items are nonbillable using transaction controls. See: Controlling Expenditures: page 2 29.
Change Capitalizable Status

Use the adjustment actions Capitalizable to NonCapitalizable and NonCapitalizable to Capitalizable to change the capitalizable status of an expenditure item. A capitalizable item can be grouped into an asset line you send to Oracle Assets. A noncapitalizable item cannot become an asset cost in Oracle Assets. You can define tasks as capitalizable or noncapitalizable; you can further specify which items are noncapitalizable using transaction controls. See: Controlling Expenditures: page 2 29.
Set and Release Billing Hold

You can place an expenditure item on billing hold. An item on billing hold is not included on an invoice until you release the billing hold on the item.
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OneTime Hold You can place an expenditure item on onetime billing hold. An item on onetime billing hold is not billed on the current invoice but is eligible for billing on the next invoice. The onetime billing hold is released when you release the current invoice. Release Hold If you have placed an expenditure item on billing hold, you use the release hold to take it off hold so the item can be billed.
Recalculate Burden Cost

You can recalculate the burden cost of an expenditure item if you find that the burdened cost amount is incorrect. To produce correct recalculation results, you must correct the source of the problem before redistributing the items. Notes When you select Recalculate Burden Cost for a burden transaction, no recalculation of the burden amount takes place. You can recalculate the burden cost of an invoice line.
Recalculate Raw Cost

You can recalculate the raw cost of an expenditure item if you find that the raw cost amount is incorrect. To produce correct recalculation results, you must correct the source of the problem before redistributing the item. Notes You cannot recalculate raw cost on expenditure items that were imported through Transaction Import as costed items. You cannot recalculate the raw cost of an invoice line.
Recalculate Revenue
You can recalculate revenue if you find that: The revenue or bill amount is incorrect due to incorrect bill rate or markup
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AutoAccounting is incorrect You must correct the source of the problem before redistributing the items.
Recalculate Cost and Revenue

You can recalculate cost and revenue if you find that: The raw cost rate is incorrect The burden cost multiplier is incorrect AutoAccounting is incorrect You must correct the source of the problem before redistributing the items. If you recalculate cost, the revenue is automatically adjusted to ensure that revenue that is based on the cost (with markup or labor multipliers) is correct.
Change Work Type

You can change the work type of an item. You can use this adjustment to reclassify an item for reporting and billing purposes.
Change Comment
You can edit the expenditure comment of an item. You can use this adjustment to make the expenditure comment clearer if you are including the comment on an invoice backup report.
Split Item
You can split an item into two items so that you can process the two resulting split items differently. The resulting split items are charged to the same project and task as the original item. For example, you may have an item for 10 hours, of which you want 6 hours to be billable and 4 hours to be nonbillable. You would split the item of 10 hours into two items of 6 hours and 4 hours, marking the 6 hours as billable and 4 hours as nonbillable.
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Transfer Item
You can transfer an item from one project and task to another project and task. Oracle Projects provides security as to which employees can transfer items between projects. Crossproject users can transfer to all projects. Key members can transfer to projects to which they are assigned. See: Security in Oracle Projects, Oracle Projects Fundamentals. Oracle Projects performs a standard validation on all transferred items. For a description of the standard validation process and resulting rejection reasons, see: Expenditure Item Validation: page 2 3. Oracle Projects also ensures that you only transfer items which pass the charge controls of the project and task to which you are transferring. If the items you are transferring do not pass the new project and tasks charge controls, then you cannot transfer the item. See: Controlling Expenditures: page 2 29.
Change Currency Attributes

You can change the functional or project currency attributes of multicurrency transactions. When you select Change Functional Currency Attributes or Change Project Currency Attributes from the Reports menu, a window is displayed where you can enter changes in the following fields: Rate Type Rate Date Exchange Rate The windows display the project or functional currency, depending on which currency you have selected, as well as the transaction currency. The same conditions apply to changes in currency attributes that apply during transaction entry. See: Entering Currency Fields: page 2 19. You can also change currency attributes for an expenditure using the Mass Adjustments feature. When you select Change Functional Currency Attributes or Change Project Currency Attributes under Mass Adjustments, most of the validations are performed by the costing program. See: Mass Adjustment of Expenditures: page 2 62. Note: If the project currency and the functional currency for an expenditure item are the same, only the Function Currency Attributes option is displayed on the Reports menu. Any
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changes you make to the functional currency attribute are copied to the project currency attributes.
Restrictions for Adjusting Converted Items

You can mark expenditure items as converted when you load expenditure items from another system into Oracle Projects during conversion. To do this, you set the CONVERTED_FLAG to Y (for Yes) in the PA_EXPENDITURE_ITEMS_ALL table. Some adjustment actions are not permitted for converted items. The following table shows which adjustment actions are and are not allowed for converted items.
Adjustment Action Correct Approved Expenditure Item Allow Billing Billable to NonBillable NonBillable to Billable Capitalizable to NonCapitalizable NonCapitalizable to Capitalizable Billing Hold OneTime Hold Release Hold Recalculate Burden Cost Recalculate Raw Cost Recalculate Revenue Recalculate Cost/Revenue Change Comment Split Transfer Work Type Allowed for Converted Items YES YES NO NO NO NO YES YES YES NO NO NO NO YES NO NO NO
Table 2 15 Allowable Adjustments for Converted Items (Page 1 of 1)
If an item is marked as converted, Oracle Projects assumes that the item does not have all the data required to support the recalculation of cost, revenue, and invoice. Therefore, you cannot perform the adjustment actions that may result in the recalculation of cost, revenue, or invoices for converted items.
Expenditures
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Note: Marking items as converted has a similar effect to enabling the transaction source attribute that disallows adjustments on imported transactions originating from that source.
Adjusting Expenditure Items

Use the Expenditure Items window to adjust project expenditure items.
"
To adjust expenditure items: 1. 2. 3. Navigate to the Find Project Expenditure Items or Find Expenditure Items window. See: Viewing Expenditure Items: page 2 45. Find the expenditure items you want to adjust. In the Expenditure Items window, choose the items you want to adjust. See: Selecting Multiple Records, Oracle Applications Users Guide. You can also use the Mass Adjust feature to adjust items. See: Mass Adjustment of Expenditures: page 2 62. Choose an option from the Tools menu or the Reports menu to specify how you want to adjust the expenditure items. The following table shows the adjustment options for each menu.
4.
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Menu
Selection
Tools
Billable Billing Hold Capitalizable Change Comment NonBillable NonCapitalizable OneTime Hold Recalculate Burden Cost Recalculate Cost/Revenue Recalculate Raw Cost Recalculate Revenue Release Hold Split Transfer Change Functional Currency Attributes Change Project Currency Attributes Change Transfer Price Currency Attributes Mark for no Cross Charge Processing Reprocess Cross Charge
Reports
Table 2 16 Tools and Reports Menus: Adjustment Options (Page 1 of 1)
For a description of adjustment options, see: Types of Expenditure Item Adjustments: page 2 54. 5. Choose Run Request to select the Project Streamline Request process for the adjustment. See: Processing Adjustments: page 2 71.
See Also
Transferring Expenditure Items: page 2 62 Splitting Expenditure Items: page 2 63 Adjustments to MultiCurrency Transactions: page 2 65 Adjustments to Burden Transactions: page 2 66 Adjustments to Related Transactions: page 2 66
Expenditures
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Marking Items for Adjustment: page 2 69 Results of Adjustment Processing: page 2 72
Mass Adjustment of Expenditures

Use the Find Expenditure Items window to process mass adjustment of expenditures. You can optionally use the multiselect functionality in the Expenditure Items window to perform adjustments on more than one expenditure. However, the mass adjustment feature provides improved performance when you adjust a large number of expenditures.
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To perform mass adjustment of expenditures: 1. 2. Navigate to the Find Project Expenditure Items or Expenditure Items window. See: Viewing Expenditure Items: page 2 45. Enter your search criteria. For example, if you want to make an identical adjustment to all billable expenditures by a specific employee, enter the Employee Name field and select Yes for Billable under the Billing Status fields. Choose Mass Adjust. From the Mass Adjust poplist, select the adjustment you want to perform on the selected expenditures. When the adjustment process is complete, view the message indicating the results of the process.
3. 4.
Transferring Expenditure Items

You can transfer an expenditure item from its current project or lowest task assignment to another project or lowest task. Run the Transfer Activity report to view the activity of expenditure items that you transfer.
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To transfer expenditure items: 1. 2. Navigate to the Find Project Expenditure Items or Find Expenditure Items window. See: Viewing Expenditure Items: page 2 45. Find the expenditure items you want to transfer.
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3.
In the Expenditure Items window, choose the items you want to transfer. See: Selecting Multiple Records, Oracle Applications Users Guide. You can also use the Mass Adjust feature to adjust items. See: Mass Adjustment of Expenditures: page 2 62. Choose Transfer from the Tools menu. In the Transfer Items to Project/Task window, enter the Project Number and Task Number to which you want to transfer the expenditure items. Choose OK to mark the expenditure items for transfer. Enter Yes if you want to requery your expenditure items so you can see the new expenditure items created from the transfer. Select the Search Criteria to use to requery the records. Process the adjustments. See: Processing Adjustments: page 2 71.
4. 5.
6. 7.
8.
See Also
New Expenditure Items Resulting from Transfer and Split: page 2 70
Splitting Expenditure Items

You can split an expenditure item to change its billing, capitalizable, and hold status for a portion of the original items quantity. When you split an expenditure item, you create a reversing entry for the original expenditure item, and create two new expenditure items for that expenditure, totalling the same quantity as the original item. Note: You cannot split an original expenditure item that has already been split or transferred. You can, however, split or transfer the new expenditure items created from a split or transfer.
"
To split expenditure items: 1. 2. Navigate to the Find Project Expenditure Items or Find Expenditure Items window. See: Viewing Expenditure Items: page 2 45. Find the expenditure items you want to split.
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3.
In the Expenditure Items window, choose the items you want to split. See: Selecting Multiple Records, Oracle Applications Users Guide. Choose Split from the Tools menu. In the Split Expenditure Item window, enter the Split Quantity/Raw Cost/Burdened Cost that you want to allocate to the first item from the expenditure item you are splitting. The system prompts you to enter a quantity, raw cost, or burdened cost based on what amounts are assigned to the original expenditure item, as shown in the following table:
4. 5.
If the quantity is ...

nonzero zero zero
and the raw cost is ...

nonzero nonzero zero
then the amount split is ...

the quantity the raw cost the burdened cost
Table 2 17 Determining the Amount to Split (Page 1 of 1)
Expenditure items with a zero quantity and a nonzero raw cost include costed transactions imported via Transaction Import. Expenditure items with both quantity and raw cost equal to zero include burden transactions imported via Transaction Import. The system calculates the difference between the quantity or cost of the original expenditure item and the quantity or cost you enter for the first item, and displays the remaining amount as the quantity or cost of the second item. 6. 7. Choose OK to mark the expenditure item to be split. Enter Yes if you want to requery your expenditure items to see the new expenditure items created from the transfer. Select the Search Criteria to use to requery the records. Process the adjustments. See: Processing Adjustments: page 2 71.
8.
See Also
New Expenditure Items Resulting from Transfer and Split: page 2 70
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Adjustments to MultiCurrency Transactions

When multicurrency transactions are adjusted, the system must determine currency attributes for the transactions that result. If the original item is not an imported, accounted item, the following rules apply: The original expenditure item is reversed, with all the same amounts and currency attributes as the original item. The new expenditure items are created and treated as new transactions, following the standard default logic for currency attributes.
Reversals and Splits

For reversals and splits, the reversing and new items have the same currency attributes as the original transaction.
Transfers
For a transfer, the reversing item has the same currency attributes as the original transaction. For the new item, the cost distribution program uses the conversion rules for a new transaction, taking the default currency attributes from the destination project. See: Converting Multiple Currencies, Oracle Projects Fundamentals.
Adjustments to Accounted Imported Transactions

Imported, accounted transactions can be adjusted in Oracle Projects only if ALLOW_ADJUSTMENTS_FLAG is set to Y for the transaction source. For imported multicurrency transactions that have been posted to GL by the feeder system, adjustments are processed as shown below: Note: For these adjustments, both the reversing transactions and their cost distribution lines are created online. Recalculation Adjustments The cost distributed flag for the item is set to N, and the transaction is treated as costed and burdened. The cost distribution program recalculates project currency amounts. All other amounts are copied from the original transaction.
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The cost distribution program creates a reversing cost distribution line and a new cost distribution line. Both lines will be interfaced to GL (their transfer status is set to P (Pending)). Transfers and Splits Reversing items are created with the attributes of the original item. Transfers: For the new item, all amounts and attributes are copied from the original item, except for the project currency amounts. For the project currency amounts, the cost distribution program uses the conversion rules for a new transaction, taking the default currency attributes from the destination project. See: Converting Multiple Currencies, Oracle Projects Fundamentals. Splits: For new items, all currency amounts are prorated based on the split ratio. Both reversing and new items create cost distribution lines that will be interfaced to GL (their transfer status is set to P (Pending)).
Adjustments to Burden Transactions

You can perform adjustments on burden transactions that are not systemgenerated. You can perform billing adjustments on burden transaction expenditure items that are created by the Create and Distribute Burden Transactions process. For example, the items can be placed on billing hold. To make any other type of adjustment on a systemgenerated burden transaction, you must adjust the source expenditure item related to these burden transactions. You can adjust a burden transaction that is imported via Transaction Import only if ALLOW_ADJUSTMENTS_FLAG is set to Y for the transaction source. For the predefined transaction sources Inventory, Inventory Miscellaneous, and Work In Process, ALLOW_ADJUSTMENTS_FLAG is set to N.
Adjustments to Related Transactions

Whenever an adjustment is performed on a source transaction that requires the item to be backed out (transfer, split, manual reversal
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through the PreApproved Expenditure form), Oracle Projects creates reversals for the related transactions of the source transaction. Oracle Projects creates related items via labor transaction extensions. See: Labor Transaction Extensions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. You cannot independently process related transactions from the source transactions. However, there are adjustment actions for which related transactions are processed with the source transaction.
Transfer
You can transfer only the source transaction. When you transfer the source transaction, Oracle Projects reverses the source transaction and the related transactions, and creates only the new source transaction in the destination project. Oracle Projects does not create related transactions in the destination project because the related transactions may not be appropriate under the conditions of the project. You can create new related transactions using the labor transaction extension when the transferred source transaction is costdistributed.
Split
You can split only the source transaction. When you split the source transaction, Oracle Projects reverses the source transaction and the related transactions, and creates the two new source transactions. Oracle Projects does not create related transactions in the destination project because the related transactions may not be appropriate under the conditions of the project. You can create new related transactions using the labor transaction extension when the new source transactions are costdistributed.
Recalculate Cost/Revenue
You can mark only the source transaction for cost or revenue recalculation. However, when you mark the source transaction, Oracle Projects automatically marks the related transactions of the source transaction for recalculation.
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Change Billable Status

You can change the billable status on both the source transaction and the related transactions independently. However, a reclassification on a source transaction only will not automatically result in the reclassification of related transactions since these related transactions may have been created with a billable status independent of the source transaction. For example, you may create the source transaction as billable and the related transaction as nonbillable.
Bill Hold/Release
You can perform bill holds and releases on both source transactions and related transactions independently. However, an action performed on a source transaction will not automatically result in the same action on the related transactions. For example, since the transactions are treated independently, a bill hold on a source transaction will not automatically place a bill hold on any related transactions.
Comment Change
You can change the comment on both the source transaction and the related transactions independently.
Manual Reversal
You can reverse source transactions using the Expenditures form. When you reverse a source transaction, Oracle Projects automatically reverses the related transactions. If you delete the source transaction, Oracle Projects automatically deletes the related transactions.
Reversal Using Transaction Import

You can reverse source transactions using Transaction Import. When you reverse a source transaction, Oracle Projects automatically reverses the related transactions if the transaction being loaded is an adjustment and the unmatched negative flag is set to No.
Work Type
You can change the work type on both the source transaction and related transactions independently.
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Marking Items for Adjustments

When you select an adjustment action, the expenditure items are marked for adjustment processing. Most adjustment actions require additional processing to be completed. The following table shows how each adjustment action marks expenditure items for adjustment processing. The first eleven adjustment actions update the expenditure item with the values as noted below for subsequent adjustment processing. The Change Comment adjustment action updates the comment and does not require additional adjustment processing. The Split and Transfer adjustment actions create reversing and new items to be processed.
Cost Distributed No No No No Revenue Distributed No No Billable / Capitalizable No Yes No Yes Yes Once No No No No No No No New Items Created
Adjustment Action Billable to NonBillable NonBillable to Billable Capitalizable to NonCapitalizable NonCapitalizable to Capitalizable Billing Hold OneTime Hold Release Hold Recalculate Burden Cost Recalculate Raw Cost Recalculate Revenue Recalculate Cost/Revenue Change Comment Split Transfer Work Type
Bill Hold
Yes Yes See Note See Note See Note
Table 2 18 How Adjustment Actions Mark Expenditure Items for Adjustment Processing (Page 1 of 1)
Note: If a work type change results in a change in the billable status, then expenditure items are marked for adjustment processing as required.
Expenditures
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A billable reclassification requires an item to be recosted so that the billable and nonbillable costs are correctly maintained in the project summarization tables, and (optional) to change the assignment of the general ledger cost account. Also, if you change from billable to nonbillable, the assignment of the GL cost account in AutoAccounting may change. The same is true for a capitalizable reclassification.
New Expenditure Items Resulting from Transfer and Split

When you transfer or split an item, the original item is reversed and new items are created automatically by Oracle Projects. These items are similar to the items that you create manually when you correct an approved expenditure item. Transfer Example The following table shows an example of an original item (Item 1) and the new items (Items 2 and 3) resulting from the transfer of an item from project TM1 to project SF1, task 2.
Item Number 1 2 3 1 Item Reversed Expenditure Item Date 01JAN96 01JAN96 01JAN96 Expenditure Type Professional Professional Professional Project TM1 TM1 SF1 Task 1 1 2 Quantity Billable
10 Yes 10 Yes 10 Yes
Table 2 19 Items Resulting from Transfer (Page 1 of 1)
Note: The billable status of Item 3 is determined from the billable status of the project and task to which it is transferred. Split Example The following table shows an example of an original item (Item 1) and the new items (Items 2 through 4) resulting from the split of an item on the same project and task. The original item had 10 billable hours, which are split into 6 billable hours and 4 nonbillable hours. When you split an item, you specify the billable status and bill hold status of each of the two new items.
Item Number 1 2 1 Item Reversed Expenditure Item Date 01JAN96 01JAN96 Expenditure Type Professional Professional Project TM1 TM1 Task 1 1 Quantity Billable
10 Yes 10 Yes
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Item Number 3 4
Item Reversed
Expenditure Item Date 01JAN96 01JAN96
Expenditure Type Professional Professional
Project TM1 TM1
Task 1 1
Quantity
Billable
6 Yes 4 No
Table 2 20 Items Resulting from Split (Page 2 of 2)
Processing Adjustments
After you have performed the adjustment actions, you need to run the appropriate processes to process the adjustments. The following table shows which processes to run for each adjustment action.
Distribute Costs Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Generate Asset Lines Yes Generate Draft Revenue Yes Yes Yes Generate Draft Invoices Yes Yes Yes
Adjustment Action Correct Approved Expenditure Item Billable to NonBillable NonBillable to Billable Capitalizable to NonCapitalizable NonCapitalizable to Capitalizable Billing Hold OneTime Hold Release Hold Recalculate Burden Cost Recalculate Raw Cost Recalculate Revenue Recalculate Cost/Revenue Change Comment Split Transfer Work Type
Yes Yes See Note
Yes Yes See Note
Yes Yes See Note
Yes Yes
Table 2 21 Programs to Run to Process Adjustments (Page 1 of 1)
Note: If a work type change results in a change in the billable status, then you must run the appropriate processes to process this change.
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You can use the Submit Request window to run the appropriate the processes for your project only. You can also mark items for adjustment and allow the items to be processed automatically the next time you run the processes to distribute costs, generate asset lines, and generate draft revenue and invoices.
See Also
Submitting Requests, Oracle Projects Fundamentals
Results of Adjustment Processing

After you run the appropriate processes to recalculate the adjusted expenditure items, you can review the results of the adjustments.
Cost Adjustments
When an item marked for recosting is processed, a cost adjustment results if one or more of the following attributes is different from the original value: Raw cost amount Burden cost amount Account to which the cost is charged Billable/Capitalizable status of the item When the Distribute Costs program encounters an item requiring a cost adjustment, the program updates the expenditure item with the new raw and burden cost rates and amounts, and creates new cost distribution lines. The program creates a reversing cost distribution line and a new cost distribution line. These lines form the audit trail of cost adjustments. The following table shows an example of cost distribution lines for an expenditure item that was recosted due to a cost rate change in a subsequent month. Lines 2 and 3 are new lines resulting from the cost adjustment. Line 2 reverses the same amount and account as Line 1.
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Line 3 uses the new cost multiplier and account based on current AutoAccounting rules.
Line Number 1 2 3 1 Line Reversed Amount 100 100 200 Quantity 10 10 10
Billable
Yes Yes Yes
Account
04.401.4100 04.401.4100 04.401.4100
GL Date 31JAN94 28FEB94 28FEB94
Table 2 22 New Cost Distribution Lines from Cost Adjustments (Page 1 of 1)
You can review these distribution lines in the Cost Distribution Lines window. Corrections to Approved Items, Transfers, and Splits When processing a reversing item which resulted from a correction of an approved expenditure item, a transfer, or a split, the Distribute Costs program uses the same cost rate used by the original item to ensure that the cost nets to zero for the original and reversing item. The reversing item is charged to an account based on the current AutoAccounting rules. The new positive item resulting from a correction of an approved expenditure item, a transfer, or a split are processed just as a new expenditure item is processed; no special adjustment processing is performed on these items. Interfacing Adjustments to General Ledger and Payables The Interface process will send lines 2 and 3 (shown in the table above) to Oracle General Ledger or Oracle Payables to reflect the cost adjustment originating in Oracle Projects. The cost adjustment lines are posted to the earliest open or future GL period. See also: Date Processing in Oracle Projects, Oracle Projects Fundamentals. Note: Lines 2 and 3 are posted to a new GL period of February 1994 since the original GL period of January 1994 was closed when the cost adjustment occurred.
Revenue Adjustments
When an item marked for recalculation of revenue is processed, revenue adjustments are created.
Expenditures
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When the Generate Draft Revenue program encounters a item requiring a revenue adjustment, the program updates the expenditure item with the new revenue amount, and creates new revenue distribution lines. The program creates a reversing and new revenue distribution lines, which records the audit trail of revenue adjustments. The following table shows an example of revenue distribution lines for an expenditure item with a revenue adjustment caused by a change in a bill rate in a subsequent month. Lines 2 and 3 are new lines resulting from the revenue adjustment. Line 2 reverses the same amount and account as Line 1. Line 3 has the new revenue amount based on the new bill rate/markup and the account based on current AutoAccounting rules.
Line Number 1 2 3 1 Line Reversed Draft Revenue Number 1 2 3 Transfer Status Accepted Pending Pending
Amount
Account
100 04.401.3100 100 04.401.3100 200 04.401.3100
Table 2 23 New Revenue Distribution Lines Resulting from Revenue Adjustments (Page 1 of 1)
Each revenue distribution line is grouped into a draft revenue. A draft revenue may credit another draft revenue. Line 2 above is grouped into Draft Revenue 2, which credits Draft Revenue 1, in which Line 1 is grouped. Line 3 is included on a new draft revenue 3. You can review these distribution lines in the Revenue Distribution Lines window. You also can view the distribution lines in the Revenue Line Details window accessed from the Revenue Review window. Transfers, Splits, and Corrections to Approved Items When processing a reversing item which resulted from a correction of an approved expenditure item, a transfer, or a split, the Generate Draft Revenue program reverses the revenue of the original item to ensure that the revenue nets to zero for the original and reversing item. The reversing item is charged to a revenue account based on the original distribution line. The new positive item resulting from a correction of an approved expenditure item, a transfer, or a split are processed just as a new expenditure item is processed; no special adjustment processing is performed on these items.
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Interfacing Adjustments to Oracle General Ledger The Interface Revenue to General Ledger process will send lines 2 and 3 (shown in the previous table) to Oracle General Ledger to reflect the revenue adjustment originating in Oracle Projects. The revenue adjustment lines are posted to the earliest open or future GL period. See also: Date Processing in Oracle Projects, Oracle Projects Fundamentals. Note: Lines 2 and 3 are posted to a new GL period of February 1994 since the original GL period of January 1994 was closed when the revenue adjustment occurred.
Invoice Adjustments
If an items bill amount changes before it has been billed on a released invoice, the item is billed with the latest bill amount. If an items bill amount changes after it has been invoiced, a crediting invoice and new invoice are automatically created. The Generate Draft Invoice program compares the bill amount on the items revenue distribution lines to determine if the item needs to be adjusted. When program encounters a item requiring a invoice adjustment, it creates a crediting invoice and a new invoice. The following table shows an example of invoices created for the items shown in the table above. Assume the projects invoices only bill the one item and that the item was originally billed on Invoice 1 in January. Invoices 2 and 3 are new invoices resulting from the invoice adjustment.
Invoice Number 1 2 3
Invoice Credited
Amount 100
Transfer Status Accepted Pending Pending
100 200
Table 2 24 New Invoices Resulting from Invoice Adjustments (Page 1 of 1)
You can review these invoices in the Invoice Summary window in the Invoice Review window. Transfers, Splits, and Corrections to Approved Items When processing a reversing item which resulted from a correction of an approved expenditure item, a transfer, or a split, the Generate Draft
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Invoice program credits the invoice on which the original item was billed. The new positive item resulting from a correction of an approved expenditure item, a transfer, or a split are processed just as a new expenditure item is processed; no special adjustment processing is performed on these items. Interfacing Adjustments to Oracle Receivables The Interface Invoices to Receivables process will send invoices 2 and 3 (shown in the previous table) to Oracle Receivables. The invoices are posted to the open or future GL period in which the invoice date falls in Oracle Receivables. Note: Lines 2 and 3 are posted to a new GL period of February 1994 since the original GL period of January 1994 was closed when the invoice adjustment occurred. Refer to the following essay regarding how a credit memo is interfaced to Oracle Receivables, if the outstanding balance is less than the credit memo amount.
See Also
Integrating with Oracle Receivables, Oracle Project Billing User Guide
Adjustments to Supplier Invoices

You can perform a number of adjustments to supplier invoices in Oracle Projects and Oracle Payables. In Oracle Projects, you can perform the following adjustments on a supplier invoice: Transfer an item to another project or task Split an item Reclassify an items billable or capitalizable status In Oracle Payables, you can adjust the following items on a projectrelated supplier invoice: Invoice amount
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Supplier Expenditure type
Example of an Adjustment to a Supplier Invoice

In the example shown in the following table, Item 1 represents an original invoice for $100 that is entered in Oracle Payables. The invoice includes one invoice distribution line charged to project A that is interfaced to Oracle Projects. An Oracle Projects project manager transfers the item from project A to project B, resulting in a net zero difference accounting transaction. The adjusting transactions, Item 2 and Item 3, are interfaced to Oracle Payables and attached to the original invoice. Oracle Projects provides the amount, the accounts, and the GL date to which the transactions are to be posted.
Item
1 2 3
Project
A A B
Amount
100 100 100
Account
01.101.5200 01.101.5200 02.201.5200
Comment
Entered in AP Created in PA and interfaced to AP via the transfer process Adjusted in PA and interfaced to AP via the transfer process
Table 2 25 Example of Adjustment to a Supplier Invoice (Page 1 of 1)
Supplier Invoice Adjustments in Oracle Projects

"
To process supplier invoice adjustments from Oracle Projects to Oracle Payables: 1. 2. Perform the adjustment in Oracle Projects. Process the adjustment by running the PRC: Distribute Supplier Invoice Adjustment Costs process, or you can submit the streamline process Distribute and Interface Supplier Invoice Adjustments to Payables. If you run the streamline process, you can skip Step 3. Interface the supplier invoice adjustments to Oracle Payables using the PRC: Interface Supplier Invoice Adjustment Costs to Payables process. Note: All new invoice lines created from the adjustment are linked to the originating invoice in Oracle Payables. This allows you to reconcile all projectrelated supplier invoices in Oracle
3.
Expenditures
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Payables, and accurately account for your cash books if you use Cash Basis Accounting. 4. 5. Run AutoApproval in Oracle Payables to approve the new invoice distribution lines. Post the supplier invoices from Oracle Payables to Oracle General Ledger.
See Also
Adjusting ProjectRelated Documents in Oracle Purchasing, Oracle Payables, and Oracle Projects: page 7 40 Restrictions to Supplier Costs Adjustments: page 7 43 Distribute Supplier Invoice Adjustment Costs, Oracle Projects Fundamentals Interface Supplier Invoice Adjustment Costs to Payables, Oracle Projects Fundamentals Submitting Streamline Processes, Oracle Projects Fundamentals
Supplier Invoice Adjustments in Oracle Payables

"
To process supplier invoice adjustments from Oracle Payables to Oracle Projects: 1. 2. 3. 4. Perform the adjustment in Oracle Payables. Run AutoApproval in Oracle Payables to approve the new invoice distribution lines. Post the supplier invoices from Oracle Payables to Oracle General Ledger. Send the adjustment to Oracle Projects using the Oracle Projects PRC: Interface Supplier Costs process. Note: Before interfacing adjustments to Oracle Projects, the process checks whether the original and adjusting invoice items net to zero. If so, then neither item is transferred to Oracle Projects.
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See Also
Interface Supplier Costs, Oracle Projects Fundamentals Invoice Validation, Oracle Payables User Guide Payables Transfer to General Ledger Program, Oracle Payables User Guide
Expenditures
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CHAPTER
Burdening
T his chapter describes how to use burdening in Oracle Projects.
Burdening
31
Overview of Burdening
Burdening (also known as cost plus processing) is a method of calculating burden costs by applying one or more burden cost components to the raw cost amount of each individual transaction. You can then review the raw cost and total burdened cost (the sum of raw cost and burden cost) of each transaction. Oracle Projects displays the raw cost and burdened cost in expenditure inquiry windows, and shows the cost of each detail transaction in reports. You can choose to account for the individual burden cost components to either track the overhead absorption or to account for the total burdened costs. You can write custom reports using standard views to report all burden cost components for each detail transaction. Using burdening, you can perform internal costing, revenue accrual, and billing for any type of burdened costs that your company applies to raw costs. Oracle Projects calculates costs using the following formulas. (The formulas for cost also apply to revenue and billing amounts.) Oracle Projects calculates burden cost by multiplying raw cost by a burden multiplier. This calculation is represented in the following formula: H Burden Cost = Raw Cost Burden Multiplier
Oracle Projects calculates total burdened cost by adding burden cost to the raw cost amount. This calculation is represented in the following formula: H Total Burdened Cost = Raw Cost + Burden Cost
You use the burden multiplier to derive the total amount of the burden cost. For example, you may burden the raw cost of labor using a multiplier of thirty percent to derive the fringe component, and in turn, compute the total burdened cost of labor as shown in the following table:
Cost Component Amount
Labor (raw cost) Add: Fringe at 30% (burden cost) Total Burdened Cost Table 3 1 Total Burdened Cost (Page 1 of 1)
1,000 300 1,300
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On a project for which costs are burdened, you can create some transactions that are burdened and others that are not burdened. You define which projects should be burdened by setting the Burden Cost indicator for each project type in the Project Types window. When you specify that a project type is burdened, you must then specify the burden schedule to be used. The burden schedule stores the rates and indicates which transactions are burdened, based on cost bases defined in the burden structure. You specify which expenditure types are included in each cost base. With burdening, you can use an unlimited number of burden cost codes, easily revise burden schedules, and retroactively adjust multipliers. You can define different multipliers for costing, revenue accrual, and billing.
See Also
Burden Costing Definitions, Oracle Projects Implementation Guide
Burden Calculation Process

Figure 3 1 shows the burden calculation process.
Burdening
33
Figure 3 1 Burden Calculation Process
34
As shown in Figure 3 1, the calculation of burden cost includes the following processing decision logic and calculations: 1. 2. Expenditure items with a raw cost amount are selected for processing. The process determines if the related project type of the expenditure item is defined for burdening. If Yes (the project type is defined for burdening), then the process determines the burden schedule to be used. If No (the project type is not defined for burdening), then the item is not burdened. The process assumes the burden multiplier is zero (burden cost is zero, thus burdened cost equals raw cost). 3. To determine which burden multiplier to use, the process determines if there is a burden schedule override for the expenditure: The process uses the task burden schedule override on the associated task, if such an override exists. If no task burden schedule override exists on the associated task, then the process uses the project burden schedule override on the associated project. 4. If there are no burden schedule overrides, the process determines which standard burden schedule to use for burden cost calculations in the following order: Standard task burden schedule Standard project burden schedule 5. After a schedule has been determined, the process verifies that the expenditure items expenditure type is found in any of the cost bases of the selected burden schedule revision. If an expenditure type is excluded from all cost bases in the burden structure, then the expenditure items that use that expenditure type are not burdened (burden cost equals zero, thus burdened cost equals raw cost). Otherwise, burden multipliers from the appropriate burden schedule revision are used. If a schedule ID override exists, the process uses that revision. 6. The system calculates burden cost and total burdened cost amounts according to the following calculation formulas: burden cost equals raw cost multiplied by a burden multiplier
Burdening
35
total burdened cost equals the sum of raw cost and burden cost
36
Building Up Costs
The objective of burdening is to provide you with a buildup of raw and burden costs, so you can accurately represent the total cost of doing business. You can choose to calculate total burdened costs as a buildup of costs using a precedence of multipliers. Taking the raw cost, Oracle Projects performs a buildup of burden costs on top of raw costs to provide you with a true representation of costs. You provide the multiplier that is used to calculate the cost. The buildup is performed for each detailed transaction.
See Also
Using Burden Structures: page 3 10 Using Burden Schedules: page 3 14
Example of Cost Buildup

The following table provides an example of how Oracle Projects calculates total burdened cost as a buildup of raw and burden costs.
Cost Type Reference Cost Amount 1,000.00 950.00 1,950.00 500.00 75.00 575.00 2,525.00 .15 D .95 A Formula
Labor (raw cost) Overhead at 95% (burden cost) Total Labor (total burdened cost) Materials (raw cost) Material Handling at 15% (burden cost) Total Materials (total burdened cost) Total Labor and Materials (total burdened cost) Table 3 2 Example of Cost Buildup (Page 1 of 2)
(A) (B) (C) (D) (E) (F) (G)
A+B
D+E C+F
Burdening
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Cost Type
Reference
Cost Amount 378.75 2,903.75
Formula
General and Administrative at 15% (burden cost) Total Burdened Cost (total burdened cost) Table 3 2 Example of Cost Buildup (Page 2 of 2)
(H) (I)
.15
G+H
In this example, raw costs are categorized by the Labor and Materials cost bases. Each raw cost has one or more types of burden cost applied to it to derive the total burdened cost amount. The firsttier multipliers are applied to the raw costs of each cost base. For labor, the firsttier multiplier is for Overhead. For materials, the firsttier multiplier is for Material Handling costs. The secondtier multiplier is then applied to the sum of the raw cost and the firsttier burden cost amount for each cost base. In the example in the table, the second tier multiplier for General and Administrative is applied to the total raw and burden costs for Labor and Materials. The cost buildup in this example is calculated as follows: First, the raw labor cost of $1,000 is burdened by overhead at a multiplier of 95 percent, resulting in a burden cost of $950 and a total labor cost of $1,950. Then, the general and administrative multiplier of 15% is applied against the total labor cost of $1,950, for a total of $292.50 of general and administrative cost. The total burdened labor cost is the sum of $1,950 plus $292.50, or $2,242.50. Next, the raw materials cost of $500 is burdened by material handling at a multiplier of 15 percent, resulting in a burden cost of $75 and a total materials cost of $575. Finally, the general and administrative multiplier of 15% is applied to the total of the buildup of burdened Materials cost, yielding $86.25, resulting in a total burdened Material cost amount of $ 661.25. Figure 3 2 illustrates the flow of the cost buildup calculations in the table above.
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Figure 3 2 Cost Buildup Flow
Figure 3 2 illustrates the following cost buildup steps: 1. 2. 3. Overhead is applied to the raw labor cost. Material handling is applied to the raw materials cost. General and administrative is then applied to the buildup of the total burdened costs for Labor and Materials to derive the total burdened cost amount.
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Using Burden Structures

You define the cost buildup using a burden structure. A burden structure determines how cost bases are grouped and establishes the method of applying burden costs to raw costs. Expenditure types classify raw costs, and burden cost codes classify burden costs. The relationship between expenditure types and burden cost codes within cost bases determines what burden costs are applied to specific raw costs, and the order in which they are applied. Note: To account for burden cost codes separately, you also define unique expenditure types to link to burden cost codes. See: Storing, Accounting, and Viewing Burden Costs: page 3 23. Your company may have several different burden structures for unique business requirements. For example, you may use a different structure for internal costing than you use for government billing. Note: If you change your burden structure and subsequently transfer an expenditure item burdened with the old structure, then the reversed amount and the amount charged to the new task each equals the original burdened amount. Figure 3 3 illustrates the components of a burden structure.
Figure 3 3 Components of a Burden Structure
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The diagram in Figure 3 3 illustrates a burden structure with the following cost bases: The Labor cost base: includes the expenditure types Professional, Clerical, and Administrative. is assigned the burden cost codes Fringe, Overhead, and General and Administrative (G&A). The Material cost base: includes the expenditure types Supplies and Construction Materials. is assigned the burden cost codes Material Handling and General and Administrative (G&A). The Expense cost base: includes the expenditure types Travel and Meals. is assigned the burden cost code General and Administrative (G&A).
See Also
Burden Structures, Oracle Projects Implementation Guide
Burden Structure Components

A burden cost code represents the type of burden costs you want to apply to raw costs. For each burden cost code in the burden structure, you specify what cost base it is applied to, the expenditure type or types it is linked to, and the order in which it is applied to raw costs within the cost base. You burden a type of cost with burden costs to obtain a more accurate representation of your companys operating costs. For example, each hour of employee time costed directly to a project may be supported by burden costs for benefits and office space. You specify which costs are burdened through the definition of cost bases. A cost base is a grouping of raw costs to which you apply burden costs. A cost base assignment consists of expenditure types. You
Burdening
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specify the types of transactions that constitute the cost base when you assign expenditure types to the cost base. These expenditure types assignments represent the raw costs to which you apply the burden costs of the cost base. If you exclude an expenditure type from all cost bases in a structure, the expenditure items that use that expenditure type will not be burdened (burden cost equals zero, thus burdened cost equals raw cost). If you want to burden transactions using a new expenditure type, you must add the expenditure type to the appropriate burden structures. You should do this before you enter transactions using this expenditure type. This will ensure that all transactions using this expenditure type are burdened. If you have charged transactions using this expenditure type before you added the expenditure type to the appropriate burden structures, you must mark these transactions to be reprocessed to burden the costs. Cost bases also consist of burden cost codes. While the expenditure types represent the raw costs, the burden cost codes represent the burden costs that support the raw costs. Cost bases may be different within the context of different burden structures. For example, you may use a different definition of a labor cost base in a billing schedule than you would use in an internal costing schedule. You also assign an expenditure type to each burden cost code. You may use any expenditure type that has been defined with the Burden Transaction expenditure type class or, if you want to account for the burden cost components in the GL or budget by burden cost component, you can define an expenditure type with the same name as the burden cost code. In summary, cost bases are comprised of expenditure types and burden cost codes. Expenditure types represent the raw costs, and burden cost codes represent the burden costs that support the raw costs. Cost bases may be different within the context of different burden structures. For example, you may use a different definition of a labor cost base in a billing schedule than you would use in an internal costing schedule. An expenditure type classifies each detailed transaction according to the type of raw cost incurred. A burden structure can be additive or precedence based. If you have multiple burden cost codes, an additive burden structure applies each burden cost code to the raw costs in the appropriate cost base. A precedence burden structure is cumulative and applies each cost code to the running total of the raw costs, burdened with all previous cost codes. The examples in the following two tables illustrate how
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different burden structures using the same cost codes can result in different total burdened costs. The following table shows the calculation of total burdened cost using the additive burden structure.
Cost Type
Labor (A) Overhead at 95% (B) Fringe at 25% (C) General and Administrative at 15% (D) Total Burdened Cost
Cost Amount
100.00 95.00 25.00 15.00 235.00
Formula
.95 .25 .15
A A A
A+B+C+D
Table 3 3 Additive Burden Structure (Page 1 of 1)
The folowing table shows the calculation of total burdened cost using the precedence burden structure.
Cost Type
Labor (A) Overhead at 95% (B) Fringe at 25% (C) General and Administrative at 15% (D) Total Burdened Cost
Cost Amount
100.00 95.00 48.75 36.56 280.31
Formula
.95 .25 .15
A (A + B)
(A + B + C)
A+B+C+D
Table 3 4 Precedence Burden Structure (Page 1 of 1)
Note: The order of the burden cost codes has no effect on the total burdened cost with either additive or precedence burden structures.
See Also
Cost Bases and Cost Base Types, Oracle Projects Implementation Guide Burden Cost Codes, Oracle Projects Implementation Guide
Burdening
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Using Burden Schedules

Burden schedules establish the multipliers used to calculate the burdened cost, revenue, or bill amount of each expenditure item charged to a project. You can define different burden schedules for use in internal costing, revenue accrual, and invoicing. When you define burden schedules, you specify the burden structure on which the schedule is based. You can use both burden schedules and bill rate schedules within a project to accrue revenue and invoice. You can also use a bill rate schedule for nonlabor expenditure items, and use a burden schedule for labor expenditure items. You specify default burden schedules for each project type. You can use different schedules for different types of projects. You can override the default burden schedules for each project by using a schedule of multipliers negotiated for the project or task.
See Also
Assigning Burden Schedules: page 3 19 Burden Schedules, Oracle Projects Implementation Guide
Types of Burden Schedules

There are two types of schedules you can use in Oracle Projects: firm and provisional. Use firm schedules if you do not expect your multipliers to change. Generally, firm schedules are used for internal costing or commercial billing schedules. Because burden multipliers may not always be known at the time that you are calculating total burdened costs, you use interim, or provisional multipliers. Provisional multipliers are generally estimates based on a companys forecast budget for the year based on the previous years results. When you determine the actual multipliers that apply to costs (after the multipliers are audited), then you replace the provisional multipliers with the actual multipliers. Oracle Projects processes the
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adjustments from provisional to actual changes for costing, revenue, and billing.
Defining Burden Schedule Versions

You define schedule versions for a burden schedule to record the date range within which multipliers are effective. You can have an unlimited number of versions for each burden schedule, but use one active version at a given point in time. However, after you apply actuals, you can have one active provisional version and one active actual version existing at the same time within a schedule. In addition, you may have a number of versions for each quarter of the fiscal year in which your company does business, especially for government billing projects. At the end of the year, when the government audits your burden multipliers, you create a new version that reflects the actual billing rates. The example in Figure 3 4 illustrates the use of schedule versions.
Figure 3 4 Burden Schedule Versions
In Figure 3 4, a company defines provisional burden schedules on a quarterly basis, based on a forecast of budgeted costs. Each quarter, the company creates a new version of the burden schedule to reflect updates in the budget. At the end of the fiscal year, when the company is audited, actual multipliers are applied which reflect the true burdened cost of affected items.
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See Also
Applying Actuals, Oracle Projects Implementation Guide
Assigning Burden Multipliers

When you create burden schedules, you assign a multiplier to an organization and burden cost code. The multiplier specifies the amount by which to multiply the raw cost to obtain the burden cost amount. When you compile a burden schedule version, Oracle Projects calculates and stores the multipliers for each organization and burden cost code in a schedule version. Additional information stored includes compiled multipliers, which allow Oracle Projects to quickly determine burden cost amounts based on the burden multipliers used for a particular organization as of a particular date. Instead of performing a buildup of costs each time you calculate burden amounts, Oracle Projects uses the compiled multipliers to multiply the compiled multiplier by the raw cost to determine each burden cost component. The following table shows an example of the multipliers a company uses to determine the burden cost amounts for labor during cost calculation.
Organization
Headquarters Headquarters Headquarters Los Angeles
Burden Cost Code

Fringe Overhead General and Administrative General and Administrative
Multiplier
.35 .95 .15 .20
Table 3 5 Burden Multipliers (Page 1 of 1)
Suggestion for Organizations that Have No Burden

You may need to set up special procedures for organizations that have no burden. For example, your company may use contractors that do not have a particular type of burden cost (such as fringe) applied to
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their raw cost. To implement this scenario, you can first set up a new organization for contractors. Then, create a zero burden cost amount by assigning that organization to the burden schedule and using a multiplier of zero for the burden cost of Fringe. Each time that burden cost for Fringe is calculated for the contractors organization, Oracle Projects will multiply the contractors raw cost multiplier by zero, resulting in a burden cost amount of zero, which reflects the true representation of the raw cost and burden multipliers.
Burden Multiplier Hierarchy

Effective multipliers cascade down the Project Burdening Hierarchy, starting with the parent organization. If Oracle Projects finds a level in the hierarchy that does not have a multiplier defined, it uses the multipliers entered for the parent organization. Therefore, an organization multiplier schedule hierarchy is really a hierarchy of exceptions; you define only the multipliers for an organization if they override the multipliers of its parent organization. Figure 3 5 shows an example of how multipliers are assigned for a multilevel organization.
Figure 3 5 Assigning Multipliers to Organizations
In Figure 3 5, the parent organization, Headquarters (HQ), has two defined multipliers: Overhead (OH) with a multiplier of 2.0, and General and Administrative (G & A) with a multiplier of 3.0.
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When Oracle Projects processes transactions for the East organization, no multipliers are found. Therefore, the system assigns the multipliers from the parent organization, Headquarters. However, when Oracle Projects looks for multipliers for the Boston and New York (NYC) organizations, a multiplier of 3.1 for General and Administrative is found for each organization. Therefore, the system uses the General and Administrative multiplier of 3.1 from these organizations. When Oracle Projects processes transactions for the West organization, the multiplier of 2.3 for Overhead from the West organization overrides the multiplier of 2.0 from its parent organization, Headquarters. Since no multiplier is found for General and Administrative, the system assigns the multiplier of 3.0 from the Headquarters organization. No multipliers are found for the San Francisco (SF) and Los Angeles (LA) organizations. Therefore, Oracle Projects, assigns the multipliers from their parent organization, West.
Suggestion for Burdening a Borrowed or Lent Resource

When lending a resource to another organization for a specific project, you may want to burden the resource using the borrowing organizations multipliers. For example, the Los Angeles organization lends a resource to the New York City organization, and it is agreed that the borrowed resource is to be burdened using the New York City multipliers. For burdening, Oracle Projects uses the destination organization of an organization distribution override, in place of the expenditure organization, if an organization distribution override exists. If you want the project to have the New York City burden multipliers use burdened costs of the borrowed resource from Los Angeles, then enter an organization distribution override with a source organization of Los Angeles and a destination organization of New York City.
See Also
Organization Overrides, Oracle Projects Fundamentals
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Assigning Burden Schedules

You can assign burden schedules to project types, projects, and tasks. When you assign schedules to a project type, the schedules are the default schedules for projects and tasks that use the project type. Assigning burden schedules to project types allows you to implement company policies; for example, you can implement a policy that requires all projects of a particular project type to maintain the same multipliers for internal costing purposes. You can change the default schedule for a project or task. You can also override default schedules at the project and task level by using burden schedule overrides. Burden schedule overrides generally reflect multipliers that have been negotiated specifically for a particular project or task.
Defining Burden Schedules for Project Types

You define default standard burden schedules for each project type. These schedules default to each project defined with that project type. You can override the default schedules at the project and task level. See: Project Types, Oracle Projects Implementation Guide.
Assigning Burden Schedules at the Project and Task Level

When you assign a project type to a new project, Oracle Projects automatically provides default burden schedules from the project type. These schedules are also the default schedules for each top task added to the project, and schedules for a top task are the default schedules for lower level tasks. The schedules used for burdening and billing are those assigned to the lowest task. Note: When you change the burden schedule assignment for a project that already has tasks set up, the schedules assigned to tasks that already exist do not automatically change. You may need to review schedules for the existing WBS to make sure they are correct.
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See Also
Costing Burden Schedules, Oracle Projects Fundamentals
Assigning Fixed Dates for Burden Schedules

You can assign fixed dates for each of your burden schedules, just as you can for bill rate schedules. You can assign fixed dates only to firm schedules. You cannot use fixed dates with provisional schedules. The fixed date specifies the date for determining the schedule revision to use in calculations, regardless of the expenditure item date. You enter a fixed date for a cost burden schedule only if the project type definition allows you to override the cost burden schedule. You can enter schedule fixed dates for standard burden schedules only. Schedule fixed dates are not used for burden schedule overrides.
Changing Default Burden Schedules

You can change the default burden schedules for a project or task. If you change the burden schedule for a lowest level task that has items processed, then the items are not automatically marked for reprocessing. Only new items charged to the task will use the new burden schedule. You can mark the items for recalculation in the Expenditure Inquiry window. This will cause the items to be reprocessed using the new burden schedule assigned to the task. Changing Cost Burden Schedule You can override the cost burden schedule if the project type definition allows you to override the cost burden schedule, and the project is burdened. Changing Revenue or Invoice Burden Schedule You can change the revenue or invoice burden schedule within a schedule type at any time. Changing the Type of Revenue or Invoice Burden Schedule Used
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You can change the burden schedule type of any task or project at any time. You may change a task from a burden schedule type of Bill Rate to Burden, even after you have defined bill rate overrides. These bill rate overrides will not be used in processing. You can also define burden schedule overrides and then change your task to use a bill rate schedule. The burden schedule overrides will not be used.
Overriding Burden Schedules

You can define burden schedules at the project level to override the default burden schedules from the project type. You can also define burden schedules at the task level to override the default schedules from the project and project type. Defining Burden Schedule Overrides You can define a schedule of negotiated burden multipliers for your projects and tasks which overrides the schedule that you assigned to the project and tasks. When you define burden schedule overrides, you cannot override just one multiplier for the standard schedule; you need to define an entire schedule for the project or task that overrides the standard burden schedule. Defining burden schedule overrides is similar to defining burden schedules. You specify the revisions and the associated multipliers. The revisions are created as firm revisions. You cannot apply actuals to provisional multipliers with burden schedule overrides. You can select only burden structures that are allowed for use in burden schedule overrides. The burden schedule overrides that you define are created as burden schedules in Oracle Projects. You must compile schedule revisions as you do with standard burden schedules.
Attention: You do not define override multipliers by organization. The multipliers that you define are used for all items, regardless of the organization. You can enter override burden schedules for a project or task in the Project, Templates window or the Tasks window. The burden schedule override option is available only if the project is burdened and the project type allows override of the cost schedule. You can also choose this option if the schedule
Assigning Burden Schedule Overrides
Burdening
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type for labor or nonlabor is Burden, if you want to allow overrides of revenue and invoice schedules. Adjusting Burden Schedule Overrides You can correct, adjust, and create new revisions for your burden schedule override as you do for standard burden schedules.
See Also
Burden Schedule Overrides, Oracle Projects Fundamentals
Determining Which Burden Schedule to Use

The costing and revenue programs in Oracle Projects determine the effective burden schedule to use for burden cost calculations in the following order: Tasklevel burden schedule override Projectlevel burden schedule override Task standard burden schedule Oracle Projects uses the first schedule it finds to process all items charged to that task.
See Also
Burden Calculation Process: page 3 3
Distribute Costs and Interface Supplier Invoices from Payables

The Distribute Costs programs and the Interface Supplier Invoices from Payables program use the overrides and schedules to burden transactions charged to projects that are defined to be burdened for internal costing based on the project type definition. These programs calculate the burdened cost for all transactions on these projects.
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Storing, Accounting, and Viewing Burden Costs

You can choose how you want to store, account, and view burden costs for individual expenditure items, using one of the following methods: Burden cost on the same expenditure item: page 3 23 Burden cost as a separate, summarized expenditure item on the same project: page 3 25 Burden cost as summarized expenditure items on a separate project: page 3 27 You decide how to store the burden costs based on your requirements for budgeting and reporting burden costs. You specify the method for each burdened project type that you define. See: Choosing a Burden Storage Method: page 3 27. To define a burdened project type, you enable the Burdened check box in the Costing Information region of the Project Types window. Oracle Projects then displays the Burden Cost Display and Accounting region, where you enter all burden cost information. See: Project Types, Oracle Projects Implementation Guide.
See Also
Accounting for Burden Costs: page 3 29 Processing Transactions After a Burden Schedule Revision: page 3 37 Reporting Burden Components in Custom Reports: page 3 42 Revenue and Billing for Burden Transactions: page 3 43 Burden Costing Definitions, Oracle Projects Implementation Guide
Storing Burden Cost on the Same Expenditure Item

You can choose to store the total burdened cost as a value along with the raw cost on each expenditure item. The total burdened cost equals the raw cost plus the sum of the burden cost components. With this method, you can easily view the total burdened cost and the raw cost
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of each item. Oracle Projects displays the raw and burdened costs of the expenditure items on windows and reports. The example in the following table illustrates the total burdened cost method. With this method, the raw cost is stored on each expenditure item. The burdened cost is calculated and then also stored on each expenditure item. The burden cost shown in the table is an interim value that is not stored. In this example, Labor is burdened and Computer Rental is not.
Item Transaction Raw Cost 100.00 200.00 500.00 800.00 Burden Cost 200.00 400.00 0.00 600.00 Burdened Cost 300.00 600.00 500.00 1,400.00
1 2 3
Project A, Task 1.1, Labor, August 29, Amy Marlin Project A, Task 1.1, Labor, August 29, Don Gray Project A, Task 1.1, Computer Rental, August 29, Data Systems Totals
Table 3 6 Burden Cost on the Same Expenditure Item (Page 1 of 1)
The following table shows the detail of the burden cost on Item 1 in the table above.
Burden Cost Element Fringe Overhead General and Administrative Total Burden Cost Amount 40.00 100.00 60.00 200.00
Table 3 7 Burden Cost Detail (Page 1 of 1)
Oracle Projects calculates the burdened cost of each expenditure item in the Distribute Cost processes. For supplier invoices, the burdened cost of each expenditure item is calculated in the Interface Supplier Invoices from Payables process. Note: The burden cost of each item may be comprised of a buildup of individual burden cost components, as shown in the table above. This is not readily visible by looking at the expenditure item. However, Oracle Projects provides the
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ability to report this buildup of burden cost for each individual expenditure item. For more information on reporting the individual burden cost components when you use this method of storing burden amounts, see: Reporting Burden Components in Custom Reports: page 3 42.
Storing Burden Costs as a Separate Expenditure Item on the Same Project

You can choose to hold the burden cost components as a separate expenditure item on the same project. The expenditure items storing the burden cost components are identified with a different expenditure type that is classified by the expenditure type class Burden Transaction. The example in the following table illustrates burden cost as a separate, summarized expenditure item on the same project.
Item Transaction Raw Cost Burden Cost 0.00 0.00 0.00 120.00 300.00 180.00 Burdened Cost 100.00 200.00 500.00 120.00 300.00 180.00
1 2 3 4 5 6
Project A, Task 1.1, Labor, August 29, Amy Marlin Project A, Task 1.1, Labor, August 29, Don Gray Project A, Task 1.1, Computer Rental, August 29, Data Systems Project A, Task 1.1, Fringe, September 1, Consulting East Project A, Task 1.1, Overhead, September 1, Consulting East Project A, Task 1.1, General and Administrative, September 1, Consulting East Totals
100.00 200.00 500.00 0.00 0.00 0.00
800.00
600.00
1400.00
Table 3 8 Burden Cost as Separate Expenditure ItemSame Project (Page 1 of 1)
Note: The expenditure items that incur the raw cost have a burdened cost equal to the raw cost, because the burden cost of those transactions are included in the burden transactions. The burden transactions have a raw cost of zero and a summarized burden cost from the incurred raw costs.
Burdening
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Oracle Projects creates the burden transactions by summarizing the burden cost components by project, lowest task, expenditure organization, expenditure classification, supplier, PA period, and burden cost code. If you use this method of storing burden costs, you must assign an expenditure type to each burden cost code. You may also want to define an expenditure type for each burden cost code to use for reporting and budgeting purposes. The Create and Distribute Burden Transactions process summarizes the burden costs for all costed, burdened items. If you are processing new items for a task that already has burden transactions, Oracle Projects will create new burden transactions. The existing burden transactions are not updated. Each new transaction will be assigned the system date when the process is run. For transactions imported from external systems via transaction import, such as supplier invoices imported from Payables, burden costs on separate items are created only after running the Create and Distribute Burden Transactions process.
Expenditure Item Date of Summary Burden Transactions

The expenditure item date of the new summary burden transactions matches the latest expenditure item date of the expenditures being burdened. The following table shows examples of expenditure item dates for burden transactions.
Latest Expenditure Item Date of Source Expenditures Sunday, 10/25 Sunday, 10/18 Expenditure Item Date of Burden Transactions Sunday, 10/25 Sunday, 10/18 Saturday, 10/24
PA Period of Burdened Expenditures Monday, 10/19 through Sunday, 10/25 Monday, 10/12 through Sunday, 10/25
Length of PA Period 1 Week 2 weeks 1 month
Expenditure Cycle Start Day Monday Monday Monday
Thursday, 10/1 through Saturday, 10/24 Saturday, 10/31
Table 3 9 Expenditure Item Date for Burden Transactions (Page 1 of 1)
See also: Creating and Interfacing the Accounting for Burden Costs by Burden Cost Component: page 3 32.
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Storing Burden Cost as Summarized Expenditures on a Separate Project

You can choose to additionally show the burden cost as summarized expenditures on a separate project. You assign this separate Burden Cost Project in the Project Types window. The Burden Cost Project can be a single, indirect project that collects all burden costs or a project you define for a particular Project Type. These separate expenditures are generated in the same manner as the separate expenditures described in Burden Cost as Separate, Summarized Expenditure Items in the following section. The link to the original expenditure item is maintained but is not readily visible by looking at the summarized expenditures. The example in the following table illustrates accounting for summarized burden cost expenditures on a separate project.
Item Transaction Raw Cost 0.00 0.00 0.00 Burden Cost 120.00 300.00 180.00 Burdened Cost 120.00 300.00 180.00
1 2 3
Project Overhead, Task 1, Fringe, Sept 1, Consulting East Project Overhead, Task 1, Overhead, Sept 1, Consulting East Project Overhead, Task 1, General and Administrative, Sept 1, Consulting East
Table 3 10 Burden Cost on a Separate Project (Page 1 of 1)
Choosing a Burden Storage Method

The key difference between burden storage methods is how you view the burden costs on your project. You view the burden costs as another value on the same expenditure item or as a separate expenditure item. The way you budget your projects may influence how you choose to store burden cost: If you budget burden components as separate elements in your budget, you would typically choose to view the actuals in a similar way (as a separate expenditure item). If you budget burdened costs as a calculation of the raw cost for a given resource, you would typically choose to view the actuals in a similar way (with the burdened costs as a value for the individual expenditure items).
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Note: To budget by burden cost component, you use the expenditure type assigned to the burden cost code during setup. Regardless of which method you choose to store the burden cost, the total raw and burdened costs of the project do not change. The key difference is how you view the information. Also, these methods only apply to storing the cost amounts of the transactions. If you are using cost plus processing for revenue accrual and/or invoicing, then the revenue or invoice amounts are held as an amount along with the raw cost on the expenditure item. You cannot store the burden costs applied for revenue accrual and invoicing as separate summarized, burden transactions.
See Also
Overview of Project Budgeting and Forecasting, Oracle Project Management User Guide
Setting Up The Burden Cost Storage Method

You choose the method by which you want to store burden amounts on each burdened project type.
"
If you want to store the burdened cost as an amount on the same expenditure item, you perform the following step: In the Costing Information region of the Project Types window, enable the Burden Cost on Same Expenditure Item check box.
"
If you want to store the burden costs as separate, summarized transactions on the same project, you perform the following steps: 1. 2. 3. In the Costing Information region of the Project Types window, enable the Burden Cost as Separate Expenditure Item check box. In the Expenditure Types window, define an expenditure type with expenditure type class Burden Transaction. In the Burden Cost Codes window, assign the appropriate burden transaction expenditure type to each burden cost code.
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"
If you want to store burden amounts on each burdened expenditure item and, additionally, store the burden amounts in a separate project, you perform the following steps: 1. 2. Define a destination project and task for generated burden transactions. In the Costing Information region of the Project Types window, enable the Account for Burden Cost Components check box and add the Project and Task name. In the Expenditure Types window, define an expenditure type with expenditure type class Burden Transaction. In the Burden Cost Codes window, assign the appropriate burden transaction expenditure type to each burden cost code.
3. 4.
Defining a Separate Project to Store Burden Costs

You can set up the destination project with any project type, classifications, and other setup features. It is recommended that you make it an indirect project and use chargeability controls to prevent inadvertent charging to the project. You can create one project for every project type that burdens costs and tracks burden costs on a separate project or, alternatively, create only one project but set up separate tasks to store costs for each project type. Either solution will work, because in each project type definition you specify a project and task as the destination for generated burden cost transactions.
See Also
Loading Burden Transactions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
Accounting for Burden Costs

You determine if you want to account for the burden costs. You can choose one of the following accounting methods: Account for burden costs by burden cost component: page 3 30
Burdening
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Account for the total burdened costs: page 3 33 Perform no accounting calculate burden costs only for use in management reporting with no accounting impact: page 3 36 Oracle Projects supports all of these accounting methods for burden costs regardless of the method that you choose to store the burden costs, either as a value on the expenditure item or as separate, summarized expenditure items. There are cases in which you may choose to use both of the methods of accounting for burdened costs, based on different objectives.
See Also
Troubleshooting Burden Transactions: page 3 36 Processing Transactions After a Burden Schedule Revision: page 3 37
Accounting for Burden Costs by Burden Cost Component

You can account for the individual burden cost components when you want to track the burdening in General Ledger. Example of Accounting for Burden Costs by Burden Cost Component The following two tables provide an example of the accounting for the expenditure items shown in the example data for the topic: Storing Burden Costs as a Separate Expenditure Item on the Same Project: page 3 25. The following table shows the accounting for the raw cost amounts.
Transaction Item Accounting Transactions Debit Credit
Labor Cost
Labor Expense Payroll Clearing
100 100 200 200
Labor Cost
Table 3 11 Accounting for Burden Cost ComponentsRaw Cost (Page 1 of 2)
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Transaction
Item
Accounting Transactions
Debit
Credit
Expense
Computer Rental Expense Payables Liability
500 500
Table 3 11 Accounting for Burden Cost ComponentsRaw Cost (Page 2 of 2)
The following table shows the accounting for the burden cost amounts.
Fringe
Project Fringe Expense Fringe Absorption/Recovery
120 120 300 300 180 180
Overhead
Project Overhead Expense Overhead Absorption/Recovery
General and Administrative
Project General and Administrative Expense General and Administrative Absorption/Recovery
Table 3 12 Accounting for Burden Cost ComponentsBurden Cost (Page 1 of 1)
Setting Up Accounting for Burden Costs by Burden Cost Component

"
To set up this configuration, you must perform the following steps: 1. Define AutoAccounting rules for the Burden Transaction Debit (Burden Cost Account) and Burden Transaction Credit (Burden Cost Clearing Account) AutoAccounting functions. These rules are used to determine the debit and credit GL accounts to be charged. You use the expenditure type parameter to distinguish between different types of burden cost components. You also have the AutoAccounting Function Burden Cost Revenue Account to account for revenue. If you have chosen to store burden costs as a summarized value on a separate project and task (as defined by selecting the Burden Cost on the same expenditure item indicator on the project type), you must perform the following additional steps: Define a project and appropriate tasks, which will be used as a storing bucket for summarized, burden transactions
2.
Burdening
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used for accounting for the individual burden costs. You typically would not do project reporting from these collection projects. However, you may choose to perform some analysis for burden absorption using these projects. After you account for the burden costs to General Ledger, you can perform additional analysis within General Ledger. Specify the above project and task on the project type. This project and task are used for collecting the summarized burden transactions that are used only for the burden accounting. Creating and Interfacing the Accounting for Burden Costs by Burden Cost Component
"
To create and interface the accounting for the burden transactions, you run the following processes: PRC: Create and Distribute Burden Transactions. This process summarizes the burden costs, creates the expenditure items for the burden transactions, and runs the distribution process. The burden transactions are created on different projects depending on the method you use to store burden costs. If you store burden costs as separate, summarized burden transactions, the burden transactions are created on the same project that incurred the costs. If you choose to store burden costs as a value along with raw cost on the expenditure item on the project that incurred the transactions, the burden transactions are created on the collection project and task used for collecting burden transactions intended for accounting by burden cost components only. PRC: Interface Usage and Miscellaneous Costs to General Ledger. This process interfaces the burden transactions to Oracle General Ledger. Based on the expenditure type class you enter as a process parameter, this process will interface only those transactions that match the parameter. If no parameter is entered, then this process picks up all Burden Transactions, Miscellaneous Transactions, Usage Transactions, Inventory Transactions and WIP Transactions for processing. PRC: Tieback Usage Costs from General Ledger. This process ties back all transactions processed in the PRC: Interface Usage and Miscellaneous Costs process.
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You can also use the streamline processes to create distribution lines for burdened costs.
See Also
Create and Distribute Burden Transactions, Oracle Projects Fundamentals Interface Usage and Miscellaneous Costs to General Ledger, Oracle Projects Fundamentals Tieback Usage Costs from General Ledger, Oracle Projects Fundamentals Implementing AutoAccounting, Oracle Projects Implementation Guide
Accounting for Total Burdened Cost

You may choose to account for the total burdened cost of the items, without distinguishing the amounts by burden cost components. This is typically done when you track the total burdened cost in a cost asset or cost WIP (work in process) account. This method is also sometimes referred to as project inventory. You may track cost WIP when you: capitalize total burdened costs track the total burdened costs as project inventory (also known as cost WIP) on contract projects and later calculate a cost accrual when you generate the revenue. Note: You must run the appropriate processes to create and interface total burdened costs distribution lines if you are capitalizing burdened costs for capital projects or are using burdened costs for the cost accrual calculation during revenue generation. Example of Accounting for Total Burdened Cost The following two tables provide an example of the accounting for the expenditure items shown in the example for the topic: Storing Burden Cost on the Same Expenditure Item: page 3 23. The following table shows the accounting for the raw cost amounts.
Burdening
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Transaction
Item
Debit
Credit
Labor Cost
100 100 200 200 500 500
Labor Cost
Expense
Computer Rental Expense Payables Liability
Table 3 13 Accounting for Total Burdened CostRaw Cost (Page 1 of 1)
The following table shows the accounting for the total burdened cost amounts.
Labor
Project Cost Inventory Labor Burdened Inventory Transfer
300 300 600 600 500 500
Labor
Project Cost Inventory Labor Burdened Inventory Transfer
Expense
Project Cost Inventory Computer Burdened Inventory Transfer
Table 3 14 Accounting for Total Burdened Cost Amounts (Page 1 of 1)
Note: The Computer Rental expense is included in the total burdened cost accounting, even though it is not burdened. This is done to include the total project cost in the cost WIP accounts. Setting Up Accounting for Total Burdened Cost
"
To set up an Account for Total Burdened Costs configuration, you must perform the following step: Define AutoAccounting rules for the Total Burdened Costs Debit and Total Burdened Cost Credit AutoAccounting functions. These rules are used to determine the debit and credit GL
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accounts that will be charged. You must ensure that your AutoAccounting rules handle all transactions charged to burdened projects, not just those transactions that are burdened. Creating and Interfacing the Accounting for Total Burdened Costs
"
To create and interface the accounting for the total burdened costs, you run the following processes: PRC: Distribute Total Burdened Costs. This process creates the total burdened cost distribution lines for all transactions charged to burdened projects, even if the transaction is not burdened, to account for the total project costs in the cost WIP account. PRC: Interface Total Burdened Costs to General Ledger. This process interfaces total burdened cost distribution lines to Oracle General Ledger. PRC: Tieback Total Burdened Costs from General Ledger. This process ties back total burdened cost distribution lines from Oracle General Ledger. You can also use the streamline processes to create distribution lines for burdened costs.
See Also
Overview of Asset Capitalization: page 5 2 RevenueBased Cost Accrual, Oracle Project Billing User Guide Distribute Total Burdened Cost, Oracle Projects Fundamentals Interface Total Burdened Cost to General Ledger, Oracle Projects Fundamentals Tieback Total Burdened Cost from General Ledger, Oracle Projects Fundamentals Implementing AutoAccounting, Oracle Projects Implementation Guide
Burdening
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Storing Burden Costs with No Accounting Impact

You can choose to calculate the burden costs for project transactions for management reporting without an accounting impact. If you store burden costs as a value on the expenditure item, you have no extra setup to perform and no accounting processes to run on the burden costs. If you store the burden costs as separate, summarized expenditure items and perform the accounting in Oracle Projects (rather than importing the accounting), you must set up AutoAccounting for those burden transaction expenditure items to post the debit and the credit to the same GL account. Oracle Projects requires that you interface the cost distribution lines of these expenditure items to Oracle General Ledger.
Troubleshooting Burden Transactions

If Oracle Projects does not properly distribute cost or generate revenue for an expenditure item, you can view revenue rejection reasons from the Expenditure Items window. Use the Folder option Show Field to display either Cost Distr. Rejection or Revenue Distr. Rejection. To be burdened, an expenditure item must meet the following conditions: For internal costing, the item must be charged to a project with a project type set up to burden cost For revenue accrual and billing, the item must be charged to a task with a labor schedule type of Burden, if the item is a labor item; or with a nonlabor schedule type of Burden, if the item is a nonlabor item Must be categorized by an expenditure type that belongs in a cost base Must be included in a compiled schedule The lowest task that the expenditure item is charged to must have an assigned compiled burden schedule for the appropriate calculation of costing, revenue, or invoicing
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Processing Transactions After a Burden Schedule Revision

When you recompile burden schedules, Oracle Projects identifies the existing transactions that are impacted by the adjustments and marks the transactions for reprocessing. For example, when the multiplier for a given organization and burden cost code changes, the system marks for reprocessing all transactions for the organization that are charged to an expenditure type that is linked to the burden cost code. You must then reprocess the items by running the appropriate cost, revenue, and invoice processes.
Accounting for Cost Adjustments Resulting from Burden Schedule Revisions

When accounting for the adjusted cost, you can choose to reverse the original accounting entries and generate new ones for the adjusted cost, or you can choose to generate new accounting lines for the difference between the original and new burden cost amounts. To select the accounting option that best fits your business needs, enable or disable the PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation profile option. For more information on this profile option, see: PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation, Oracle Projects Implementation Guide. Note: Enabling this profile option does not affect raw and burden cost recalculation adjustments that you make from the Expenditure Items window. Although raw cost amounts and accounts are not affected by a burden cost recalculation, Oracle Projects always accounts for burden cost recalculation adjustments made from the Expenditure Items window with a full reversing and rebooking accounting entry that includes both the raw cost and burden cost amounts. See: Adjusting Expenditure Items: page 2 60.
See Also
Adjustments to Burden Transactions: page 2 66
Examples of Transaction Accounting After a Burden Schedule Revision

The examples that follow illustrate the original accounting entries generated for a labor transaction and the adjusting accounting entries
Burdening
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generated when the transaction is reprocessed after a burden schedule is recompiled. The following assumptions are made in all examples: Transaction Raw Cost = $100 Original Total Burden Cost = $300 Adjusted Total Burdened Cost = $400 Example One: Total Burdened Cost Accounting When the PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation profile option is set to No, Oracle Projects reverses the original accounting entries and creates new entries for the adjusted cost amounts. The following table illustrates the accounting entries generated for raw cost when total burdened cost is accounted. Note: The raw accounting lines are reversed and new adjusted lines are generated even though the raw cost amount does not change.
Item Number Accounting Type Accounting Transactions Debit Credit
Original
100 100 100 100 100 100
Adjusting
Labor Expense Payroll Clearing Labor Expense Payroll Clearing
Table 3 15 Example 1: Profile Option Not EnabledRaw Cost (Page 1 of 1)
The following table illustrates the accounting entries generated for total burdened cost.
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Transaction
Item Number
Debit
Credit
Labor Cost
Project Cost Inventory Labor Burdening Inventory Transfer Project Cost Inventory Labor Burdening Inventory Transfer Project Cost Inventory Labor Burdening Inventory Transfer
300 300 300 300 400 400
Table 3 16 Example 1: Profile Option Not EnabledBurdened Cost (Page 1 of 1)
When the PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation profile option is set to Yes, Oracle Projects does not reverse the original accounting entries. Instead, Oracle Projects creates new accounting entries for the difference between the original and new burden cost amounts. The following table illustrates the accounting entries generated for raw cost when total burdened cost is accounted.
Transaction Item Number Accounting Transactions Debit Credit
Labor Cost
100 100
Table 3 17 Example 1: Profile Option EnabledRaw Cost (Page 1 of 1)
The following table illustrates the accounting entries generated for total burdened cost.
Labor Cost
Project Cost Inventory Labor Burdening Inventory Transfer
300 300
Table 3 18 Example 1: Profile Option EnabledBurdened Cost (Page 1 of 1)
Burdening
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Transaction
Item Number
Debit
Credit
Project Cost Inventory Labor Burdening Inventory Transfer
100 100
Table 3 18 Example 1: Profile Option EnabledBurdened Cost (Page 1 of 1)
Example Two: Accounting for Summarized Burden Cost Components When the PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation profile option is set to No, Oracle Projects reverses the original accounting entries for the raw cost. Oracle Projects then creates new raw cost entries and burden entries for the difference between the original and new burden cost amounts. The following table illustrates the accounting entries generated for raw cost.
Labor Cost
Labor Expense Payroll Clearing Labor Expense Payroll Clearing Labor Expense Payroll Clearing
100 100 100 100 100 100
Table 3 19 Example 2: Profile Option Not EnabledRaw Cost (Page 1 of 1)
The following table illustrates the accounting entries generated for burden costs.
Fringe
Project Fringe Expense Fringe Absorption/Recovery
40 40
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Transaction
Item Number
Debit
Credit
Project Fringe Expense Fringe Absorption/Recovery Overhead 3 Project Overhead Expense Overhead Absorption/Recovery Project Overhead Expense Overhead Absorption/Recovery General and Administrative 4 Project General and Administrative Expense General and Administrative Absorption/Recovery Project General and Administrative Expense General and Administrative Absorption/Recovery
20 20 100 100 50 50 60 60 30 30
Table 3 20 Example 2: Profile Option Not EnabledBurden Cost (Page 2 of 2)
When the PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation profile option is set to Yes, Oracle Projects does not reverse the original accounting entries. Instead, Oracle Projects creates new burden entries for the difference between the original and new burden cost amounts. The following table illustrates the accounting entries that are generated for raw cost.
Labor Cost
100 100
Table 3 21 Example 2: Profile Option EnabledRaw Cost (Page 1 of 1)
The following table illustrates the accounting entries that are generated for burden costs.
Burdening
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Transaction
Item Number
Debit
Credit
Fringe
Project Fringe Expense Fringe Absorption/Recovery Project Fringe Expense Fringe Absorption/Recovery
40 40 20 20 100 100 50 50 60 60 30 30
Overhead
Project Overhead Expense Overhead Absorption/Recovery Project Overhead Expense Overhead Absorption/Recovery
General and Administrative
Project General and Administrative Expense General and Administrative Absorption/Recovery Project General and Administrative Expense General and Administrative Absorption/Recovery
Table 3 22 Example 2: Profile Option EnabledBurden Cost (Page 1 of 1)
Reporting Burden Components in Custom Reports

You can report the buildup of costs for each detail transaction, by invoice, in summary for a project, by GL period, by PA period, or in any way that you want to review information. This applies only if you stored the burdened cost as a value on the expenditure item and not if you store it as a summarized burden transaction. You may want to report this information for internal reporting and for customer billing. For example, your company may need to create an invoice backup report that displays the raw cost as well as the related burden cost components on an invoice. You report the individual burden cost components for costing, revenue, and invoicing using the appropriate view from the following list: PA_CDL_BURDEN_DETAILS_V
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PA_CDL_BURDEN_SUMMARY_V PA_COST_BURDEN_DETAILS_V PA_INV_BURDEN_DETAILS_V PA_REV_BURDEN_DETAILS_V To create error reports, use the following views: PA_CDL_BURDEN_SUM_ERROR_V PA_BURDEN_EXP_ITEM_CDL_V To create the reports for burdened commitments, use the following views: PA_CMT_BURDEN_DETAIL_V PA_CMT_BURDEN_SUMMARY_V PA_CMT_BURDEN_SUM_ERROR_V PA_CMT_BURDEN_TXN_V For more information, refer to the Oracle eBusiness Suite Electronic Technical Reference Manual (eTRM), available on Oracle MetaLink
Revenue and Billing for Burden Transactions

All expenditure types that will be used on a project must be included in the bill rate schedule that will be used by that project. If they are not, you will receive an error message when you generate invoices or revenue.
Including Burden Transactions in Revenue and Invoices

The expenditure type Burden Transaction is a nonlabor expenditure type. To include burden transactions in revenue and invoice calculations, you must include Burden Transactions as an expenditure type when you set up the nonlabor bill rate schedule. Markup is based on the raw cost amount, except in the case of burden transactions, where markup is based on burden cost. If you need to distinguish the bill rate or markup for each type of cost base, then you must define burden cost codes and expenditure types for each category. For example, if all expenditures are burdened with General and Administrative burden, but you want to distinguish the labor value of this burden on an invoice, or mark it up differently, you must create a
Burdening
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General and Administrative burden cost code expenditure type for labor. (Burden cost code expenditure types are defined under Entities that Affect Burdening: page 3 60.)
Revenue and Billing for Burdened Labor

If your employee bill rates are based on quantity and hours, then burden cost does not affect revenue and billing. However, if you bill for labor based on markup, you may need to distinguish labor burden cost by defining burden cost codes and expenditure types for labor.
Revenue Burdening Using Revenue or Invoice Schedules

If you use revenue or invoice schedules and you want the burden transaction to be revenue burdened, then you must include the burden expenditure types in the burden structures that are used for revenue and invoicing.
Showing NonLabor Burden Transactions on an Invoice

If you show burden transactions for nonlabor expenditures on a project invoice, the quantity for burden transactions will be displayed as zero.
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Reporting Requirements for Project Burdening

There are generally three levels of reporting requirements for project costs, as shown in Figure 3 6.
Figure 3 6 Project costs reporting pyramid
Oracle Projects provides several ways to set up burdening to serve project reporting needs. For example: You can show burden transactions individually on a project, and also record the detail transactions in the general ledger. You can charge burden costs to internal projects to provide visibility within Oracle Projects of total recovered overhead costs. You can choose not to view the individual burden transactions in Oracle Projects, while charging total burdened cost to project inventory in the general ledger.
GL and Upper Management Reporting

During the financial cycle, the financial reports (income statement and balance sheet) provide a summary view of a companys fiscal performance. Before the beginning of a new fiscal year, a company
Burdening
3 45
develops budgets for the coming year based on the prior years performance, as well as expectations and plans for the coming fiscal year. The accountants review the total budgeted burden costs such as overhead, fringe, and G&A (general and administrative). They then estimate, for each project type, the burden multipliers and basis (such as labor hours) for applying the burden. An overhead cost may be associated with the entire company and therefore must be shared across organizations. A burden multiplier algorithm can be implemented to distribute (burden) overhead costs to selected organizations and/or projects. To monitor the burdening of projects, the costing processes must capture the burden information. Management reports must track the recovery of overhead, identify overhead costs that have been insufficiently or excessively recovered (unders and overs), and show comparison ratios such as actual revenue to actual total cost, and budget to actual cost. In the income statement and balance sheet shown in the following two tables, overhead is recovered at the general ledger level. These statements do not reflect the use of project burdening.
Income Statement Item Amount
Revenue Less: Direct Cost of Projects Contribution Margin 1 Less: Burden 1 Cost (Project Indirect Cost) Contribution Margin 2 Less: Burden 2 Cost (Corporate Expense) PROFIT Table 3 23 Overhead Recovered Income Statement (Page 1 of 1)
100 30 70 10 60 27 33
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Balance Sheet Item
Amount
ASSETS Project Inventory Construction in Progress (CIP) TOTAL ASSETS LIABILITIES Accounts Payable EQUITY Owners Shares and Retained Earnings Plus: Raw Cost Profit TOTAL EQUITY TOTAL LIABILITIES AND EQUITY Table 3 24 Overhead Recovered Balance Sheet (Page 1 of 1) 230 33 263 338 75 200 138 338
In the financial statements shown in the tables above, project expenditures are charged directly to projects and are subtracted from revenue to produce the Contribution Margin 1. Overhead (project indirect cost) is subtracted from Contribution Margin 1 to produce Contribution Margin 2. Corporate expense is then subtracted, to determine the profit. If overhead is recovered at the project level, expense components of the income statement are reclassified as direct project cost elements. This provides management with an alternative view of the cost of doing business.
Burden Multiplier Algorithm

The cost of doing business may vary from department to department or from project to project. How you apply burden costs can be driven directly by how much overhead an organization or project incurs. You typically determine the burden multiplier based on a forecast of the amount of overhead cost incurred. The table below shows an example of a burden multiplier algorithm.
Burdening
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Cost Element
Raw Labor (1 hour) Burden 1 (30%) Burden 2 (69%) Total Labor
Cost
10 3 9 22
Reference / Formula
A B = A x .3 C = (A+B) x .69 D=A+B+C
Table 3 25 (Page 1 of 1) Burden multiplier algorithm
In this algorithm, indirect costs (Burden 1) are weighted at a rate of 30% of an employees hour of labor. Burden 2 is weighted at 69% of a labor hour after Burden 1 is applied. If the algorithm shown in the table above were implemented in Oracle Projects, the financial statements would be restated to show overhead recovery. This is shown in the reclassified income statement and reclassified balance sheet represented in the following two tables.
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Income Statement Item
Burden Detail Amounts
Net Amounts
Revenue Less: Cost of Projects (Total cost incurred, including overhead) Contribution Margin 1 Burden 1 Cost Less: Recovered Income Statement Less: Recovered Balance Sheet Net Burden 1 Cost Contribution Margin 2 Burden 2 Cost Less: Recovered Income Statement Less: Recovered Balance Sheet Net Burden 2 Cost PROFIT Table 3 26 Reclassified Income Statement (Page 1 of 1) 27 21 5 10 7 2
100 58
42
1 41
1 40
Burdening
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Balance Sheet Item
Amount
ASSETS Project Inventory Plus: Burden Cost Total Inventory Cost Construction in Progress (CIP) Plus: Burden Cost Total Construction in Progress (CIP) TOTAL ASSETS LIABILITIES Accounts Payable EQUITY Owners Shares and Retained Earnings Plus Burdened Profit TOTAL EQUITY TOTAL LIABILITIES AND EQUITY Table 3 27 Reclassified Balance Sheet (Page 1 of 1) 230 40 270 345 75 200 5 205 138 2 140 345
Accounting Transactions for Burden Cost Reporting

Examples of typical accounts payable (AP), purchasing (PO), and general ledger (GL) transactions that result in cost reporting in the general ledger are shown in the following table:
Transaction Type Direct, Burden 1 and Burden 2 Costs Material Purchase Raw Cost
Debit Account Cost of Project
Credit Account
AP/PO
AP Liability Table 3 28 (Page 1 of 2) Costrelated transactions
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Transaction Type
Direct, Burden 1 and Burden 2 Costs Stationery Purchase Burden 1
Debit Account Stationery
Credit Account
AP/PO
AP Liability
GL
Interest Expense Burden 2
Interest Expense Bank
Table 3 28 (Page 2 of 2) Costrelated transactions
The Oracle Projects transactions shown in the table below are used to offset the overhead entries shown in the table above. Labor hours are used as the cost basis for applying overhead.
Generated Transactions Labor Hour Debit Account Labor Expense Payroll Clearing Burden 1 Project Burden 1 Burden 1 Recovered Burden 2 Project Burden 2 Burden 2 Recovered Table 3 29 (Page 1 of 1) Overhead offset entries Credit Account
Burdening Options for General Ledger Accounting and Reporting

Oracle Projects provides the following options for accounting for and reporting project burdening in the general ledger: 1. 2. 3. 4. 5. Track burden amount for each burden cost code Show burdening in one account Show total burdened cost as one sum Show total burdened cost as one sum, and expense project burden No burden tracking in GL
Following are descriptions and examples of these options.
Burdening
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Note: The examples that follow use a threesegment general ledger account. The segments are company, cost center, and account. Because all transactions occur within the same company, the journal entries show only the cost center segment and account. Additionally, the Type of Account (Acct) column in each table reflects whether each account is an income statement (I.S.) account or a balance sheet (B.S.) account. GL Option 1: Track Burden Amount for Each Burden Cost Code In this option, shown in the following table, each burden transaction (Burden 1 and Burden 2 in our example) is charged to a general ledger account set up for the appropriate burden cost code. This provides visibility to overhead recovery information at the burden cost code level. The burden transactions can optionally be charged (debited) to the same account as the raw cost, but the credit transaction will go to a recovery account set up for each burden cost code.
Generated Transactions Labor Costs Type of Acct I.S. 20 6 6 18 18 100 100 I.S. I.S. I.S. I.S. I.S. I.S. I.S.
Cost Center Segment Project Organization Expenditure Org.
Account Project Expense Payroll Clearing Project Burden 1 Burden 1 Recovered Project Burden 2 Burden 2 Recovered Project Expense Usage Clearing
Dr. 20
Cr.
Burden 1 Costs
Project Organization Expenditure Org.
Burden 2 Costs
Usage Cost
Table 3 30 (Page 1 of 1) Track each burden cost code
GL Option 2: Show Burdening in One Account In this option, shown in the following table, burden is accounted for separately from raw cost for reconciliation and reporting purposes. It is recovered in one recovery account. A separate account is not required for each burden cost code.
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The balance in the Burden Recovered account is the summary burden cost. The Project Inventory balance is total burdened cost (raw cost plus burden cost).
Generated Transactions Labor Costs Type of Acct B.S. 20 I.S. 24 B.S.
Cost Center Segment Project Org. Expenditure Org.
Account Project Inventory Payroll Clearing Project Inventory
Dr. 20
Cr.
Overhead (Burden 1 and Burden 2)
Project Org.
Expenditure Org. Usage Cost Project Org. Expenditure Org.
Burden Recovered Project Inventory Usage Clearing 100
24 I.S. B.S. 100 I.S.
Table 3 31 (Page 1 of 1) Burdening in one account
GL Option 3: Show Total Burdened Cost as One Sum As in GL option 2, the net balance in the Burden Recovered account is the summary burden cost (24), and the Project Inventory balance is the total burdened cost (Labor=44, Usage=100). However, the amount for each burden cost code is not visible in the general ledger. GL option 3 is summarized in the following table:
Type of Acct I.S. 20 I.S. 100 I.S. 100 I.S. 44 B.S. 44 I.S.
Generated Transactions Raw Labor Costs
Cost Center Segment Expenditure Org. Expenditure Org.
Account Burden Recovered Payroll Clearing Usage Expense Usage Clearing Project Inventory Burden Recovered
Dr. 20
Cr.
Raw Usage Cost
Expenditure Org. Expenditure Org.
Total Burdened Labor Costs
Project Org. Expenditure Org.
Table 3 32 (Page 1 of 2) Total burdened cost as one sum
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Generated Transactions Total Burdened Usage Cost
Account Project Inventory Usage Transferred Out
Dr. 100
Cr.
Type of Acct B.S.
100 I.S.
Table 3 32 (Page 2 of 2) Total burdened cost as one sum
GL Option 4: Show Total Burdened Cost as One Sum, and Expense Project Burden For this option, shown in the following table, total burdened cost is shown as one sum, as in GL option 3. In addition, total overhead costs, summarized by burden cost code, are accounted as expense. With this method, the Project Inventory account shows the total burdened cost, but details of the burden (by burden cost code) are stored separately for burden recovery purposes.
Type of Acct I.S. 20 I.S. 100 I.S. 100 I.S. 44 B.S. 44 I.S. 100 B.S. 100 I.S. 6 I.S. 6 I.S.
Generated Transactions Raw Labor Costs
Account Burden Recovered Payroll Clearing Usage Expense Usage Clearing Project Inventory Burden Recovered Project Inventory Usage Transferred Out Burden 1 Expense Burden 1 Recovered
Dr. 20
Cr.
Raw Usage Cost
Total Burdened Labor Costs
Total Burdened Usage Cost
Burden 1 Costs
Table 3 33 (Page 1 of 2) Expense project burden
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Generated Transactions Burden 2 Costs
Account Burden 2 Expense Burden 2 Recovered
Dr. 18
Cr.
Type of Acct I.S.
18 I.S.
Table 3 33 (Page 2 of 2) Expense project burden
GL Option 5: No Burden Tracking in GL In this option, shown in the table below, the project managers need to track burden but upper and accounting managers do not. Using this option, the burden cost journals in the general ledger net to zero. Only the raw cost is shown in the Project Inventory balance.
Type of Acct B.S. 20 I.S. 100 B.S. 100 I.S. 24 I.S. 24 I.S. 100 I.S. 100 I.S.
Generated Transactions Labor Costs
Account Project Inventory Payroll Clearing Project Inventory Usage Clearing Burden Recovered Burden Recovered Usage Clearing Usage Clearing
Dr. 20
Cr.
Usage Cost
Total Burdened Cost
Usage Cost
Table 3 34 (Page 1 of 1) No burden tracking In GL
Middle Management Reporting

As shown in Figure 3 6, middle management relies on both Oracle Projects and the general ledger for their required information. A division or department manager looks for project information at the summary projects level. This manager may want to see total project
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burdening by burden cost code (Burden 1 and Burden 2), as shown in the following table:
All Projects Revenue Raw Cost Burden 1 Burden 2 Contribution Margin
Table 3 35 (Page 1 of 1) Total project burdening by burden cost code
Total 60 18 5 17 20
Or, the division or department manager may want to see only the total burdened costs of all projects, as shown in the following table:
All Projects Revenue Total Cost of Projects Contribution Margin
Table 3 36 (Page 1 of 1) Total project burdening
Total 60 40 20
Project Management Reporting

During a project life cycle, project managers review project information in the Oracle Projects application. They review comparison ratios (revenue to cost, budget to actual, etc.) for each project and/or for all projects in a division or department. The project manager and accounting manager may want to view the same level of detail for projects as for GL accounts, or their needs may be different. A project manager is concerned about revenue and cost on an individual project basis. How is the project doing compared to the budget? When burden recovered in the project, at the expenditure item level, the project manager can review total project cost on an ongoing basis.
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A project manager may want to see the burden cost on a project by burden cost code (Burden 1 and Burden 2), or may only want to see total burdened cost (raw and burden).
Burdening Options for Project Reporting

Oracle Projects provides flexible options to provide solutions for different project reporting requirements. Some examples of these requirements are: Burden costs are visible on each project Budgeting is done by burden cost code Only total cost needs to be visible on a project A project requires separation of raw cost and burden cost for a complete project management picture The following burdening options are provided by Oracle Projects for project reporting. 1. 2. 3. Burden transactions on the original project/task Total burdened cost and separate burden transactions Total burdened cost only
These options are described below. In the examples, labor costs are burdened with Burden 1 and Burden 2, and usage costs are not burdened. This rule is for these examples only In practice, usage can be burdened. The examples are designed this way because it is a common practice to burden labor but not usage, and with this scenario we can illustrate how both burdened and nonburdened transactions are handled in each example. Projects Option 1: Burden transactions on the original project/task In this option, summarized burden transactions are shown on the same project/task as the original expenditures. Using this option, the project manager can view the total project cost, and can also view the burden costs separately from the raw cost. The following table shows this information as it might be viewed in Project Status Inquiry or in a custom report.
Burdening
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Project ABC Cost Labor Cost (Employee 1) Labor Cost (Employee 2) Burden 1 (30%) Burden 2 (69%) Total Labor Cost Usage Cost Total Burdened Cost
Raw Cost 10 10 0 0 20 100 120
Burdened Cost 10 10 6 18 44 100 144
Table 3 37 (Page 1 of 1) Burden transactions on the original project/task
Projects Option 2: Total burdened cost and separate burden transactions In this option, the project shows total burdened cost for each burdened expenditure, as shown in the following table. Summarized burden transactions are shown on a separate project. Using this option, analysis and reporting on burden are done on an overview basis, not project by project. Budgeting can be done by burden cost code on the separate project. This enables budgettoactual analysis of the overall project burden.
Project ABC Cost Labor Cost (Employee 1) Labor Cost (Employee 2) Total Labor Cost Usage Cost Total Project Cost Raw Cost 10 10 20 100 120 Burdened Cost 22 22 44 100 144
Table 3 38 (Page 1 of 1) Total burdened cost on the original project
The details of the total burdened cost are visible in database views, as shown in the following table. Custom solutions can be developed for individual implementations to report the required details.
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Project ABC Revenue Total Cost Contribution Margin
Total 4 3 1
Cost Breakdown
Raw Cost 1.5, Burden 1 0.4, Burden 2 1.1
Table 3 39 (Page 1 of 1) Cost breakdown of total burdened cost
A separate project, Project XYZ, is set up to collect burden transactions on Project ABC and other projects. The following table shows the burden costs collected by project XYZ for the labor cost incurred on project ABC. In this table, the burden costs are displayed in the Burdened Cost/Burden Element column. While the amounts represent only the burden element, they would be displayed in the Burdened Cost column when viewed in the Project Status Inquiry window.
Burdened Cost /Burden Element 0 0 6 18
Project XYZ Cost Burden 1 (30%) Burden 2 (69%)
Raw Cost
Table 3 40 (Page 1 of 1) Summary burden transactions on a separate project
Project Option 3: Total burdened cost only In this option, the project shows total burdened cost, as shown in the following table. Separate burden transactions are not created. You can use this option when the project manager does not need to view the burden transactions. Total burdened cost provides the information required to manage the project.
Project ABC Cost Labor Cost (Employee 1) Labor Cost (Employee 2) Total Labor Cost
Table 3 41 (Page 1 of 2) Total burdened cost
Raw Cost 10 10 20
Burdened Cost 22 22 44
Burdening
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Project ABC Cost Usage Cost Total Project Cost

Table 3 41 (Page 2 of 2) Total burdened cost
Raw Cost 100 120
Burdened Cost 100 144
Setting Up Burden Cost Accounting to Fit Reporting Needs

The following table shows how burden cost accounting can be set up in Oracle Projects and GL to accommodate reporting needs. The table shows which of the following four setup options you can use for each Oracle Projects and GL setup combination: Setup A: Maximum Detail: page 3 61 Setup B: Detail in Oracle Projects, One Sum in GL: page 3 62 Setup C: Total Burdened Cost: page 3 63 Setup D: No Project Burden Tracking in GL: page 3 63
Oracle Projects Options:
GL Option 1: By Burden Cost Code Setup A n/a
GL Option 2: One Account
GL Option 3: One Sum
GL Option GL Option 4: Expensed 5: Not

Tracked
1. Burden transactions on the original project 2. Total burdened cost and separate burden transactions 3. Total burdened cost
Setup A n/a
n/a Setup B
n/a Setup B
Setup D Setup D
n/a
n/a
Setup C
n/a
Setup D
Table 3 42 (Page 1 of 1) Valid combinations of burdening options
Entities That Affect Burdening

How a project is burdened depends on the setup of the following entities: 1. Burden Cost Code Expenditure Types
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The expenditure types you set up to associate with burden cost codes are used only for burden transactions. These expenditure types are referred to as burden cost code expenditure types. 2. 3. Burden Cost Codes Burden Structures When you define burden structures, you associate expenditure types with each cost base you enter. Therefore, although an expenditure type can be associated with multiple expenditure type classes, the burden structure is based on the expenditure type, not the expenditure type class. 4. 5. 6. Burden Schedules Project Types AutoAccounting for raw, burden, and/or total burdened cost
The following sections tell you how to set up these entities for the four burdening setup options referenced in the table above.
Setup A: Maximum Detail

This solution provides maximum visibility of burden costs on the original project, and shows details of the recovered burden in the general ledger. Use this implementation to set up GL options 1 and 2 with Projects option 1. 1. Burden Cost Code Expenditure Types
In the Expenditure Types window, create an expenditure type for each of the burden cost codes you plan to use. Each expenditure type must have the expenditure type class Burden Transaction. If you define each expenditure type with the same name as the corresponding burden cost code, it will make it easier to reconcile and set up AutoAccounting for your burden costs. 2. Burden Cost Codes
Assign the burden cost code expenditure types to burden cost codes in the Burden Cost Codes window. 3. Burden Structures and Burden Schedules
Create burden structures that map the different burden cost codes to cost bases and expenditure types. Create burden schedules that use appropriate burden multipliers.
Burdening
3 61
4.
Project Types
Define one or more project types with the following options selected in the Costing Information region: Enable the Burdened check box and select a burden schedule. Enable the Burden Cost as Separate Expenditure Item check box. This selection generates summarized burden transactions on the same project/task where expenditures are incurred. 5. AutoAccounting
Set up AutoAccounting rules for all raw and burden costs. Warning: Do not enable the rules for Total Burden Cost for this option.
Setup B: Detail in Oracle Projects, One Sum in GL

With this solution, you report overall burden cost by burden cost code in Oracle Projects. In the general ledger, burden cost will be tracked as one sum. This solution implements Projects option 2, combined with either GL option 3 or GL option 4. 1. Burden Cost Code Expenditure Types
Create an expenditure type for each of the burden cost codes you plan to use. Each expenditure type must have the expenditure type class Burden Transaction. If you define each expenditure type with the same name as the corresponding burden cost code, it will make it easier to reconcile and set up AutoAccounting for your burden costs. 2. Burden Cost Codes
Assign the burden cost code expenditure types to burden cost codes in the Burden Cost Codes window. This step is necessary only if you have created expenditure types for burdening in step 1 above. 3. Burden Structures and Burden Schedules
Create burden structures that incorporate the multiple burden cost codes. Create burden schedules that use appropriate burden multipliers. 4. Project Types
Define one or more project types with the following options selected in the Costing Information region: Enable the Burdened check box and select a burden schedule.
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Enable the Burden Cost on Same Expenditure Item option and the Account for Burden Cost Components check box. This selection generates summarized burden transactions on a separate project as well as total burdened cost on the original expenditure. Enter a project/task for the burden transactions. 5. AutoAccounting Set up AutoAccounting rules for all raw, burden, and total burdened costs.
Setup C: Total Burdened Cost

With this solution, total burdened cost will be shown on the project. The general ledger will show total burdened cost as one sum. This solution implements Projects option 3 with GL option 3. 1. Burden Structures
Define one or more project types with the following options selected in the Costing Information region: Enable the Burdened check box and select a burden schedule. Enable the Burden Cost on Same Expenditure Item check box. This selection generates total burdened cost balances on each burdened expenditure item. 3. AutoAccounting
Set up AutoAccounting rules for all raw, burden, and total burdened costs. Burden transaction accounting is configured to handle one off, manual, or imported burden transactions.
Setup D: No Project Burden Tracking in GL

With this solution, there is no tracking in the general ledger of burden recovered on projects. This solution implements GL option 5. Steps 1 and 2 below are required if the you require visibility of burden transactions on the project. If you only want to report by summary burden cost codes, then these steps are not necessary. For reporting purposes, the individual burden expenditures are available internally.
Burdening
3 63
1.
Burden Cost Code Expenditure Types
Create an expenditure type for each of the burden cost codes you plan to use. Each expenditure type must have the expenditure type class Burden Transaction. If you define each expenditure type with the same name as the corresponding burden cost code, it will make it easier to assign expenditure types correctly. 2. Burden Cost Codes
Assign the new expenditure types to burden cost codes in the Burden Cost Codes window. 3. Burden Structures
Define one or more project types with the following options selected in the Costing Information region: Enable the Burdened check box and select a burden schedule. Projects option 1: If you want to view burden costs as separate transactions on the same project, enable the Burden Cost as Separate Expenditure Item check box. This selection generates summarized burden transactions on the same project where expenditures are incurred. Projects option 2: If you want to view burden costs on the same project, and collect summary burden transactions on a different project, enable the Burden Cost on Same Expenditure Item option and the Account for Burden Cost Components check box, and enter the project and task name. This selection generates summarized burden transactions on a separate project while generating total burdened cost on the original expenditure. 5. AutoAccounting
Set up AutoAccounting rules for all raw and burden costs. Although this solution does not require general ledger tracking of burden recovery, Oracle Projects will still interface the burden transactions to the general ledger. To create a net zero transaction, set up AutoAccounting to post the debit and credit to the same account. Warning: Do not enable the rules for Total Burden Cost for this option.
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CHAPTER
Allocations
his chapter describes how you can allocate costs to projects and tasks.
Allocations
41
Overview of Allocations
Project managers often need to allocate certain costs (amounts) from one project to another. The allocations feature in Oracle Projects can distribute amounts between and within projects and tasks, or to projects in other organizational units. For example, a manager could distribute across several projects (and tasks) amounts such as salaries, administrative overhead, and equipment charges. Your allocations can be as simple or elaborate as you like. Note: Oracle Projects performs allocations among and within projects and tasks. MassAllocations in Oracle General Ledger performs allocations among GL accounts. You can use AutoAllocations in either General Ledger or Oracle Projects to run MassAllocations. You identify the sourcescosts or amounts you want to allocateand then define targetsthe projects and tasks to which you want to allocate amounts. If you want, you can offset the allocations with reversing transactions. The system gathers source amounts into a source pool, and then allocates to the targets at the rate (basis) that you specify. When you allocate amounts, you create expenditure items whose amounts are derived from one or more of the following: Existing summarized expenditure items in Oracle Projects A fixed amount Amounts in a General Ledger account balance You can specify exactly how and where you want to allocate selected amounts. For example, you may want to: Allocate the actual cost of office supplies equitably among various projects Charge certain projects a larger percentage of costs Allocate overhead costs, charging them to projects that benefited from the overhead activities
Understanding the Difference Between Allocation and Burdening

Allocation uses existing project amounts to generate expenditure items, which you can then assign to specified projects.
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Burdening estimates overhead by increasing expenditure item amounts by a set percentage. Allocations and burdening are not mutually exclusive. Whether your company uses allocations, burdening, or both in a particular situation depends on how your company works and how you have implemented Oracle Projects.
See Also
Allocations
43
Creating Allocations
Creating allocation transactions involves several stages. Each of these stages is described in the pages listed below: 1. 2. 3. Define one or more allocation rules. See: Defining Allocation Rules: page 4 5. Create a draft allocation run by selecting a rule and generating allocation transactions. See: Allocating Costs: page 4 6. Use the Review Allocation Runs window to review the results of the draft allocation run. Delete the run if it is unsatisfactory, then correct the rule and rerun the allocation. See: Viewing Allocation Runs: page 4 10. Release the draft run. See: Releasing Allocation Runs: page 4 8.
4.
You can also reverse runs that have been released. See: Reversing Allocation Runs: page 4 13.
See Also
Viewing Allocation Transactions: page 4 13
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Defining Allocation Rules
Allocation rules define how allocation transactions are to be generated, including: The source of the amounts you are allocating The targetsthe projects and tasks to which you want to allocate amounts How much of the source pool you want to allocate, and if you want to include a fixed amount, GL balance, or client extension (or any combination of these) The time period during which the rule is valid You can create as many rules as you want, and use them in as many allocation runs as you want. You can leave the original expenditure amounts in the source project, or offset the amounts with reversing transactions. In most cases, the
Allocations
45
reversing transactions decrease the project balance by the amount of the allocation.
Allocations and Operating Units (Cross Charging)

Each allocation rule belongs to an operating unit and cannot be shared with other operating units. Allocation rule source projects must be from the same operating unit unless cross charge is enabled. If crosscharge is enabled, you can allocate to target projects that are in different operating units from the source project operating unit. Offset projects must always be in the same operating unit as source projects. See: Implementation Options in Oracle Projects: Cross Charge: Allow Cross Charges to All Operating Units Within Legal Entity, Oracle Projects Implementation Guide.
See Also
Full and Incremental Allocations: page 4 15 Defining Allocation Rules, Oracle Projects Implementation Guide
Allocating Costs
Once you have created a rule for allocating costs, you can use the rule in an allocation run. Processing the rule generates allocation transactions and (if specified) offset transactions in a draft, a trial allocation run that you can review and evaluate. If the draft allocation fails or does not produce the results you expect, you can delete the draft, change the rule parameters, and then create another draft. When you are satisfied with the draft run and its status is Draft Success, you can release the allocation run. Any source projects that you include in an allocation must not be closed. Any target or offset project that you include in an allocation run must have a status that allows the creation of transactions (as defined by your implementation team). You can create, review, and delete draft runs until you are satisfied with the results. However, you cannot create a draft if another draft exists for the same rule.
46
Although you can run the Generate Allocations Transactions process at any time, it is a good practice to prepare for the allocation run by distributing costs and running all interfaces and summarization processes. Doing so ensures that the allocation run includes all relevant amounts. Warning: If you use an allocation rule that is set up for full allocation more than once in a run period, you will generate duplicate transactions in your target projects. If this happens, you can reverse the run. See: Reversing Allocation Runs: page 4 13 and see: Full and Incremental Allocations: page 4 15.
Precedence
Excluded lines take precedence over included lines, and the allocation rule processes lower line numbers first. For more information about precedence, see: Defining the Targets, Oracle Projects Implementation Guide.
About the Run Status

The run status shows the progress and state of the allocation run. The following table describes the possible statuses for an allocation run. For information on the actions you can take for each status, see: Viewing Allocation Runs: page 4 10. Note: You may have to wait a short time for the system to change the status.
Status In Process Draft Success Description The process is not yet complete. The process has created draft transactions which are ready for release. Note: The system will not create the transactions in the target and (if specified) offset projects and tasks until you release the draft. Draft Failure Release Success Release Failure The process encountered problems and could not create draft transactions. The system has written the transactions to the target and (if specified) offset projects and tasks. The system has not written the transactions, perhaps because projects or tasks included in the draft run were deleted or closed after the process created the draft. Delete the run, fix the problem, and then run the rule again.
Table 4 1 Allocation Run Status (Page 1 of 1)
Allocations
47
Viewing Process Results

The PRC: Generate Allocations Transactions process produces the Allocation Run Report. For more information on this process, see: Generate Allocations Transactions, Oracle Projects Fundamentals.
Creating Allocation Runs

"
To create an allocations run: 1. 2. 3. Navigate to the Submit a New Request window. Submit a request for the PRC: Generate Allocations Transactions process. The following table shows the parameters you specify for each field in the Parameters window.
For this field... Rule Name Period Name Expenditure Item Date Do this... Enter the name of the allocation rule that you want to use in this allocation run. Select the period from which the process will accumulate the source amount. Enter a date for the allocation transactions. The default is the system date.
Table 4 2 Generate Allocations Transactions Process Parameters (Page 1 of 1)
Note: If the list of values in the Parameters window of the PRC: Generate Allocations Transactions process does not display an allocation rule that you are looking for, then the rule may not be currently in effect. Allocation rules are available only within a certain time period, as defined by the Effective Dates fields in the Allocation Rule window. For more information, see: Defining Allocation Rules, Oracle Projects Implementation Guide. (If a rule is in effect on the day you create a draft run for the rule, you can release the draft later, even if the rule is no longer in effect.)
Releasing Allocation Runs

After you create a successful draft run, the process has created the allocation transactions but not yet allocated each transaction to the
48
targets you specified. To allocate the transactions to the targets, you release the run. Note: You can release a draft run after the effective dates of the rule.
"
To release an allocation run: 1. Navigate to the Find Allocations Runs window and enter selection criteria. (To see all existing allocation runs, leave all the fields blank.) The Review Allocation Runs window opens. 2. Select the allocation run you want to release (the status must be Draft Success), and then choose Release. After you release the run, the status changes to Release Success or Release Failure. You may have to wait a short while for the status to change. For more information about the status see: About the Run Status: page 4 7. Note: You can also use the Requests window to release the run.
Allocations
49
Viewing Allocation Runs
You can view various aspects of an allocation run in the Review Allocation Runs window, including the run status. You can also view allocation transactions by querying by batch name. See: Viewing Allocation Transactions: page 4 13.
"
To view allocation runs: 1. Navigate to the Find Allocations Runs window and enter selection criteria. (To see all existing allocation runs, leave all the fields blank.) The Review Allocation Runs window opens. 2. Select the allocation run that you want to view and choose an action button. The following table describes the actions that you can perform when you are viewing allocation runs, depending on the run status. Also see: About the Run Status: page 4 7.
4 10
To... Delete an allocation run View the exceptions for a failed allocation run
With this status... Draft Success Draft Failure Release Failure Draft Failure
Do this... Choose Delete, and then confirm the deletion. Choose Exceptions. You see information about the draft failure in the Draft Exceptions window. (The Allocation Run Report also includes a list of the exceptions. See: Generate Allocations Transactions, Oracle Projects Fundamentals.) Choose Reverse. See: Reversing Allocation Runs: page 4 13. Choose Release, and then confirm the release. See Releasing Allocation Runs: page 4 8. Choose Missing Amounts. To limit the display in the Missing Amounts window, specify the type of amount you want to see, and then choose Find. To see the total missing amounts, choose Totals. See: About Previous Amounts and Missing Amounts in Allocation Runs: page 4 16. Choose Basis Details. The Basis Details window displays basis information about the target lines in the allocation run. To see the total basis amounts, choose Totals. Choose Source Details. The Source Details window displays information about the sources used in the allocation run. To see total pool amounts, choose Totals. Choose Transactions. The Transactions window displays information about the transactions associated with the allocation run. To limit the number of transactions displayed, select a check box and then choose Find.
Reverse an allocation run Release an allocation run See missing amounts for the second and subsequent runs of an incremental allocation
Release Success Draft Success Release Failure Draft Success Draft Failure Release Success Release Failure
See the basis details for an allocation run that used a rule whose basis is prorated See the source detail lines for an allocation run
Draft Success Draft Failure Release Success Release Failure Draft Success Draft Failure Release Success Release Failure Reversed Draft Success Draft Failure Release Success Release Failure Reversed
See the transactions created by an allocation run
Table 4 3 Reviewing Allocation Runs (Page 1 of 1)
You can customize the columns that are visible for several of the windows that are displayed when you select one of the viewing options shown in the table above. For more information on the fields you can choose, refer to the following table:
Allocations
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Window Review Allocation Runs
Fields you can add using the Query, Show Fields command Many fields, including Draft Request ID, Pool Amount, Transaction Currency, parameters for various aspects of allocation, basis, missing amounts, offsets, and sources, and others. Project Amounts Release Request ID Task Name Client Extension Project Name Task Name Expnd Type Project Name Target Line Num Task Name
Missing Amounts
Source Details
Transactions
Table 4 4 Additional Fields for Viewing Allocation Runs (Page 1 of 1)
For more information about adding folder fields, see: Customizing the Presentation of Data in a Folder, Oracle Applications Users Guide.
Troubleshooting Allocation Runs

If the pool amount for an allocation run is different from what you anticipate, check for one or more of the following conditions: If you specify a percentage to allocate from a resource list (in the Resources window), the rule calculates the pool amount using both the percentage specified in the Allocation Pool % field (Sources window) and the percentage specified in the Resources window. The amount included in the source pool can change each time you run the allocation. To create a stable source pool, define each project and task individually, either by specifying the source project and tasks in the Project Sources region in the Sources window, or by using a fixed amount as the source. For any run period, the rule creates the allocation pool during the time period defined by the amount class and run period. The amount class is based on the allocation period type (Allocation Rule window) and the amount class (Sources window). For more information, see: Defining Allocation Rules, Oracle Projects Implementation Guide.
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Viewing Allocation Transactions

You can view individual the individual transaction (expenditure items) created by the PRC: Generate Allocations Transactions process.
"
To view individual allocation transactions: 1. 2. 3. Navigate to the Find Project Expenditure Items or Find Expenditure Items window. Enter the Project Number and Transaction Source fields. You can also enter other fields to further limit your search. Choose Find.
"
To query by batch name: 1. 2. Navigate to the Find Expenditure Batches window. In the Batch field, enter the name of the batch you want to see and then choose Find.
Reversing Allocation Runs

You can reverse any successful allocation run (that is, the status is Release Success). The reversal creates reversing expenditure items. If expenditure items have been transferred or split before reversal, then the rule reverses the transferred or split items. The reversal process creates reversal entries in the allocation history, so that the reversed amounts are considered for the next incremental allocation, if any. Note: Reversing the allocation run reverses all of the transactions. You cannot reverse individual transactions. You cannot reverse an allocation run if any of the target projects in the run cannot accept new transactions.
"
To reverse an allocation run: 1. 2. 3. Navigate to the Review Allocation Runs window Select an allocation run that has a status of Release Success, and then choose Reverse. In the Reverse an Allocation Run window, enter the parameters: For Reversed Exp Batch, enter a name for the reversing expenditure batch.
Allocations
4 13
For Reversed Offset Exp Group, enter a name for the reversing offset batch, if any. (This field appears only for rules that specify an offset.) 4. Choose OK.
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Full and Incremental Allocations

The allocation method is an attribute of every allocation rule and affects how the rule collects and allocates amounts. You choose whether you want a rule to use full or incremental allocation on the Allocation Rule window. For more information, see: Naming the Allocation Rule, Oracle Projects Implementation Guide. Full allocations distribute all the amounts in the specified projects in the specified amount class. The full allocation method is generally suitable if you want to process an allocation rule only once in a run period. Warning: Plan to run allocation rules that are set up for full allocation only once in a run period. If you generate allocation transactions using a full allocation rule more than once in a run period, you will create duplicate transactions in your target projects. If this happens, you can reverse the duplicates. See: Reversing Allocation Runs: page 4 13. Incremental allocations create expenditure items based on the difference between the transactions processed in the previous and current run. This method is generally suitable if you want to use the allocation rule in allocation runs several times in a given run period. Note: Incremental allocations may slow system performance because of the need to calculate the amounts allocated in previous runs. The system keeps track of the results of previous incremental allocation runs. Therefore, you can run an incremental allocation multiple times within the same run period without creating duplicate transactions for target projects. You can review and delete draft runs until you are satisfied with results. Both full and incremental allocation distribute all the amounts accumulated during the run period.
See Also
Case Study: Comparing Full and Incremental Allocations, Oracle Projects Implementation Guide
Allocations
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About Previous Amounts and Missing Amounts in Allocation Runs

Previous amounts and missing amounts occur only during incremental allocation runs, and are significant only for the second and subsequent run in the same run period. Full allocation runs do not have or use previous or missing amounts. Previous amounts are those amounts that have been allocated in a previous run. For the second and subsequent runs for the same time period, the rule allocates only differences from the previous run or additional expenditures. Missing amounts occur when a source, target or offset project or task has been closed or has become inactive since the previous allocation run. During subsequent runs, the system tracks the missing amounts, so that the source, target or offset amounts will be accurate. Source amounts may be missing because: The task is closed, perhaps because the task has been completed The source line on which a task appears has been excluded (by selecting the Exclude check box for that line on the Sources window) An attribute, such as the service type or task organization, has changed
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AutoAllocations
To generate allocations more efficiently, you can group allocations rules and then run them in a specified sequence (stepdown allocations) or at the same time (parallel allocations).
See Also
Setting Up for AutoAllocations, Oracle Projects Implementation Guide
Creating AutoAllocations Sets

AutoAllocations is an Oracle General Ledger and Oracle Projects feature. In General Ledger, the allocation definition is called a batch. In Projects, the allocation definition is called a rule. Stepdown allocations use the results of each step in subsequent steps of the autoallocation set. Oracle Workflow controls the flow of the autoallocations set. Parallel allocations carry out the specified rules all at once and do not depend on previous allocation runs. As shown in the following tables, each rule or batch has a different effect when you run the autoallocation set, depending on the set type. The following table shows the processes submitted by set type for project allocation rules.
Set Type Processes Submitted
Step Down
Generate Allocations Transactions Release Allocation Transactions Distribute Miscellaneous Costs and Usages Update Project Summary Amounts
Parallel
Generate Allocations Transactions Release Allocation Transactions (Note: The system submits this process only if Auto Release is selected on the Allocation Rule window.)
Table 4 5 Set Types and Processes for Project Allocation Rules (Page 1 of 1)
Allocations
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The following table shows the processes submitted by set type for mass allocation, mass budget, mass encumbrances, and recurring journal allocation batches:
Set Type Processes Submitted
Step Down
Run MassAllocations Recurring Journal Entry Budget Formulas Posting
Parallel
Run MassAllocations Recurring Journal Entry Budget Formulas
Table 4 6 Set Types and Process for General Ledger Batches (Page 1 of 1)
What you can do with AutoAllocations depends on the responsibility you use when you log on to your database: From the Projects responsibility, you can: Create autoallocation sets that contain Projects allocation rules. If Oracle Projects is integrated with General Ledger, you can also include GL allocation batches. View autoallocation sets that were created using the Oracle Projects responsibility From the General Ledger responsibility, you can: Create autoallocation sets that contain only General Ledger batches View autoallocation sets that were created using the General Ledger responsibility For more information about AutoAllocations in Oracle General Ledger, see: AutoAllocations, Oracle General Ledger User Guide.
Prerequisites
If you want to allocate amounts from Oracle General Ledger,

integrate Oracle General Ledger with Oracle Projects. See: Integrating with Oracle General Ledger, Oracle Projects Fundamentals. (You can use AutoAllocations in a standalone installation of Oracle Projects.)
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(Stepdown allocations only) AutoAllocations uses Oracle Workflow

processes to carry out stepdown allocations. Although you can use the workflow without modification, you can customize some processes. See: StepDown Allocations Workflow, Oracle Projects Implementation Guide.
Set the directory for the debug log written by Oracle Workflow.
You set the directory in two places, the PA: Debug Log Directory profile option (see: PA: Debug Log Directory, Oracle Projects Implementation Guide), and the init.ora file.
See Also
Defining AutoAllocation Sets, Oracle Projects Implementation Guide
Submitting an AutoAllocation Set

The procedure below describes how to submit a request from the AutoAllocation Workbench.
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To submit the process: 1. 2. Using the Projects responsibility, navigate to the AutoAllocation Workbench window. In the Allocation Set field, find the set that you want to submit. (You can choose Find, Find All, or one of the Query commands from the View menu.) Choose Submit or Schedule. The Parameters window opens. 4. Enter information for this autoallocation set. The fields displayed vary depending on whether the allocation set contains Oracle Projects rules, General Ledger batches, or both. The following table lists fields for General Ledger batches and describes the information you can enter.
3.
Allocations
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If the Parameters window displays... Name Period Budget (Optional) Journal Effective Date
Then do this...
Nothing field is for display only. Select or enter an accounting period for your GL batches. Select or enter a budget. Select a date. Note: You can specify any date if the profile option GL: Allow NonBusiness Day Transactions is set to Yes. Otherwise, specify a business date.
Calculation Effective Date
Select a date in any open, future (that can be entered), closed, or permanently closed period. The default is the closest business day in the chosen period. Select Standard Balances or Average Balances
Usage
Table 4 7 Fields for General Ledger Batches (Page 1 of 1)
Note: The system displays the Journal Effective Date, Calculation Effective Date, and Usage fields for General Ledger batches when General Ledger uses an average balance set of books. The following table lists fields for Oracle Projects rules and describes the information you can enter.
If the Parameters window displays... GL Period PA Period Then do this...
Select a period. If the project rules belong only to the GL period type, enter only the GL Period field. Otherwise, enter both fields. If all project rules belong only to the PA period type, enter only the PA Period field. Select or enter the expenditure item date for your allocations transactions.
Expenditure Item Date
Table 4 8 Fields for Oracle Projects Rules (Page 1 of 1)
5.
Choose Submit or Schedule. If you are scheduling the process to run at a later time, select a date and time, and then choose Submit.
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Troubleshooting AutoAllocations
If a step down autoallocation set appears to run, but stops before executing all steps and the process does not generate any exceptions, then check for one or both of the following conditions: The Auto Release setting for the allocation rule, timeout setting, and Oracle Workflow notification parameters may be interacting in a way that stops the autoallocation run. If Auto Release is deselected on the Allocation Rule window, then Oracle Workflow processes the allocation rule. The workflow timeout attribute (set to a certain number of minutes) executes three times. If the person notified by the workflow does not respond in that amount of time, the step down autoallocation stops at that point in the autoallocation set. See: Processes for the PA Step Down Allocation Workflow, Oracle Projects Implementation Guide; and Timeout Attribute, Oracle Projects Implementation Guide. The directory used for the debug log written by Oracle Workflow is set incorrectly. Set the utl_file_dir parameter in the init.ora file to the same directory that is specified in the PA: Debug Log Directory profile option (see: PA: Debug Log Directory, Oracle Projects Implementation Guide). If the two do not match, the PA Step Down Allocation workflow will fail (return an exception).
Allocations
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Viewing the Status of AutoAllocation Sets
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To view the status of an autoallocation set: 1. 2. Using the Projects responsibility, navigate to the View AutoAllocation Statuses window. Select the set you want to view and then choose a Find or Query command from the View menu. For more information about finding records, see: Using Query Find, Oracle Applications Users Guide. 3. To see the Allocation Workbench for this set, choose Allocation Workbench. As shown in the following table, you can see more
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information about a step by selecting the step, and then selecting an option:
To see more information about... A step The workflow process for the step Choose... Step Detail Monitor Workflow
Table 4 9 View Allocations Status window (Page 1 of 1)
Allocations
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4 24
CHAPTER
Asset Capitalization
his chapter describes how to create and maintain capital projects in Oracle Projects. It provides a brief overview of capital projects and explains how to create, place in service, adjust, and account for assets and retirement costs in Oracle Projects.
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Overview of Asset Capitalization

Using capital projects, you can define capital assets and capture constructioninprocess (CIP) and expense costs for assets you are creating. When you are ready to place assets in service, you can generate asset lines from the CIP costs and send the lines to Oracle Assets for posting as fixed assets. You can also define retirement adjustment assets and capture cost of removal and proceeds of sale amounts (collectively referred to as retirement costs, retirement workinprocess, or RWIP) for assets you are retiring that are part of a group asset in Oracle Assets. When your retirement activities are complete, you can generate asset lines for the RWIP amounts and send the lines to Oracle Assets for posting as adjustments to the accumulated depreciation accounts for the group asset that corresponds to each asset.
About Capital Projects

You use capital projects to capture the costs of capital assets you are building, installing, or acquiring. You also use capital projects to create retirement adjustment assets that you associate with a group asset in Oracle Assets. You use a retirement adjustment asset to capture the costs of removing, abandoning, or disposing of assets you want to retire. You can set up capital projects to capture capital asset costs only, retirement costs only, or to capture both capital asset costs and retirement costs.
Using Capital Projects to Create Capital Assets

You define and build capital assets in capital projects using information specified in the project work breakdown structure (WBS). You define asset grouping levels and assign assets to the grouping levels to summarize the CIP costs for capitalization. You can review and adjust capital project costs before and after capitalization. For example, you can allocate costs collected under common tasks to multiple CIP assets before you place them in service. You can also account for additional costs incurred after capitalization, since Oracle Projects allows you to place assets in service before completion of a project. When a CIP asset is ready to be placed in service, you send the capital project amounts to Oracle Assets as asset lines. Oracle Assets places
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the asset lines in a holding area where your fixed assets department can post the capital costs in Oracle Assets as fixed assets. You can review detail transactions associated with the asset lines in Oracle Projects and Oracle Assets. If necessary, you can reverse capitalize an asset in a capital project.
Using Capital Projects to Process Retirement Costs

You capture retirement costs in a capital project by recording cost of removal and proceeds of sale amounts to a task that is designated as a retirement cost task. To distinguish cost of removal and proceeds of sale amounts, you must enter proceeds of sale amounts using expenditure types that you define to specifically classify these amounts. Oracle Projects automatically classifies amounts for all other expenditure types as cost of removal. For more information, see: Defining Proceeds of Sale Expenditure Types, Oracle Projects Implementation Guide. To associate retirement costs with a group asset in Oracle Assets, you create a retirement adjustment asset in the capital project and identify it with a specific group asset. As with capital assets, you define asset grouping levels and assign retirement adjustment assets to the grouping levels to summarize the retirement cost amounts for posting to Oracle Assets. For more information, see: Creating a Retirement Adjustment Asset: page 5 15. When retirement activities are complete, you generate asset lines for the retirement cost amounts and send the lines to Oracle Assets for posting as adjustments to the accumulated depreciation accounts for the group assets. To communicate notice of an asset retirement to Oracle Assets, you can optionally initiate retirement requests in Oracle Projects that are automatically passed to Oracle Assets.
Attention: To use Oracle Projects retirement cost processing windows and features, the value of the sitelevel profile option PA: Retirement Cost Processing Enabled must be set to Yes. For more information, see: Profile Options in Oracle Projects, Oracle Projects Implementation Guide.
Capital Projects Processing Flow

Figure 5 1 shows the processing flow for capital projects.
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Figure 5 1 Capital Projects Processing Flow
You can enter expenditure items for CIP and RWIP amounts directly to capital projects from within Oracle Projects. You also can collect supplier invoice costs for your capital projects from Oracle Payables. When you are ready to place a CIP asset in service, you can send the associated CIP asset lines to Oracle Assets to become fixed assets. When you are ready to retire an asset in Oracle Assets, you can send the associated RWIP asset lines to Oracle Assets and post the lines as group depreciation reserve account adjustments. You use AutoAccounting in Oracle Projects to post entries to the the appropriate accounts in Oracle General Ledger.
Creating Purchase Orders for Capital Projects

When you create a purchase order for a capital project in Oracle Purchasing, you can enter a project, task number, and expenditure type for each projectrelated distribution line. You match this purchase order to an invoice in Oracle Payables, and then send the appropriate lines to Oracle Projects. You can use the asset category to assign an inventory items cost on a purchase order to an asset on a capital project in Oracle Projects. You define default asset categories for inventory items in Oracle Purchasing. After you match the purchase order to an invoice, and interface the invoice from Oracle Payables, Oracle Projects assigns the
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inventory items cost to an asset on the project that has the same asset category as the inventory item. If you assign purchase order distribution lines to asset clearing accounts instead of projects, Oracle Payables matches the purchase order to an invoice and sends the lines to Oracle Assets using the Mass Additions Create process. If both a project and an asset clearing account are used in the distribution line, the following occurs: If the project is a capital project: Oracle Payables posts the costs to the asset clearing account and the costs remain there until you place the asset in service in Oracle Projects. You can send the costs to Oracle Projects after you post the invoice to Oracle General Ledger. You cannot send costs to Oracle Assets from Oracle Payables when you run the Mass Additions Create process. If the project is a contract or indirect project: Oracle Payables posts the costs to the asset clearing account and, if you have sent the costs to Oracle Projects, Oracle Assets interfaces the costs to an asset cost account when you post the transaction from Oracle Assets to Oracle General Ledger. You can send the costs to Oracle Projects after you post the invoice to Oracle General Ledger. You can send costs to Oracle Assets from Oracle Payables when you run the Mass Additions Create process. A distribution line can have both a project and an asset clearing account only if the Account Generator process is set up to create the asset clearing account as the account segment, or if you enter the distribution line manually.
See Also
Integrating with Oracle Purchasing and Oracle Payables (Requisitions, Purchase Orders, and Supplier Invoices): page 7 24
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Charging Supplier Invoice Lines to Projects

The procedure for sending supplier invoice lines to Oracle Assets depends on whether or not the lines are associated with a capital project. If the Invoice is Associated with a Capital Project CIP and RWIP Lines: You cannot send supplier invoice lines directly from Oracle Payables to Oracle Assets if the invoice lines are associated with a capital project and are CIP or RWIP lines. Instead, in Oracle Payables you must do the following: Create the distribution lines on a supplier invoice Post the distribution lines to Oracle General Ledger. In Oracle General Ledger, your Account Generator setup determines to which accounts the invoices are posted. The usual practice is to charge capital projects to asset clearing accounts. Interface those lines to Oracle Projects Then, in Oracle Projects, place your CIP assets in service, specify retirement dates for any retirement adjustment assets, and interface the costs to Oracle Assets. Expense Lines: You can send distribution lines from Oracle Payables directly to Oracle Assets using the Mass Additions Create process. See: Mass Additions Create Program, Oracle Payables User Guide. If the Invoice is Associated with a Contract or Indirect Project You can send supplier invoice lines that are associated with contract or indirect projects directly from Oracle Payables to Oracle Assets. To do so, use the Mass Additions Create process. See: Mass Additions Create Program, Oracle Payables User Guide. In Oracle General Ledger, your Account Generator setup determines to which accounts the invoices are posted. The usual practice is to charge contract and indirect projects to an asset account.
See Also
Integrating with Oracle Purchasing and Oracle Payables (Requisitions, Purchase Orders, and Supplier Invoices): page 7 24
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Charging Labor, Expense Reports, Usages, and Miscellaneous Transactions to Capital Projects
You can enter labor, expense reports, asset usage, and miscellaneous transactions for your capital projects in Oracle Projects. You can set up Oracle Projects to calculate and record capitalized interest for CIP assets that require an extended amount of time to prepare for their intended use. The Distribute Labor, Expense Report, and Usage and Miscellaneous Costs processes charge the capital project costs to a CIP or RWIP account in Oracle General Ledger. Your AutoAccounting setup determines these accounts. Oracle Projects is the subsidiary ledger for your CIP and RWIP accounts in Oracle General Ledger. You can review the details for your CIP and RWIP accounts by querying your capital projects in Oracle Projects.
See Also
Processing PreApproved Expenditures: page 2 10 Capitalizing Interest: page 5 54 Overview of AutoAccounting, Oracle Projects Implementation Guide
Placing CIP Assets in Service

You enter a date placed in service for the CIP assets that are completed for a capital project. Then, you can run the Generate Asset Lines process, which uses the grouping method and levels you define to summarize all costs (supplier invoice, labor, expense reports, usages, and miscellaneous transactions) into asset lines. You associate these asset lines with one or more assets and send the lines to Oracle Assets to become fixed assets.
See Also
Placing an Asset in Service: page 5 27 Creating and Preparing Asset Lines for Oracle Assets: page 5 29
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Creating Fixed Assets from Capital Projects

You run the Interface Assets process to send asset lines from Oracle Projects to Oracle Assets. This process merges the asset lines into one mass addition line for each asset. The mass addition line appears in the Prepare Mass Additions Summary window in Oracle Assets as a merged parent with a cost amount of zero and a status of MERGED. The line description is identical to the description of the supplier invoice expenditure item in Oracle Projects. The following table shows an example of asset lines in Oracle Assets for an asset interfaced from Oracle Projects. When you submit the Post Mass Additions process, Oracle Assets assigns the same asset number to these lines. See: Group Supplier Invoices in Project Types: .
Queue
Description
Cost
Merge Parent Yes No No No No
Category
POST MERGED MERGED MERGED MERGED
CELL RADIO COMPUTER SERVICES OTHER EXPENSES LABOR MATERIAL
0.00 3,442.00 1,150.00 22,332.00 19,251.00
EQUIPMENT.TRANSMISSION EQUIPMENT.TRANSMISSION EQUIPMENT.TRANSMISSION EQUIPMENT.TRANSMISSION EQUIPMENT.TRANSMISSION
Table 5 1 Lines in Oracle Assets Interfaced from Oracle Projects (Page 1 of 1)
If you completely defined the asset in Oracle Projects and it is ready for posting, then Oracle Assets places the mass addition in the POST queue. If the asset definition is not complete, then Oracle Assets places the mass addition in the NEW queue. To complete the asset definition, you must enter the additional information in the Prepare Mass Additions window. After the asset definition is complete, you can update the queue status to POST. You do not need to change the queue status for lines with a status of MERGED. Use the Post Mass Additions process to create fixed assets from your mass addition lines. When you run the Create Journal Entries program, Oracle Assets creates journal entries to the appropriate CIP and asset cost accounts in Oracle General Ledger. For CIP assets, the CIP account comes from the asset lines generated in Oracle Projects and the asset account comes from the asset category associated with the asset.
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See Also
Sending Asset Lines to Oracle Assets: page 5 37 Integrating with Oracle Assets: page 7 45 Integrating with Oracle General Ledger, Oracle Projects Fundamentals
Sending Retirement Costs to Oracle Assets

The process flow for sending retirement costs to Oracle Assets is similar to that for placing CIP assets in service and sending CIP asset lines to Oracle Assets. When retirement activities are complete and you are ready to interface the retirement cost amounts to Oracle Assets, you must specify a date retired and ensure that a valid Oracle Assets group asset number is specified for the retirement adjustment asset. You submit the Generate Asset Lines process to create retirement cost lines for each retirement adjustment asset and expenditure type grouping (cost of removal and proceeds of sale). After you generate asset lines, you submit the Interface Assets process to post the retirement adjustment asset lines to the accumulated depreciation accounts for each group asset.
See Also
Specifying a Retirement Date for Retirement Adjustment Assets: page 5 28 Creating and Preparing Asset Lines for Oracle Assets: page 5 29 Sending Asset Lines to Oracle Assets: page 5 37 Integrating with Oracle Assets: page 7 45
Accounting for Asset Costs in Oracle Projects and Oracle Assets

You use AutoAccounting to define the accounting for your project costs in Oracle Projects. For capital projects, you must define AutoAccounting to account for CIP, RWIP, and expensed costs.
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When you use Oracle Projects to track your capital projects, Oracle Projects acts as a subsidiary ledger for CIP and RWIP costs, and Oracle Assets acts as a subsidiary ledger for the capitalized asset costs and the accumulated depreciation account adjustments. As you charge costs to a capital project, you create journal entries and post the entries to Oracle General Ledger. As you send the costs to Oracle Assets, you create journal entries to account for these transactions and also post them to Oracle General Ledger.
Example of Accounting for Asset Costs

In this example, a company creates a capital project to capture the costs of building a new clean room and installing air quality monitors. As part of this project, several air quality monitors are being removed and retired from an existing clean room that is being designated for other uses. Accounting for Capital Project Costs The following table shows the supplier invoice and expenditure item amounts charged to the capital project.
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Project Cost Details
Amounts
Supplier invoice for architectural drawings Supplier invoice for building contractor Supplier invoice for building permit penalty Subtotal Supplier invoice for new air quality monitors Total supplier invoice costs Employee labor for construction project management Employee expense report for miscellaneous costs Usage for use of company car Total construction costs Employee labor for removing old air quality monitors Total project costs Table 5 2 Capital Project Costs (Page 1 of 1)
2,000.00 5,500.00 200.00 7,700.00 2,500.00 10,200.00 1,400.00 250.00 55.00 11,905.00 500.00 12,405.00
Account for Supplier Invoice Transactions You post supplier invoice transactions from Oracle Payables to Oracle General Ledger before sending them to Oracle Projects. Workflow determines the journal entry in the following table for the supplier invoice transactions sent to Oracle Projects.
Account Debit Credit
CIP Clean Room CIP Air Quality Monitors Accounts Payable Trade
7,700.00 2,500.00 10,200.00
Table 5 3 Account for Supplier Invoice Transactions (Page 1 of 1)
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Account for Expenditure Items Entered in Oracle Projects You account for the employee labor, employee expense report, and usage transactions you enter in Oracle Projects with the journal entry shown in the following table:
CIP Clean Room RWIP Air Quality Monitors Cost of Removal Payroll Liability Expense Report Liability Usage Clearing
1,705.00 500.00 1,900.00 250.00 55.00
Table 5 4 Account for Expenditure Items Entered in Oracle Projects (Page 1 of 1)
Account for a Capital Cost Adjustment After reviewing the project costs, you determine that you cannot capitalize the building permit penalty that you recorded as part of the journal entry for the supplier invoice transactions. To correct this, you change the original transaction from capitalizable to noncapitalizable. Oracle Projects interfaces the supplier invoice transaction adjustment to Oracle Payables when you submit the Distribute Supplier Invoice Adjustment process. Oracle Payables then generates the adjustment entry shown in the following table and posts the entry to Oracle General Ledger.
Building Permit Penalty Expense CIP Clean Room
200.00 200.00
Table 5 5 Account for a Capital Cost Adjustment (Page 1 of 1)
Note: After you post the adjustment transaction, the total amount in Oracle General Ledger for the CIP Clean Room account is 9,205.00. Accounting for Asset Costs Each asset line created by the Generate Asset Lines process has an associated general ledger account. After you post the asset lines in
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Oracle Assets, you can run the Create Journal Entries process to create journal entries to transfer the cost amounts from either the CIP or RWIP account (as determined by the capital or retirement adjustment asset lines) to the corresponding fixed asset account or accumulated depreciation account (as determined by the asset category that is assigned to the capital or retirement adjustment asset). Account for Capital Assets After the the clean room is complete and the new monitors are installed, you place the assets in service and interface the CIP asset lines to Oracle Assets. After you post the assets in Oracle Assets, you submit the Create Journal Entries process to record the entry shown in the following table:
Assets Clean Room Assets Air Quality Monitors CIP Clean Room CIP Air Quality Monitors Table 5 6 Account for Capital Assets (Page 1 of 1)
9,205.00 2,500.00 9,205.00 2,500.00
Account for Retirement Adjustment Assets After the existing air quality monitors are removed, you specify a retirement date for the retirement adjustment asset and interface the RWIP asset lines to Oracle Assets. You submit the Create Journal Entries process to record the entry shown in the following table:
Accumulated Depreciation Air Quality Monitors Cost of Removal RWIP Air Quality Monitors Cost of Removal
500.00 500.00
Table 5 7 Account for Retirement Adjustment Assets (Page 1 of 1)
Note: As the final step in the process of accounting for the asset transactions illustrated in this example, you would initiate an asset retirement transaction in Oracle Assets for the air quality monitors that were removed from the clean room that is being taken out of service. You would then create
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journal entries to account for the retirement of the group asset cost associated with these monitors. For more information on processing retirement transactions, see: Asset Retirements, Oracle Assets User Guide.
See Also
Overview of AutoAccounting, Oracle Projects Implementation Guide
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Defining and Processing Assets

You can create capital assets and retirement adjustment assets using capital projects. When a capital asset is ready for use, you can place it in service in Oracle Projects and send the project asset information and asset cost amounts to Oracle Assets for posting as a fixed asset. When you retire an asset that is associated with a group asset in Oracle Assets, you can enter a retirement date for the retirement adjustment asset in Oracle Projects and send the retirement cost amounts to Oracle Assets for posting as an adjustment to the accumulated depreciation accounts for the group asset.
Creating Assets in Oracle Projects

After you create a capital project, you can create capital assets for assets you want to place in service as fixed assets. You can also create retirement adjustment assets to collect retirement costs for assets you want to retire that are associated with a group asset in Oracle Assets. You can define capital assets and retirement adjustment assets separately in different projects or together in the same project. You can define assets from either the Capital Projects window or from the Projects, Templates window. For more information, see: Defining Assets: page 5 19.
Creating a Capital Asset

You create capital assets and accumulate costs for fixed assets you are building, installing, or acquiring. You define an asset in Oracle Projects for each capital asset you want to place in service. To interface a capital asset to Oracle Assets, you must specify an in service date for the asset in Oracle Projects. For a complete list of attributes you can define for assets, see: Asset Attributes: page 5 21.
Creating a Retirement Adjustment Asset

You create retirement adjustment assets to collect cost of removal and proceeds of sale amounts for assets associated with a group asset in Oracle Assets that you are retiring, removing, abandoning, or otherwise disposing. When you define a retirement adjustment asset in Oracle Projects, you must specify a valid Oracle Assets group asset identifier as the target
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asset. You can create retirement adjustment assets and interface retirement costs to Oracle Assets only for fixed assets that are classified as group assets in Oracle Assets. To interface a retirement adjustment asset to Oracle Assets, you must specify a retirement date for the asset in Oracle Projects. For a complete list of attributes you can define for an asset, see: Asset Attributes: page 5 21. Processing Retirement Requests You can initiate a retirement request in Oracle Projects to identify one or more assets that you are retiring from service. Retirement requests serve as an advice that you can use to notify your fixed asset department about assets that need to be retired in Oracle Assets.
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To process a retirement request: 1. 2. Navigate to the Capital Projects window and choose the Requests button to open the Retirement Requests window. Choose the Create New Request button to open the Mass Retirements window and specify any combination of asset attributes to find one or more assets you want to retire. Save your work.
3.
After a retirement request is processed in Oracle Assets, you can return to the Retirement Requests window in Oracle Projects to view the retirement information.
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To view retirements: 1. 2. Navigate to the Capital Projects window and choose the Requests button to open the Retirement Requests window. Select a retirement transaction you want to view and choose View Retirements.
Capital Project Flow

Figure 5 2 illustrates the capital projects flow in Oracle Projects before you send asset lines to Oracle Assets. The steps shown in this flow are described in the text that follows the diagram.
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Figure 5 2 Capital Project Flow
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To create an asset in Oracle Projects: 1. Create a new capital project and WBS using a project template whose project type is set up for a capital project. Update project and task details if necessary. See: Creating a Project Template, Oracle Projects Fundamentals . You can also create assets when you copy an existing capital project. Assets associated with the existing project are copied to the new project, along with asset assignments. See: Creating a New Project from a Project Template or Existing Project, Oracle Projects Fundamentals. 2. Update the Transaction Controls, as appropriate, including which transactions can be capitalized by employee, expenditure category, expenditure type, or nonlabor resource. See: Specifying Which Capital Asset Transactions to Capitalize: page 5 18. Collect CIP, RWIP, and expensed costs for your capital project and make adjustments if necessary.
3.
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4.
Define CIP and retirement adjustment assets if necessary. See: Defining Assets: page 5 19. You can define assets manually or using project asset APIs. For more information see: Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. Specify asset grouping levels and grouping level types within the WBS. You can then associate assets with the various grouping levels. See: Assigning Assets to Grouping Levels: page 5 40. Specify the date in service for completed CIP assets or the date retired for retirement adjustment assets. See: Placing an Asset in Service: page 5 27, and Specifying a Retirement Date for Retirement Adjustment Assets: page 5 28. Optionally, define capital events to control how assets and costs are grouped, and placed in service or retired. See: Creating Capital Events: page 5 29. Generate Asset Lines. Review asset cost lines and make any necessary adjustments. See: Generating Summary Asset Lines: page 5 31. Run the Interface Assets process. See: Sending Asset Lines to Oracle Assets: page 5 37.
5.
6.
7.
8.
9.
Specifying Which Capital Asset Transactions To Capitalize

For capital assets, you must specify whether to capitalize or expense each transaction charged to a capital project. The capitalizable classification is similar to the billable classification for transactions charged to a contract project. The task and transaction controls you define determine the default value for this classification. Note: You cannot make an election on how to account for retirement costs you record to a retirement adjustment asset. Oracle Projects automatically classifies retirement costs as cost of removal or proceeds of sale amounts based on the expenditure type you use to record retirement transactions.
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To specify the level at which a capital asset transaction is capitalized: 1. Decide at which level you want to specify if a transaction can be capitalized, then navigate to the appropriate window, as shown in the following table:
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Control Level Entire Task Employee Expenditure Category NonLabor Resource Expenditure Item
Window Task Details Transaction Controls Transaction Controls Transaction Controls Expenditure Items (Tools menu)
Table 5 8 Capitalization Controls (Page 1 of 1)
2. 3.
Select the Capitalizable check box for the task control level you want. Save your work.
See Also
Controlling Expenditures: page 2 29 Transaction Controls, Oracle Projects Fundamentals
Defining Assets
To define a CIP and retirement adjustment assets for a capital project, you enter asset information, such as the asset name, asset number, book, asset category, and date placed in service or date retired. For a complete list of attributes you can define for an asset, see: Asset Attributes: page 5 21. When you create a capital project type, you can specify whether a complete asset definition is required in Oracle Projects before you can place the asset in service. See: Project Types, Oracle Projects Implementation Guide.
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To define assets in the Capital Projects window: 1. 2. 3. Navigate to the Capital Projects window. In the Find Capital Projects window, find the capital project for which you want to define assets. In the Capital Projects window, choose Assets.
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4. 5.
In the Assets window, select either the Capital Project Assets Workbench or the Retirement Adjustment Assets Workbench. Select or enter asset information in each tab of the Assets window. Suggestion: To view and enter all attributes for an asset in a single window, choose the Open button on the Assets window to open the Asset Details window. To create an asset, you must enter at least the Asset Name and Description. To create a retirement adjustment asset, you must also enter a valid group asset identifier in the Target Asset field.
6.
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Save your work.
To define assets in the Projects window: 1. 2. 3. Navigate to the Projects window. In the Find Projects window, find the capital project for which you want to define assets. In the Projects, Templates Summary window, choose Open. The Project, Templates window opens. 4. 5. For Options, choose Asset Information, Assets. Enter information for an asset. You can use the down arrow key or Edit, New Record from the menu if you want to enter more than one asset for this capital project. To create an asset, you must enter at least the Asset Name and Description. To create a retirement adjustment asset, you must also enter a valid group asset identifier in the Target Asset field. 6. Save your work.
Copying Assets
To streamline the definition of multiple project assets that have similar attributes, you can use the Copy Asset option on the Assets and Asset Details windows to copy assets within a project. When you select an asset and choose the copy option, Oracle Projects copies the selected asset to a new row and opens the Copy To window. The Copy To window prompts you to enter values for several key asset attributes that define a unique asset. Oracle Projects prompts you to enter the following attributes on the Copy To page: Asset Name
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Asset Description Project Asset Type When you copy an asset, Oracle Projects copies the asset with the same project asset type. For estimated assets, you can optionally copy the asset as an asbuilt asset. Asset Date The date you enter varies according to the project asset type you select. The date can be an estimated date placed in service (Estimated project asset type), actual date placed in service (AsBuilt project asset type), or a retirement date (Retirement Adjustment project asset type). Units Similar to the asset date, the unit amount you enter varies according to the project asset type you select. The unit amount can be estimated units (Estimated project asset type), actual units (AsBuilt project asset type), or retirement units (Retirement Adjustment project asset type). Asset Number When you enter attribute values in the Copy To window, you can also choose whether to copy the asset assignments. However, you cannot use the Copy Assets feature to copy asset lines or other asset information.
Asset Attributes
You must enter asset information when you define an asset in Oracle Projects. The Interface Assets process sends all asset information to Oracle Assets except for the asset name and estimated date in service. This section describes the attributes you can define for assets in Oracle Projects.
Asset Name
You must define a unique asset name for each asset within a project. You cannot change the asset name after you place the asset in service or specify a retirement date in Oracle Projects.
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Asset Number
An asset number uniquely identifies each asset. You can enter a unique asset number, or use automatic asset numbering in Oracle Assets during the Mass Additions process. You cannot update this field after you send the asset to Oracle Assets. If you enter an asset number, it must be unique and not in the range of numbers reserved for automatic asset numbering in Oracle Assets. You can enter any unique number that is less than the number in the Starting Asset Number field in the System Controls form, or you can enter any nonnumeric value.
Description
Use this field to provide a description of the asset you are building. You cannot update this field after you send the asset to Oracle Assets.
Asset Category
The asset category determines the default asset cost account and depreciation rules for the asset after you send the asset to Oracle Assets. You cannot update this field after you send the asset to Oracle Assets. Oracle Projects provides you with a list of asset category values defined in Oracle Assets and associated with the corporate book of the CIP asset. The asset category you choose here is not displayed in the Asset Lines window.
Asset Key
You can define an asset key to group assets or identify groups of assets independently of the asset category. This field does not have a financial impact.
Book
The Book field defines the corporate depreciation book of the asset. Oracle Assets determines default financial information from the asset category, book, and date placed in service for your asset after you send it to Oracle Assets. By default, this field displays the asset book defined in Oracle Projects Implementation Options. You can override this value at the asset level.
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Oracle Projects provides you with a list of corporate book values defined in Oracle Assets which match the Oracle Projects set of books. You can have multiple corporate books associated with one set of books in Oracle Assets.
Location
The location identifies the expected physical location of the asset after it is placed in service. Oracle Projects provides you with a list of valid locations defined in Oracle Assets.
Project Asset Type

This field identifies whether an asset represents an Estimated or complete, AsBuilt capital asset, or a Retirement Adjustment asset.
Event Number
This field identifies the capital event, if any, associated with the asset.
Estimated InService Date

Enter the date you estimate placing an asset in service. Use the Estimated InService Date to query and review assets you expect to be in service.
Estimated Retirement Date

Enter the date you estimate retiring an asset from service. Use the Estimated Retirement Date to query and review assets you expect to be retired.
Actual InService Date

This date represents the actual date you place an asset in service and begin using it. The date can be in the current or a prior accounting period. You must specify an actual inservice date for a completed asset in order to interface the asset to Oracle Assets. You cannot change this date after you place the asset in service in Oracle Projects. You may want to begin creating and reviewing asset lines prior to the period you intend to place the asset in service. You can enter a date in a future accounting period.
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Note: The Interface Assets process automatically rejects an asset with a future date in service.
Retirement Date
Use this field to enter the date you retire an asset from service. You cannot change this date after you interface a retirement adjustment asset to Oracle Assets.
Estimated Units
Use this field to capture an estimate of the number of components that make up or are installed for an asset.
Actual Units
The actual number of components for an asset. For example, if you build two assembly machines, enter 2 units for the asset. You cannot update this field after you send the asset to Oracle Assets. Oracle Projects uses the value in this field to allocate unassigned and common costs to assets when you select an asset cost allocation method of Actual Units.
Parent Asset
You can use this field to identify a parent asset for assets that you separately track and manage as asset components.
Estimated Cost
You can use this field to specify an estimated cost for the asset. Oracle Projects uses the value in this field to allocate unassigned and common costs to assets when you select an asset cost allocation method of Estimated Cost.
Manufacturer
Use this field to identify the manufacturer of an asset.
Model Number
Use this field to identify the model number of an asset.
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Serial Number
Use this field to capture the serial number of an asset. This number must be unique for the manufacturer in Oracle Assets.
Tag Number
Use this field to enter a userdefined tracking number for an asset. This number must be unique in Oracle Assets.
Product Source
This field identifies the external asset management asset system from which an asset is imported, if any.
Source Reference
The external asset management system identifier for an asset imported from an external asset management asset system, if any.
Employee Name
The name of the employee responsible for the asset when it is placed in service (not the project owner).
Employee Number
The employee number of the person responsible for the asset when it is placed in service.
Reverse
You can select this check box to identify an asset you want to reverse.
Capital Hold
You can select this check box to prevent any further costs from being charged to the asset.
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Depreciate
Check the Depreciate check box if you want to depreciate the asset in Oracle Assets.
Amortize Adjustments
Check the Amortize Adjustments check box if you want to amortize the catchup depreciation on a cost adjustment over the remaining life of the asset. If you do not check Amortize Adjustments, Oracle Assets expenses the catchup depreciation expense for the adjustment in one period. If you check this check box, you cannot deselect it once the asset has been interfaced to Oracle Assets.
Target Asset
Attention: If you select this field and reverse capitalize the asset, Oracle Assets will amortize the catch up depreciation on the negative cost adjustment over the remaining life of the asset. Therefore, the depreciation expense per period on the original asset cost will not match the depreciation amount generated per period to account for the asset cost reversal in Oracle Assets.
This field is displayed only for assets with a project asset type of Retirement Adjustment. You must use this field to specify the group asset in Oracle Assets that corresponds to the retirement adjustment asset for which you want to capture retirement costs.
Depreciation Account
This field identifies the expense account to which you charge depreciation for a capital asset. You must specify a book before you can enter a depreciation expense account. In addition, you must specify a depreciation account for a capital asset before you can interface the asset to Oracle Assets. You can optionally set up the Depreciation Account Override Extension to automatically derive the depreciation expense account based on the book and asset category that you define for the asset. You cannot update this field after you send the asset to Oracle Assets.
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See Also
Asset Setup Information, Oracle Assets User Guide
Placing an Asset in Service

When a CIP asset is complete, you place it in service. If your project has more than one CIP asset, you can place each asset in service as it is completed. You do not have to complete the entire project to place an asset in service. You place an asset in service by entering the Actual InService Date for the asset. Although you can collect expensed costs for a capital project, you cannot capitalize these costs. The Actual InService Date can be a past, current, or future date. After you enter the date, generate and interface the asset lines. Oracle Assets will calculate and record how much depreciation should have been taken for the asset.
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To capitalize CIP asset costs: 1. 2. Navigate to the Capital Projects window. Find the capital project whose assets you want to place in service by entering search criteria, such as estimated in service date, project name or number, project type, organization, key member, or class code, in the Find Capital Projects window. In the Capital Projects window, Oracle Projects displays the summarized expensed, CIP and interfaced project costs for each capital project. The Update Project Summary Amounts process updates expensed, CIP amounts; the Interface Assets process updates the interfaced amount. 3. 4. Choose the capital project you want and choose the Assets button. In the Assets window, select the Capital Project Assets Workbench option (if not already displayed), and enter the Actual InService Date for the asset you are placing in service. Compare the Estimated InService Date to the Actual InService Date. If unreasonable discrepancies exist, verify that the Actual InService Date for the asset is correct. Note: You cannot send assets to Oracle Assets whose actual date placed in service is later than the current Oracle Assets period date.
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5.
Enter a complete asset definition for the asset if you have set up Oracle Projects to only allow complete definitions to be sent to Oracle Assets. For a list of the fields required for a complete asset definition, see: Asset Attributes: page 5 21.
6.
Save your work.
Specifying a Retirement Date for Retirement Adjustment Assets

When the activities associated with retiring, removing, abandoning, or disposing of an asset are complete, you can specify a retirement date for the retirement adjustment asset to signify the retirement. Specifying a retirement date enables you to generate asset lines for the retirement costs captured in Oracle Projects. You can then interface the retirement asset lines to Oracle Assets for posting to the accumulated depreciation accounts for the associated group asset. If your project has more than one retirement adjustment asset, you can retire each asset as retirement activities are completed.
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To specify a retirement date for retirement adjustment assets: 1. 2. Navigate to the Capital Projects window. Find the capital project whose assets you want to retire by entering search criteria, such as project name or number, project type, organization, key member, or class code, in the Find Capital Projects window. In the Capital Projects window, Oracle Projects displays the summarized expensed, CIP, RWIP, and interfaced project costs for each capital project. The Update Project Summary Amounts process updates expensed and CIP and RWIP amounts; the Interface Assets process updates the interfaced amount. 3. 4. Choose the capital project you want and choose the Assets button. In the Assets window, select the Retirement Adjustment Assets Workbench option and enter the Retirement Date for the asset you are retiring. Compare the Estimated Retirement Date with the actual Retirement Date. If unreasonable discrepancies exist, verify that the Retirement Date for the asset is correct. 5. Save your work.
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Creating and Preparing Asset Lines for Oracle Assets

After you place your capital assets in service and specify retirement dates for your retirement adjustment assets, you can create, prepare, and send asset lines for the cost amounts to Oracle Assets. First, you must run the Generate Asset Lines process to create summary asset lines from the CIP and RWIP expenditure items and any cost adjustments. Before you run the Interface Assets process, review and adjust your asset lines if necessary. You can perform the following adjustments on your asset lines: Associate assets with unassigned asset lines Note: You can set up your capital projects to automatically associate assets with unassigned asset lines by defining an asset cost allocation method. For more information, see: Allocating Asset Costs: page 5 36. Change which asset is associated with a line Split an asset line into multiple asset lines and associate the new lines with different assets Change the line description
Creating Capital Events

You can create periodic and manual capital events to control how capital project assets and costs are interfaced to Oracle Assets over time. You use capital events to group assets and costs before you generate asset lines for capitalization and retirement cost processing. When you use periodic event processing, you submit a concurrent process that selects unprocessed assets and cost amounts for a project based on the inservice and expenditure item dates you specify in the process parameters. When you use manual event processing, you can specify the assets and costs that you want to include in the event, as well as the inservice and expenditure item dates. When you submit the Generate Asset Lines process for a capital project that uses capital events, Oracle Projects automatically generates asset lines for all defined, unprocessed capital events. You can specify a default event processing method for a capital project type and override it at the project level. H For information on specifying an event processing method in the Capitalization Information tab of the Project Types window, see: Project Types, Oracle Projects Implementation Guide.
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To specify an event processing method for a project, select a processing method in the Capital Information window for the project. For information, see: Capital Information, Oracle Projects Fundamentals.
Creating Periodic Events To create a periodic capital event, you must submit the PRC: Create Period Capital Events process. For information, see: Create Periodic Capital Events, Oracle Projects Fundamentals. Creating Manual Events You can create capital events from the Capital Projects window.
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To create a capital event: 1. 2. 3. 4. Navigate to the Capital Projects window. Find the capital project for which you want to define a capital event in the Find Capital Projects window. Choose the capital project you want and choose the Capital Events button. In the Capital Events window, select either the Capital Project Assets Workbench or the Retirement Adjustment Assets Workbench. Insert a new row to derive the (next) sequential event number, an event name, and optionally select a different asset allocation method. Save your work. To select assets for the event, choose the Assets button to open the Event Assets window and choose Attach New Assets. In the Attach New Asset window, enter selection criteria to find one or more assets to attach to the event and choose OK to return to the Event Assets window. Note: To detach an asset after it is selected, you can deselect the Include check box for the asset line. You can detach an asset from an event if asset lines have not been generated for the event, or if all asset lines for the event are reversed. 9. Save your work and close the Event Assets window to return to the Capital Events window.
5.
6. 7. 8.
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10. To select costs for the event, choose the Costs button to open the Event Costs window and choose Attach New Costs. 11. In the Attach New Costs window, enter selection criteria to find costs to attach to the event and choose OK to return to the Event Costs window. Note: To detach a cost item after it is selected, you can deselect the Include check box for the cost line. You can detach a cost item from an event if it has not been generated and grouped into an asset line, or if all asset lines for the cost item are reversed. 12. Save your work and close the Event Costs window to return to the Capital Events window. 13. To generate asset lines for the event, choose Generate. For more information, see: Generating Summary Asset Lines: page 5 31. You can view the status of the request in the Events window. Note: You can optionally reverse all assets for the event by choosing the Reverse button.
Generating Summary Asset Lines

The Generate Asset Lines process creates summarized asset lines for capital assets and retirement adjustment assets. H For capital assets, the process generates capital asset lines only from capitalizable expenditure items on tasks that are assigned to a capital asset with an actual date placed in service. For retirement adjustment assets, the process generates retirement adjustment asset lines only from expenditure items on tasks that are marked as Retirement Cost tasks, and are assigned to a retirement adjustment asset with a defined retirement date.
Oracle Projects creates asset lines based on the asset grouping level you choose within a project and the CIP grouping method you designate for the corresponding project type. The grouping level represents the WBS level at which you assign assets or group common costs. You determine the grouping level by assigning assets to a WBS component (for example, the project, a top task, or a lowest task), or by designating a WBS component as a grouping level for common costs. For more information on grouping levels, see: Asset Summary and Detail Grouping Options: page 5 39. The CIP grouping method determines how Oracle Projects summarizes asset costs within an asset grouping level. For example, you can choose
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to summarize asset costs by expenditure type or expenditure category. For more information on specifying a grouping method, see: Project Types, Oracle Projects Implementation Guide. The AutoAccounting rules you define for CIP and RWIP costs also influence the amount of summarization. Oracle Projects creates asset lines by summarizing by grouping level, grouping method, and CIP/RWIP account. When more than one asset is assigned to a grouping level or common costs are entered for a project, you must define an asset allocation method if you want Oracle Projects to automatically assign all asset costs to assets. Otherwise, you must manually assign any unassigned or common costs. For information on defining an asset allocation method, see Allocating Asset Costs: page 5 36. The following table describes how Oracle Projects maps costs to assets:
Number of assets assigned to a grouping level One asset assigned to a grouping level More than one asset assigned to a grouping level, only one asset is placed in service Expected results after running Generate Asset Lines process All detail costs charged to that level are automatically mapped to that asset. If the asset allocation method specified for the project has a value of None, then Oracle Projects generates asset lines for all costs, but does not assign an asset to the asset lines. If the asset allocation method is other than None, then Oracle Projects generates asset lines for the grouping level. However, costs are allocated and assigned only to the assets being placed in service. Costs are mapped to the single asset that matches the default asset category for that grouping level.
The cost distribution is for purchased goods from a purchase order which has an inventory item with a default asset category
More than one asset has the same asset When the asset allocation method specified for category as the default asset category the project has a value other than None, Oracle for a purchased item Projects creates asset lines, and allocates costs and assigns assets having the same default asset category to the asset lines. When the asset allocation method has a value of None, the assets are not assigned automatically. Table 5 9 Mapping Costs to Assets (Page 1 of 1)
Example of Mapping Costs to Assets For example, assume you assign one asset to a capital project at the project grouping level. As shown in the following table, you charge the
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following expenditure items to the project, all of which are capitalizable and charged to the same CIP account:
Expenditure Type Expenditure Category Amount
Supplies Supplies Professional Clerical Computer Meals Lodging Air Travel Miscellaneous Total Costs
Operating Operating Labor Labor Service Center Travel Travel Travel Operating
5,000.00 20,000.00 5,800.00 1,500.00 14,000.00 300.00 500.00 900.00 5,000.00 53,000.00
Table 5 10 Capital Expenditure Amounts (Page 1 of 1)
If you use a grouping method of Expenditure Category, Oracle Projects creates the asset lines shown in the following table:
Asset Lines Amount
Labor Operating Service Center Travel
7,300.00 30,000.00 14,000.00 1,700.00
Table 5 11 Grouping Method of Expenditure Category (Page 1 of 1)
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If you use a grouping method of Expenditure Type, Oracle Projects creates the asset lines shown in the following table:
Asset Lines Amount
Air Travel Clerical Computer Lodging Meals Miscellaneous Professional Supplies
900.00 1,500.00 14,000.00 500.00 300.00 5,000.00 5,800.00 25,000.00
Table 5 12 Grouping Method of Expenditure Type (Page 1 of 1)
If you use a grouping method of All, Oracle Projects creates a single asset line for the total cost amount of 53,000.00. Prerequisites
Before you run the Generate Asset Lines process, cost the
transactions by running the following processes: Distribute Labor Costs Distribute Expense Report Costs Distribute Usage and Miscellaneous Costs Distribute Supplier Invoice Adjustments Interface Supplier Invoices to Oracle Projects Distribute Total Burdened Costs (required if you are capitalizing burdened costs) You do not need to interface these costs to Oracle General Ledger before you create asset lines.
Run the Update Project Summary Amounts process so you can see
the total expensed, CIP, and RWIP amounts in the Capital Projects window.
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You can generate asset lines for a single project or capital event, and for a range of projects.
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To generate summary asset lines for a single project or capital event: 1. Navigate to the Capital Projects or Capital Events window. For capital events, select either the Capital Project Events Workbench or the Retirement Cost Events Workbench to continue. 2. 3. 4. Find and select a capital project or capital event for which you want to generate asset lines. Choose the Generate button. Enter the Asset Date Through. Oracle Projects creates asset lines from assets with an actual date placed in service/retirement date before and including this date only. For PA Through Date, enter the last day of the PA period through which you want the costs to be considered for capitalization. If you enter a date that falls within the PA period, the process uses the period ending date of the preceding period. If the date you enter is the end date of a period, the process uses the end date of that period, as shown in the example in the following table:
Period Start Date End Date You enter... The process uses...
5.
P1 P2
07Jun99 14Jun99
13Jun99 20Jun99
19Jun99 20Jun99
13Jun99 20Jun99
Table 5 13 Example: PA Through Date (Page 1 of 1)
6. 7.
Choose Include Common Tasks, if you want to create asset lines from costs assigned to a grouping level type of Common Cost. Choose OK to submit the Generate Asset Lines process. Oracle Projects creates asset lines for your project or event and runs the Generate Asset Lines Report. Review the Generate Asset Lines Report. See: Generate Asset Lines Report, Oracle Projects Fundamentals.
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You can also generate asset lines for a single project or capital event by submitting the PRC: Generate Asset Lines for a Single Project process from the Submit Request window.
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To generate summary asset lines for a range of projects: H Choose the PRC: Generate Asset Lines for a Range of Projects process in the Submit Request window. In the Parameters window, enter a project or range of projects, date placed in service/retirement date through, and PA through date. Also indicate if you want to include common tasks. Choose Submit to generate asset lines and run the Generate Asset Lines Report. Review the report to verify the creation of asset lines.
See Also
Generate Asset Lines, Oracle Projects Fundamentals
Allocating Asset Costs

You can specify an asset allocation method to enable Oracle Projects to automatically allocate unassigned asset lines and common costs across multiple assets. Unassigned asset lines typically occur when more than one asset is assigned to an asset grouping level. You can specify a default asset allocation method for a capital project type and override it at the project level. H For information on specifying an asset allocation method in the Capitalization Information tab of the Project Types window, see: Project Types, Oracle Projects Implementation Guide. To specify an asset allocation method for a project, select an allocation method in the Capital Information window for the project. For information, see: Capital Information, Oracle Projects Fundamentals. Actual Units: Costs are allocated based on the number of actual units specified for each asset in the Assets window. See: Asset Attributes: page 5 21. Client Extension: Costs are allocated based on the Asset Allocation Basis extension. For information, see: Asset Allocation Basis Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
You can select one of the following asset allocation methods:
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Current Cost: Costs are allocated based on the grouped CIP cost of each asset. Estimated Cost: Costs are allocated based on the estimated cost specified for each asset in the Assets window. See: Asset Attributes: page 5 21. Standard Unit Cost: Costs are allocated based on a standard unit cost defined for the asset book and category in the Project Assets Standard Unit Cost window. See: Define Standard Unit Costs for Asset Cost Allocations, Oracle Projects Implementation Guide. Spread Evenly: Costs are allocated evenly based on the number of assets being capitalized for the project or the event.
Sending Asset Lines to Oracle Assets

Run the Interface Assets process to send valid capital asset and retirement adjustment asset lines to Oracle Assets. Then, in Oracle Assets, you can review the mass addition lines created from the project asset lines in the Prepare Mass Additions window. For Oracle Projects to send asset lines to Oracle Assets, the asset line must meet these specific conditions: The actual date in service or retirement date must fall in the current or a prior Oracle Assets accounting period The CIP or RWIP costs for summarized asset lines must be interfaced to Oracle General Ledger The CIP or RWIP costs for supplier invoice adjustments must be interfaced to Oracle Payables A capital asset or retirement adjustment asset must be associated with the asset line The process creates one mass addition line in Oracle Assets for each asset line in Oracle Projects, assigning the asset information you entered for the asset in Oracle Projects to the mass addition line in Oracle Assets. You use the Mass Additions process in Oracle Assets to prepare and post these mass additions. If you did not enter all required asset information in Oracle Projects, you must enter it for the line in the Prepare Mass Additions window before you can post it. In Oracle Assets you can query and review assets posted to Oracle Assets by project number and task number in the Financial Inquiry window.
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Prerequisite
Interface your capital project costs from Oracle Projects to Oracle

General Ledger.
Interface costs for your supplier invoice adjustments to Oracle

Payables
If you are sending cost adjustments for an asset from Oracle

Projects to Oracle Assets, ensure that the original mass addition was posted to Oracle Assets. If the mass addition has not become an asset, the Interface process will reject the adjustment line.
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To send asset lines for a range of projects: H Choose PRC: Interface Assets process in the Submit Request window and enter the project or range of projects, and the date placed in service/retirement date up to which you want to process capitalized costs. Choose Submit to start the process and run the Interface Assets Report.
See Also
Interface Assets, Oracle Projects Fundamentals Overview of the Mass Additions Process, Oracle Assets User Guide About the Mass Additions Interface, Oracle Assets User Guide Mass Additions Reports, Oracle Assets User Guide
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Asset Summary and Detail Grouping Options

This section describes how Oracle Projects summarizes expenditures items into asset lines, how to group asset lines, and how to assign asset lines to assets.
Asset Grouping Levels

Grouping levels control how Oracle Projects summarizes expenditure items into asset lines. You can group by project, top task, or lowest level task. For example, if you group at the project level, Oracle Projects summarizes all capitalizable costs or retirement costs at all task levels into asset lines at the project level. If you group at a top task level, Oracle Projects summarizes all tasks below that top task into asset lines for that top task. See: Assigning Assets to Grouping Levels: page 5 40. If you have summarized the top task in the WBS branch, you cannot also summarize at the lowest level. For example, if Top Task 1 is a grouping level, you cannot also group at Task 1.1.1. If Task 2.2.1 is a grouping level, you cannot group at Top Task 2. If you group at the project level, you cannot group at any top or lowest level task. Note: You also use the grouping method assigned to your project type to summarize expenditure items. Grouping level types determine whether you can associate assets with the grouping level. For examples of grouping levels and grouping level types, see: Examples of Asset Grouping Levels: page 5 41 and Example of Asset Grouping Level Types: page 5 41.
Specifying Grouping Level Types

You can change the grouping level type at any time. If you change a grouping level type from Specific Assets to Common Costs, Oracle Projects deletes existing asset assignments from the grouping level. Changing the grouping level after you have interfaced assets does not affect the asset lines previously sent to Oracle Assets.
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To specify grouping level types: 1. 2. Navigate to the Find Projects window and enter selection criteria for a capital project. Select a project and choose Open. The Projects, Templates Summary window opens. To group by project, select Asset Information (in the Options area), select Asset Assignments, and then choose Detail. To group by task, choose Tasks (in the Options area). In the Find Tasks window, enter selection criteria. In the Tasks window, select a task and then choose Options. 3. For the project or each task, choose a grouping level type: Specific Assets: Select this option to associate assets with the project or task. The Generate Asset Lines process generates asset lines from the specific assets and costs you associate with this grouping level. Common Costs: Select this option to group projects or tasks that capture costs you want to allocate to multiple assets. You cannot associate assets with this grouping level type. If you specify an asset allocation method for the project with a value other than None, then the Generate Asset Lines process can allocate these costs across all project assets. If you specify an asset allocation method of None, then the Generate Asset Lines process creates unassigned asset lines for your common cost grouping levels, and you must manually allocate these common costs across assets. 4. Save your work.
Assigning Assets to Grouping Levels

To associate an asset with project costs, assign the asset to a grouping level. Oracle Projects associates with the specified asset all the asset lines created from the capital or retirement cost expenditure items for a grouping level. If you associate multiple assets with the same grouping level, then you must specify an asset allocation method (other than None) for the project to enable Oracle Projects to assign or allocate the asset lines to the various assets. Otherwise, you must perform this task manually manually.
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To assign assets to grouping levels: 1. Navigate to the Find Projects window, find your capital project, and then choose Open. The Projects, Templates window opens. 2. Select a project and choose Open. The Projects, Templates Summary window opens. To group by project, select Asset Information (in the Options area), select Asset Assignments, and then choose Detail. To group by task, choose Tasks (in the Options area). In the Find Tasks window, enter selection criteria. In the Tasks window, select a task and then choose Options. Assign a specific asset for each task that is in a Specific Asset grouping level. In the Task Options window, select Asset Assignment. Note: You can assign assets only to grouping levels with a type of Specific Assets. 3. 4. Choose the assets you want to assign to the grouping level. Save your work.
Example of Asset Grouping Level Types

You set up a construction management or an administrative task to capture project management activities. These costs do not apply to any specific asset. When the project is complete, you use a standard procedure to split the costs over all the assets. You associate these tasks with a grouping level so you can create asset lines from them, but you use a grouping level type of Common Costs so you can use the Split Asset Lines window to assign the costs to various assets manually.
Examples of Asset Grouping Levels

Figure 5 3 to Figure 5 6 illustrate four possible variations of asset grouping levels for the same project.
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Figure 5 3 Group at the Project level
Figure 5 3 shows that grouping is at the project level.

Figure 5 4 Group at Top Task level
In Figure 5 4, grouping is at the top task level (Task 1 and Task 2).
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Figure 5 5 Group at lowest level Tasks
In Figure 5 5, grouping is at the lowest task level (tasks 1.1, 1.2, 2.1, 2.2.1, and 2.2.2).
Figure 5 6 Group at different levels in each WBS
In Figure 5 6, grouping is at the top task level for the Task 1 branch (at Task 1) and at the lowest task level for the Task 2 branch (at Task 2.1, Task 2.2.1, and Task 2.2.2).
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Example of Asset Grouping and Assignment

Figure 5 7 Example of a Capital Project
Figure 5 7 illustrates an example of a capital project. All transactions on all tasks, except for Task 2.3, are capitalizable. The following grouping and assignment actions are applicable: Grouping levels: You create asset lines for Task 1.1, Task 1.2, Top Task 2, and Top Task 3 grouping levels You charge expenditure items to Tasks 2.1 and 2.2, and they are grouped together into asset lines for Top Task 2 You can charge expensed transactions only to Task 2.3, because Task 2.3 is not capitalizable Grouping level types: Task 1.1, Task 1.2, and Top Task 2 grouping levels are assigned the grouping level type Specific Assets Top Task 3 has a Common Costs grouping level type. Asset lines are created, but specific assets cannot be assigned to this grouping level You have to manually assign assets to the asset lines created for Top Task 3 Asset assignments: You associate Asset 1 with Task 1.1 and Task 1.2 (Single Asset associated with multiple grouping levels)
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You associate Asset 1 and Asset 2 with Task 1.2, and Asset 3 and Asset 4 to Top Task 2 (Multiple assets associated with a single grouping level)
See Also
Creating a Capital Asset in Oracle Projects: page 5 15 CIP Grouping Client Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
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Reviewing and Adjusting Asset Lines

This section describes how you can adjust asset lines created by the Generate Asset Lines process.
Assigning an Asset to Unassigned Asset Lines

When the Generate Asset Lines process creates asset lines without an asset assignment, you need to manually assign an asset to the line before you can send it to Oracle Assets. If you choose the Include Common Tasks check box when you generate asset lines, Oracle Projects creates asset lines from common task grouping levels as well as from specific assets grouping levels. Use the Common Costs grouping level type to group together tasks that capture costs you want to allocate to multiple assets. For more information on generating asset lines and how Oracle Projects maps costs to assets, see: Generating Summary Asset Lines: page 5 31. For information on how to define an asset cost allocation method for a project to automatically allocate common costs across multiple assets, see: Allocating Asset Costs: page 5 36. You can assign an asset to unassigned asset lines for a project or a capital event from the Asset Lines window. Note: If unassigned asset lines are associated with an event, you can only assign the lines to an asset that is included in the event.
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To assign an asset to unassigned lines: 1. 2. 3. Navigate to the Capital Projects window, choose the project you want, and choose the Lines button. Choose Find from the toolbar to open the Find Asset Lines window. Select No from the Assigned poplist within the Line region, and choose the Find button to find all unassigned asset lines for the project (Optional) Choose Details to view detail information for an asset line so you can identify the asset to assign. Assign an asset to the lines by entering the asset Name. Save your work.
4. 5. 6.
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Note: The Asset Line Details window is a folder. You can create folders to display additional fields. See: Customizing the Presentation of Data in a Folder, Oracle Applications System Administrators Guide.
Changing the Asset Assigned to an Asset Line

You can change the asset or description for an asset line in the Asset Lines window. However, you cannot change asset lines you have already sent to Oracle Assets.
Splitting an Asset Line

You can split an asset line and assign the split costs to multiple assets by using percentages or amounts. You can split lines with and without asset assignments. You can split an asset line for a project or a capital event from the Asset Lines window.
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To split an asset line for a project or a capital event: 1. Navigate to the Asset Lines window for a project or capital event. To open the Asset Lines window for a project, navigate to the Capital Projects window, select a project, and choose the Lines button. To open the Asset Lines window for a capital event, perform the following steps in the order listed: Navigate to the Capital Projects window, select a project, and choose the Capital Events button. In the Capital Events window, select a workbench option, if any, to display capital events or retirement cost events. Select an event and choose the Assets button. In the Event Assets window, select an asset and choose the Asset Lines button. 2. 3. 4. Choose the asset line you want to split. Choose the Split Line button to open the Split Asset Line window. Enter the Asset Name and the Amount or Percentage you want to split. The Unassigned fields indicate the amount and percent of the asset lines cost you have not yet assigned to an asset.
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5. 6.
Choose OK when you finish splitting the line. Save your work.
See Also
Generate Asset Lines Report, Oracle Projects Fundamentals
Adjusting Assets After Interface

You can adjust assets after they have been interfaced to Oracle Assets. You can adjust expenditure items whose costs are sent to Oracle Assets, and collect new expenditure items for an asset in Oracle Projects after you capitalize or retire an asset, and send the summarized asset lines to Oracle Assets. You process these cost adjustments in Oracle Projects and send them to Oracle Assets as adjusting asset lines. Your cost adjustments can be either positive or negative. For example, you receive a credit memo from a supplier for a capitalized asset you sent and posted to Oracle Assets. When you send this credit memo to Oracle Projects, you create new negative asset lines, which you can send to Oracle Assets as a negative cost adjustment to the original asset. Oracle Projects includes the information you enter for the asset on the adjusting asset line you send to Oracle Assets. Thus, if you specify to amortize depreciation adjustments for a capital asset in Oracle Projects, Oracle Assets amortizes any catchup depreciation amount for the adjustment over the remaining life of the asset. Otherwise, it expenses the catchup depreciation for the adjustment in the current period. Note: You cannot send cost adjustments to Oracle Assets until you have posted the original mass addition line (imported asset line) to Oracle Assets using the Post Mass Additions process.
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Adjusting Capital Project Costs

You can adjust capital project expenditure items associated with an asset you placed in service or sent to Oracle Assets. You can generate new asset lines for these adjusted expenditure items and interface them to Oracle Assets to adjust the original asset cost.
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To adjust capital project costs: 1. 2. Navigate to the Expenditure Items window. In the Find Expenditure Items window, enter your search criteria. To query by capitalizability or grouping level for your capital project, choose Yes in the Capitalizable poplist for the CIP/RWIP Status option. Choose the expenditure item you want to adjust. Use the Tools menu to choose the type of adjustment you want to make. You can choose from the following options: Capitalizable or NonCapitalizable to change the capitalizability of a capital asset expenditure item. Split to split the cost of the expenditure item. You must specify how you want to split the item in the Split Expenditure Item window. Transfer to transfer the expenditure item to another project or task. You must specify the destination project or task for this transfer in the Transfer Expenditure Item window. 5. 6. Save your work. Generate Asset Lines. See: Generating Summary Asset Lines: page 5 31.
3. 4.
Reversing Capitalization of Assets in Oracle Projects

If you placed an asset in service in error or sent inappropriate asset costs to Oracle Assets, you can reverse capitalization of the asset in Oracle Projects, and send the reversing line to Oracle Assets as an adjustment. When you reverse a capitalized asset in Oracle Projects, Oracle Projects creates reversing (negative) asset lines to offset the asset lines previously interfaced to Oracle Assets. The asset remains in Oracle Assets with a value of zero. Oracle Projects does not delete or dispose
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of the asset in Oracle Assets. You can use functionality within Oracle Assets to retire the asset if you do not ever plan to recapitalize the reversed asset. Notes: If you reverse capitalize an asset in Oracle Assets that was created from Oracle Projects, this transaction is recorded in Oracle Assets only, and not in Oracle Projects. If this happens, you cannot manually update the corresponding asset in Oracle Projects. You cannot send a reversing line to Oracle Assets until you have posted the original asset using the Post Mass Additions process. You cannot make a negative cost adjustment (reversal) to a mass addition not yet posted to Oracle Assets. When you choose the action to reverse capitalize an asset, Oracle Projects checks Oracle Assets to determine if the asset was retired previously. If yes, then Oracle Projects issues a warning message and you can either continue processing or cancel the reversal action.
Reversing Capitalization of a Capital Asset After Depreciation

Oracle Assets processes reversal transactions from Oracle Projects as negative cost adjustments to the original asset. If you have begun depreciating this asset, Oracle Assets must reverse the depreciation expense in the period you reverse capitalize the asset.
Attention: Before you reverse an asset, ensure that the Amortize Adjustment check box is unchecked for the asset. If you reverse capitalize an asset for which you specify to amortize adjustments, the monthly depreciation on the original cost will not equal the monthly depreciation generated to account for the asset cost reversal in Oracle Assets. Oracle Assets will amortize the catch up depreciation on the negative cost adjustment over the remaining life of the asset.
Reversing Capitalization of an Asset or Event

You can reverse capitalize an asset on a project from the Assets window. If the asset is associated with a capital event, then you must reverse the entire event. You can reverse a capital event from the Capital Events window.
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To reverse capitalization of an asset: 1. 2. 3. Navigate to the Capital Projects window. Find the project you want and choose Assets to open the Assets window. Choose the asset you want to reverse capitalize. Ensure that you do not amortize depreciation adjustments for a capital asset you want to reverse capitalize or recapitalize. You can specify whether to amortize adjustments in the asset definition. See: Defining Assets: page 5 19. 4. Choose the Reverse button. Oracle Projects automatically enables the Reverse check box for the asset you want to reverse capitalize. If you reversed the wrong asset, or you want to unreverse an asset before you run the Generate Asset Lines process, choose the asset and the Reverse button again to deselect the asset for reversal. 5. 6. Save your work. Run the Generate Asset Lines process to remove the Actual Date In Service or Retirement Date from the asset and create reversing entries you can send to Oracle Assets. See: Generating Summary Asset Lines: page 5 31. Review the Generate Asset Lines Report to verify creation of the reversing lines. See: Generate Asset Lines Process, Oracle Projects Fundamentals.
7.
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To reverse capitalization of a capital event: 1. 2. 3. 4. 5. 6. Navigate to the Capital Projects window. Find the project you want and choose the Capital Events button. In the Capital Events window, select a workbench option, if any, to display capital events or retirement cost events. Select an event and choose the Reverse button. Save your work. Run the Generate Asset Lines process to remove the Actual Date In Service or Retirement Date from the assets and create reversing entries you can send to Oracle Assets. See: Generating Summary Asset Lines: page 5 31.
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7.
Review the Generate Asset Lines Report to verify creation of the reversing lines. See: Generate Asset Lines Process, Oracle Projects Fundamentals.
Recapitalization of Reverse Capitalized Assets

If you need to recapitalize an asset, put the new Date Placed in Service in the Assets form in Oracle Projects so new asset lines will be created.
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Attention: You must also manually change the Date Placed in Service for the asset in the Asset Workbench in Oracle Assets, as the Date Placed in Service cannot be updated through the Mass Additions process.
To recapitalize a reverse capitalized asset: 1. 2. 3. 4. 5. Navigate to the Capital Projects window. Find the project you want and choose Assets to open the Assets window. Enter the Actual Date In Service or Retirement Date for the reverse capitalized asset. Save your work. In Oracle Assets, change the date placed in service or retirement date to match the date in Oracle Projects. See: Changing Asset Details, Oracle Assets User Guide. Generate asset lines to create new lines for the asset. See: Generating Summary Asset Lines: page 5 31.
6.
See Also
Asset Retirements, Oracle Assets User Guide Depreciation, Oracle Assets User Guide
Abandoning a Capital Asset in Oracle Projects

You can abandon a capital asset at any time.
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Before Interfacing to Oracle Assets

You can abandon a capital project prior to interfacing to Oracle Assets by changing all transactions from capitalizable to noncapitalizable.
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To change transactions from capitalizable to noncapitalizable: 1. 2. 3. Navigate to the Expenditure Inquiry window. Select all expenditures for the project where the Capitalizable column is checked. From the Tools menu, choose NonCapitalizable. If cost distribution has been run on the expenditures, the Cost Distributed column check box will change to unchecked. Run the distribute labor, expense, and usage costs processes and the PRC: Distribute Supplier Invoice Adjustment Costs process. If you are using burdening, run the PRC: Distribute Total Burdened Costs process. Interface the costs to GL and AP. When you post the costs to Oracle General Ledger, the system will create entries that transfer these costs from the CIP account to the Expense account. The AutoAccounting rules you set up determine these accounts.
4.
5.
After Interfacing to Oracle Assets

If you have already interfaced the asset you want to abandon, you must reverse capitalize the asset in the Assets window in Oracle Projects. You also need to send the reversing lines to Oracle Assets to account for the abandoned CIP asset. The Generate Asset Lines process creates reversal lines and the Interface Assets process interfaces them to Oracle Assets.
See Also
Specifying Which Capital Asset Transactions to Capitalize: page 5 18 Reversing Capitalization of Assets in Oracle Projects: page 5 49
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Capitalizing Interest
This section describes how to calculate and record capitalized interest for capital projects.
Overview of Capitalized Interest

Capitalized interest (also referred to as Allowance for Funds Used During Construction) is an estimate of the interest cost that enterprises incur when they invest in longterm capital projects. Subject to accounting rules and regulatory guidelines, enterprises can capitalize interest as part of the total cost of acquiring and constructing assets that require an extended amount of time to prepare for their intended use. To accommodate this business requirement, Oracle Projects enables you to calculate and record capitalized interest for capital projects. To meet the requirements of regulated businesses such as those in the utilities industry that can recognize multiple types of capital interest, you can set up Oracle Projects to separately calculate capitalized interest for multiple interest types such as debt and equity. The process for generating and recording capitalized interest transactions includes the following tasks: H Defining rate names and rate schedules: You define capitalized interest rate names to represent the interest types you want to capitalize. After you define rate names, you can create and maintain capitalized interest rate schedules to assign rates to each organization. For more information, see: Defining Capitalized Interest Rate Names and Rate Schedules: page 5 55. Setting up capital projects for capitalized interest: To correctly calculate capitalized interest for all eligible capital projects, you must ensure that the capital information options for each project are defined. You must also assign each project a status that allows capitalized interest. For more information, see: Setting Up Capital Projects for Capitalized Interest: page 5 56. Generating capitalized interest expenditure batches: To generate interest expenditures, you periodically submit the Generate Capitalized Interest Transactions process. See: Generating Capitalized Interest Expenditure Batches: page 5 57. Reviewing capitalized interest expenditure batches: After you generate capitalized interest expenditure batches, you can review the transactions for accuracy. If necessary, you can delete or
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reverse a batch to allow regeneration. See Reviewing Capitalized Interest Expenditure Batches: page 5 57.
Defining Capitalized Interest Rate Names and Rate Schedules

To calculate capitalized interest, you must define a rate name for each type of interest you want to capitalize and define rate schedules to assign interest rates to organizations.
Defining Capitalized Interest Rate Names

You define a unique rate name for each type of interest you want to capitalize. For example, you can define a rate name to maintain interest rates for debt and another to maintain interest rates for equity. For each rate name, you can define thresholds that determine when the calculation of interest begins for eligible projects. You can select interest calculation basis attributes that determine how interest amounts are calculated. For example, you can select an interest method to specify whether interest is calculated on a simple or compound basis. You can also specify a period rate convention to determine whether interest amounts are spread evenly across accounting periods or are derived based on the number of days in each accounting period. You can control the CIP balance on which interest is calculated by specifying a current period convention and expenditure type exclusions. The current period convention specifies how much of the current period CIP costs are included in the CIP balance. Expenditure type exclusions enable you to specify types of costs that you want to exclude from the CIP balance. For more information, see: Capitalized Interest Rate Names, Oracle Projects Implementation Guide.
Defining Capitalized Interest Rate Schedules

You define interest rate schedules to create and maintain rates for interest calculation. You maintain rates by organization and rate name. You can specify an interest rate schedule for each project type. The rate schedule you define for a project type is the default rate schedule for all projects you create for the project type. You can optionally allow override of the default rate schedule at the project level.
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For more information, see: Capitalized Interest Rate Schedules, Oracle Projects Implementation Guide.
Setting Up Capital Projects for Capitalized Interest

To correctly calculate capitalized interest for all eligible capital projects, you must ensure that the capital information options for each project are defined appropriately, and assign each project a status that allows capitalized interest.
Defining Capital Information Options

The following fields in the Capital Information options window control the calculation of capitalized interest for a capital project: H Allow Capital Interest: This field defines whether a project is eligible for capitalized interest. By default, Oracle Projects enables this option for all capital projects. You can deselect or select this option at any time. Capital Interest Schedule: This field displays the default capitalized interest rate schedule specified for the project type, if any. If the Allow Schedule Override option is enabled for the project type, then you can override the default interest rate schedule value at the project level. Capital Interest Stop Date: You can optionally specify a date beyond which a project is not eligible for capitalized interest. To calculate interest, this field must either be blank or contain a date that is later than the end date of the GL period for which you want to calculate interest. Note: The Allow Capital Interest and Capital Interest Stop Date fields are also available at the task level. You can use these fields to control the calculation of capitalized interest for individual tasks. For additional information on defining capital information options for projects and tasks, see: Capital Information, Oracle Projects Fundamentals. For information on assigning capitalized interest rate schedules to project types, see: Specifying Capitalized Interest Rate Schedules for Project Types, Oracle Projects Implementation Guide.
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Assigning a Project Status

In addition to defining capital information options to enable the calculation of capitalized interest, you must assign each eligible project a status that allows capitalized interest. For more information, see: Setting Project Status Controls for Capitalized Interest, Oracle Projects Implementation Guide.
Generating Capitalized Interest Expenditure Batches

To generate and record capitalized interest expenditures, you must submit the PRC: Generate Capitalized Interest Transactions process. This process calculates capitalized interest and generates transactions for eligible projects and tasks. For information on submitting this process and the processing parameters that you can select, see: Generate Capitalized Interest Transactions, Oracle Projects Fundamentals. When you submit the Generate Capitalized Interest Transactions process, you can specify whether expenditure batches are released automatically. If the expenditure batches are not released automatically, then you must release them manually in the Review Capitalized Interest Runs window. For more information, see: Reviewing Capitalized Interest Expenditure Batches: page 5 57. The generate process charges interest expenditures to the same tasks as the expenditure items on which interest was calculated. The expenditure organization and expenditure type values for the interest transactions are derived based on the expenditure organization source and expenditure type attributes defined for the interest rate name. For more information, see: Capitalized Interest Rate Names, Oracle Projects Implementation Guide.
Reviewing Capitalized Interest Expenditure Batches

After you submit the PRC: Generate Capitalized Interest Transactions process, you can check the status of each run and review the process results in the Review Capitalized Interest Runs window. From this window you can view capitalized interest expenditure batches, transactions, and exceptions. You can generate, review, and delete draft expenditure batches until you are satisfied with the results. To view transactions that generated successfully, select a batch and choose the Transactions button. If a
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batch generated with warnings or errors, then you can select the draft and choose the Exceptions button to view the exception details. To record the transactions in an expenditure batch, you must release the batch. You can reverse an expenditure batch after it is released successfully. Note: You cannot generate a draft expenditure batch if a draft already exists for the same projects and GL period. The following table describes the possible run statuses displayed in the Review Capitalized Interest Runs window.
Run Status In Process Draft Success Draft Failure Description The process is not complete. The process created draft transactions that are ready for release. The process encountered warnings or errors. Draft transactions may be incomplete. Review the exceptions. If exceptions exist for one or more projects, then you can release the batch to release the successfully generated transactions. After you resolve the exceptions, you can create a new run to process the exception project or projects. Transactions are released. The release process failed. After you resolve the release issues, you can release the batch again.
Release Success Release Failure
Table 5 14 Run Statuses (Page 1 of 1)
Releasing, Reversing, and Deleting Capitalized Interest Expenditure Batches

The rules for releasing, reversing, and deleting capitalized interest expenditure batches are as follows: H H H Releasing expenditure batches: You can release batches with the status Draft Success or Release Failure.
Reversing expenditure batches: You can reverse expenditure

batches with the status Release Success. Deleting expenditure batches: You can delete expenditure batches with the status Draft Success, Draft Failure, and Release Failure. You cannot delete batches with the status In Process. In addition, you cannot delete batches after they are reversed or released successfully.
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CHAPTER
Cross Charge
his chapter describes accounting within and between operating units and legal entities.
Cross Charge
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Overview of Cross Charge

Enterprises face complex accounting and operational project issues that result from centralized project management through sharing of resources across organizations. Oracle Projects provides the following cross charge features to address these issues: Borrowed and Lent Accounting: This feature creates accounting entries to pass costs and revenue across organizations without generating internal invoices. Intercompany Billing Accounting: This feature creates internal invoices and accounting entries to pass costs and share revenue across organizations. In addition to these two features that enable you to charge costs across organizations, Oracle Projects interproject billing features enable you to charge costs between projects. For detailed information on this feature, see InterProject Billing, Oracle Project Billing User Guide. Cross charge features depend on multiple organization support in Oracle Projects and other Oracle Applications. In addition, these features support multinational projects, which also call for other currency exchange management functionality. For more information, see: Providing Data Access Across Business Groups, Oracle Projects Fundamentals. Note: To use the intercompany billing feature (for cross charge) you must implement both Oracle Project Costing and Oracle Project Billing.
See Also
Setting Up for Cross Charge Processing: Borrowed and Lent, Oracle Projects Implementation Guide Setting Up for Cross Charge Processing: Intercompany Billing, Oracle Projects Implementation Guide
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Cross Charge Business Needs and Example

When projects share resources within an enterprise, it is common to see those resources shared across organization and country boundaries. Further, project managers may also divide the work into multiple projects for easier execution and management. The legal, statutory, or managerial accounting requirements of such projects often present complex operational control, billing, and accounting challenges. Oracle Projects enables companies to meet these challenges by providing timely information for effective project management. Project managers can easily view the current total costs of the project, while customers receive bills as costs are incurred, regardless of who performs the work or where it is performed.
Project Structures Example

To provide a better understanding of cross charge concepts and the difference between cross charge and interproject billing options, the scenarios shown in the following example illustrate how projects can be structured. Note: The project in this example is a contract project and is used for illustrative purposes only. You can apply most of the features described in this document to other types of projects. Company ABC, as shown in Figure 6 1, is an advertising company with a multiple organization structure.
Figure 6 1 Organization Structure of Company ABC
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The Los Angeles operating unit, ABCs headquarters, receives a contract from a customer in the United Kingdom (UK). The customer wants ABC to produce and air live shows in San Francisco, New York, and Tokyo to launch its new line of highend womens apparel. The customer wants to be billed in British Pounds (GBP). ABC calls this project Project X and will track it using Oracle Projects. ABC will plan and design the show using resources from the Los Angeles operating unit. Employee EMPJP from its Japan subsidiary will act as an internal consultant to add special features to suit the Japanese market. The San Francisco, New York, and Tokyo operating units are each responsible for the successful execution of these live shows with their local resources. Based on this scenario, each operating unit can incur costs against Project X. Consider the following labor transaction, which is summarized in the table that follows. Employee EMPJP of Japan worked 10 hours meeting with the customer in Japan to learn about the new product. Employee EMPJPs cost rate is 5,000 JPY per hour. Employee EMPJPs standard bill rate is USD 400 per hour. Employee EMPJPs internal bill rate, if applicable, is USD 200 per hour, or 50% of the standard bill rate. Note: Currency conversion rates: 1 USD = 100 JPY; 1 USD = .75 GBP
Sample Transaction (10 hours of labor) Cost Revenue Invoice Internal Billing Revenue Transaction Currency Amounts 50,000 JPY 4,000 USD 3,000 GBP 2,000 USD Functional Currency Amounts 50,000 JPY 4,000 USD 4,000 USD 200,000 JPY Project Currency Amounts 500 USD 4,000 USD 4,000 USD
Table 6 1 Employee EMPJP Labor Transaction (Page 1 of 1)
Project Structure: Distinct Projects by Provider Organization The following structure is shown in Figure 6 2: Company ABC divides Project X into four distinct contract projects: Project X1, Project X2, Project X3 and Project X4.
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Each operating unit owns its respective project (Los Angeles owns X1, San Francisco owns X2, New York owns X3, and Tokyo owns X4) and bills the project customer directly.
Figure 6 2 Distinct Projects by Provider Organization
Requirements: Oracle Project Costing Oracle Project Billing Advantages: Simplicity, since the operating units create and process their projects independently. Disadvantages: The company must divide the project work properly, and each resulting project requires an agreement, funding, and a budget to generate customer invoices. In addition, the customer may not want to receive separate invoices from different organizations in your enterprise. Communication and control across the projects for collective status can be difficult. Project Structure: Single Project Using the structure shown in Figure 6 3, the Los Angeles operating unit (the project owner, or receiver organization) centrally manages Project X. All four operating units (the provider organizations) incur project costs and charge them directly to Project X.
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Figure 6 3 Single Project
Requirements: Oracle Project Costing Oracle Project Billing Implementation of the cross charge feature Depending on the method you choose to process cross charge transactions (borrowed and lent accounting or intercompany billing accounting), this solution may also require intercompany billing for the automatic creation of internal invoices. Advantages: Simple project creation and maintenance, since this solution requires a single project. All of the expenditures against Project X, cross charged or not, are available for external customer billing and project tracking via Project Status Inquiry. The customer receives timely, consolidated invoices from Los Angeles for all the work performed regardless of which operating unit provides the resources. Disadvantages: Requires additional initial overhead for implementing the cross charge feature and creating intercompany billing projects to collect cross charge transactions within each provider organization.
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Project Structure: Primary Project with Subcontracted Projects Using the structure shown in Figure 6 4, Company ABC divides Project X into several related contract projects. The Los Angeles operating unit owns the primary customer project, or receiver project, and bills the external customer. The related projects, or provider projects, are subcontracted to their respective internal organizations and internally bill the Los Angeles organization to recoup their project costs.
Figure 6 4 Primary Project with Subcontracted Projects
Requirements: Oracle Project Costing Oracle Project Billing Implementation of interproject billing features Advantages: Flexibility in managing the provider projects. Each provider project is treated and processed the same way as any external customer contract project. Disadvantages: As with the distinct project structure, this solution requires additional overhead in creating and managing three additional provider projects. The receiver projects status and external customer invoicing depend upon timely completion of the internal billing from all provider projects.
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Cross Charge Types

Oracle Projects provides three types of cross charge transactions as shown in the following table. A transactions cross charge type depends on whether the provider operating unit, organization, and legal entity are different from those of the receiver.
Cross Charge Type Intercompany Interoperating unit Intraoperating unit Conditions Operating units and legal entities are different Operating units are different, but legal entities are the same Operating units and legal entities are the same, but the organizations are different
Table 6 2 Cross Charge Types (Page 1 of 1)
Note: You cannot change the provider or receiver operating unit, but you can use the Provider and Receiver Organizations Override client extension to override the default provider organization and receiver organization. For more information on this client extension, see: Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. Figure 6 5 shows shows the potential cross charge type relationships for the four organizations shown in Figure 6 1 when they charge costs to Project X in the Los Angeles operating unit.
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Figure 6 5 Potential Cross Charge Types for Company ABC
The following table summarizes the characteristics of the potential cross charge type relationships shown in Figure 6 5.
Cost Transactions from the following Provider Operating Units Expenditure Organization Equals Project Organization Same Legal Entity Same Business Group CrossCharge Type Relationship
Los Angeles Los Angeles San Francisco
Yes No No
Yes Yes Yes
Yes Yes Yes
Non CrossCharged Transactions IntraOperating Unit Transactions InterOperating Unit Transactions
Table 6 3 Potential Cross Charge Types for Company ABC (Page 1 of 2)
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Cost Transactions from the following Provider Operating Units
Expenditure Organization Equals Project Organization
Same Legal Entity
Same Business Group
CrossCharge Type Relationship
New York Tokyo
No No
Yes No
Yes Yes
InterOperating Unit Transactions InterCompany Transactions
Table 6 3 Potential Cross Charge Types for Company ABC (Page 2 of 2)
Cross Charge Processing Methods and Controls

This section describes cross charge processing methods and processing control options.
Cross Charge Processing Methods

You can choose one of the following processing methods for cross charge transactions: Borrowed and Lent Accounting (interoperating unit and intraoperating unit cross charges) Intercompany Billing Accounting (intercompany and interoperating unit cross charges) No Cross Charge Process (intercompany, interoperating unit, and intraoperating unit cross charges) Borrowed and Lent Accounting When you use this method, Oracle Projects creates accounting entries to pass costs and revenue across organizations without generating internal invoices. Oracle Projects determines the appropriate cost or revenue amounts based on the transfer price rules of the provider and receiver organizations. Borrowed and lent accounting entries provide a financial view of an organizations performance. This processing method is generally used to measure organizational financial performance for management reporting purposes. For more information, see: Processing Borrowed and Lent Accounting: page 6 25.
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Intercompany Billing Accounting Companies choose the intercompany billing method largely due to legal and statutory requirements. When you use this method, Oracle Projects generates physical invoices and corresponding accounting entries at legal transfer prices between the internal seller (provider) and buyer (receiver) organizations when they cross a legal entity boundary or operating units. For more information, see: Processing Intercompany Billing Accounting: page 6 31. No Cross Charge Process Companies generally process cross charges in Oracle Projects using the borrowed and lent or intercompany billing method. However, companies may not need to process cross charge transactions, if, for example, intercompany billing has been performed manually in General Ledger or automatically by an external system. You can use cross charge controls to identify which cross charge transactions will undergo cross charge processing. See: Cross Charge Controls: page 6 11.
Cross Charge Controls

Cross charge controls specify: Which projects and tasks in which operating units can receive transactions from a provider operating unit How Oracle Projects processes these cross charged transactions Crosscharge controls affect all cross charge transactions, regardless of how you enter them. For maximum control, you can use a combination of cross charge and transaction controls to ensure that only valid cross charges are charged to a specific project and task. Cross charge controls are defined at the operating unit, project, and task levels. Oracle Projects applies these controls based on a transactions cross charge type and cross charge processing method. IntraOperating Unit Cross Charge Controls You can charge intraoperating unit cross charges (that is, charges within an operating unit) to any project and task owned by your expenditure operating unit. You can modify the transaction control extension to restrict intraoperating unit cross charge transactions.
Cross Charge
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InterOperating Unit Cross Charge Controls Oracle Projects provides controls to identify: Which projects and tasks in a receiver operating unit can receive interoperating unit cross charges from a provider operating unit Which cross charge processing method to apply to these transactions. Steps performed by the provider operating unit: Define cross charge implementation options: Specify whether to allow cross charge and select a default processing method. Define internal billing implementation options: Specify whether the operating unit is a provider for internal billing. Define provider controls: Select a processing method and specify the name of the intercompany billing project. Steps performed by the receiver operating unit: Define internal billing implementation options: Specify whether the operating unit is a receiver for internal billing. Define receiver controls: Specify the name of each provider operating unit that can charge transactions to the specified receiver operating unit. Enable cross charge for projects: In the Projects window (Cross Charge option), select Allow Charges from other Operating Units. Intercompany Cross Charge Controls Oracle Projects provides flexible controls to identify: Which projects and tasks in a receiver operating unit can receive intercompany cross charges from a provider operating unit Which cross charge processing method to apply to these transactions. Steps performed by the provider operating unit Define internal billing implementation options: Specify whether the operating unit is a provider for internal billing. Define provider controls: Specify the name of each receiver operating unit that can receive transactions from the specified provider operating unit. Also, select a processing method and specify the name of the intercompany billing project.
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Steps performed by the receiver operating unit Define internal billing implementation options: Specify whether the operating unit is a receiver for internal billing. Define receiver controls: Specify the name of each provider operating unit that can charge transactions to the specified receiver operating unit. Enable cross charge for projects: In the Projects window (Cross Charge option), select Allow Charges from other Operating Units. Note: If Cross Business Group Access is enabled, the provider and receiver operating units can be in different business groups. See Security, Customizing, Reporting, and System Administration in Oracle HRMS.
See Also
Cross Charge, Oracle Projects Fundamentals Define Cross Charge Implementation Options, Oracle Projects Implementation Guide Defining Internal Billing Implementation Options, Oracle Projects Implementation Guide Defining Provider and Receiver Controls, Oracle Projects Implementation Guide
Cross Charge Processing Controls

Cross charge processing controls determine which cross charge method and transfer price rule should be applied to the cross charged transaction. This section describes the cross charge process controls. Implementation Options For each provider operating unit or receiver operating unit involved in the cross charge, the Implementation Options window Cross Charge and Internal Billing tabs specify: The default transfer price conversion attributes
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The default cross charge methods for intraoperating unit and interoperating unit cross charges Attributes required as the provider of internal billing Attributes required as the receiver of internal billing See: Define Cross Charge Implementation Options, and Defining Internal Billing Options in the Oracle Projects Implementation Guide. Provider and Receiver Controls Setup For each provider operating unit or receiver operating unit involved in the cross charge, the Provider/Receiver Controls window Provider Controls and Receiver Controls tabs specify: The cross charge method to use to process intercompany cross charges and to override default cross charge method for interoperating unit cross charges. Attributes required for the provider operating unit to process intercompany billing to each receiver operating unit. This includes the Intercompany Billing Project and Invoice Group. Attributes required for the receiver operating unit to process intercompany billing from each provider operating unit. This includes the supplier site, expenditure type and expenditure organization. See: Defining Provider and Receiver Controls, Oracle Projects Implementation Guide. Transfer Price Rules and Schedule Setup Transfer price rules control the calculation of transfer prices for labor and nonlabor cross charged transactions. To drive transfer price calculation for cross charge transactions between the provider and receiver, use the Transfer Price Schedule window to assign labor or nonlabor (or both) transfer price rules to the provider and receiver pair on a schedule line. See: Transfer Pricing: page 6 17. Multiple lines in a transfer price schedule could potentially apply to a cross charged transaction. Oracle Projects identifies the appropriate schedule line based on the following hierarchy (in ascending order): Organization Parent Organization Operating unit
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Legal entity Business group The following steps are performed to identify the appropriate schedule line: 1. If a schedule line exists for the transaction expenditure organization (provider) and the project/task owning organization (receiver), then the corresponding rule is used to calculate the transfer price. If a schedule line is not located, Oracle Projects checks for a line with the provider organization and (in order) a receiver parent organization, the receiver operating unit, the receiver legal entity, or the receiver business group. When searching for receiver organization parents, the Project/Task Owning Organization Hierarcy defined in the Implementation Options of the receiver operating unit is used. If the receiver organization has multiple intermediate parents and schedule lines are defined for more than one of the parents, the schedule line defined for the lowest level parent takes precedence over schedule lines defined for parents higher in the organization hierarchy. 3. If a schedule line is not located, Oracle Projects checks for a line with a provider parent organization and (in order) the receiver organization, recevier parent organization, receiver operating unit, receiver legal entity, or business group. When searching for provider organization parents, the Expenditure/Event Organization Hierarcy defined in the Implementation Options of the provider operating unit is used. If the provider organization has multiple intermediate parents and schedule lines are defined for more than one of the parents, the schedule line defined for the lowest level parent takes precedence over schedule lines defined for parents higher in the organization hierarchy. 4. If a schedule line is not located, Oracle Projects checks for a line with the Provider Operating unit and (in order) the receiver organization, receiver parent organization, receiver operating unit, receiver legal entity, or business group. If a schedule line is not located, Oracle Projects checks for a line with the provider legal entity and (in order) the receiver
2.
5.
Cross Charge
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organization, recevier parent organization, receiver operating unit, receiver legal entity, or business group. 6. If a schedule line is not located, Oracle Projects checks for a line with the provider business group and (in order) the receiver organization, receiver parent organization, receiver operating unit, receiver legal entity, or business group.
Project and Task Setup For each project or task, you can decide whether to process labor and nonlabor cross charge transactions, and which transfer price schedules are used for transfer price calculation. See: Cross Charge, Oracle Projects Fundamentals. Transaction Source Setup To cause the cross charge processes to skip a transaction source, deselect the Process Cross Charge option in the Transaction Sources window. See: Transaction Sources, Oracle Projects Implementation Guide. Expenditure Item Adjustments You can mark an expenditure item to be skipped by the cross charge processes by choosing Mark for No Cross Charge Processing from the Tools menu on the Expenditure Items window. Client Extensions Oracle Projects provides following client extensions that you can use to implement your business rules to control cross charge processing: Provider and Receiver Organizations Override Extension Cross Charge Processing Method Override Extension Transfer Price Determination Extension Transfer Price Override Extension Transfer Price Currency Conversion Override Extension For more more information, see: Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
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Transfer Pricing
Legal transfer price refers to the legally accepted billing prices for internal sales. In Oracle Projects, transfer price refers to the billing price that two organizations agree upon for cross charge purposes.
Transfer Price Rules

You can define transfer price rules that determine the transfer price amount of cross charge transactions that require borrowed and lent or intercompany billing processing. Oracle Projects provides flexible transfer pricing rules for transfer price calculations. The calculations are based on the: Transfer price basis. Base your transfer price on a cross charged transactions raw cost, burdened cost, or revenue. Crosscharge calculation method. You can optionally perform an additional calculation and apply a markup or discount to the amount determined by the transfer price basis. For the additional calculations, you can apply any burden schedule or standard bill rate schedule in your business group. Note: Using a standard bill rate schedule allows you to define the schedule in a single operating unit and enforce it across all operating units in your business group. Oracle Projects automatically converts transfer price amounts to the functional currency of the provider operating unit using the transfer price currency conversion attributes defined in that operating unit. You can use the Transfer Price Currency Conversion Override Extension to adjust these conversion attributes. For more more information, see: Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
See Also
Defining Transfer Price Rules, Oracle Projects Implementation Guide
Transfer Price Schedules

Once you define your transfer price rules, you create a transfer price schedule to associate these rules to pairs of provider and receiver organizations. In the simplest transfer price schedule, an enterprise
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would have a single transfer price rule that every organization follows. Oracle Projects supports more complex schedules so your organizations can negotiate their own transfer price rules. You can also define a schedule with one rule that applies to cross charges to a particular organization and another rule for cross charges to all other organizations. You can define one transfer price schedule consisting of different rules for different organization pairs or multiple schedules consisting of different rules for the same pair of organizations. You can assign different transfer price schedules at the project and task levels to drive transfer price calculations, similar to the way that you can assign standard bill rate schedules at the project and task level to drive project billing for external customers. At the project and task level, you can use separate transfer price schedules for labor and nonlabor cross charge transactions.
See Also
Defining Transfer Price Schedules, Oracle Projects Implementation Guide
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Processing Flow for Cross Charge

This section describes the processing flow for cross charge transactions. Figure 6 6 illustrates the processing flows for cross charge transactions that require either borrowed and lent or intercompany billing processing. For a description of these flows, see: Borrowed and Lent Processing Flow: page 6 20, and Intercompany Billing Processing Flow: page 6 20.
Figure 6 6 Overview of Cross Charge Processing Flow
Cross Charge
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Borrowed and Lent Processing Flow

Borrowed and lent processing requires the following steps: 1. 2. The provider operating unit enters or imports cross charge transactions. The provider operating unit distributes the costs of the cross charges, which are identified as cross charge transactions by the cost distribution processes. The cross charge distribution process is independent of revenue generation. The process distributes the costs even if revenue has not been generated. The provider operating unit runs PRC: Distribute Borrowed and Lent Amounts to determine the transfer price amount and generate the borrowed and lent accounting entries. The provider operating unit runs PRC: Interface Cross Charge Distributions to GL to interface the borrowed and lent accounting entries to Oracle General Ledger. (Optional) You may require the receiver operating unit to run additional customized processes and interface additional accounting entries to Oracle General Ledger. For example, your implementation team may develop customized processes to handle organizational profit elimination to satisfy your companys accounting practices. (Optional) The provider operating unit may adjust cross charge transactions or perform steps resulting in the reprocessing of borrowed and lent transactions. See: Adjusting Cross Charge Transactions: page 6 46.
3.
4.
5.
6.
Intercompany Billing Processing Flow

Intercompany billing processing requires the following steps: 1. 2. The provider operating unit enters or imports cross charge transactions. The provider operating unit distributes costs of the cross charges, which are identified as cross charge transactions by the cost distribution processes. The distribution of the costs is independent of revenue generation and are distributed even if revenue has not been generated.
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3.
The provider operating unit runs PRC: Generate Intercompany Invoice to generate draft intercompany invoices with the associated intercompany receivable and revenue accounts and transfer price. The provider operating unit reviews, approves, and releases the intercompany invoices. The provider operating unit interfaces the approved intercompany invoices to Oracle Receivables. You can include the following activities in this process: Accounting for invoice rounding Creation of the receivable invoices including sales tax PRC: Tieback Invoices from Receivables, which automatically creates corresponding intercompany invoice supplier invoices ready to be interfaced to the receiver operating units Oracle Payables. Use Oracle Receivables to print the invoice as well as to interface the accounting entries to the provider operating units General Ledger.
4. 5.
6.
The receiver operating unit imports the intercompany supplier invoices to Oracle Payables. This import process calculates recoverable and nonrecoverable tax amounts. Upon review and approval in Oracle Payables, the receiver operating unit interfaces the accounting entries to Oracle General Ledger. The receiver operating unit interfaces the supplier invoice to Oracle Projects, which pulls in the nonrecoverable tax amounts as additional project costs. The provider operating unit interfaces any cost reclassification entries to Oracle General Ledger. (Optional) The receiver operating unit runs additional customized processes and interfaces additional accounting entries to Oracle General Ledger. For example, your implementation team may develop customized processes to handle organizational profit elimination to meet your companys accounting practices.
7.
8. 9.
10. (Optional) The provider operating unit adjusts cross charge transactions or performs the steps resulting in the reprocessing of intercompany transactions. See Adjusting Cross Charge Transactions: page 6 46.
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Creating Cross Charge Transactions

To create cross charge transactions, you enter expenditures, distribute costs, and then generate revenue.
Enter Expenditures
Enter or import the cross charge transactions as you would for any project transactions. Oracle Projects enforces cross charge controls and transaction controls to ensure that only valid transactions are charged to a project or task. See Cross Charge Controls: page 6 11.
Distributing Costs
In addition to determining the raw and burden cost amounts and the accounting information for project transactions, the cost distribution processes also determine the following information for cross charge transactions: Provider and receiver operating units and organizations Crosscharge type, which indicates whether a transaction is an intraoperating unit, interoperating unit, or intercompany cross charged transaction or not a cross charged transaction Crosscharge processing method, which indicates whether a transaction is subject to cross charge processing and which processing method to use Determining the cross charge type Oracle Projects determines a transactions cross charge type as follows: Provider organization defaults to the expenditure or nonlabor resource organization Receiver organization defaults to the task organization Call the Provider and Receiver Organizations Override extension to determine whether to override these values Cross charge type is based on the values above and the logic indicated in the following table:
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Cross Charge Type Intraoperating unit
Conditions Provider operating unit equals receiver operating unit Provider organization does not equal receiver organization
Interoperating unit
Provider operating unit does not equal receiver operating unit Provider legal entity equals receiver legal entity Provider legal entity does not equal receiver legal entity
Intercompany
Table 6 4 Determining the Cross Charge Type (Page 1 of 1)
Determining the cross charge processing method A transaction can have one of the following cross charge processing methods: Borrowed and lent accounting Intercompany billing No cross charge processing Oracle Projects determines the cross charge processing method for a transaction, based on how you have implemented the following items: Transaction source options. You can enable an option to skip cross charge processing for all transactions from the specified source. Project attributes for processing labor and nonlabor cross charge transactions. If you do not enable cross charge processing for cross charge labor transactions at the project level, no labor transactions for that project will be subject to cross charge processing. The same applies to nonlabor transactions. Crosscharge options for provider operating unit Intraoperating unit transactions. Implementation options determine processing method. Interoperating unit transactions. If you have enabled users to charge to all operating units within the legal entity, the implementation options determine the default processing method. Provider and receiver controls Cross Charge Processing Method Override extension
Cross Charge
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Generating Revenue
If you use revenue as your transfer price basis, you must run PRC: Generate Revenue to determine your cross charged transactions revenue amount before running the cross charge processes. Note: You can use revenue as a transfer price basis only for contract projects (Oracle Projects generates revenue only for contract projects).
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Processing Borrowed and Lent Accounting

The borrowed and lent processing method creates accounting entries to pass costs or share revenue (cost and revenue amounts are determined by the transfer price amount) between the provider and receiver organizations within a legal entity. If costs are being passed from the provider to the receiver, this processing method: Debits the cost from the receiver (or lent) organization Credits the cost account of the provider (or borrowed) organization Similarly, if revenue is being shared, this method: Debits the revenue from the receiver organization Credits the revenue to the provider organization You can view these accounting entries in the corresponding reporting sets of books. Oracle Projects provides AutoAccounting functions for borrowed and lent processing. See: AutoAccounting Functions, Oracle Projects Implementation Guide.
Determining Accounts for Borrowed and Lent Transactions

An interoperating unit cross charge transaction against a contract project results in the borrowed and lent accounting entries shown in the following two tables. The following table show the entries generated for the provider operating unit.
Process Accounting Debit (Dr) Credit (Cr) Transaction Currency Functional Currency
Cost
Labor Expense Labor Clearing
Dr Cr
500 USD 500 USD
500 USD 500 USD
Table 6 5 Provider InterOperating Unit Transaction (Page 1 of 2)
Cross Charge
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Process
Accounting
Debit (Dr) Credit (Cr)
Transaction Currency
Functional Currency
Borrowed and Lent
Lent Borrowed
Dr Cr
2,000 USD 2,000 USD
2,000 USD 2,000 USD
Table 6 5 Provider InterOperating Unit Transaction (Page 2 of 2)
The following table show the entries generated for the receiver operating unit
Client Revenue
UBR/UER Revenue
Dr Cr Dr Cr
4,000 USD 4,000 USD 3,000 GBP 3,000 GBP
4,000 USD 4,000 USD 4,000 USD 4,000 USD
Client Invoice
Accounts Receivable UBR/UER
Table 6 6 Receiver InterOperating Unit Transaction (Page 1 of 1)
An intraoperating unit cross charge transaction against a contract project results in the borrowed and lent accounting entries shown in the following table for the receiver operating unit.
Process
Accounting
Functional Currency
Cost
Dr Cr Dr Cr Dr Cr
500 USD 500 USD 2,000 USD 2,000 USD 4,000 USD 4,000 USD
500 USD 500 USD 2,000 USD 2,000 USD 4,000 USD 4,000 USD
Borrowed and Lent
Lent Borrowed
Client Revenue
UBR/UER Revenue
Table 6 7 Receiver IntraOperating Unit Transaction (Page 1 of 2)
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Process
Accounting
Functional Currency
Client Invoice
Dr Cr
3,000 GBP 3,000 GBP
4,000 USD 4,000 USD
Table 6 7 Receiver IntraOperating Unit Transaction (Page 2 of 2)
Note: The automatic intercompany balancing feature in Oracle General Ledger can be used to create additional entries as necessary if the borrowed and lent entries are posted to different balancing segments.
Generating Accounting Transactions for Borrowed and Lent Accounting

Running the standard cost distribution processes in the provider operating unit identifies which transactions require borrowed and lent processing. Oracle Projects provides a separate process, PRC: Distribute Borrowed and Lent Amounts, to compute the transfer price of these transactions and determine the GL accounts for borrowed and lent accounting entries. The provider operating unit runs this process to perform the following steps on cross charge transactions identified for borrowed and lent processing: 1. 2. 3. Calculate the transfer price amount: page 6 27 Run AutoAccounting: page 6 29 Create cross charge distribution lines: page 6 29
Calculate the Transfer Price Amount

Distribute Borrowed and Lent Amounts calculates the transfer price amount of a given cross charge transaction, as follows: Note: If the process cannot determine a transfer price for the cross charge transaction, Oracle Projects flags the transaction with an error and proceeds to the next item. The transfer price is stored in the transaction and functional currencies. 1. Call the Transfer Price Determination extension. Oracle Projects calls the Transfer Price Determination extension at the beginning of the process in case you want to bypass the
Cross Charge
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standard transfer price calculation for certain borrowed and lent transactions. If you implement this extension, Oracle Projects calculates the transfer price amount based on the extension logic and generates borrowed and lent accounting entries based on this amount. See: Transfer Price Determination Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. 2. Identify the applicable transfer price schedule. Oracle Projects identifies the labor or nonlabor transfer price schedule specified for the task to which the transaction is charged. Note: If Project Resource Management is installed, transfer price overrides can be defined at the assignment level. For more details refer to the Oracle Project Resource Management User Guide. 3. Identify the applicable transfer price schedule line. If the transfer price schedule identified by the Distribute Borrowed and Lent Amounts process contains more than one line, Oracle Projects must determine which line to apply. Oracle Projects first selects all schedule lines whose effective dates contain the Process Through Date parameter you enter for the process. Oracle Projects then selects the appropriate line based on the provider and receiver organization, operating unit, legal entity, or business group. See: Transfer Price Rules and Schedules: page 6 14. 4. Calculate the transfer price amount. The process then calculates the transfer price amount by applying the transfer price rule and any additional percentage you have specified in the schedule line. The actual transfer price calculation is carried out like this: Determine the transfer price basis (raw cost, burdened cost, or revenue) identified in the transfer price rule. Note: If you use revenue or cost amounts as your transfer price basis, Oracle Projects verifies that you have performed the appropriate revenue generation or cost distribution processes. If you have not run the prerequisite processes, Oracle Projects marks the transaction with an error. Apply a burden schedule or standard bill rate schedule to the basis, as indicated in the transfer price rule. If the process identifies a rate in the specified bill rate schedule, it applies the rate to the quantity of the transaction. Apply any additional percentage specified in the rule.
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Apply any additional percentage specified for labor or nonlabor transactions in the schedule line. 5. Call the Transfer Price Override extension. You can use this extension to override the transfer price amount calculated by the Distribute Borrowed and Lent Amounts process. See: Transfer Price Override Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. 6. Perform required currency conversions. If the functional currency is different from the transfer price base currency, the process performs the required currency conversion to generate functional currency amounts using the currency conversion attributes defined in the provider operating units cross charge implementation options. You can override these attributes using the Transfer Price Currency Conversion Override extension. 7. Call the Transfer Price Currency Conversion Override extension. You can use this extension to override the default transfer price currency conversion attributes defined in the cross charge implementation options. See: Transfer Price Currency Conversion Override Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
Run AutoAccounting
After the Distribute Borrowed and Lent Amounts process calculates the transfer price amounts for each selected borrowed and lent transaction, it runs AutoAccounting to determine the account code for each distribution line that it will create. Oracle Projects provides the functions Borrowed Account and Lent Account for borrowed and lent transactions.
Create Cross Charge Distribution Lines

After the Distribute Borrowed and Lent Amounts process runs AutoAccounting, it creates cross charge distribution lines. The PA date for the distribution lines is determined based on the ending date of the earliest open PA period on or after the expenditure item date. You can use the View Accounting window to view cross charge distributions for a specific item. (To do so, query an invoice transaction in the Expenditure Items window and choose View Accounting from
Cross Charge
6 29
the Tools menu. See: Viewing Accounting Lines: page 2 47.) The following transaction attributes support cross charge distributions: Provider organization and operating unit Receiver organization and operating unit Cross charge processing method and type
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Processing Intercompany Billing Accounting

This section covers the following topics: Determining Accounts for Intercompany Billing Accounting: page 6 31 Generating Intercompany Invoices: page 6 36 Approving and Releasing Intercompany Invoices: page 6 39 Interfacing Intercompany Invoices to Receivables: page 6 39 Interfacing Intercompany Invoices to Oracle Payables: page 6 41 Interface Tax Lines from Payables to Oracle Projects: page 6 43
Determining Accounts for Intercompany Billing Accounting

Intercompany billing accounting entries are based on documents generated by the provider and receiver organizations. The provider and receiver organizations may be in the same set of books or in different sets of books with different charts of accounts. If Cross Business Group Access is enabled, the provider and receiver organizations can also be in different business groups. You can view intercompany billing accounting entries in the corresponding reporting sets of books. As this processing method may require input from multiple organizations and employees in your organization, you should establish clear user procedures to ensure the successful completion of the entire process flow. Failure to follow these procedures can result in out of balance intercompany accounts.
Determining Accounts for Intercompany Receivables Invoices

Oracle Projects provides two AutoAccounting functions to determine the revenue and invoice accounts of a provider operating units intercompany Receivables invoice. See: AutoAccounting Functions, Oracle Projects Implementation Guide. Intercompany Revenue. This function determines which account receives the credit entry of an intercompany billing Receivables invoice. Intercompany Invoice Accounts. This function includes the function transactions Intercompany Receivables and Intercompany Rounding.
Cross Charge
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Intercompany Receivables determines which account receives the debit entry of an intercompany billing Receivables invoice. Intercompany Rounding determines the accounts for the pair of debit and credit entries due to intercompany billing invoice currency rounding.
Determining Accounts for Intercompany Payables Invoices

You can modify the Supplier Invoice Charge Account Workflow process to determine and post the accounting entries for a receiver operating units intercompany Payables invoice. The process usually debits an internal cost or constructioninprocess account and credits the intercompany payables account in the receiver operating unit. See Workflow: Project Supplier Invoice Account Generation, Oracle Projects Implementation Guide.
Intercompany Billing Accounting Examples

An intercompany cross charge transaction against an indirect project results in the intercompany billing accounting entries shown in the following two tables. The following table shows entries for the provider operating unit.
Cost
Labor Expense
Dr
50,000 JPY
50,000 JPY
Labor Clearing Intercompany Accounts Receivable Invoice Intercompany Accounts Receivable Intercompany Revenue
Cr Dr
50,000 JPY 200,000 JPY
50,000 JPY 200,000 JPY
Cr
200,000 JPY
200,000 JPY
Table 6 8 Provider Intercompany TransactionIndirect Project (Page 1 of 1)
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The following table shows entries for the receiver operating unit.
Intercompany Accounts Payable Invoice
Intercompany Cost
Dr
200,000 JPY
2,000 USD
Intercompany Accounts Payable
Cr
200,000 JPY
2,000 USD
Table 6 9 Receiver Intercompany TransactionIndirect Project (Page 1 of 1)
An intercompany cross charge transaction against a contract project results in the intercompany billing accounting entries shown in the following two tables. The following table shows entries for the provider operating unit.
Cost
Dr Cr Dr
50,000 JPY 50,000 JPY 200,000 JPY
50,000 JPY 50,000 JPY 200,000 JPY
Intercompany Accounts Receivable Invoice
Intercompany Accounts Receivable Intercompany Revenue
Cr
200,000 JPY
200,000 JPY
Table 6 10 Provider Intercompany TransactionContract Project (Page 1 of 1)
The following table shows entries for the receiver operating unit
Intercompany Cost
Dr
200,000 JPY
2,000 USD
Intercompany Accounts Payable
Cr
200,000 JPY
2,000 USD
Cross Charge
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Process
Accounting
Functional Currency
Client Revenue
UBR/UER Revenue
Dr Cr Dr Cr
4,000 USD 4,000 USD 4,000 USD 4,000 USD
4,000 USD 4,000 USD 4,000 USD 4,000 USD
Client Invoice
Table 6 11 Receiver Intercompany TransactionContract Project (Page 2 of 2)
Determining Accounts for Provider Cost Reclassification

Oracle Projects provides a pair of debit and credit AutoAccounting functions to support the reclassification of cost in the provider operating unit upon generating intercompany invoices. For example, a provider operating unit may need to reclassify project constructioninprocess costs against a contract project using cost accrual as intercompany costs upon billing the receiver operating unit. Oracle Projects provides the following AutoAccounting functions for this purpose: Provider Cost Reclass Dr. This function determines which account receives the debit entry of the cost reclassification. Provider Cost Reclass Cr. This function determines which account the credit entry of the cost reclassification. A provider cost reclassification results in the intercompany billing accounting entries shown in the following two tables. The following table shows entries for the provider operating unit.
Cost
Construction In Process Labor Clearing
Dr Cr Dr
50,000 JPY 50,000 JPY 50,000 JPY
50,000 JPY 50,000 JPY 50,000 JPY
Provider Cost Reclassification
Labor Expense
Table 6 12 Provider Intercompany TransactionProvider Cost Reclass (Page 1 of 2)
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Process
Accounting
Functional Currency
Construction In Process Intercompany Accounts Receivable Invoice Intercompany Accounts Receivable Intercompany Revenue
Cr Dr
50,000 JPY 200,000 JPY
50,000 JPY 200,000 JPY
Cr
200,000 JPY
200,000 JPY
Table 6 12 Provider Intercompany TransactionProvider Cost Reclass (Page 2 of 2)
The following table shows entries for the receiver operating unit.
Intercompany Construction In Process Intercompany Accounts Payable
Dr
200,000 JPY
2,000 USD
Cr Dr Cr Dr Cr Dr Cr Dr/Cr (see note) Cr
200,000 JPY 4,000 USD 4,000 USD 500 USD 500 USD 3,000 GBP 3,000 GBP 1,500 USD 1,500 USD
2,000 USD 4,000 USD 4,000 USD 500 USD 500 USD 4,000 USD 4,000 USD 1,500 USD 1,500 USD
Client Revenue
UBR/UER Revenue
Cost Accrual
Cost Accrual Construction In Process Contra
Client Invoice
Close Project
Cost Accrual Intercompany Construction In Process
Table 6 13 Receiver Intercompany TransactionProvider Cost Reclass (Page 1 of 1)
Note: The examples in the previous two tables show that the provider operating unit originally posted a cross charge
Cross Charge
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transaction to a constructioninprocess account during the cost distribution process. The intercompany billing process then transfers the constructioninprocess amount with a markup to the receiver operating unit and generates the provider cost reclassification accounting entries. The consolidated expenditure is always booked as constructioninprocess after costing and intercompany billing.
Generating Intercompany Invoices

Running the standard cost distribution processes in the provider operating unit identifies which transactions require intercompany billing processing. Oracle Projects provides separate processes to compute the transfer price of the intercompany billing transactions and generate draft intercompany invoices and (optionally) provider cost reclassification entries. To use the intercompany billing processing method, you must perform several setup steps, including creating an intercompany billing project. See: Setting Up for Cross Charge Processing: Intercompany Billing, Oracle Projects Implementation Guide. The Generate Intercompany Invoice processes (The PRC: Generate Intercompany Invoices for a Single Project and PRC: Generate Intercompany Invoices for a Range of Projects) carry out the following steps: 1. 2. 3. Create invoice details: page 6 36 Create invoices and invoice lines: page 6 37 (Optional) Generate provider cost reclassification entries: page 6 38
See: Generate Intercompany Invoices, Oracle Projects Fundamentals.
Create Invoice Details

Calculate the Transfer Price Amount The Generate Intercompany Invoices processes calculate the transfer price amount using the same steps as described for the Distribute Borrowed and Lent Amounts process.
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Run AutoAccounting After the process calculates the transfer price amounts for each selected intercompany billing transaction, it runs AutoAccounting to determine the intercompany revenue account for each cross charged transaction, using the Intercompany Revenue function. Determine Tax Codes The Oracle Receivables tax code is defaulted for each transaction based on the tax defaulting hierarchy defined in your implementation options. The process also determines the intercompany tax receiving task for the transaction. Create Intercompany Invoice Details The process then creates intercompany invoice details for each transaction with the transfer price amount, intercompany revenue account, and tax code.
Create Invoices and Invoice Lines

The Generate Intercompany Invoice process groups the invoice details of cross charged transactions into invoices and invoice lines. The Generate Intercompany Invoice process: Verifies intercompany billing projects Creates invoice Creates invoice lines Generates provider cost reclassification entries Verify intercompany billing projects The process verifies that each specified intercompany billing project meets the following criteria before generating an invoice and invoice lines: (Mass generation only) Billing cycle criteria have been met. Invoice details exist that have not yet been included in an invoice. The project customer, and customer bill and ship to sites must all be active. Otherwise, Oracle Projects creates an invoice marked with generation error.
Cross Charge
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The project customer must not be on credit hold. Otherwise, Oracle Projects creates an invoice marked with generation error. The status of the intercompany billing project must not be Closed. Create invoice Depending on how the provider operating unit has implemented the provider controls, this step creates: A consolidated intercompany invoice for all cross charged projects of a receiver operating unit. In other words, one draft invoice for each intercompany billing project. One intercompany invoice for each cross charged project. In other words, multiple invoices for an intercompany billing project when multiple cross charged projects exist for a receiver operating unit. Oracle Projects orders such invoices by generating status (invoices with errors appear last) and the project number of the cross charged project. The process uses the date of the invoice as the GL date. Create invoice lines The process uses the following criteria to group invoice details to generate invoice lines: Crosscharged project Tax attributes Intercompany revenue account Invoice format components Invoice lines are then created for the invoices based on the grouped invoice details. Note: If an invoice line amount is zero due to offsetting invoice details, the process does not create the invoice line and includes the invoice details for that line in an exception report.
(Optional) Generate Provider Cost Reclassification Entries

Depending on how the provider operating unit has set up the internal billing implementation options, this process optionally creates the cost reclassification accounting entries using the following AutoAccounting functions:
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Provider Cost Reclass Dr Provider Cost Reclass Cr You can review the entries from the View Accounting window. See Create Cross Charge Distribution Lines: page 6 29 for more information on using the View Accounting window. You can interface these entries to Oracle General Ledger using the Interface Cross Charge Distributions to GL process only after you have interfaced the related intercompany invoices to Oracle Receivables.
Approving and Releasing Intercompany Invoices

Approving and releasing intercompany invoices consists of the following actions: 1. Review intercompany invoices in the Invoice Review window. From this window, you can drill down from a draft intercompany invoice to draft intercompany invoice lines to the underlying cross charged transactions. 2. 3. Approve intercompany invoices as you would a customer invoice. Release intercompany invoices as you would a customer invoice. Note: Oracle Projects generates the invoice number for intercompany invoices and customer invoices from different sequences because different batch sources are used to interface these invoices to Oracle Receivables. 4. (Optional) Delete unapproved intercompany invoices as you would a customer invoice.
Interfacing Intercompany Invoices to Receivables

The PRC: Interface Intercompany Invoices to Receivables process interfaces released intercompany invoices to Oracle Receivables. You can run this process separately or as a streamline process (choose the XIC: Interface Intercompany Invoices to AR parameter). The streamline process includes the following processes: 1. 2. Interface Intercompany Invoices to Receivables: page 6 40 AutoInvoice: page 6 41
Cross Charge
6 39
3.
Tieback Invoices from Receivables: page 6 41
Interface Intercompany Invoices to Receivables

This process interfaces intercompany invoices with active Bill To and Ship To address to the Oracle Receivables interface table. It identifies the following debit accounts for intercompany invoices: Intercompany Receivables Intercompany Rounding Oracle Projects provides the AutoAccounting function Intercompany Invoice Accounts to determine the receivables and rounding accounts. The intercompany revenue account is already available on the invoice lines for intercompany invoices. Once in Oracle Receivables, intercompany invoices are identified with a batch source of PA Internal Invoices and a transaction type of either Internal Invoice or Internal Credit Memo. You can query receivables information by projectrelated query data. Project information in Oracle Receivables is located in the Transaction Flexfield and Reference field. The fields in Oracle Receivables which hold projectrelated data for intercompany invoices (reference field of the PA Internal Invoices batch source) are shown in the following table:
Oracle Receivables Field Name Transaction Flexfield Value 1 Transaction Flexfield Value 2 Transaction Flexfield Value 3 Transaction Flexfield Value 4 Transaction Flexfield Value 5 Transaction Flexfield Value 6 Transaction Flexfield Value 7 Oracle Projects Data Project number of the intercompany billing project Draft invoice number from Oracle Projects Receiving operating unit Project manager Project number of the cross charged project Line number of the invoice line Invoice type of the invoice
Table 6 14 Oracle Receivables Fields for ProjectRelated Data (Page 1 of 1)
Line grouping rule and line ordering rule in Oracle Receivables for intercompany invoices are as follows: Line grouping. Uses Transaction Flexfield Values 1 through 4. Line ordering. Uses Transaction Flexfield Values 5 through 7. Decentralized invoice collections are not enabled for intercompany invoices.
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AutoInvoice
The Oracle Receivables Invoice Import process pulls invoices from the Oracle Receivables interface tables. See: Oracle Receivables User Guide.
Tieback Invoices from Receivables

The Tieback Invoices from Receivables process verifies the successful interface of intercompany invoices to Oracle Receivables. Intercompany invoices successfully interfaced to Oracle Receivables are also automatically interfaced to the Oracle Payables system of the receiver operating unit. See: Tieback Invoices from Receivables, Oracle Projects Fundamentals.
Interfacing Intercompany Invoices to Oracle Payables

Interfacing intercompany invoices to the invoice tables in Oracle Payables consists of the following steps: 1. 2. Interfacing intercompany invoices to the Payables interface table: page 6 41 Running the Open Interface Import process in Payables: page 6 42
Interface intercompany invoices to the Payables interface table

When the provider operating unit runs the Tieback Invoices from Receivables process, the intercompany invoices are automatically copied into the interface table of the receiver operating units Payables. Intercompany invoices interfaced to Payables are identified with the following attributes: Source. All intercompany invoices have a source of Oracle Projects Intercompany. Supplier. The supplier is identified by the provider operating units internal billing implementation options. Supplier Site. The supplier site is based on how the provider operating unit defines the receiver controls for the receiver operating unit. Invoice Amount. The Payables invoice amount is the amount of the related Receivables invoice, including taxes.
Cross Charge
6 41
The interface process populates the projectrelated attributes for intercompany Payables invoice distributions, as indicated below: Project Number. The number of the cross charged project indicated in the invoice line. Task Number. The number of the task specified in the Intercompany Tax Receiving Task field on the cross charged project. Expenditure Item Date. The invoice date of the intercompany Receivables invoice. Expenditure Type. The expenditure type specified by the receiver operating unit in the Receiver Controls tab. Expenditure Organization. The expenditure organization specified by the receiver operating unit in the Receiver Controls tab. In addition, the interface process matches the tax code from each invoice line of the Receivables invoice to the appropriate Oracle Payables tax code. This process indicates that the Payables invoice distributions do not include tax amounts, so that the Payables Open Interface process creates the invoice distributions for the entire invoice by grouping the tax lines based on the following attributes: Tax code Project information (project, task, expenditure item date, expenditure type, expenditure organization) Note: Tax group support in Oracle Payables is provided only by the Canadian or other localizations.
Run the Open Interface Import process in Payables

The receiver operating unit runs the Open Interface Import process in Payables to create intercompany Payables invoices. Payables Open Interface Import performs the following steps: Convert amounts from the transaction currency to the functional currency of the receiver operating unit based on the default conversion attributes defined in the receiver operating units Payables system options. (The Receivables invoice amounts are copied as the transaction currency amounts on the Payables invoice.)
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You can customize the Payables Open Interface workflow process to override the default currency conversion attributes for the invoice and distribution amounts. Derive the intercompany Payables account from supplier information. You can either associate supplier types for internal suppliers with intercompany cost accounts or otherwise modify the Workflowbased account generation process to determine the appropriate intercompany cost account. Payables Invoice Import generates the following sample accounting entries: DR CR Intercompany Cost Intercompany Payables
Generate recoverable and nonrecoverable tax lines (if you have specified a percentage for recoverable tax amounts), based on the tax codes matched from Oracle Receivables. Oracle Payables uses the rounding accounts specified in the Oracle Payables system options to account for discrepancies due to rounding tax amounts.
Interface Tax Lines from Payables to Oracle Projects

After the Payables Invoice Import process generates nonrecoverable tax lines for the intercompany invoice, you must run the Interface Supplier Costs process to interface these nonrecoverable tax lines to Oracle Projects as project costs. Tax lines interfaced from Oracle Payables are not subject to any cross charge processing and are not adjustable in Oracle Projects.
See Also
Interfacing Supplier Costs: page 7 29 Interface Supplier Costs, Oracle Projects Fundamentals
Cross Charge
6 43
Interfacing Cross Charge Distributions to General Ledger

If you use borrowed and lent accounting or intercompany billing with cost reclassification enabled, you must interface the resulting accounting entries from Oracle Projects to Oracle General Ledger. Interfacing cross charge distributions to Oracle General Ledger consists of the following steps: 1. 2. 3. Run the Interface Cross Charge Distributions process to General Ledger process: page 6 44. Run Journal Import. See: Oracle General Ledger User Guide. Run the Tieback Cross Charge Distributions from General Ledger process (see: Tieback Cross Charge Distributions from GL, Oracle Projects Fundamentals), which determines whether the Journal Import process rejected any cross charge distributions.
You can run these processes individually or as part of a streamline process. To run the streamline process, choose the parameter XC: Interface Cross Charge Distributions to GL.
Run the Interface Cross Charge Distributions to General Ledger process

The provider operating unit runs the PRC: Interface Cross Charge Distributions to General Ledger process. This process does not interface accounting entries of the intercompany invoices. Instead, the provider operating unit interfaces intercompany invoice revenue and receivables to Oracle General Ledger using the standard functionality of Oracle Receivables. The receiver operating unit posts intercompany Payables invoice distributions using the Payables Transfer to Oracle General Ledger process. PRC: Interface Cross Charge Distributions to General Ledger performs the following actions: Identify crossdistributions that have not yet been interfaced to Oracle General Ledger Note: You cannot interface cross charge distributions for provider cost reclassification entries until you have interfaced the associated intercompany invoices to Receivables. Determine the GL date for all distributions eligible for interfacing based on the earliest open or future GL period ending on or after the distributions PA date
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Generate a batch name by concatenating the credit account and GL date and store this information on each distribution Summarize distributions by debit account and line type Summarize distributions by credit account and line type Create journal entries in the Oracle General Ledger interface tables
Cross Charge
6 45
Adjusting Cross Charge Transactions

This section provides an overview and a description of the processing flow for adjustments to cross charge transactions.
Overview of Cross Charge Adjustments

Due to data entry errors or changes in your organization or business rules, you may need to adjust certain attributes of cross charged transactions. Doing so causes Oracle Projects to reprocess the transactions or to skip the cross charge processes completely. You can adjust a cross charged transaction by: 1. 2. 3. 4. Marking transactions for cross charge reprocessing: page 6 46 Marking transactions to skip cross charge processing: page 6 47 Changing transfer price conversion attributes: page 6 48 Making the following miscellaneous adjustments: page 6 48 Changing transfer price base amounts Changing the provider or receiver organization using the mass update feature Recompiling burden schedules Performing splits and transfers Performing adjustments on the Receivables or Payables invoices
Marking transactions for cross charge reprocessing

You can mark one or more transactions for cross charge reprocessing in the Expenditure Items window. For example, if you have changed cross charge setup data and want this new information reflected in the affected transfer price amounts and accounting entries, select the Reprocess Cross Charge option in the Tools menu of the Expenditure Items window. Marking a transaction for cross charge reprocessing: Resets the cross charge type to Null Resets the cross charge processing method to Pending Resets the cross charge processing status to Never Processed Resets the transfer price amount in all currencies to Null
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Redetermines the cross charge type and processing method The next time you run the cross charge processes, they will process these transactions as new cross charged transactions. You should mark affected transactions for cross charge reprocessing if you have changed any of the following information: Provider or receiver organization. Modifying the Provider and Receiver Organizations Override extension or changes in your organizational structure can result in changes to the provider or receiver organization of a cross charged transaction, which could affect the cross charge type, the processing method, or the transfer price rules. Transfer price setup data. Any change to your transfer price rules could result in a new transfer price amount determined for cross charged transactions that have already been processed. Crosscharge setup data. Any change to your cross charge or internal billing implementation options, provider and receiver controls, or cross charge project and task information can affect how Oracle Projects processes cross charged transactions. Account codes. Changes to the provider reclassification accounting options can result in changes to the provider cost reclassification accounts. Any changes to the AutoAccounting setup for cross charge functions can also affect existing cross charge accounting entries. Billable flag. For cross charged transactions processed by intercompany billing with the provider cost reclassification feature enabled, changes to the Billable flag of a transaction on a contract project can result in new provider cost reclassification accounting entries. Tax codes. The Generate Intercompany Invoice processes determine the appropriate tax code for each invoice line. If you modify the logic used to derive the tax codes and have already released invoices, you must mark the affected transactions for cross charge reprocessing. Oracle Projects automatically creates a credit memo for the original invoice and a new invoice with the new tax codes.
Marking transactions to skip cross charge processing

You can mark one or more transactions so that the cross charge processes skip the specified transactions. To do this, choose Mark For
Cross Charge
6 47
No Cross Charge Processing in the Tools menu of the Expenditure Items window. Marking a transaction as not requiring cross charge processing resets the cross charge processing method to No Cross Charge Processing and the cross charge processing status to Never Processed.
Changing transfer price conversion attributes

You can reconvert transfer price amounts from the transaction currency if you change the transfer price exchange rate date type and exchange rate type, which govern how Oracle Projects converts the transfer price amount from the transaction currency to the functional currency. To do this, you choose the Reconvert Transfer Price option from the Tools menu in the Expenditure Items window. A change in these conversion attributes may result in a change to the transfer price amount in the functional currency. Both provider and receiver operating units can change the transfer price conversion attributes. Changing your transfer price currency conversion attributes: Replaces conversion attributes for the functional currency Resets existing transfer price amounts in the functional currency to Null Resets the cross charge processing status to Never processed
Making miscellaneous cross charge adjustments

You can perform the following adjustments to cross charged transactions. These adjustments automatically mark the transaction for cross charge reprocessing. Changing transfer price base amounts. If you recalculate raw or burdened cost or revenue amounts, the amount of the transfer price basis (and the final transfer price amount) of a cross charged transaction may also change. The respective cost distribution and revenue generation processes determine whether such recalculations affect the transfer price amount of any cross charged transactions and automatically mark the transactions for cross charge reprocessing. The cost distribution and revenue generation processes automatically resets the cross charge processing status to Never Processed and blanks out the transactions transfer price amount.
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Changing the provider or receiver organization using the mass update feature. If you use the mass update feature to change the organization that owns a project or task, Oracle Projects marks all transactions (with an expenditure date after the effective date of the organization change) for cross charge reprocessing. A different project (or receiver) organization could result in a change to the transactions cross charge processing method. Oracle Projects automatically marks the affected items for cross charge processing. Recompiling burden schedules. If the user changes and recompiles a burden schedule that has been used for determining the transfer price of some items, the recompile process will mark these items for cross charge reprocessing by resetting the cross charge type to Null, the cross charge processing method to Pending, and the cross charge processing status to Never Processed. Performing transfers and splits. Transferring or splitting a cross charged transaction does not affect the cross charge processing method of the existing transactions. The reversing and new transactions will undergo the cross charge processes as usual. The Generate Intercompany Invoice processes group the invoice details for all adjusting transactions by the invoice number and line number of the original transactions for credit memo processing. Performing adjustments on the Receivables or Payables invoices. You can adjust invoice level accounting information for Receivables and Payables invoices, as described below: Intercompany Receivables account (for Receivables invoices). The Interface Intercompany Invoices to Receivables process determines the intercompany receivables account for each invoice. If you change the rules used to determine this account, you must manually cancel the invoice from the Invoice Review window. Oracle Projects automatically creates a credit memo with details reversing each line in the original invoice. All items on the cancelled invoice are eligible for intercompany rebilling. Once rebilled, the Interface Intercompany Invoices to Receivables process will determine the account for the new invoice using the modified rules. You cannot cancel an invoice if payments have been applied against it in Oracle Receivables or if an invoice has credit
Cross Charge
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memos applied against it. You can cancel an invoice only if it is released and has no payments, adjustments, or crediting invoices applied against it. Once the cancellation is completed, you cannot delete the credit memo created by the cancellation action. That is, you cannot reverse an invoice cancellation. Intercompany cost account (for Payables invoices). In Oracle Payables, reverse the invoice distribution with the incorrect intercompany cost account and create a new line with the correct account information.
Processing Flow for Cross Charge Adjustments

After you mark an adjustment to a cross charged transaction for reprocessing, Oracle Projects processes these adjustments similarly to the original transactions. The processing flow for adjustments is described in further detail on the following pages. The cross charge processes perform the following common steps on adjustments marked for cross charge reprocessing, regardless of whether the transactions require borrowed and lent or intercompany billing processing: Recalculate the transfer price if no transfer price amount exists in the transaction currency Reconvert the transfer price amount from the transaction currency to the functional currency if an amount exists in the transaction currency but not the functional currency
Processing Borrowed and Lent Adjustments

After the PRC: Distribute Borrowed and Lent Amounts process completes the common processing steps for cross charge adjustments, it performs the steps for borrowed and lent adjustments, as described below. Regenerate accounting entries. If any of the accounts have changed from entries already interfaced to Oracle General Ledger, the Distribute Borrowed and Lent Amounts process reverses the original cross charge distributions and creates new ones. The process also determines the PA dates for the reversing and new distributions. If the original accounting entries have not yet been transferred to Oracle General Ledger and the
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accounts or amounts have changed, the process replaces them with the new entries. Reverse existing distributions if processing method has changed. If the cross charge processing method for the transaction changes from borrowed and lent to intercompany billing or no cross charge processing, the process reverses existing entries that have been interfaced to Oracle General Ledger.
Processing Intercompany Billing Accounting Adjustments

After the Generate Intercompany Invoice process completes the common processing steps for cross charge adjustments, it performs the following steps: 1. Redetermine the intercompany revenue account and tax code. The revenue account and tax code is redetermined for the adjusted transactions. If intercompany invoice details already exist for the transaction, the Generate Intercompany Invoice process compares the recalculated transfer price amount to the existing transfer price amount. If they are different, you must reverse the existing invoice detail line and create a new one. Similarly, if the process detects a difference in the new intercompany revenue account or tax code and the existing values, reversing and new invoice details are created. 2. Create a credit memo. The Generate Intercompany Invoice process creates a credit memo, in which reversing invoice details are grouped together by the invoice number and invoice line number on which the original invoice details are billed. 3. Create new invoices. New invoice details reflecting changed values for the transfer price, revenue account, and tax code are grouped into new invoices. 4. (Optional) Regenerate provider cost reclassification accounting entries. If any of the accounts have changed from entries already interfaced to Oracle General Ledger, the Generate Intercompany Invoice process reverses the original distributions and creates new ones. The process also determines the PA date for both the reversing and new distributions. If the original accounting entries have not yet been transferred to Oracle General Ledger and the accounts or
Cross Charge
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amounts have changed, the process replaces them with the new entries.
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CHAPTER
Integration with Other Oracle Applications

his chapter describes integrating Oracle Projects with other Oracle Applications to perform project costing.
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Overview of Oracle Project Costing Integration

This chapter describes Oracle Projects integration with other Oracle Applications to perform project costing and includes the following topics: Integrating Expense Reports with Oracle Payables and Oracle Internet Expenses: page 7 3 Integrating with Oracle Purchasing and Oracle Payables (Requisitions, Purchase Orders and Supplier Invoices): page 7 24 Integrating with Oracle Assets: page 7 45 Integrating with Oracle Project Manufacturing: page 7 51 Integrating with Oracle Inventory: page 7 53 For information on overall Oracle Projects integration and detail information on integration with applications such as General Ledger, and Oracle Human Resources, see the Integrating with Other Oracle Applications chapter in Oracle Projects Fundamentals.
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Integrating Expense Reports with Oracle Payables and Oracle Internet Expenses
You can enter expense reports containing project and task information in Oracle Projects, Oracle Internet Expenses, or Oracle Payables. Additionally, you can import projectrelated expense reports in Oracle Projects from thirdparty systems through Transaction Import. This section describes how to ensure that transactions resulting from projectrelated expense reports are properly accounted.
See Also
Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
Overview of Expense Report Integration

Projectrelated expense reports can be entered directly into Oracle Projects through batch entry. Additionally, external expense report data can be imported directly into Oracle Projects via Transaction Import. Oracle Projects processes these expense reports and sends them to Oracle Payables. You can also create projectrelated expense reports through Oracle Internet Expenses. Additionally, you can enter projectrelated expense reports directly into the Oracle Payables invoice entry screens. Payables creates invoices from the expense reports, maintains and tracks payments, and then sends the accounting transactions to Oracle General Ledger. After these tasks are accomplished, the expense reports can be sent to Oracle Projects. All accounting entries from projectrelated expense reports are interfaced to General Ledger from Oracle Payables.
Expense Reports Entered in Oracle Projects

When expense reports are created in Oracle Projects, they are entered through preapproved expenditure entry. An expense report must first be cost distributed, then sent to Oracle Payables (for invoice creation and payment) and finally, tied back to Oracle Projects. For more
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information see: Processing Expense Reports Created in Oracle Projects: page 7 7.
Expense Reports Imported into Oracle Projects

Expense reports imported directly into Oracle Projects from an external source, such as a thirdparty application, are processed in the same way as expense reports entered via preapproved expenditure entry. After the transactions are imported, they must be costed (if necessary), then sent to Payables (for invoice creation and payment), and finally tied back to Oracle Projects.
Expense Reports Entered in Oracle Internet Expenses

Employees can include project and task information in an expense report created in Oracle Internet Expenses. (Click the Enter Receipts tab to display the window containing the Project Number and Task Number fields. The window displays these fields if you select an expense type that is associated with an Oracle Projects expenditure type.) Expense reports entered in Oracle Internet Expenses must be sent to Payables and then to Oracle Projects. These expense reports have an expenditure type class of Expense Report and do not need to be tied back to Oracle Projects. For more information, see: Processing Expense Reports Created in Oracle Internet Expenses: page 7 14.
See Also
Entering ProjectRelated Invoices and Expense Reports, Oracle Payables User Guide
Expense Reports Entered in Payables

You can enter project and task information on expense reports in the Invoices window in Payables (enter Expense Report in the Type field). Expense reports entered in the Invoices window are assigned an expenditure type class of Expense Report and are processed in Oracle Projects similarly to expense reports entered in Oracle Internet Expenses. The Expense Report window in Payables does not record
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project information for expense report lines. Use the Invoices window instead. For information, see Oracle Payables User Guide.
For All Expense Reports

You can use standard reports to track your expense reports as the expense report information moves from one application to another. You can also use Payables features to create advances (prepayments) and adjustments, and then apply them against Oracle Projects expense reports and invoices in Payables. See: Advances and Prepayments: page 7 18 and Adjusting Expense Reports: page 7 19.
Setting Up in Payables and Oracle Projects

Before you can interface projectrelated expense reports between Oracle Projects, Payables, and Oracle Internet Expenses, you must carry out certain tasks. In Payables: Define employees as suppliers Accept or override the employee address Determine the expense report cost account (Optional) In the System Administrator responsibility, set profile options
Define Employees as Suppliers

Before Payables can create invoices for an employees expense reports, the employee must be defined as a supplier. You can either enable Payables to create a supplier automatically for employees lacking a supplier record or enter the employee manually as a supplier in the Suppliers window. If an employee is not a supplier, Payables does not create an invoice and lists the expense report as an exception.
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To define employees as suppliers: 1. 2. In Payables, navigate to the Payables Options window. Choose the Expense Report tab.
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3.
Enable Automatically Create Employee as Supplier.
Accept or Override the Employee Address

Payables sends the reimbursement to the employees default address (Home or Office), which is set for the employee in HR. You can override the Home or Office setting in the Expense Reports window in Payables. Payables uses the same value when creating supplier sites for the supplier record.
Determine the Expense Report Cost Account

For expense reports entered in Oracle Projects and adjustments made to those expense reports, Oracle Projects uses AutoAccounting (not the employees default expense account) to determine the expense report cost account. For expense reports entered in Oracle Internet Expenses and the Invoices window, an account generator (the Project Web Employees Account Generator, a process in Oracle Workflow) determines the expense account for each transaction that includes project and task information. The Default Account Generator for Expense Reports process used the CCID (code combination identifier) entered for the employee in Human Resources. For more information, see: Using the Account Generator in Oracle Projects, and AutoAccounting and the Account Generator, Oracle Projects Implementation Guide.
(Optional) Set Profile Options

Using the System Administrator responsibility, open the System Profile Values window and set the following profile options: PA: Summarize Expense Report Lines specifies whether lines in expense reports created in Oracle Projects are summarized by code combination ID when you interface the expense reports to Payables. See: Profile OptionSummarize Expense Report Line, Oracle Projects Implementation Guide. PA: Allow Project Time and Expense Entry specifies whether a user can enter projectrelated transactions in Oracle Internet Expenses. See: Profile OptionPA: Allow Project Time and Expense Entry, Oracle Projects Implementation Guide.
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PA: Expense Report Invoices Per Set specifies the number of Payables invoices to process each time the Interface Expense Reports from Payables (a Payables process) is run. See Profile OptionPA: Expense Report Invoices Per Set, Oracle Projects Implementation Guide. PA: Allow Override of PA Distributions in AP/PO indicates whether a user is allowed to update the accounting flexfield combination that is generated by FlexBuilder for Oracle Projects distributions in Oracle Payables and Oracle Purchasing. See Profile OptionPA: Allow Override of PA Distributions in AP/PO, Oracle Projects Implementation Guide.
See Also
Implementing Oracle Payables for Projects Integration, Oracle Projects Implementation Guide Profile Options for Integration with Other Products, Oracle Projects Implementation Guide Resource Definition, Oracle Projects Implementation Guide
Processing Expense Reports Created in Oracle Projects

To prepare for interfacing expense reports created in Oracle Projects, you must first distribute the expense report costs. Then, you can send the costed expense reports to Payables whenever you are ready and as many times during an accounting period as you wish. This section covers the following topics: Distributing expense report costs: page 7 8 Sending expense reports to the Payables interface tables. See: Interfacing Expense Reports to Payables: page 7 9 Importing the expense report information in the tables to create invoices and invoice distribution lines. See: Importing Expense Reports in Payables: page 7 10 Tying back both accepted and rejected expense reports to Oracle Projects. See: Tying Back Expense Reports from Payables: page 7 12
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Submitting the interface streamline processes: page 7 13 Transferring invoice accounting information to General Ledger. See: Transferring Payables Accounting Information to General Ledger: page 7 14 Figure 7 1 illustrates the processing flow when expense reports are created in Oracle Projects.
Figure 7 1 Processing Expense Reports Created in Oracle Projects
Figure 7 1 shows the following steps: 1. 2. 3. 4. Costed expense reports are interfaced into the Payables interface table from Projects. The Expense Report Import process imports the data into Payables invoice tables and creates expense report invoices. The Projects Tieback process verifies that the projectrelated expense reports were successfully imported into Oracle Payables. Payables interfaces the accounting for the invoices to General Ledger.
Distributing Expense Report Costs

You must run the Distribute Expense Report Costs process before you interface expense reports with Payables. This process groups
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expenditure items into batches of expense reports and determines the expense account held in the cost distribution line.
Interfacing Expense Reports to Payables

Note: Two processes have very similar names. The process described here sends expense report information to Payables. The Interface Expense Reports to Payables process collects eligible costed expense reports in Oracle Projects and sends them to the Payables Invoice interface tables. Once loaded onto these interface tables, the expense reports await further processing by the Expense Report Import program. When you send invoices to Payables, Oracle Projects sets the purgeable flag for each expense report in Payables to No. This process also sends costed adjustments to Oracle Internet Expenses expense reports that you interfaced from Payables. Payables loads these adjustments into the Payables invoice tables automatically, so you do not need to run the Expense Report Import program. Before you interface expense reports to Payables, run the PRC: Distribute Expense Report Costs process to distribute costs for any adjustments you have made. Note: If expense reports from any source fail to post to Payables, you may need to redistribute costs (using the PRC: Distribute Expense Report Costs process) before you send the expense reports to Payables again. For more information, see: Interface Expense Reports to Payables, Oracle Projects Fundamentals. Determining the Accounting Period The GL Date of the expense report cost determines the accounting period in which a transaction is posted to a general ledger account. In Oracle Projects, the GL Date for costs is the end date of the earliest open or future GL Period that is on or after the latest PA Date of the cost distribution lines included in an expense report. All cost distribution lines for an expense report are sent together to Payables and use the same GL Date. This GL Date becomes the GL Date of the invoice in Payables. See: Date Processing in Oracle Projects, Oracle Projects Fundamentals.
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Determining the Liability Account The Interface Expense Reports to Payables process uses AutoAccounting to determine the liability account when the expense reports costs are distributed. (Oracle Projects does not use the employees default expense account.) The process sends the accounting information for expense reports to the Payables interface tables. Reports Oracle Projects generates a report that lists the interfaced and rejected expense reports. Correct the rejected expense reports and resubmit them to Payables.
Importing Expense Reports in Payables

Expense Report Import is a Payables program. See: Expense Report Import Program, Oracle Payables User Guide. The Expense Report Import program creates invoices and invoice distribution lines from Oracle Projects expense report information that you load into Payables interface tables. Payables imports the expense report data into Payables invoice tables. Note: Expense Report Import does not call Workflow. If you manually populate the invoice import tables, you must supply the accounting flexfield information. Oracle Payables identifies invoices you create from Oracle Projects expense reports with a source of Oracle Projects. If you submit the program from Payables, you must specify a source of Oracle Projects. Leave the batch name and GL date blank. You can also use one of the Oracle Projects streamline options to submit the Expense Report Import program from Payables. Adjustments are a special case. You do not need to run Expense Report Import for adjustments to expense reports already interfaced or tied back from Payables. Prerequisites Enter expense reports in Oracle Projects. Run the Oracle Projects PRC: Distribute Expense Report Costs process to calculate the amount and generate accounts.
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Submit Oracle Projects PRC: Interface Expense Reports to Payables process to transfer expense reports to the Payables Invoice Interface Tables. If the Automatically Create Employee As Supplier option is not enabled in Payables, enter the employee as a supplier in the Suppliers window.
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To import invoices from Oracle Projects: 1. 2. In the Submit Request window, choose the Request Type and select Expense Report Import. Enter the report parameters. Do not enter a batch name or a GL date field. Select Oracle Projects for the source. If you want to purge expense reports from the Invoice Import Interface Tables, enter the date criteria you want Payables to use. Payables will delete all Oracle Projects expense reports that were entered before this date and have already been imported and tied back to the original expense report in Oracle Projects. 3. Choose OK. When the program is complete, you can query the new invoices in the Invoices window. The new invoices are ready for approval and payment. Payables creates invoices with the attributes shown in the following table:
Attribute Type Supplier Name Invoice Date Invoice Number Description Expense Report Employee name Week ending date The expenditure batch name from Oracle Projects appended to a unique identifier for the expense report Based on cost distribution of expense report items. Each invoice distribution in Oracle Projects includes expenditure item information, such as project information, amount, and account coding. Based on AutoAccounting rules in Oracle Projects
Invoice Distributions
Invoice Liability Account
Table 7 1 Invoice Attributes (Page 1 of 2)
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Attribute Scheduled Payments Payment Method Income Tax Type
Description Defaults from supplier site Defaults from supplier site For federally reportable 1099 suppliers, Payables provides the income tax type for each invoice distribution
Table 7 1 Invoice Attributes (Page 2 of 2)
Payables automatically produces the following reports so you can review the invoices that Expense Report Import successfully created, and the invoices that Expense Report Import was unable to import: Expense Report Import Report Expense Report Import Exceptions Report Expense Report Import Prepayments Applied Report 4. In Oracle Projects, run the PRC: Tieback Expense Reports from Payables process.
Reports Oracle Projects generates a report that lists the interfaced and rejected expense reports. Correct the rejected expense reports and resubmit them to Payables.
Tying Back Expense Reports from Payables

The Tieback Expense Reports from Payables process links the expense report in Oracle Projects to the invoice in Payables, but does not tie back the invoice details. (To view details, drill down in the Expenditures Inquiry window. You can also query the invoice in the Invoices window in Payables.) The tieback process identifies expense reports rejected by Expense Report Import. Correct the rejected expense reports and send them to Payables again. Tying back the invoices causes Oracle Projects to update the purgeable flag for each expense report in the Payables interface tables from No to Yes. For more information, see: Tieback Expense Reports from Payables, Oracle Projects Fundamentals.
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Submitting the Interface Streamline Processes

Streamline processes submit two or more one processes in one step. You can use streamline processes to interface expense reports to Payables, import the invoices, and tie back the invoices to Oracle Projects. Streamline processes submit each process sequentially. If you want to perform a single function, such as interfacing expense reports, you can use an individual process. Some processes use a lot of system resources, so do not run processes that distribute costs (DXES, DXEU and DTE) during critical processing times. Instead, run the distribution processes separately, and then run the interface and tieback streamline processes later. To submit the streamline process, use one of the streamline options shown in the following table:
Process Abbreviation DXES DXEU XES XEU DTE ITES ITEU Process Name Distribute and Interface Expense Report Costs to AP Distribute and Interface Expense Report Costs to AP Interface Expense Report Costs to AP Interface Expense Report Costs to AP Distribute and Transfer Expense Report Costs to AP AP Invoice Import and Tieback Expense Reports AP Invoice Import and Tieback Expense Reports
Table 7 2 Streamline Processes (Page 1 of 1)
Note: In the preceding table, the following processes create summarized reports that display expense report lines summarized by code combination identifier: DXES, XES, and ITES (AP Invoice Import). See: PA: Summarize Expense Report Lines, Oracle Projects Implementation Guide. In the preceding table, the following processes are detailed report processes that generate an invoice distribution in Oracle Payables for each detail expense report cost distribution line: DXEU, XEU, ITEU (AP Invoice Import). You must use the same report mode (see notes above), either summarized or detailed, to interface expense report costs to Payables and then tie back those expense reports, regardless of whether you submit a streamline process or an individual process.
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For more information, see: Submitting Streamline Processes, Oracle Projects Fundamentals.
Transferring Payables Accounting Information to General Ledger

After the Expense Report Import program creates invoices, and you approve, pay, and account for them in Payables, use the Payables Transfer to General Ledger program to send the invoice information to General Ledger interface tables. In General Ledger, post the invoice interface data to update your account balances. For information on importing and posting journals, see the Oracle General Ledger User Guide.
Processing Expense Reports Created in Oracle Internet Expenses

This section covers the following topics: Importing Expense Reports in Payables: page 7 16 Transferring Payables Accounting Information to General Ledger: page 7 17 Interfacing Expense Reports from Payables: page 7 17 Note: Except as noted, the information in this section also applies to expense reports created in the Invoices window (in Payables). Figure 7 2 illustrates the steps in processing projectrelated expense reports created in Oracle Internet Expenses.
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Figure 7 2 Processing Expense Reports Created in Oracle Internet Expenses
Figure 7 2 shows that expense reports created in Oracle Internet Expenses go directly to the Payables interface tables. You run the Expense Report Import program to send this information from the Payables interface tables to the Payables invoice tables. Additionally, projectrelated expense reports that are entered through the Invoices window in Payables go directly to the Payables invoice tables. Once the expense reports are in the Payables invoice tables, Payables creates the appropriate accounting transactions for these projectrelated expense reports. Payables creates these projectrelated transactions based on business rules you defined in the Projects Expense Report Account Generator. Internet expenses are interfaced to Oracle Projects by the Interface Expense Reports from Payables. This information initially goes to the Oracle Projects interface tables. The process continues and
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automatically imports the transactions to the Projects Expenditure Items Table. Expense reports that are entered directly into Oracle Projects are interfaced to Payables through the Interface Expense Reports to Payables process. You can adjust expense reports entered in Oracle Internet Expenses in either Payables or Oracle Projects. You can also transfer or split expense report items (net zero adjustments), recost the entered expense reports, and then send the information to Payables. Payables ultimately posts these adjusted transactions to General Ledger. See: Adjusting Expense Reports: page 7 19.
See Also
Generating Accounts for Oracle Payables, Oracle Projects Implementation Guide Expense Report Import Program, Oracle Payables User Guide
Importing Expense Reports In Payables

Note: You do not need to import expense reports entered directly in the Invoices window, because the system saves those expense reports directly to the Payables invoice tables. The Expense Report Import program processes expense reports created in Oracle Internet Expenses as well as those entered in Oracle Projects and interfaced to Payables. Payables identifies invoices created from Oracle Internet Expenses expense reports with a source of Oracle Internet Expenses. Adjustments to expense reports created in SelfService Expenses or the Invoices window (in Payables) are loaded directly into the AP invoice tables. You do not need to run Expense Report Import, either as an individual process or as part of the streamline interface processes ITES and ITEU. For prerequisites and procedures for importing projectrelated expense reports from SelfService Expenses, see: Expense Report Import Program, Oracle Payables User Guide.
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Transferring Payables Accounting Information to General Ledger

After the Expense Report Import program creates invoices, and the invoices (expense reports) are approved, paid, and accounted in Payables, use the Payables Transfer to General Ledger program to send the invoice information to the General Ledger interface tables. In General Ledger, you post the invoice interface data to update your account balances. For detailed information about interfacing and posting journals see the Oracle General Ledger User Guide.
Interfacing Expense Reports from Payables

Note: Two processes have very similar names. The process described here gets expense report information from Payables. After you post the invoice accounting entries to General Ledger, use the Interface Expense Reports from Payables process to import the invoice to Oracle Projects. This process calls the Transaction Import process, which: Loads projectrelated invoice accounting entries Calculates the burden amounts for the appropriate imported raw costs Creates a preapproved expense report batch in Oracle Projects, based on the projectrelated invoice accounting entries Imports descriptive flexfield information entered in Oracle Internet Expenses or Payables Note: Projects holds 10 descriptive flexfield segments. If you are using more than 10 segments in Payables, only the first 10 are imported to Projects. See: Descriptive Flexfield Mapping Client Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference Oracle Projects generates transactions with a source of Oracle Payables. The Allow Adjustments option is enabled for the Oracle Payables source, but only net zero adjustments are allowed. You cannot reverse or recalculate burdened costs. For more information about this process, see: Interface Expense Reports from Payables, Oracle Projects Fundamentals. Prerequisites Before you run this process:
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Enter expense reports in Oracle Internet Expenses or the Invoices window. Verify that employees are designated as suppliers. (If they are not, the interface program will not import the invoice.) Conversely, suppliers must be designated as employees. See: Setting Up in Payables and Oracle Projects: page 7 5. Run the Payables Transfer to General Ledger program in Payables. See: Transferring Payables Accounting Information to General Ledger: page 7 14 Reports This process generates a report that lists the interfaced and rejected invoice distribution lines, as well as a summary of the total number and cost of the distribution lines. Correct the rejected invoice distribution lines (refer to the rejection reasons shown on the report), and then resubmit the process.
Advances and Prepayments

In Payables, you can create an advance, or prepayment, to an employee for travel or other expenses. After an expense report is loaded into Payables, you can use Payables to apply the prepayment against Oracle Projects expense reports. When an employee incurs an expense and submits an expense report, you reduce the amount of the expense report reimbursement by applying outstanding prepayments to it. You can apply prepayments to an expense report when the expense report is in the Payables interface tables or when the expense report is loaded in Payables as an invoice.
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To apply prepayments to expense reports: 1. 2. 3. Use Payables to enter a prepayment, approve it, and pay it (see: More About Prepayments: page 7 19). Enter and approve the expense report in Oracle Projects and then release the expense report batch. Distribute expense reports and interface them to Payables using Oracle Projects processes. You can use the DTE Distribute and Interface Expense Report Costs to AP streamline option.
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4. 5.
Apply the prepayment to an expense report using the Expense Reports window in Payables (see below). Run the Expense Report Import program and tie back invoices from Payables to Oracle Projects. You can use either of the following Oracle Projects interface streamline options: ITES: AP Invoice Import and Tieback Expense Reports ITEU: AP Invoice Import (Unsummarized Report) and Tieback Expense Reports.
6.
Review invoices and payments in Payables.
More About Prepayments

When you enter a prepayment, Payables automatically creates invoice distributions and a scheduled payment. Use the Invoices window in Payables to create and approve prepayments. You must approve and pay a prepayment before you can apply it to an invoice to reduce the amount you owe. You can use the Payments window in Payables to pay a prepayment. Use the Expense Reports window in Payables to apply a prepayment or enter a hold against an expense report. You can apply prepayments and holds to expense reports after you interface expense reports into Payables, but before you run Expense Report Import and create invoices from the expense reports. You cannot change any information for an Oracle Projects expense report in the Expense Report window; you can only apply prepayments or holds. You can also apply prepayments and holds to expense reports after you run Expense Report Import when the expense reports are invoices in Payables. For more information, see: Prepayments, Oracle Payables User Guide.
Adjusting Expense Reports

How you adjust an expense report depends on which application was used to create it. Note: Adjustments interfaced to Payables appear on the same invoice in Payables. Adjustments interfaced from Payables appear in a separate expense report batch.
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Adjusting Expense Reports Created in Oracle Projects

If you created an expense report in Oracle Projects, you should generally make the adjustments in Oracle Projects. You can adjust an expense report in Oracle Projects at any time, but you cannot interface adjustments to Payables until an invoice exists in Payables and you have run the tieback process. Interfacing expense reports links adjusting transactions in Oracle Projects to the corresponding invoice in Payables. This linkage allows you to reconcile all projectrelated expense reports in Payables, and accurately account for your cash books if you use Cash Basis Accounting. Note: Any adjustments made in Oracle Payables to expense reports that originated in Oracle Projects are not interfaced back to Oracle Projects and will result in outofbalance subledgers.
Adjusting Expense Reports Created in Oracle Internet Expenses

Note: The information in this section also applies to expense reports created in the Invoices window (in Payables). Expense reports created in Oracle Internet Expenses and the Invoices window can be adjusted in both Oracle Projects and Payables: In Oracle Projects, you can transfer or split expense lines (net zero adjustments). You cannot reverse expenditure items or recalculate burdened costs. In Payables, you can: Modify line amount, project, task, or expense types by reversing existing invoice distribution lines and then creating new ones Cancel the invoice completely Before you can make adjustments in Oracle Payables or cancel an invoice in Payables, each application checks for outstanding adjustments or cancellations in the other. If outstanding adjustments exist, you must interface the adjustments before continuing. You cannot adjust an Oracle Internet Expenses expense report if any of the following conditions are true: The invoice has been cancelled in Payables
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Adjustments made to this invoice in Payables have not been sent to Oracle Projects The item has been fully or partially prepaid The invoice has been fully or partially paid and either the Allow Adjustments to Paid Invoices option is disabled, or discount payment distributions have been associated with the invoice You are using cash basis accounting For more information, see: Adjusting Invoices, Oracle Payables User Guide.
Purging Expense Reports

After you create invoices in Payables and then tie them back, you can create more space in your database by purging imported Oracle Projects expense reports from the Payables interface tables. To do so, identify the date through which you want to purge expense reports when you submit Expense Report Import. Payables purges the expense reports during the import process. For expense reports created in Oracle Internet Expenses, you can have the Expense Report Import program purge imported information. The purge occurs after the program creates invoices from expense report information and the tieback process is complete. It is a good practice to purge expense reports periodically.
Viewing Expense Reports in Oracle Payables

After you successfully send expense reports to Payables and run the Expense Report Import program, each expense report in Payables is converted to a Payables invoice. You can view these expense reports in Payables (just as you can any other invoice), as well as in Oracle Projects. To view invoices that have been created from Oracle Projects expense reports, open the Invoices or Distributions window, query the project, task, and expenditures. In other windows, query the information that Oracle Projects passes to Payables:
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The employee name becomes the supplier name. The name appears in uppercase when it is generated by the system in Payables. The week ending date, or expenditure ending date, becomes the invoice date in Payables. The total expense report cost becomes the total invoice amount in Payables. For each invoice distribution in Payables, you can also view information for each expenditure item, such as the project information, the amount, and the account coding. To query the payment status of an employees expense report, use the Find Invoices window and query by supplier name and invoice date. See Example: Finding an expense report: page 7 23. Note: You can use the Expense Reports window in Payables to view expense reports submitted from Oracle Internet Expenses. The window also displays expense reports interfaced from Oracle Projects to Payables. Note that the Expense Reports window does not display project and task information.
Interpreting Invoice Numbers

For expense reports entered in Oracle Projects, the invoice number is the expenditure batch name (from Oracle Projects) plus an expense report identifier. For example, the invoice number EXDEN125 R11DEC95 12:00:001000 is an invoice that was processed in the expenditure batch of EXDEN125 R11DEC95 12:00:00, which is identified by the number 1000.
Interpreting Expense Report Batch Names

For expense reports entered in Oracle Projects, the expenditure batch name is a concatenation of the expenditure batch parameter, the type of batch, and the creation date and time. If you do not specify an expenditure batch parameter when you submit the Distribute Expense Report Costs process, the batch name prefix is ALL. The letter R represents a regular expense report batch, and the letter A represents an adjusted expense report batch. For example, a regular expense report batch could be named ALL R16SEP98 14:46:05 and a specific batch could be named EXHQD523 A16SEP98 12:00:05.
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Example: Finding an expense report

Your employee, Amy Marlin, wants to know the status of an expense report that she submitted on October 1, 1998. The expenditure ending date of her expense report was 15SEP1998. Expense reports are submitted to the local accounting staff for entry into Oracle Projects. You dont know when the expense report was entered in Oracle Projects or sent to Payables. In Payables, navigate to the Find Invoices window and enter %Marlin% in the supplier name field. Enter invoice dates beginning September 1, 1998. Choose the Find button. The Invoices window displays all of Amy Marlins expense reports with expenditure ending dates after August 31, 1998 that have been sent to Payables. You will see if the expense report is in Payables, and has been posted to General Ledger, approved, and paid. You can also drill down to the individual distribution line items and see project information. If the Invoices window does not display the expense report, check to see if the expense report has been sent to Payables but not yet imported. Navigate to the Expense Reports window and query by Employee Name or Number.
See Also
Reviewing and Adjusting Invoices, Oracle Payables User Guide Expense Reports and Credit Cards, Oracle Payables User Guide
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Integrating with Oracle Purchasing and Oracle Payables (Requisitions, Purchase Orders, and Supplier Invoices)
Oracle Projects fully integrates with Oracle Purchasing and Oracle Payables and allows you to enter projectrelated requisitions, purchase orders, and supplier invoices using those products. When you enter projectrelated transactions in Oracle Purchasing and Oracle Payables, you enter project information on your source document. Oracle Purchasing, Oracle Payables, and Oracle Projects carry the project information through the document flow: from the requisition to the purchase order in Oracle Purchasing, to the supplier invoice in Oracle Payables, and to the project expenditure in Oracle Projects. Oracle Purchasing and Oracle Payables use the Account Generator to determine the account number for each projectrelated distribution line based on the project information that you enter. Using Oracle Projects views, you can report committed costs of requisitions and purchase orders that are outstanding against your projects in Oracle Projects.
See Also
Oracle Payables and Oracle Purchasing Integration, Oracle Projects Implementation Guide
ProjectRelated Document Flow

When you enter projectrelated documents, you specify project information in addition to the information you normally specify for a document. You can use all the standard features of Oracle Purchasing and Oracle Payables, including encumbrance accounting and funds checking, when you enter projectrelated documents.
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See Also
Using the Account Generator in Oracle Projects, Oracle Projects Implementation Guide
Integrating with Oracle Purchasing

When you enter projectrelated transactions in Oracle Purchasing, you only need to enter project information on the source document either the requisition or the purchase order. When you automatically create purchase orders from requisitions using Oracle Purchasing AutoCreate feature, the project information from the requisition is copied to the purchase order.
Entering Requisitions
You enter projectrelated purchase requisitions using the Requisitions window in Oracle Purchasing. You can enter default project information in the Requisitions Preferences window in the Project Information tabbed region. This default information will be used to populate requisition distribution lines you create during your current session. The requisitions distribution line has a Project tabbed region for you to enter projectrelated information. A requisition can have a combination of projectrelated and nonprojectrelated distribution lines.
Using AutoCreate
When you automatically create purchase orders from projectrelated requisitions in the AutoCreate Documents window, Oracle Purchasing copies the project information and the accounting information from the requisition to the purchase order. You do not need to enter any additional projectrelated information on your purchase order when you use this feature. See: AutoCreate Documents Overview, Oracle Purchasing Users Guide. You can change the project information on the purchase order that was copied from the requisition; the project information on the requisition is not updated.
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Entering Purchase Orders

If your company does not use online requisitions or the AutoCreate feature, you can enter projectrelated information directly on your standard purchase orders using the Purchase Orders window in Oracle Purchasing. When you use this window, you specify projectrelated information in the Project tabbed region of the distribution line. The account information will automatically be created by the Account Generator, based on the projectrelated information you enter. See: Overview of Purchase Orders, Oracle Purchasing Users Guide.
Entering Releases
You enter projectrelated releases against blanket purchase agreements and planned purchase orders using the Enter Releases window in Oracle Purchasing. When you use this window, you specify if the release distribution line is projectrelated. If it is projectrelated, you continue to enter project information for the line. See: Entering Release Headers, Oracle Purchasing Users Guide.
Recording Receipts and Delivery

You can track receipt and delivery of goods for projectrelated purchase orders using the Receipts window in Oracle Purchasing. You can report the delivery of purchased goods in your commitment reporting. Oracle Purchasing does not record the received goods as delivered for your project until the goods are delivered and assigned to a purchase order distribution line. See: Overview of Receipts, Oracle Purchasing Users Guide. When a purchase order line is flagged to accrue on receipt and the purchased goods are delivered to an expense destination, you can interface receipt accrual accounting entries from Oracle Purchasing to Oracle Projects as actual transactions. This allows you to recognize the cost to your project in the period in which it is incurred rather than in the period in which it is invoiced. For more information, see: Overview of Receipt Accounting, Oracle Purchasing Users Guide, and Interface Supplier Costs, Oracle Projects Fundamentals.
Entering Default ProjectRelated Information for Requisitions and Purchase Orders

You can enter default projectrelated information for requisitions and purchase orders.
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"
To enter default project information for requisitions and purchase orders: 1. 2. 3. In Oracle Purchasing, open either the Requisitions or Purchase Orders window. Select the Tools menu option at the top of the window and choose Preferences. Open the Project Information tabbed region and enter default project information to be used to create requisition and purchase order distribution lines during the current session. Save.
4.
Integrating with Oracle Payables

When you match an invoice to a purchase order or receipt in Oracle Payables, the project information from the purchase order or receipt is copied to the invoice. When you enter new projectrelated invoices in Oracle Payables, you only need to enter project information on the source document, the invoice. If you use distribution sets with project information, Oracle Payables automatically supplies project information for your supplier invoice distribution lines.
Matching Invoices
If you use Oracle Purchasing and have already associated projectrelated information to a purchase order, and you are matching an invoice to a purchase order or receipt using the Invoices windows instead of manually creating invoice distribution lines, Oracle Payables automatically copies the project information from the purchase order or receipt to the invoice. You cannot change the project information that is copied from the purchase order to the invoice.
Entering Invoices
You can enter projectrelated invoices directly in the Invoices windows in Oracle Payables. You can enter projectrelated information in the Invoices window which will default to all distributions you enter for the invoice. These values can be overridden. You also enter projectrelated information in the Distributions window. You can
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create a folder with projectrelated fields to be used for entering information. An invoice can have both projectrelated and nonprojectrelated distribution lines. See: Entering Invoices Overview, Oracle Payables User Guide. Note: You can also import through the Payables Open Interface tables projectsrelated invoices from the Invoice Gateway and other systems.
Using Distribution Sets

You can define distribution sets to make it easier to enter invoices. Use the Distribution Sets window to specify project information for the distribution set lines. You can use projectrelated distribution sets for recurring costs for any project class (contract, indirect, and capital). See: Distribution Sets, Oracle Payables User Guide. When you enter invoices, you can enter a distribution set. You can use distribution sets to create projectrelated invoices in the following Oracle Payables forms: Invoices Recurring Invoices
Posting Invoices
After you process invoices according to your business policies, you approve them in Oracle Payables, and interface the invoice information to Oracle General Ledger interface tables. You use the Payables Transfer to General Ledger process in the Submit Request window in Oracle Payables to interface invoices to General Ledger. In General Ledger, you post the invoice interfaced data to update your account balances. See: Posting Journals, Oracle General Ledger User Guide.
Entering Default ProjectRelated Information for Supplier Invoices

You can enter default projectrelated information in Oracle Payables.
"
To enter default project information for a single supplier invoice: 1. In Oracle Payables, open the Invoices window.
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2. 3.
Enter default project information to be used to create the distribution lines for the invoice. Save and continue entering the invoice information. Suggestion: Create projectoriented folders at the invoice and invoice distribution line level to make it easier and faster to enter project related information for your invoices.
"
To enter default project information in supplier invoice distribution sets: 1. 2. 3. 4. In Oracle Payables, open the Distribution Sets window located under Setup, Invoice. For projectrelated distribution lines, check the Project Related box. This will open the Project Information window. Enter default project information to be used to create the distribution lines, then select OK to close the window. Save.
You can review and change project information in the distribution set by selecting the Project Information button at the bottom of the window.
Interfacing Supplier Costs

To load invoices and receipt accruals from Oracle Payables and Oracle Purchasing, respectively, to Oracle Projects, use the PRC: Interface Supplier Costs process in Oracle Projects. The Interface Supplier Costs process uses the project and task information to determine if the items are billable, capitalizable, or both. You can accrue revenue and invoice billable items in Oracle Projects. The process selects transactions based on the parameter values entered. It first retrieves all eligible accounted, projectrelated receipt accrual information, supplier invoice distributions (including nonrecoverable tax lines) and all payment discounts that are distributed to projectrelated distributions. The process then interfaces the amounts to Oracle Projects. The interfaced items are grouped into expenditure batches. All invoice distributions, excluding nonrecoverable tax lines, are included in one batch. Nonrecoverable tax lines are grouped into a second batch, payment discounts are included in a third batch, and receipt accruals for project related items with a destination type of Expenses are
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grouped in the fourth batch. Within each batch, an expenditure is created for each invoice and an expenditure item is created for each invoice or discount distribution. Each time you run Interface Supplier Costs process, Oracle Projects generates reports you can use to track the interfaced supplier invoices distribution lines, receipt accruals, as well as those invoice lines and receipt accruals that are rejected during interface from Oracle Payables and Oracle Purchasing, respectively.
See Also
Interface Supplier Costs, Oracle Projects Fundamentals Recoverable Tax, Oracle Payables User Guide
Entering ProjectRelated Information for Requisitions, Purchase Orders, and Supplier Invoices
You enter project information at the distribution line level for projectrelated requisitions and purchase orders in Oracle Purchasing, and for projectrelated supplier invoices in Oracle Payables.
Default Project Information

You can specify default project information at the header level for requisitions, purchase orders, and supplier invoices; this information defaults to the documents distribution lines. For purchase orders, you can also specify default project information at the purchase order line and purchase order shipment levels. The default project information for requisitions and purchase orders are session defaults which are lost when you exit the entry forms. The default project information for invoices is stored with the invoice and is retained when you query the invoice.
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ProjectRelated Information
When you enter requisitions, purchase orders, and supplier invoices in Oracle Purchasing or Oracle Payables, and have Oracle Projects installed, you specify the following projectrelated information: The Project Number segment is the project number incurring the charge from the requisition, purchase order, or invoice. The Task Number is the lowest level task incurring the charge from the requisition, purchase order, or invoice. The Expenditure Type is an expenditure type classified with an expenditure type class of Supplier Invoices. The Expenditure Organization is the organization that is ordering or has ordered the goods or services, which may be different from the project owning organization. This organization defaults to the organization you specify in the profile option PA: Default Expenditure Organization in AP/PO. This profile option provides a default value for the expenditure organization segment each time you create project information in Oracle Payables or Oracle Purchasing. You can choose from any expenditure organization that has an HR Classification as your default value. Your system administrator can configure this default profile at the site, application, responsibility, and user levels; each user can also specify their own personal value for this profile. The Expenditure Item Date is the date that you expect to incur the expense for the goods or services that you are requesting for a requisition or purchase order, or the date that you incur the charge for an invoice. This date is used during online validation against project transaction controls, and becomes the expenditure item date on the expenditure item in Oracle Projects. This date defaults to the current date each time you create a new Accounting Flexfield combination. The Quantity is the quantity of goods or services that you are charged for. You can enter data in this field only in Oracle Payables, as this field is applicable for invoice distributions only. This value is required if you have defined the expenditure type with Cost Rate Required set to Yes. For expenditure types that require a cost rate, the quantity on the invoice distribution becomes the quantity in the expenditure item and a cost rate is calculated as the amount divided by the quantity when Oracle Projects interfaces the invoice distribution and creates an expenditure item in Oracle Projects. For other expenditure types that do not require a cost rate, the quantity in the invoice distribution is not copied to the expenditure item; instead
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the amount of the line is copied as the quantity and the amount on the expenditure item.
Entering ProjectRelated Fields by Document

You do not need to enter information for each project field for all documents in Oracle Purchasing and Oracle Payables. For example, you do not need to enter information for expenditure item date and quantity if you are entering invoice distribution sets. The following table specifies the project information that you enter for each document in Oracle Purchasing.
Document
Requisition
Location
Requisition Level (default only) Requisition Distribution Line Level
Fields
Project Task Expenditure Type Expenditure Organization Expenditure Item Date
Purchase Order
Purchase Order Level (default only) Purchase Order Line Level (default only) Purchase Order Shipment Level (default only) Purchase Order Distribution Line level
Release
Release Distribution Line Level
Table 7 3 Entering ProjectRelated Segments by Document in Oracle Purchasing (Page 1 of 1)
The following table specifies the project information that you enter for each document in Oracle Payables.
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Document
Invoice
Location
Invoice Level (default only) Invoice Distribution Line Level
Fields
Project Task Expenditure Type Expenditure Organization Expenditure Item Date Quantity (Distribution level only)
Distribution Set
Distribution Set Line Level
Project Task Expenditure Type Expenditure Organization
Table 7 4 Entering ProjectRelated Segments by Document in Oracle Payables (Page 1 of 1)
Requisition, Purchase Order, and Release

You do not enter the quantity for documents in Oracle Purchasing because you do not know the quantity for which you will be invoiced. Oracle Payables automatically sets the quantity field to the quantity invoiced of the invoice distribution line when you match an invoice to a purchase order or receipt.
Invoice
You can enter all of the project fields for an invoice line. The quantity field is optional if the expenditure type does not require a quantity.
Distribution Set
You do not enter the Expenditure Item Date in the distribution set lines you create in Oracle Payables because you use the distribution sets for an indefinite period of time. When you use the distribution set to create an invoice, Oracle Payables sets the expenditure item date of the invoice distributions to the invoice date of the invoice.
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Validating Purchase Orders, Requisitions, and Supplier Invoices

When you enter project information and save the record, the information is validated against the project transaction control information in Oracle Projects. This validation ensures that you can charge the type of expenditure to the project and task on the expenditure item date that you specified. If the information that you entered does not pass the project transaction control validation, you will see an error message displayed on the bottom line of the screen. You must enter valid chargeable project information based on the transaction controls in Oracle Projects before you can continue. Note: The expenditure item date and the date of the invoice must both be in an open or future Projects period. If you cannot determine valid project information that is chargeable, you can delete the projectrelated fields and close the window. You should then determine valid project information and return to the document to enter the project information.
Validation of Distribution Set Project Information

When you create a distribution set in Oracle Payables, the project information for a distribution set line is not validated against the project transaction controls information in Oracle Projects, because you do not enter an expenditure item date which is required for transaction control validation. Usually, distribution sets are used on recurring transactions, and the associated project does not have transaction controls. The only validation Oracle Projects performs on a distribution set is at the time you create the distribution set lines. Oracle Projects validates the project and task number.
See Also
Controlling Expenditures: page 2 29
Funds Check Activation in Oracle Purchasing and Oracle Payables

In Oracle Purchasing and Oracle Payables, funds check processes are activated when you select the Check Funds option for a transaction, and also during the transaction approval process.
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When you select the Check Funds option, a successful funds check result does not update budgetary control balances. You use the Check Funds option to verify available funds for a transaction before requesting approval for the transaction. During the transaction approval processes, a funds check is automatically performed. At that time, if the funds check is successful, the transaction is approved and budgetary control balances are updated.
See Also
Funds Check Activation in Oracle Projects, Oracle Project Management User Guide Budgetary Controls, Oracle Project Management User Guide
Accounting Transactions Created by the Account Generator

Oracle Purchasing and Oracle Payables use the Account Generator to determine the GL account number for each projectrelated distribution line based on the project information that you enter. Oracle Purchasing builds the account number for the charge, accrual, and variance distribution accounts based on the Account Generator assignments that you define during implementation. You can define your Account Generator processes so that projectrelated requisitions and purchase orders use projectrelated information in the Account Generator assignments and nonprojectrelated documents use the Account Generator assignments predefined by Oracle Purchasing. If you are using Encumbrance Accounting, you can also define assignments for the budget account based on project information. Oracle Payables builds the expense account number for projectrelated invoices using assignments that you define during implementation. You must enter the account number for nonprojectrelated invoices. Oracle Payables determines the liability account for all invoices based on the liability account defaults provided by Oracle Payables. You can control whether users can override the account number determined by the Account Generator for projectrelated distributions
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using the profile option PA: Allow Override of PA Distributions in AP/PO. For example, you may want only the Purchasing Manager and Payables Manager to have the ability to override the projectrelated distributions. In this example, you set the profile to No at the Site level and to Yes for the Payables Manager and Purchasing Manager responsibilities.
See Also
Using the Account Generator in Oracle Projects, Oracle Projects Implementation Guide
Commitment Reporting
You can report the total costs of a project by reporting the committed costs along with the actual costs. Committed costs are the uninvoiced, outstanding requisitions and purchase orders charged to a project. Total Project Costs = (Committed Costs + Actual Costs) You can report the flow of committed costs, including associated nonrecoverable tax amounts, through Oracle Purchasing and Oracle Payables. These committed costs can include: Open requisitions (approved, unpurchased requisitions) Open purchase orders (approved, uninvoiced and nondelivered) Pending invoices (supplier invoices not yet interfaced to Oracle Projects to be included in project costs) You can report summary committed cost amounts for your projects and tasks, and can also review detail requisitions and purchase orders that backup the summary amounts.
See Also
Project Summary Amounts, Oracle Project Management User Guide
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Implementing Commitments from External Systems, Oracle Projects Implementation Guide
Example of Commitment Reporting

Study the following example to understand the flow of committed costs through Oracle Purchasing, Oracle Payables, and Oracle Projects. You use requisitions, purchase orders, and receipt and delivery in Oracle Purchasing. You record cost when goods are received to better manage your project progress and schedule. The following table provides examples of the charges that are incurred as you record transactions. The table shows the effect of various actions, such as receiving the goods against a purchase order, on committed costs and the total costs charged to a project. Descriptions of each action are provided after the table. In the table, certain column values are calculated as follows: H H H Open Purchase Orders equals Ordered Purchase Orders less Delivered Purchase Orders Total Committed Costs equals the sum of Open Requisitions, Open Purchase Orders, and Pending Invoices Total Project Costs equals the sum of Total Committed Costs and Actual Costs.
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Action
Open Requisitions
Ordered Purchase Orders
Delivered Purchase Orders
Open Purchase Orders
Pending Invoices
Total Committed Costs 1000
Actual Costs
Total Project Costs 1000 1000
Enter Requisition Create Purchase Order from Requisition Receive Goods Receive Invoice Enter NonPurchase Order Invoice Interface Invoices Close Purchase Order Close Requisition Charge labor to Project Charge Blanket Purchase Order
1000 200 200 200 200 200 200 0 0 0 800 800 800 800 800 0 0 0 400 500 500 500 500 0 0 0 0 800 300 300 300 300 0 0 0 400 100 0 0 0 0 0
1000 500 500 600 500 200 0 0 400 500 500 500 600 600 600 5600 5600
1000 1000 1100 1100 800 600 5600 6000
Table 7 5 Example of Commitment Reporting (Page 1 of 1)
Detail for Example of Commitment Reporting Actions 1. Enter requisition You enter and approve a requisition totalling $1000, with two lines of $800 and $200. The requisition amount is included in the Open Requisitions and the Total Committed Costs amounts. 2. Create purchase order from requisition You create a purchase order for the first line of the requisition, totalling $800. You approve the purchase order. The Open Requisition amount decreases by $800 and the Ordered Purchase Order and Open Purchase Order amounts increase by $800. The total committed costs remain the same. 3. Receive delivery of purchased goods The supplier delivers $500 of the $800 of goods that you ordered. The Delivered Purchase Order amount increases by $500. The Open Requisition, and Ordered Purchase Order, do not change.
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Because you accrue on receipt, the Open Purchase Order and Total Committed Costs amounts decrease by $500 and the Actual Costs amounts increases by $500. 4. Receive invoice for delivered goods You are invoiced for the $500 of goods that you received. The Payables department matches the invoice to the purchase order. The Open Purchase Order amount, the Pending Invoice amount,the Total Committed Costs amount, and the Ordered Purchase Order amount does not change. 5. Enter supplier invoice not associated with purchase order You receive another invoice for $100 that is not associated with a purchase order. The Payables department enters the invoice. Both the Pending Invoice amount and the Total Committed Cost amounts increase by $100. The Total Project Cost also increases because the Total Committed Costs amount increases. 6. Interface invoices to Oracle Projects The Payables department approves, accounts for, and posts all invoices and accruals to Oracle General Ledger, and then interfaces the supplier invoices to Oracle Projects. The invoice costs totalling $100 are now recorded against your project in Oracle Projects. The Pending Invoice amount decreases by $100. The Total Committed Costs amount decreases by $100. The Actual Costs amount increases by $100. The Total Project Costs amount does not change. 7. Close purchase order You close the purchase order that has $300 remaining, because you do not expect any more activity against that purchase order. The purchase order is no longer reported in your committed costs. Closed purchased orders are not reported in the commitment reporting, so all of the Purchase Order amounts are reduced for the purchase order closed. The Total Committed Costs amount, and in turn, the Total Project Cost amount, decreases by $300, which was the Open Purchase Order amount for the purchase order closed. 8. Close requisition You close the requisition for $200 because you no longer need the goods requested. The requisition is no longer reported in your committed costs.
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Closed requisitions are not reported in the commitment reporting, so Open Requisition amount decreases by $200 for the requisition that you close. The Total Committed Costs amount, along with the Total Project Costs, also decreases by $200. 9. Charge labor costs to project Employees working on your project record time to your project, which totals $5000. The Actual Costs amount increases by $5000. The Total Project Costs amount also increases. 10. Enter release against blanket purchase agreement You need to order supplies for your project. You create a $400 release against a blanket purchase agreement that your company has negotiated with a supplier. The Ordered Purchase Order and Open Purchase Order amounts increase by $400. In turn, the Total Committed Costs and Total Project Costs also increase.
Adjusting ProjectRelated Documents in Oracle Purchasing, Oracle Payables, and Oracle Projects
This section describes the adjustments that you can make to projectrelated documents in Oracle Purchasing, Oracle Payables, and Oracle Projects.
Requisition Adjustments
You can update project information on a requisition. If the requisition is included on a purchase order before you update the project information, the purchase order is not updated with the new project information. If the requisition line is included on a new purchase order after you change the project information, Oracle Purchasing copies the new project information to the new purchase order. The Account Generator builds a new account number value when you change the project information. The new project information is used in commitment reporting.
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Purchase Order Adjustments

You can update project information on a purchase order, even after it is approved and invoiced. However, you cannot update project information if there has been any accounting activity on the purchase order (for example, if it is encumbered, or if it is accrued on receipt and the distribution has been received or billed). If the purchase order is invoiced before you update the project information, the invoice is not updated with the new project information. If the purchase order line is invoiced on a new invoice after you change the project information, Oracle Payables copies the new project information to the new invoice. The Account Generator builds a new account number when you change the project information. The new project information is used in commitment reporting.
Supplier Invoice Adjustments in Payables

You can perform supplier invoice adjustments in Oracle Payables at any stage in the process flow. Adjusting project information for matched invoices If you have matched an invoice to a purchase order, you cannot directly change any of the project information copied from the purchase order. You may encounter cases in which you want to change the project information; in particular, you may want to change the expenditure item date that was copied from the purchase order, because the expenditure item date on the purchase order was not maintained. If you want to change the project information in this case, there are two ways of making the change. You can reverse the matching distribution line from the purchase order in the Distributions window in Oracle Payables, change the purchase order project information in Oracle Purchasing, and match the invoice to the purchase order again. See: Adjusting Invoice Distributions, Oracle Payables User Guide. You can also create two adjusting invoice distributions on the original invoice which net to zero, but have different project information. This is a generally a simpler way to correct the project information. Using either the Invoices or Distributions windows in Oracle Payables, you first enter a negative distribution line with the same project information as on the incorrect invoice distribution line. You then enter a positive distribution line with the correct project information. The two lines
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that you entered net to zero, but record the correction to the project information, without having to match to the purchase order again. Adjusting manually entered, unposted invoices You can directly change any or all of the project information before an invoice is posted. The Account Generator derives a new account number based on the new project information that you enter. Adjusting manually entered, posted invoices You cannot directly change any project information on a posted invoice. You must reverse the distribution line and create a new distribution line with the new project information using the Distributions window in Oracle Payables. See: Adjusting Invoice Distributions, Oracle Payables User Guide. Interfacing adjusting lines to Oracle Projects If the original invoice distribution line that was reversed was not yet interfaced to Oracle Projects, the Interface Supplier Invoices from Payables process does not interface the original or reversing items, that are included on the same invoice, to Oracle Projects. These items are marked as net zero adjustment lines that are not to be interfaced to Oracle Projects. The new line with the correct project information is interfaced to Oracle Projects. If the original invoice distribution line that was reversed was interfaced to Oracle Projects before the adjustment, the Interface Supplier Invoices from Payables process interfaces the reversing and new invoice adjustment lines that you created to correctly maintain project costs in Oracle Projects.
Supplier Invoice Adjustments in Oracle Projects

You perform the following adjustments for supplier invoices in Oracle Projects: Transfer between projects/tasks Split expenditure item Adjust supplier invoice expenditure items Enter a miscellaneous preapproved expenditure item to adjust the related discount amounts. Reclassify item as billable or nonbillable
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Reclassify item as capitalizable or noncapitalizable Edit comment Hold or release from billing Project users can perform these adjustments in Oracle Projects because the actions do not change the amount of the invoice which is processed in Oracle Payables. These adjustment actions change the project information of the supplier invoice item, which is used in Oracle Projects processing. After you have made adjustments to supplier invoice items, you must send the adjustment information back to Oracle Payables so the Payables distribution lines match what is recorded in Oracle Projects. Oracle Payables will interface adjustments that affect the GL account number to Oracle General Ledger. You run the following processes in Oracle Projects for supplier invoice adjustments: PRC: Distribute Supplier Invoice Adjustment Costs PRC: Interface Supplier Invoice Adjustment Costs to Payables If you need to change the invoice amount, supplier, or expenditure type, organization, or item date for a supplier invoice line, reverse the line and create a new line in Oracle Payables. See: Adjusting Project Information for Matched Invoices: page 7 41.
See Also
Adjustments to Supplier Invoices: page 2 76
Restrictions to Supplier Costs Adjustments

Adjustments to supplier costs in Oracle Projects must adhere to the specific business rules for supplier invoices and receipt accruals. Supplier Invoices When Projects is integrated with Payables, you cannot adjust supplier invoices (either in Oracle Projects or in Oracle Payables) if the invoice is: Cancelled
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When you cancel an invoice in Payables, reversing distribution lines are created for each distribution line, and the invoice amount is set to zero. The invoice status is set to Cancelled, and its distribution lines are posted to GL the next time the Transfer to General Ledger program is run in Payables. When an invoice has a status of Cancelled, it cannot be adjusted. Paid, if any of the following conditions apply: The Payables setup option Allow Adjustments to Paid Invoices is disabled Oracle Payables provides a systemlevel control to prevent users from adjusting paid invoices. If you want to allow adjustments to paid invoices, enable the Allow Adjustments to Paid Invoices setup option in the Payables Options window. You are using the Prorate Expense or Prorate Tax discount distribution method Oracle Payables does not allow adjustments to paid invoices if a prorated discount distribution method is used. You are using cash basis accounting Prepaid, either fully or partially Selected for payment You cannot adjust an invoice selected for payment until the Confirm Payment Batch action has been performed. Receipt Accruals You cannot adjust the item in Oracle Projects when the item is interfaced from Oracle Purchasing. If the invoice is matched to an accrue on receipt purchase order line and the invoice line (rather than the purchase order receipt) is interfaced, then the invoice line can be adjusted in Oracle Projects.
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Integrating with Oracle Assets

Oracle Projects integrates with Oracle Assets, allowing you to manage capital projects in Oracle Projects and update your fixed assets records when assets are ready to be placed in service or retired. In a capital project, you can collect constructioninprocess (CIP) and expense costs for each asset you are building. In addition, you can perform retirement cost processing to capture retirementworkin process (RWIP) costs (cost of removal and salvage) associated with the retirement of group assets in Oracle Assets. Oracle Projects collects labor, expenses, usages, miscellaneous transactions, and supplier invoice costs, and using a combination of AutoAccounting and Workflow, assigns the costs either to a CIP, RWIP, or expense account. When you are ready to place a capital asset in service, you use Oracle Projects processes to collect all eligible CIP cost distribution lines, summarize them, and create capital asset lines. When you complete the tasks that are necessary to retire a group asset in Oracle Assets, you can summarize the RWIP amounts into retirement adjustment asset lines. You can review and make changes to the asset lines before interfacing them to Oracle Assets. When you are satisfied that the asset lines are correct, you use Oracle Projects processes to interface the costs to the Oracle Assets Mass Additions table. After you interface the costs to the Oracle Assets Mass Additions table, you can make changes to the asset definition, if necessary, and then run the Post Mass Additions process. This program creates the asset records in Oracle Assets. When you run the Create Journal Entries process in Oracle Assets, journal entries are created and sent to Oracle General Ledger to relieve the CIP or RWIP account and transfer the amount to the appropriate asset cost or group depreciation reserve account. You can interface asset costs from Oracle Projects to Oracle Assets whenever you are ready and as many times during an accounting period as you wish. There is currently no interface between Oracle Assets and Oracle Projects which allows you to post depreciation expenses directly to projects.
See Also
Overview of Asset Capitalization: page 5 2
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Implementing Oracle Assets

If you plan to interface capital assets and retirement adjustment assets to Oracle Assets, you must implement Oracle Assets before you can create capital and retirement adjustment asset lines for your capital projects . The following information is used by Oracle Projects to validate your asset definition: Corporate Book Category FlexField Location FlexField Automatic Asset Numbering Accounting FlexField You may elect to interface costs without the category, location, depreciation expense account or asset number defined. You will then be required to add this information after the asset is posted to the mass additions table in Oracle Assets. However, you cannot create asset lines for an asset until it has a corporate book assigned to it. Whether a complete asset definition is required before interfacing the asset to Oracle Assets is determined by the Project Type setup in Oracle Projects. There are no additional implementation requirements in either Oracle Assets or Oracle Projects to interface costs from Oracle Projects to Oracle Assets.
When Oracle Assets is not installed

When Oracle Assets is not installed, the capital projects forms disables the following fields: Location Category Book Depreciation Expense Account
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Interfacing Assets to Oracle Assets

Submitting Processes
For detailed information on defining and processing assets, including the interface of assets and asset costs to Oracle Assets, refer to Defining and Processing Assets: page 5 15.
Each asset cost line sent to Oracle Assets from Oracle Projects includes the CCID (code combination ID) for the account number charged for the CIP costs.
Output Reports
Each time you run the Interface Assets process, Oracle Projects prints output reports which allow you to track you successfully interfaced assets, as well as those assets which failed to interface.
See Also
Sending Asset Lines to Oracle Assets: page 5 37
Mass Additions
Successfully interfaced asset cost lines from Oracle Projects are written to the Mass Additions table. You can use the Prepare Mass Additions window to review the interfaced assets. You can use all the normal functionality of Oracle Assets for assets that originate in Oracle Projects. You can perform the following operations on assets within Mass Additions: Split assets with more than 1 units into multiple assets. Add the new asset to an existing asset in Oracle Assets. Merge 2 or more new asset records into a single asset . Change the asset information defined in Oracle Projects; for example, asset category, asset key, or asset location.
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Asset records created by Oracle Projects will have one of the following queue statuses: POST A new asset from Oracle Projects with all required fields populated. The records for this asset can be posted to the FA tables. NEW A new asset from Oracle Projects which needs to have required fields manually populated before it can be posted to the FA tables. MERGED The individual summarized cost lines created in Oracle Projects. These records are merged into a single asset record in Oracle Assets. You do not make changes to the merged records. COST ADJUSTMENT New costs for a previously interfaced asset. These costs can be either positive or negative. You can make changes to certain fields on cost adjustments, as allowed by Oracle Assets. When you have finished making changes to the asset records in Mass Additions, run the Post Mass Additions process in Oracle Assets. Records that have been successfully posted to FA tables will have a queue status of posted.
See Also
Sending Asset Lines to Oracle Assets: page 5 37
Viewing Capital Project Assets in Oracle Assets

Once capitalized assets have been interfaced from Oracle Projects to Oracle Assets, you can locate the assets by project and task. You can also drill down to the underlying expenditure items that support the asset costs from within Oracle Assets. The following table lists where projectrelated information is located in Oracle Assets.
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Menu Item Prepare Mass Additions Prepare Mass Additions
Window Name Find Mass Additions Mass Additions Summary
ProjectRelated Information Find criteria include Project/Task fields Folder includes Project/Task fields Source tabbed region includes Project/Task fields Window includes Project Details button to drill down to Lines Details folder in Oracle Projects Find by Source Line tabbed region includes Project/Task fields Lines folder includes Project/Task fields
Prepare Mass Additions Mass Additions (select Open from Mass Additions Summary window)
Prepare Mass Additions
Find Assets (select Add to Asset from Mass Additions Summary window) Merge Mass Additions (select Merge from Mass Additions Summary window) Find Assets
Prepare Mass Additions
Asset Workbench
Find by Source Line tabbed region includes Project/Task fields Cost tabbed region includes Project/Task fields Window includes Project Details button to drill down to Lines Details folder in Oracle Projects Find by Source Line tabbed region includes Project/Task fields Folder includes Project/Task fields Window includes Project Details button to drill down to Lines Details folder in Oracle Projects
Asset Workbench
View Source Lines (select Source Lines from Assets window)
Financial Information Inquiry Financial Information Inquiry
Find Assets
View Source Lines (select Source Lines from Assets window)
Table 7 6 Location of ProjectRelated Information in Oracle Assets (Page 1 of 1)
Adjusting Assets
You can make changes in Oracle Assets to the asset information and cost amounts for assets interfaced from Oracle Projects. However, any changes made in Oracle Assets will not be reflected in Oracle Projects. You cannot change the Project or Task information associated with assets interfaced from Oracle Projects.
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Cost Adjustments
You can adjust an assets cost after you have interfaced the asset to Oracle Assets. For example, expense reports or supplier invoices may be processed after you have placed the asset in service which are part of the assets costs. You process these costs the same as you normally do. Generate new asset lines for the costs by running the Generate Asset Lines process in Oracle Projects. These new asset lines will be interfaced to Oracle Assets as cost adjustments.
See Also
Adjusting Assets After Interface: page 5 48
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Integrating with Oracle Project Manufacturing

Oracle Project Manufacturing is a solution for companies that manufacture products using projects or contracts. Oracle Project Manufacturing combines three major applications: Oracle Projects, which provides the project costing, project billing, and project budgeting functions. Oracle Manufacturing Thirdparty project planning and scheduling systems (project management systems) When used as a part of the Project Manufacturing functionality, Oracle Projects acts as a cost repository for manufacturingrelated activities from other products in the Project Manufacturing suite. The incorporation of Oracle Projects in the Project Manufacturing suite allows you to: Set up the WBS for a manufacturing project in Oracle Projects. All manufacturing costs are then tracked by project and task, and are imported to Oracle Projects using the Transaction Import process. Track projects and tasks defined in Oracle Projects throughout various manufacturing applications. Charge project costs from inventory and work in process to a project and task. Include project costs from manufacturing and distribution in your budget to actual cost analysis in Oracle Projects.
See Also
Implementing Oracle Project Manufacturing, Oracle Projects Implementation Guide
Importing Project Manufacturing Costs

When costs are incurred in Oracle Manufacturing that are related to a project, the Cost Collector process in Oracle Cost Management passes those costs to Oracle Projects. The Cost Collector finds all costed
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transactions in Manufacturing that have a project reference and passes the referenced transaction costs to the correct project, task, and expenditure type in Oracle Projects. Oracle Projects imports the costs using the Transaction Import process. Suggestion: If you integrate with Oracle Manufacturing, use function security to prevent users from entering preapproved batch items with an expenditure type class of Inventory or Work in Process.
Adjusting Project Manufacturing Transactions

Transactions that are imported into Oracle Projects from Oracle Project Manufacturing cannot be adjusted in Oracle Projects. They must be adjusted in Oracle Project Manufacturing.
See Also
Transaction Import, Oracle Projects Fundamentals Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference Loading Project Manufacturing Costs, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
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Integrating with Oracle Inventory

Oracle Projects fully integrates with Oracle Inventory to allow you to enter inventory transactions in Oracle Inventory and transfer them to Oracle Projects. You can order and receive items into inventory before assigning them to a project. You can then assign the items to a project as they are taken out of or received into Oracle Inventory. When you enter projectrelated transactions in Oracle Inventory, you enter the project information on the source transaction. Oracle Inventory and Oracle Projects carry the project information through from the Issue To or Receipt From transaction in Oracle Inventory to the project expenditure in Oracle Projects. For more detailed information about projectrelated transactions in Oracle Inventory, see the Oracle Inventory Users Guide. Suggestion: If you integrate with Oracle Inventory, use function security to prevent users from entering preapproved batch items with an expenditure type class of Inventory or Work in Process. Figure 7 3 illustrates the flow of projectrelated inventory transactions in a nonmanufacturing environment.
Figure 7 3 Integration with Oracle Inventory
You enter issues and receipts into Oracle Inventory. After you run the Cost Processor in Inventory, these become costed transactions. Next, run the Cost Collector in Inventory. The transactions are now eligible
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for transfer to the Oracle Projects Transaction Import interface table. Use Transaction Import to create expenditures in Oracle Projects. If necessary, correct transactions and interface them again to the interface table. The transactions are imported into to Oracle Projects as accounted and costed. The cost distribution cannot be modified in Oracle Projects. For information about transferring transactions from Oracle Inventory to Oracle General Ledger, please refer to the Oracle Inventory Users Guide.
See Also
Implementing Oracle Inventory for Projects Integration, Oracle Projects Implementation Guide
Entering ProjectRelated Transactions in Oracle Inventory

You enter projectrelated transactions using the Miscellaneous Transactions window in Oracle Inventory. You enter the following projectrelated information: Inventory Organization Expenditure Item Date as the Transaction Date Project Task Expenditure Type (optional) To understand whether you need to enter the expenditure type, see: Oracle Inventory Profile Options, Oracle Inventory Users Guide. Organization
See Also
Performing Miscellaneous Transactions, Oracle Inventory Users Guide
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Transaction Types, Oracle Inventory Users Guide
Collecting Inventory Costs

After entering projectrelated inventory transactions in Oracle Inventory, the next step in moving the transactions to Oracle Projects is to run the Cost Collector in Inventory. The Cost Collector is a batch job that you run using Standard Report Submission. After you run the Cost Collector, transactions are eligible for import from Oracle Inventory to Oracle Projects. The total Inventory Cost becomes the Raw Cost in Oracle Projects.
See Also
Cost Collector, Oracle Inventory Users Guide
Transferring Inventory Costs to Oracle Projects

Oracle Inventory transfers expenditures to Oracle Projects using the Project Cost Transfers window. Organization Number of Days to Leave Costs Uncollected The Project Cost Transfers window submits a batch job that transfers the amount and quantities of the inventory transactions to the Oracle Projects Transaction Import Interface table.
Importing Inventory Transactions

To import inventory transactions, you submit the PRC: Transaction Import process. The transactions are imported as costed and accounted transactions with the expenditure type class and the transaction source that were defined during implementation.
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See Also
Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
Reviewing Imported Inventory Transactions

If transactions are rejected during the Transaction Import process, you can review and correct them using the Review Transactions window. After you correct transactions, you resubmit the Transaction Import process.
See Also
Transaction Import, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference Viewing Rejected Transactions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference
Adjusting Inventory Transactions

You can adjust inventory transactions as you adjust other expenditure items in Oracle Projects. Because inventory transactions are imported as costed and accounted, you must set up AutoAccounting rules for costing inventory transactions before processing the adjustments.
See Also
Adjusting Expenditures: page 2 53
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Glossary
account The business relationship that a party can enter into with another party. The account has information about the terms and conditions of doing business with the party. account combination A unique combination of segment values that records accounting transactions. A typical account combination contains the following segments: company, division, department, account and product. Account Generator A feature that uses Oracle Workflow to provide various Oracle Applications with the ability to construct Accounting Flexfield combinations automatically using custom construction criteria. You define a group of steps that determine how to fill in your Accounting Flexfield segments. You can define additional processes and/or modify the default process(es), depending on the application. See also activity, function, item type, lookup type, node, process, protection level, result type, transition, Workflow Engine. Account segment One of up to 30 different sections of your Accounting Flexfield, which together make up your general ledger account combination. Each segment typically represents an element of your business structure, such as Company, Cost Center or Account. Account segment value A series of characters and a description that define a unique value for a particular value set. account site A party site that is used within the context of an account, for example, for billing or shipping purposes. accounting currency In some financial contexts, a term used to refer to the currency in which accounting data is maintained. In this manual, this currency is called functional currency. See functional currency. accounting transaction A debit or credit to a general ledger account.
Glossary 1
Accounting Flexfield The code you use to identify a general ledger account in an Oracle Financials application. Each Accounting Flexfield segment value corresponds to a summary or rollup account within your chart of accounts. Accounting Flexfield structure The account structure you define to fit the specific needs of your organization. You choose the number of segments, as well as the length, name, and order of each segment in your Accounting Flexfield structure. Accounting Flexfield value set A group of values and attributes of the values. For example, the value length and value type that you assign to your account segment to identify a particular element of your business, such as Company, Division, Region, or Product. accrue through date The date through which you want to accrue revenue for a project. Oracle Projects picks up expenditure items having an expenditure item date on or before this date, and events having a completion date on or before this date, when accruing revenue. An exception to this rule are projects that use costtocost revenue accrual; in this case, the accrue through date used is the PA Date of the expenditure items cost distribution lines. accumulation See summarization. activity In Oracle Workflow, a unit of work performed during a business process. activity In Oracle Receivables, a name that you use to refer to a receivables activity such as a payment, credit memo, or adjustment. See also activity attribute, function activity, receivables activity name.
activity attribute A parameter for an Oracle Workflow function activity that controls how the function activity operates. You define an activity attribute by displaying the activitys Attributes properties page in the Activities window of Oracle Workflow Builder. You assign a value to an activity attribute by displaying the activity nodes Attribute Values properties page in the Process window. actual transactions Recorded project costs. Examples include labor, expense report, usage, burden, and miscellaneous costs. ad hoc For the specific purpose, case, or situation at hand and for no other. For example, an ad hoc tax code, report submission, or database query. administrative assignment Activity on an administrative project such as personal holiday, sick day, or jury duty. Administrative assignments can also represent administrative work such as duties on an internal project. Such assignments are charged to the administrative project which is determined by the administration flag on the project type. advance An amount of money prepaid in anticipation of receipt of goods, services, obligations or expenditures. advance In Oracle Payables, an advance is a prepayment paid to an employee. You can apply an advance to an employee expense report during expense report entry, once you fully pay the advance.
Glossary 2
agreement A contract with a customer that serves as the basis for work authorization. An agreement may represent a legally binding contract, such as a purchase order, or a verbal authorization. An agreement sets the terms of payment for invoices generated against the agreement, and affects whether there are limits to the amount of revenue you can accrue or bill against the agreement. An agreement can fund the work of one or more projects. agreement type An implementationdefined classification of agreements. Typical agreement types include purchase order and service agreement. allocation A method for distributing existing amounts between and within projects and tasks. The allocation feature uses existing project amounts to generate expenditure items for specified projects. allocation method An attribute of an allocation rule that specifies how the rule collects and allocates the amounts in the source pool. There are two allocation methods, full allocation and incremental allocation. See also full allocation, incremental allocation. allocation rule A set of attributes that describes how you want to allocate amounts in a source pool to specified target projects and tasks. allocation run The results of the PRC: Generate Allocation Transactions process.
alternative region An alternative region is one of a collection of regions that occupy the same space in a window where only one region can be displayed at any time. You identify an alternative region by a poplist icon that displays the region title, which sits on top of a horizontal line that spans the region. This display method has been replaced by tabs in Release 11i and higher. amount class For allocations, the period or periods during which the source pool accumulates amounts. amount type The starting point for a time interval. Available options include periodtodate, yeartodate, and projecttodate. Used to define budgetary controls for a project. analysis workbook A display of enterprise information in a graphical and tabular format. The Analysis Workbook uses Discoverer to enable the user to modify the selection criteria, drill into dimension hierarchies, or link to other data elements. approved date The date on which an invoice is approved. archive To store historical transaction data outside your database. asset An object of value owned by a corporation or business. Assets are entered in Oracle Projects as nonlabor resources. See nonlabor resource. See fixed asset.
Glossary 3
assignment forecast item Assignment Forecast Item is the smallest unit of forecasting information for the assignment. In this entity, the smallest time unit is a day. Forecast items are created for each day of every provisional and confirmed assignment for every billable resource. attribute See activity attribute, item type attribute. attribute In TCA, corresponds to a column in a TCA registry table, and the attribute value is the value that is stored in the column. For example, party name is an attribute and the actual values of party names are stored in a column in the HZ_PARTIES table. AutoAccounting In Oracle Projects, a feature that automatically determines the account coding for an accounting transaction based on the project, task, employee, and expenditure information. AutoAccounting In Oracle Receivables, a feature that lets you determine how the Accounting Flexfields for your revenue, receivable, freight, tax, unbilled receivable and unearned revenue account types are created. AutoAccounting function A group of related AutoAccounting transactions. There is at least one AutoAccounting function for each Oracle Projects process that uses AutoAccounting. AutoAccounting functions are predefined by Oracle Projects. AutoAccounting Lookup Set An implementationdefined list of intermediate values and corresponding Accounting Flexfield segment values. AutoAccounting lookup sets are used to translate intermediate values such as organization names into account codes.
AutoAccounting parameter A variable that is passed into AutoAccounting. AutoAccounting parameters are used by AutoAccounting to determine account codings. Example AutoAccounting parameters available for an expenditure item are the expenditure type and project organization. AutoAccounting parameters are predefined by Oracle Projects. AutoAccounting Rule An implementationdefined formula for deriving Accounting Flexfield segment values. AutoAccounting rules may use a combination of AutoAccounting parameters, AutoAccounting lookup sets, SQL statements, and constants to determine segment values. AutoAccounting Transaction A repository of the account coding rules needed to create one accounting transaction. For each accounting transaction created by Oracle Projects, the necessary AutoAccounting rules are held in a corresponding AutoAccounting Transaction. AutoAccounting transactions are predefined by Oracle Projects. autoallocation set A group of allocation rules that you can run in sequence that you specify (stepdown allocations) or at the same time (parallel allocations). See also stepdown allocation, parallel allocation. AutoInvoice A program that imports invoices, credit memos, and onaccount credits from other systems to Oracle Receivables.
Glossary 4
automatic event An event with an event type classification of Automatic. Billing extensions create automatic events to account for the revenue and invoice amounts calculated by the billing extensions. AutoReduction An Oracle Applications feature in the list window that allows you to shorten a list so that you must scan only a subset of values before choosing a final value. Just as AutoReduction incrementally reduces a list of values as you enter additional character(s), pressing [Backspace] incrementally expands a list. AutoSelection A feature in the list window that allows you to choose a valid value from the list with a single keystroke. When you display the list window, you can type the first character of the choice you want in the window. If only one choice begins with the character you enter, AutoSelection selects the choice, closes the list window, and enters the value in the appropriate field. AutoSkip A feature specific to flexfields where Oracle Applications automatically moves your cursor to the next segment as soon as you enter a valid value into a current flexfield segment. You can turn this feature on or off with the user profile option Flexfields:AutoSkip. availability Availability of a resource for a specified duration is presented in the form of a percentage calculated as follows: (capacity minus the number of confirmed assignments hours)100 / capacity availability match See availability
balancing segment An Accounting Flexfield segment that you define so that General Ledger automatically balances all journal entries for each value of this segment. For example, if your company segment is a balancing segment, General Ledger ensures that, within every journal entry, the total debits to company 01 equal the total credits to company 01 baseline To approve a budget for use in reporting and accounting. baseline budget The authorized budget for a project or task which is used for performance reporting and revenue calculation. basis method How an allocation rule is used to allocate the amounts from a source pool to target projects. The basis methods include options to spread the amounts evenly, allocate by percentage, or prorate amounts based on criteria you specify. Also referred to as the basis. See also source pool. batch source A source you define in Oracle Receivables to identify where your invoicing activity originates. The batch source also controls invoice defaults and invoice numbering. Also known as a transaction batch source. bill rate A rate per unit at which an item accrues revenue and/or is invoiced for time and material projects. Employees, jobs, expenditure types, and nonlabor resources can have bill rates.
Glossary 5
bill rate schedule A set of standard bill rates that maintains the rates and percentage markups over cost that you charge clients for your labor and nonlabor expenditures. bill site The customer address to which project invoices are sent. bill through date The date through which you want to invoice a project. Oracle Projects picks up revenue distributed expenditure items having an expenditure item date on or before this date, and events having a completion date on or before this date, when generating an invoice. billable resource A resource that has a current billable job assignment. Billable jobs are defined in the job definition screen where the Job Billability flag is set to Y. billing The functions of revenue accrual and invoicing. billing cycle The billing period for a project. Examples of billing cycles you can define are: a set number of days, the same day each week or month, or the project completion date. You can optionally use a client extension to define a billing cycle. billing title See Employee Billing Title, Job Billing Title. block Every Oracle Applications window (except root and modal windows) consists of one or more blocks. A block contains information pertaining to a specific business entity Generally, the first or only block in a window assumes the name of the window. Otherwise, a block name appears across the top of the block with a horizontal line marking the beginning of the block.
borrowed and lent A method of processing cross charge transactions that generates accounting entries to pass cost or share revenue between the provider and receiver organizations within a legal entity. See also: Intercompany Billing. boundary code The end point for a time interval. Available options include period, year, and project. Used to define budgetary controls for a project. budget Estimated cost, revenue, labor hours or other quantities for a project or task. Each budget may optionally be categorized by resource. Different budget types may be set up to classify budgets for different purposes. In addition, different versions can exist for each userdefined budget type: current, original, revised original, and historical versions. The current version of a budget is the most recently baseline version. See also budget line, resource. budgetary controls Control settings that enable the system to monitor and control projectrelated commitment transactions. budget line Estimated cost, revenue, labor hours, or other quantity for a project or task categorized by a resource. burden cost code An implementationdefined classification of overhead costs. A burden cost code represents the type of burden cost you want to apply to raw cost. For example, you can define a burden cost code of G&A to burden specific types of raw costs with General and Administrative overhead costs.
Glossary 6
burden costs Burden costs are legitimate costs of doing business that support raw costs and cannot be directly attributed to work performed. Examples of burden costs are fringe benefits, office space, and general and administrative costs. burden multiplier A numeric multiplier associated with an organization for burden schedule revisions, or with burden cost codes for projects or tasks. This multiplier is applied to raw cost to calculate burden cost amounts. For example, you can assign a multiplier of 95% to the burden cost code of Overhead. burden schedule An implementationdefined set of burden multipliers that is maintained for use across projects. Also referred to as a standard burden schedule. You may define one or more schedules for different purposes of costing, revenue accrual, and invoicing. Oracle Projects applies the burden multipliers to the raw cost amount of an expenditure item to derive an amount; this amount may be the total cost, revenue amount, or bill amount. You can override burden schedules by entering negotiated rates at the project and task level. See also Firm Schedule, Provisional Schedule, Burden Schedule Revision, Burden Schedule Override. burden schedule override A schedule of negotiated burden multipliers for projects and tasks that overrides the schedule you defined during implementation. burden schedule revision A revision of a set of burden multipliers. A schedule can be made of many revisions.
burden structure A burden structure determines how cost bases are grouped and what types of burden costs are applied to the cost bases. A burden structure defines relationships between cost bases and burden cost codes and between cost bases and expenditure types. burdened cost The cost of an expenditure item, including raw cost and burden costs. business entity A person, place, or thing that is tracked by your business. For example, a business entity can be an account, a customer, or a part. business group The highest level of organization and the largest grouping of employees across which a company can report. A business group can correspond to an entire company, or to a specific division within the company. Each installation of Oracle Projects uses one business group with one hierarchy. business view Component of the application database that sorts underlying applications data into an understandable and consolidated set of information. By masking the complexity of the database tables, Business Views provide a standard set of interfaces to any tool or application that retrieves and presents data to the user. button You choose a button to initiate a predefined action. Buttons do not store values. A button is usually labeled with text to describe its action or it can be an icon whose image illustrates its action. calendar Working capacity defined by work patterns and calendar exceptions.
Glossary 7
capacity Capacity is the total number of hours a resource can be scheduled based on the calendar of the resource. In the case of Labor, capacity is defined in work hours. The capacity of an Organization is the sum total of the capacity of assigned resources. capital project A project in which you build one or more depreciable fixed assets. chart of accounts The account structure your organization uses to record transactions and maintain account balances. chart of accounts structure See: Accounting Flexfield Structure: page Glossary 2. check box You can indicate an on/off or yes/no state for a value by checking or unchecking its check box. One or more check boxes can be checked since each check box is independent of other check boxes. child request A concurrent request submitted by another concurrent request (a parent request.) For example, each of the reports and/or programs in a report set are child requests of that report set. CIP assets See: constructioninprocess assets. chargeable project For each expenditure, a project to which the expenditure can be charged or transferred. claim A discrepancy between the billed amount and the paid amount. Claims are often referred to as deductions, but a claim can be positive or negative. class category An implementationdefined category for classifying projects. For example, if you want to know the market sector to which a project belongs, you can define a class category with a name such as Market Sector. Each class category has a set of values (class codes) that can be chosen for a project. See class code.
class code An implementationdefined value within a class category that can be used to classify a project. See class category. clearing account An account used to ensure that both sides of an accounting transaction are recorded. For example, Oracle General Ledger uses clearing accounts to balance intercompany transactions. When you purchase an asset, your payables group creates a journal entry to the asset clearing account. When your fixed assets group records the asset, they create an offset journal entry to the asset clearing account to balance the entry from the payables group. combination block A combination block displays the fields of a record in both multirecord (summary) and singlerecord (detail) formats. Each format appears in its own separate window that you can easily navigate between. combination query See Existing Combinations. comment alias A userdefined name for a frequently used line of comment text, which can be used to facilitate online entry of timecards and expense reports. commitment transactions Anticipated project costs. Examples include purchase requisitions and purchase orders, provisional and confirmed contract commitments, and supplier invoices. competence A technical skill or personal ability such as JAVA programming, customer relations, and project billing. competence match A numerical comparison of the competence of a resource to the mandatory and optional competencies of a requirement. In the candidate score calculation, this number is converted to a percentage.
Glossary 8
complete matching A condition where the invoice quantity matches the quantity originally ordered, and you approve the entire quantity. See also matching, partial matching. constructioninprocess (CIP) asset A depreciable fixed asset you plan to build during a capital project. The costs associated with building CIP assets are referred to as CIP costs. See also capital project. You construct CIP assets over a period of time rather than buying a finished asset. Oracle Assets lets you create, maintain, and add to your CIP assets as you spend money for material and labor to construct them. When you finish the assets and place them in service (capitalize them), Oracle Assets begins depreciating them. concurrent manager A unique facility that manages many timeconsuming, noninteractive tasks within Oracle Applications. When you submit a request that does not require your interaction, such as releasing shipments or running a report, the Concurrent Manager does the work for you, letting you complete multiple tasks simultaneously. concurrent process A noninteractive task that you request Oracle Applications to complete. Each time you submit a noninteractive task, you create a new concurrent process. A concurrent process runs simultaneously with other concurrent processes (and other interactive activities on your computer) to help you complete multiple tasks at once.
concurrent queue A list of concurrent requests awaiting completion by a concurrent manager. Each concurrent manager has a queue of requests waiting to be run. If your system administrator sets up your Oracle Application to have simultaneous queuing, your request can wait to run in more than one queue. concurrent request A request to Oracle Applications to complete a noninteractive task for you, such as releasing a shipment, posting a journal entry, or running a report. Once you submit a request, Oracle Applications automatically completes your request. contact In Oracle Projects, a customer representative who is involved with a project. For example, a contact can be a billing contact, the customer representative who receives project invoices. contact point A means of contacting a party other than postal mail, for example, a phone number, email address, fax number, and so on. contact type An implementationdefined classification of project contacts according to their role in the project. Typical contact types are Billing and Shipping.
Glossary 9
context field prompt A question or prompt to which a user enters a response, called a context field value. When Oracle Applications displays a descriptive flexfield popup window, it displays your context field prompt after it displays any global segments you have defined. Each descriptive flexfield can have up to one context prompt. context field value A response to your context field prompt. Your response is composed of a series of characters and a description. The response and description together provide a unique value for your context prompt, such as 1500, Journal Batch ID, or 2000, Budget Formula Batch ID. The context field value determines which additional descriptive flexfield segments appear. context response See context field value. context segment value A response to your contextsensitive segment. The response is composed of a series of characters and a description. The response and description together provide a unique value for your contextsensitive segment, such as Redwood Shores, Oracle Corporation Headquarters, or Minneapolis, Merrill Aviations Hub. contextsensitive segment A descriptive flexfield segment that appears in a second popup window when you enter a response to your context field prompt. For each context response, you can define multiple context segments, and you control the sequence of the context segments in the second popup window. Each contextsensitive segment typically prompts you for one item of information related to your context response.
contract project A project for which you can generate revenue and invoices. Typical contract project types include Time and Materials and Fixed Price. Formerly known as a direct project. control level The level of control to impose on project transactions during a funds check. Available options are absolute, advisory, and none. Used to define budgetary controls for a project. controlled budget A budget for which budgetary controls have been enabled. conversion A process that converts foreign currency transactions to your functional currency. See also foreign currency conversion. corporate exchange rate An exchange rate you can optionally use to perform foreign currency conversion. The corporate exchange rate is usually a standard market rate determined by senior financial management for use throughout the organization. You define this rate in Oracle General Ledger. cost base A cost base refers to the grouping of raw costs to which burden costs are applied. Examples of cost bases are Labor and Materials. cost budget The estimated cost amounts at completion of a project. Cost budget amounts can be summary or detail, and can be burdened or unburdened.
Glossary 10
cost burden schedule A burden schedule used for costing to derive the total cost amount. You assign the cost burden schedule to a project type that is burdened; this default cost burden schedule defaults to projects that use the project type; and then from the project to the tasks below the project. You may override the cost burden schedule for a project or a task if you have defined the project type option to allow overrides of the cost burden schedule. cost distribution The act of calculating the cost and determining the cost accounting for an expenditure item. cost rate The monetary cost per unit of an employee, expenditure type, or resource. costtocost A revenue accrual method that calculates project revenue as budgeted revenue multiplied by the ratio of actual cost to budgeted cost. Also known as percentage of completion method or percentage spent method. credit memo In Oracle Payables and Oracle Projects, a document that partially or fully reverses an original invoice. In Oracle Receivables, a document that partially or fully reverses an original invoice. You can create credit memos in the Receivables Credit Transactions window or with AutoInvoice. Cross Business Group Access (CBGA) The ability to view data in operating units that are not associated with the current operating units business group. Cross Business Group Access mode (CBGA mode) An installation that has selected CBGA in the profile options is operating in CBGA mode. cross charge To charge a resource to a project owned by a different operating unit.
credit receiver A person receiving credit for project or task revenue. One project or task may have many credit receivers for one or many credit types. credit type An implementationdefined classification of the credit received by a person for revenue a project earns. Typical credit types include Quota Credit and Marketing Credit. CrossProject responsibility A responsibility that permits users to view and update any project. cross charge transaction An expenditure item whose provider operating unit is different from the receiver operating unit, the provider organization is different from the receiver organization, or both. cross charge project A project that can receive transactions from an operating unit or organization that is different from the operating unit or organization that owns the project. cross charge type One of the three types of cross charge transactions: intercompany, interoperating unit, and intraoperating unit. crossproject user A user who is logged into Oracle Projects using a CrossProject responsibility. current budget The most recently baseline budget version of the budget. current record indicator Multirecord blocks often display a current record indicator to the left of each record. A current record indicator is a one character field that when filled in, identifies a record as being currently selected. customer agreement See agreement.
Glossary 11
database table A basic data storage structure in a relational database management system. A table consists of one or more units of information (rows), each of which contains the same kind of values (columns). Your applications programs and windows access the information in the tables for you. deferred revenue An event type classification that generates an invoice for the amount of the event, and has no immediate effect on revenue. The invoice amount is accounted for in an unearned revenue account that will be offset as the project accrues revenue. delivery assignment Filled work position on a project that is not an administrative project. denomination currency In some financial contexts, a term used to refer to the currency in which a transaction takes place. In this manual, this currency is called transaction currency. See: transaction currency. depreciate To depreciate an asset is to spread its cost over the time you use it. You charge depreciation expense for the asset each period. The total depreciation taken for an asset is stored in the accumulated depreciation account. Descriptive Flexfield A field that your organization can extend to capture extra information not otherwise tracked by Oracle Applications. A descriptive flexfield appears in your window as a single character, unnamed field. Your organization can customize this field to capture additional information unique to your business. direct project An obsolete term. See contract project.
dimension An Oracle Financial Analyzer database object used to organize and index the data stored in a variable. Dimensions are used in Oracle Project to calculate and monitor performance measures. Dimensions answer the following questions about data: What? When? and Where? For example, a variable called Units Sold might be associated with the dimensions Product, Month, and District. In this case, Units Sold describes the number of products sold during specific months within specific districts. distribution line In Oracle Payables and Oracle Projects, a line corresponding to an accounting transaction for an expenditure item on an invoice, or a liability on a payment. distribution line In Oracle Assets, information such as employee, general ledger depreciation expense account, and location to which you have assigned an asset. You can create any number of distribution lines for each asset. Oracle Assets uses distribution lines to allocate depreciation expense and to produce your Property Tax and Responsibility Reports. distribution rule See revenue distribution rule. draft budget A preliminary budget which may be changed without affecting revenue accrual on a project. draft invoice A potential project invoice that is created, adjusted, and stored in Oracle Projects. Draft invoices require approval before they are officially accounted for in other Oracle Applications.
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draft revenue A project revenue transaction that is created, adjusted, and stored in Oracle Projects. You can adjust draft revenue before you transfer it to other Oracle Applications. drilldown A software feature that allows you to view the details of an item in the current window via a window in a different application. duration The total number of days between the start date and end date of a team role. dynamic insertion An optional Accounting Flexfields feature that allows you to create new account combinations during data entry in Oracle Applications. By enabling this feature, it prevents having to define every possible account combination that can exist. Define crossvalidation rules when using this feature. effort The total number of hours of a team role. employee billing title An employee title, which differs from a job billing title, that may appear on an invoice. Each employee can have a unique employee billing title. employee organization The organization to which an employee is assigned. encumbrance A journal entry to reserve funds for anticipated project costs (commitments). The primary purpose for posting encumbrances is to avoid overspending a budget. End User Layer Component of Discoverer that translates business view column names into industry standard terminology and provides links between related data tables. Discoverer accesses information through the End User Layer (EUL).
euro A single currency adopted by the member states of the European Union. The official abbreviation, EUR, is used for all commercial, business, and financial purposes, and has been registered with the International Standards Organization (ISO). event In Oracle Projects, a summary level transaction assigned to a project or top task that records work completed and generates revenue and/or billing activity, but is not directly related to any expenditure items. For example, unlike labor costs or other billable expenses, a bonus your business receives for completing a project ahead of schedule is not attributable to any expenditure item, and would be entered as an event. event type An implementationdefined classification of events that determines the revenue and invoice effect of an event. Typical event types include Milestones, Scheduled Payments, and WriteOffs. exchange rate A rate that represents the amount one currency can be exchanged for another at a specific point in time. Oracle Applications can access daily, periodic, and historical rates. These rates are used for foreign currency conversion, revaluation, and translation. exchange rate type The source of an exchange rate. For example, user defined, spot, or corporate rate. See also: corporate exchange: page Glossary 10 rate, spot exchange rate: page Glossary 34.
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Existing Combinations A feature specific to key flexfields in data entry mode that allows you to enter query criteria in the flexfield to bring up a list of matching predefined combinations of segment values to select from. expenditure A group of expenditure items incurred by an employee or an organization for an expenditure period. Typical expenditures include Timecards and Expense Reports. expenditure (week) ending date The last day of an expenditure week period. All expenditure items associated with an expenditure must be on or before the expenditure ending date, and must fall within the expenditure week identified by the expenditure week ending date. expenditure category An implementation defined grouping of expenditure types by type of cost. For example, an expenditure category with a name such as Labor refers to the cost of labor. expenditure comment Free text that can be entered for any expenditure item to explain or describe it in further detail. expenditure cost rate The monetary cost per unit of a nonlabor expenditure type. expenditure cycle A weekly period for grouping and entering expenditures. expenditure group A userdefined name used to track a group of preapproved expenditures, such as Timecards, or Expense Reports. expenditure item The smallest logical unit of expenditure you can charge to a project and task. For example, an expenditure item can be a timecard item or an expense report item.
expenditure item date The date on which work is performed and is charged to a project and task. expenditure operating unit The operating unit in which an expenditure is entered and processed for project costing. expenditure organization For timecards and expense reports, the organization to which the incurring employee is assigned, unless overridden by organization overrides. For usage, supplier invoices, and purchasing commitments, the incurring organization entered on the expenditure. expenditure type An implementationdefined classification of cost that you assign to each expenditure item. Expenditure types are grouped into cost groups (expenditure categories) and revenue groups (revenue categories). expenditure type class An additional classification for expenditure types that indicates how Oracle Projects processes the expenditure types. For example, if you run the Distribute Labor Costs process, Oracle Projects will calculate the cost of all expenditure items assigned to the Straight Time expenditure type class. Formerly known as system linkage. expense report In Oracle Payables, a document that details expenses incurred by an employee for the purpose of reimbursement. You can enter expense reports online in Payables, or employees enter them online in Internet Expenses. You can then submit Expense Report Import to import these expense reports and expense reports from Projects. The import program creates invoices in Payables from the expense report data.
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expense report In Oracle Projects, a document that, for purposes of reimbursement, details expenses incurred by an employee. You can set up expense report templates to match the format of your expense reports to speed data entry. You must create invoices from Payables expense reports using Expense Report Import before you can pay the expense reports. Expense Report Import An Oracle Payables process you use to create invoices from Payables expense reports. You can also use Expense Report Import to create invoices from expense reports in Oracle Projects. When you initiate Expense Report Import, Payables imports the expense report information and automatically creates invoices with invoice distribution lines from the information. Payables also produces a report for all expense reports it could not import. external organization See organization. feeder program A custom program you write to transfer your transaction information from an original system into Oracle Application interface tables. The type of feeder program you write depends on the environment from which you are importing data. field A position on a window that you use to enter, view, update, or delete information. A field prompt describes each field by telling you what kind of information appears in the field, or alternatively, what kind of information you should enter in the field.
firm schedule A burden schedule of burden multipliers that will not change over time. This is compared to provisional schedules in which actual multipliers are mapped to provisional multipliers after an audit. first bill offset days The number of days that elapse between a project start date and the date that the projects first invoice is issued. fixed asset An item owned by your business and used for operations. Fixed assets generally have a life of more than one year, are acquired for use in the operation of the business, and are not intended for resale to customers. Assets differ from inventory items since you use them rather than sell them. fixed date See schedule fixed date. flat file A file where the data is unformatted for a specific application. flexfield An Oracle Applications field made up of segments. Each segment has an assigned name and a set of valid values. Oracle Applications uses flexfields to capture information about your organization. There are two types of flexfields: key flexfields and descriptive flexfields. flexfield segment One of the sections of your key flexfield, separated from the other sections by a symbol that you define (such as ,/, or \). Each segment typically represents an element of your business, such as cost center, product, or account.
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folder Customizable windows located throughout Oracle Applications. Folders allow you to: change the display of a window by resizing or reordering columns, hide or display columns, and change field names to best fit the needs of each users working style. foreign currency In Oracle Applications, a currency that is different from the functional currency you defined for your set of books in Oracle General Ledger. When you enter and pay a foreign currency invoice, Payables automatically converts the foreign currency into your functional currency at the rate you define. General Ledger automatically converts foreign currency journal entries into your functional currency at the rate you define. See also exchange rate, functional currency. foreign currency conversion A process in Oracle Applications that converts a foreign currency transaction into your functional currency using and exchange rate you specify. form A window that contains a logical collection of fields, regions, and blocks that appear on a single screen. You enter data into forms. See window. full allocation An allocation method that distributes all the amounts in the specified projects in the specified amount class. The full allocation method is generally suitable if you want to process an allocation rule only once in a run period. See also incremental allocation.
function A PL/SQL stored procedure referenced by an Oracle Workflow function activity that can enforce business rules, perform automated tasks within an application, or retrieve application information. The stored procedure accepts standard arguments and returns a completion result. See also function activity. function activity An automated Oracle Workflow unit of work that is defined by a PL/SQL stored procedure. See also function. function security An Oracle Applications feature that lets you control user access to certain functions and windows. By default, access to functionality is not restricted; your system administrator customizes each responsibility at your site by including or excluding functions and menus in the Responsibilities window. functional currency The principal currency you use to record transactions and maintain accounting data for your set of books. Also, in cross charge transactions, the currency, as defined in the set of books, associated with a project transaction. For example, the cost functional currency is the functional currency for both the project expenditure item and the set of books of the expenditure operating unit. The invoice functional currency is the functional currency for both the project revenue and the set of books of the project operating unit.
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funds check The process that verifies a budgets available funds. When budgetary controls are enabled, a funds check is performed against the project budget for commitment transactions. When topdown budgeting is also enabled, a funds check is performed against the funding budget for the project budget lines. GL Date The date, referenced from Oracle General Ledger, used to determine the correct accounting period for your transactions. In Oracle Projects, the end date of the GL Period in which costs or revenue are transferred to Oracle General Ledger. This date is determined from the open or future GL Period on or after the Project Accounting Date of a cost distribution line or revenue. For invoices, the date within the GL Period on which an invoice is transferred to Oracle Receivables. global hierarchy An organization hierarchy that includes one or more business groups. A global hierarchy can be used by installations that are in CBGA mode. global security profile An HR security profiles that is not associated with a business group. A global security profile can secure organizations and people throughout a global (cross business group) organization hierarchy. global segment prompt A noncontextsensitive descriptive flexfield segment. Each global segment typically prompts you for one item of information related to the zone or form in which you are working.
global segment value A response to your global segment prompt. Your response is composed of a series of characters and a description. The response and description together provide a unique value for your global segment, such as J. Smith, Financial Analyst, or 210, Building C. hard limit An option for an agreement that prevents revenue accrual and invoice generation beyond the amount allocated to a project or task by the agreement. If you do not impose a hard limit, Oracle Projects automatically imposes a soft limit of the same amount. See also soft limit. HR job In HRMS, the HR job for a resource (person) is the job linked to the primary assignment of the person. incremental allocation An allocation method that creates expenditure items based on the difference between the transactions processed from one allocation to the next. This method is generally suitable if you want to use an allocation rule in allocation runs several times in a given run period. See also full allocation. indirect project A project used to collect and track costs for overhead activities, such as administrative labor, marketing, and bid and proposal preparation. You can also define indirect projects to track time off such as sick leave, vacation, and holidays. You cannot generate revenue or invoices for indirect projects.
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interoperating unit cross charge transaction An expenditure item for which the provider and receiver operating units are different, but both operating units are associated with the same legal entity. intercompany billing A method of internally billing work performed by a provider operating unit and charged to a project owned by a receiver operating unit. The provider operating unit creates a Receivables invoice, which is interfaced as a Payables invoice to the receiver operating unit. See: Borrowed and Lent. intercompany billing project A contract project set up in the provider operating unit to process intercompany billing. The provider operating unit must create one intercompany billing project for each receiver operating unit it wants to charge. intercompany cross charge transaction An expenditure item that crosses legal entity boundaries, which means that the provider and receiver operating units are different and are associated with different legal entities. intercompany invoice base amount The sum of the amounts in the providers transfer price functional currency. intercompany invoice currency The transaction currency of an intercompany invoice. You can specify the invoice currency attributes for each intercompany billing project to convert the intercompany invoice base amount to the intercompany invoice amount intermediate value The parameter value, constant, or SQL statement result that is determined during the first step in the execution of an AutoAccounting rule.
internal billing Intercompany billing for work performed between two organizations or projects. The process creates the appropriate documents so the provider operating unit can bill the receiver operating unit. internal organization See organization. internal requisition See internal sales order, purchase requisition. internal sales order A request within your company for goods or services. An internal sales order originates from an employee or from another process as a requisition, such as inventory or manufacturing, and becomes an internal sales order when the information is transferred from Purchasing to Order Management. Also known as internal requisition or purchase requisition. intraoperating unit cross charge transaction An cross charge expenditure item charged entirely within an operating unit. The provider and receiver organizations are different, but the provider and receiver operating units are the same. invoice In Oracle Receivables and Oracle Cash Management, a document that you create in Receivables that lists amounts owed for the purchases of goods or services. This document also lists any tax, freight charges, and payment terms.
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invoice In Oracle Payables and Oracle Assets, a document you receive from a supplier that lists amounts owed to the supplier for purchased goods or services. In Payables, you create an invoice online using the information your supplier provides on the document, or you import an invoice from a supplier. Payments, inquiries, adjustments and any other transactions relating to a suppliers invoice are based upon the invoice information you enter. invoice In Oracle Projects, a summarized list of charges, including payment terms, invoice item information, and other information that is sent to a customer for payment. invoice burden schedule A burden schedule used for invoicing to derive the bill amount of an expenditure item. This schedule may be different from your revenue burden schedule, if you want to invoice at a different rate at which you want to accrue. invoice currency The currency in which an Oracle Projects invoice is issued. invoice date In Oracle Assets and Oracle Projects, the date that appears on a customer invoice. This date is used to calculate the invoice due date, according to the customers payment terms. In Oracle Receivables, the date an invoice is created. This is also the date that Receivables prints on each invoice. Receivables also uses this date to determine the payment due date based on the payment terms you specify on the invoice.
In Oracle Payables, the date you assign to an invoice you enter in Payables. Payables uses this date to calculate the invoice due date, according to the payment terms for the invoice. The invoice date can be the date the invoice was entered or it can be a different date you specify. invoice distribution line A line representing an expenditure item on an invoice. A single expenditure item may have multiple distribution lines for cost and revenue. An invoice distribution line holds an amount, account code, and accounting date. invoice format The columns, text, and layout of invoice lines on an invoice. invoice item A single line of a projects draft invoice, formatted according to the project invoice formats. invoice set For each given run of invoice generation for a project, if multiple agreements exist and multiple invoices are created, Oracle Projects creates the invoices within a unique set ID. You approve, release, and cancel all invoices within an invoice set. invoice transaction type An Oracle Receivables transaction type that is assigned to invoices and credit memos that are created from Oracle Projects draft invoices. invoice writeoff A transaction that reduces the amount outstanding on an invoice by a given amount and credits a bad debt account.
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invoicing The function of preparing a client invoice. Invoice generation refers to the function of creating the invoice. Invoicing is broader in the terms of creating, adjusting, and approving an invoice. item type A term used by Oracle Workflow to refer to a grouping of all items of a particular category that share the same set of item attributes, used as a high level grouping for processes. For example, each Account Generator item type (e.g. FA Account Generator) contains a group of processes for determining how an Accounting Flexfield code combination is created. See also item type attribute. item type attribute A feature of a particular Oracle Workflow item type, also known as an item attribute. An item type attribute is defined as a variable whose value can be looked up and set by the application that maintains the item. An item type attribute and its value is available to all activities in a process. Item Validation Organization The organization that contains your master list of items. You must define all items and bills in your Item Validation Organization, but you also need to maintain your items and bills in separate organizations if you want to ship them from other warehouses. Oracle Order Management refers to organizations as warehouses on all Order Management forms and reports. See also organization.
job A name for a set of duties to which an employee may be assigned. You create jobs in Oracle Projects by combining a job level and a job discipline using your job key flexfield structure. For example, you can combine the job level Staff with the job discipline Engineer to create the job Staff Engineer. job billing title A job billing title, which differs from a job title, that may appear on an invoice. job discipline A categorization of job vocation, used with Job Level to create a job title. For example, a job discipline may be Engineer, or Consultant. job group A collection of jobs defined for a specific purpose. Jobs in a job group have the same key flexfield structure. job level A categorization of job rank, used with Job Discipline to create a job title. For example, a job level may be Staff, or Principal. job level In Oracle Project Resource Management it is a numeric value associated to the job of the Project Resource Job Group. Each resource has a job and an associated job level that either belongs to or is mapped to the Project Resource Job Group. The level provides a basis for searching for potential resource matches. See job level match.
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job level match A numeric value of 0% or 100%. If the job level of the resource is within the range of specified job levels for the search, then the job level match for the resource is 100, otherwise, it is 0. This percentage is used by the calculation for determining the candidate score. job title In Oracle Projects, a unique combination of job level and job discipline that identifies a particular job. job title In Oracle Receivables, a brief description of your customer contacts role within their organization. journal entry category A category to indicate the purpose or nature of a journal entry, such as Adjustment or Addition. Oracle General Ledger associates each of your journal entry headers with a journal category. You can use one of General Ledgers predefined journal categories or define your own. For Oracle Payables, there are three journal entry categories in Oracle Projects if you use the accrual basis accounting method: Invoices, Payments, and All (both Invoices and Payments). If you use the cash basis accounting method, Oracle Projects only assigns the Payment journal entry category to your journal entries.
journal entry header A method used to group journal entries by currency and journal entry category within a journal entry batch. When you initiate the transfer of invoices or payments to your general ledger for posting, Oracle Payables transfers the necessary information to create journal entry headers for the information you transfer. Journal Import in General Ledger uses the information to create a journal entry header for each currency and journal entry category in a journal entry batch. A journal entry batch can have multiple journal entry headers. journal entry lines Each journal entry header contains one or more journal entry lines. The lines are the actual journal entries that your general ledger posts to update account balances. The number and type of lines in a journal entry header depend on the volume of transactions, frequency of transfer from Oracle Payables, and your method of summarizing journal entries from Oracle Payables. journal entry source Identifies the origin of journal entries from Oracle and nonOracle feeder systems. General Ledger supplies predefined journal sources or you can create your own. Journal Import A General Ledger program that creates journal entries from transaction data stored in the General Ledger GL_INTERFACE table. Journal entries are created and stored in GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES.
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key flexfield An intelligent key that uniquely identifies an application entity. Each key flexfield segment has a name you assign, and a set of valid values you specify. Each value has a meaning you also specify. You use this Oracle Applications feature to build custom fields used for entering and displaying information relating to your business. The following application uses the listed Key Flexfields: Oracle Projects Accounting, Category Flexfield, Location, Asset Key. key flexfield segment One of up to 30 different sections of your key flexfield. You separate segments from each other by a symbol you choose (such as , / or \.). Each segment can be up to 25 characters long. Each key flexfield segment typically captures one element of your business or operations structure, such as company, division, region, or product for the Accounting Flexfield and item, version number, or color code for the Item Flexfield. key flexfield segment value A series of characters and a description that provide a unique value for this element, such as 0100, Eastern region, or V20, Version 2.0. key member An employee who is assigned a role on a project. A project key member can view and update project information and expenditure details for any project to which they are assigned. Typical key member types include Project Manager and Project Coordinator. labor cost The cost of labor expenditure items. labor cost rate The hourly raw cost rate for an employee. This cost rate does not include overhead or premium costs.
labor costing rule An implementationdefined name for an employee costing method. Also known as pay type. Typical labor costing rules include Hourly and Exempt. labor invoice burden schedule A burden schedule used to derive invoice amounts for labor items. labor multiplier A multiplier that is assigned to a project or task, and is used to calculate the revenue and/or bill amount for labor items by applying the multiplier to the raw cost of the labor items. labor revenue burden schedule A burden schedule used to derive revenue amounts for labor items. legal entity An organization that represents a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other relevant information to this entity. lifecycle A collection of sequential project phases. liquidation The process of relieving an encumbrance. listing An organized display of Oracle Applications information, similar to a report, but usually showing setup data as opposed to transaction data. Logical Data Model A representation of the End User Layer. Available in a readable format, the Logical Data Model gives the relationship between folders, allowing a Discoverer user to determine the data elements needed for a specific analysis.
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lookup code The internal name of a value defined in an Oracle Workflow lookup type. See also lookup type. lookup type An Oracle Workflow predefined list of values. Each value in a lookup type has an internal and a display name. See also lookup code. lowest task A task that has no child tasks. masterdetail relationship A masterdetail relationship is an association between two blocksa master block and its detail block. When two blocks are linked by a masterdetail relationship, the detail block displays only those records that are associated with the current (master) record in the master block, and querying between the two blocks is always coordinated. Master and detail blocks can often appear in the same window or they can each appear in separate windows. master job A job in a master job group. master job group The job group that is used as an intermediate mapping group between other job groups. match rule A set of rules that determines which records are matches for an input record. A match rule consists of an acquisition portion to determine potential matches, a scoring portion to score the potential matches, and thresholds that the scores are compared against to determine actual matches. matching In Oracle Cash Management, the process where batches or detailed transactions are associated with a statement line based on the transaction number, amount, currency and other variables, taking Cash Management system parameters into consideration. In Cash Management, matching can be done manually or automatically.
matching In Oracle Payables and Oracle Assets, the process of comparing purchase order, invoice, and receiving information to verify that ordering, billing, and receiving information is consistent within accepted tolerance levels. Payables uses matching to control payments to suppliers. You can use the matching feature in Payables if you have Purchasing or another purchasing system. Payables supports two, three, and fourway matching. message line A line on the bottom of a window that displays helpful hints or warning messages when you encounter an error. mid task A task that is not a top task or a lowest task. multiorg See multiple organizations. multiple organizations The ability to define multiple organizations and the relationships among them within a single installation of Oracle Applications. These organizations can be sets of books, business groups, legal entities, operating units, or inventory organizations. Multiple Reporting Currencies A unique set of features embedded in Oracle Applications that allows you to maintain and report accounting records at the transaction level in more than one functional currency. node An instance of an activity in an Oracle Workflow process diagram as shown in the Process window of Oracle Workflow Builder. See also process. noncapacity work type Work types assigned to forecast assignment items or actual expenditure items reduce the total capacity of a given resource for the specified time period.
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noninvoice related claim A claim that is due to a discrepancy between the billed amount and the paid amount, and cannot be identified with a particular transaction. nonlabor invoice burden schedule A burden schedule used to derive invoice amounts for nonlabor items. nonlabor resource An implementationdefined asset or pool of assets. For example, you can define a nonlabor resource with a name such as PC to represent multiple personal computers your business owns. nonlabor revenue burden schedule A burden schedule used to derive revenue amounts for nonlabor items. nonproject budget A budget defined outside Oracle Projects. Examples include organizationlevel budgets defined in Oracle General Ledger, and budgets defined in Oracle Contract Commitments. nonrevenue sales credit Sales credit you assign to your salespeople that is not associated with your invoice lines. This is sales credit given in excess of your revenue sales credit. See also revenue sales credit. offsets Reversing transactions used to balance allocation transactions with the source or other project. one time billing hold A type of hold that places expenditure items and events on billing hold for a particular invoice; when you release that invoice, the items are billed on the next invoice. operating unit An organization that partitions data for subledger products (AP, AR, PA, PO, OE). It is roughly equivalent to a single preMultiOrg installation.
operator A mathematical symbol you use to indicate the mathematical operation in your calculation. option group An option group is a set of option buttons. You can choose only one option button in an option group at a time, and the option group takes on that buttons value after you choose it. An option button or option group is also referred to as a radio button or radio group, respectively. Oracle Discoverer An Oracle tool that enables users to retrieve data from a database. Oracle Discoverer provides a user friendly method for creating database queries and displaying information. organization A business unit such as a company, division, or department. Organization can refer to a complete company, or to divisions within a company. Typically, you define an organization or a similar term as part of your account when you implement Oracle Financials. See also business group. Internal organizations are divisions, groups, cost centers or other organizational units in a company. External organizations can include the contractors your company employs. Organizations can be used to demonstrate ownership or management of functions such as projects and tasks, nonlabor resources, and bill rate schedules. See also Item Validation Organization.
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organization hierarchy An organizational hierarchy illustrates the relationships between your organizations. A hierarchy determines which organizations are subordinate to other organizations. The topmost organization of an organization hierarchy is generally the business group. organization structure See organization hierarchy. original budget The budget amounts for a project at the first successful baseline of the project. Overtime Calculation Program A program that Oracle Projects provides to determine which kind of overtime to award an employee based on the employees labor costing rule and hours worked. If your company uses this automatic overtime calculation feature, you may need to modify the program based on the overtime requirements of your business. overtime cost The currency amount over straight time cost that an employee is paid for overtime hours worked. Also referred to as Premium Cost. PA Date The end date of the PA Period in which costs are distributed, revenue is created, or an invoice is generated. This date is determined from the open or future PA Period on or after the latest date of expenditure item dates and event completion dates included in a cost distribution line, revenue, or an invoice. PA Period See Project Accounting Period.
PA Period Type The Period Type as specified in the PA implementation options for Oracle Projects to copy project accounting periods. Oracle Projects uses the periods in the PA Period Type to populate each Operating Units PA periods. PA periods are mapped to GL periods which are used when generating accounting transactions. PA periods drive the project summary for Project Status Inquiry. You define your accounting periods in the Operating Units Set of Books Calendar. parallel allocation A set of allocation rules that carries out the rules in an autoallocation set without regard to the outcome of the other rules in the set. See also autoallocation set, stepdown allocation. parent request A concurrent request that submits other concurrent requests (child requests). For example, a report set is a parent request that submits reports and/or programs (child requests).
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partial matching A condition where the invoice quantity is less than the quantity originally ordered, in which case you are matching only part of a purchase order shipment line. See also matching, complete matching. pay type See labor costing rule. phase A collection of logically related project activities, usually culminating in the completion of a major deliverable. popup window An additional window that appears on an Oracle Applications form when your cursor enters a particular field. poplist A poplist, when selected by your mouse, lets you choose a single value from a predefined list. posting The process of updating account balances in Oracle General Ledger from journal entries. Payables uses the term posting to describe the process of transferring accounting entries to General Ledger. Payables transfers your invoice and payment accounting entries and sets the status of the payments and invoices to posted. You must then complete the process by creating and posting the journal entries in General Ledger. Note that Oracle Applications sometimes use the term posting to describe the process of transferring posting information to your general ledger. See also Journal Import. premium cost See overtime cost. primary contact A person in the organization with resource authority. primary set of books The set of books you use to manage your business. You can choose accrual or cash basis as the accounting method for your primary set of books.
process A set of Oracle Workflow activities that need to be performed to accomplish a business goal. See also Account Generator, process activity, process definition. process activity An Oracle Workflow process modelled as an activity so that it can be referenced by other processes; also known as a subprocess. See also process. process cycle The planned schedule for batch processing of costs, revenue, and invoices, according to your companys scheduling requirements. See streamline request. process definition An Oracle Workflow process as defined in the Oracle Workflow Builder. See also process. process responsibility type An implementationdefined name to which a group of reports and processes are assigned. This group of reports and processes is then assigned to an Oracle Projects responsibility. A process responsibility type gives a user access to Oracle Projects reports and programs appropriate to that users job. For example, the process responsibility type Data Entry could be a set of reports used by data entry clerks. See responsibility. product lifecycle management A process for guiding products from their birth through their completion. The lifecycle management process adds business value to an enterprise by using product information to support planning, monitoring, and execution of vital activities.
Glossary 26
profile option A set of options that control access to certain features throughout Oracle Applications and determines how data is processed. Generally, profile options can be set at the Site, Application, Responsibility, and User levels. For more information, see the user guide for your specific Oracle Application. project A unit of work that can be broken down into one or more tasks. A project is the unit of work for which you specify revenue and billing methods, invoice formats, a managing organization and project manager, and bill rate schedules. You can charge costs to a project, and you can generate and maintain revenue, invoice, unbilled receivable, and unearned revenue information for a project. Project Accounting Period An implementationdefined period against which project performance may be measured. Also referred to as PA Periods. You define project accounting periods to track project accounting data on a periodic basis by assigning a start date, end date, and closing status to each period. Typically, you define project accounting periods on a weekly basis, and your general ledger periods on a monthly basis.
Project Burdening Organization Hierarchy The organization hierarchy version that Oracle Projects uses to compile burden schedules. Each business group must designate one and only one version of an organization hierarchy as its Project Burdening Organization Hierarchy. (Note: In Oracle Projects Implementation Options, each operating unit is associated with an organization hierarchy and version for project setup, invoice level processing, and project reporting. The Project Burdening Organization Hierarchy selected for the business group does not have to match the hierarchy version in the Implementation Options.). project chargeable employees In a multiple organization installation, employees included as labor resource pool to a project. This includes all employees, as defined in Oracle Human Resources, who belong to the business group associated with the project operating unit. project currency The currency in which project transactions are billed (unless overridden during the billing process). Also, the currency in which project amounts are summarized for project summary reporting. project funding An allocation of revenue from an agreement to a project or task. project operating unit The operating unit within which the project is created, and in which the project customer revenue and receivable invoices are processed. project resource group The job group used to identify appropriate roles for use within Project Resource Management.
Glossary 27
project/task organization The Organization that owns the project or task. This can be any organization in the LOV (list of values) for the project setup. The Project/Task Organization LOV contains organizations of the Project/Task Organization Type in the Organization Hierarchy and Version below the Start Organization. You specify your Start Organization and Version in the Implementation Options window. project role An implementationdefined classification of the relationship that an employee has to a project. You use project roles to define an employees level of access to project information. project status An implementationdefined classification of the status of a project. Typical project statuses are Active and Closed. project template A standard project you create for use in creating other projects. You set up project templates that have features common in the projects you want to create. project type A template defined for your implementation. The template consists of project attributes such as the project type class (contract, indirect, or capital), the default revenue distribution rule and bill rate schedules, and whether the project burdens costs. For example, you can define a project type with a name such as Time and Materials for all projects that are based on time and materials contracts.
project type class An additional classification for project types that indicates how to collect and track costs, quantities, and, in some cases, revenue and billing. Oracle Projects predefines three project type classes: Indirect, Contract, or Capital. For example, you use an Indirect project type to collect and track project costs for overhead activities, such as administrative and overhead work, marketing, and bid and proposal preparation. Project/customer relationship An implementationdefined classification of the relationship between a project and a customer. Project/Customer Relationships help you manage projects that involve multiple clients by specifying the various relationships your customers can have with a project. Typical relationships include Primary or NonPaying. Project/Task Alias A userdefined short name for a project or project/task combination used to facilitate online timecard and expense report entry. Project/Task Organization The Organization that owns the project or task.
Glossary 28
protection level In Oracle Workflow, a numeric value ranging from 0 to 1000 that represents who the data is protected from for modification. When workflow data is defined, it can either be set to customizable (1000), meaning anyone can modify it, or it can be assigned a protection level that is equal to the access level of the user defining the data. In the latter case, only users operating at an access level equal to or lower than the datas protection level can modify the data. See also Account Generator. provider operating unit The operating unit whose resources provide services to another project or organization. For cross charge transactions, the provider operating unit is the expenditure operating unit; the project operating unit owns the intercompany billing project. provider organization For cross charge transactions, the organization that provides resources to another organization. The default is the expenditure organization or the nonlabor resource organization, which can be overridden using the Provider and Receiver Organization Override client extension. provider project The contract project that performs work on behalf of another (receiver) project. provider transfer price functional currency The functional currency of the set of books for the provider operating unit.
provider transfer price functional currency amount The currency amount calculated by applying the transfer price currency conversion attributes (as specified by the implementation options for the provider operating unit) to the transfer price base currency amount. provisional schedule A burden schedule of estimated burden multipliers that are later audited to determine the actual rates. You apply actual rates to provisional schedules by replacing the provisional multipliers with actual multipliers. Oracle Projects processes adjustments that account for the difference between the provisional and actual calculations. purchase order (PO) In Oracle General Ledger and Oracle Projects, a document used to buy and request delivery of goods or services from a supplier. purchase order (PO) In Oracle Assets, the order on which the purchasing department approved a purchase. purchase order distribution Each purchase order shipment consists of one or more purchase order distributions. A purchase order distribution consists of the Accounting Flexfield information Payables uses to create invoice distributions.
Glossary 29
purchase order line An order for a specific quantity of a particular item at a negotiated price. Each purchase order in Purchasing can consist of one or more purchase order lines. purchase order requisition line Each purchase order line is created from one or more purchase order requisition lines. Purchasing creates purchase order requisition lines from individual requisitions. purchase requisition An internal request for goods or services. A requisition can originate from an employee or from another process, such as inventory or manufacturing. Each requisition can include many lines, generally with a distinct item on each requisition line. Each requisition line includes at least a description of the item, the unit of measure, the quantity needed, the price per item, and the Accounting Flexfield you are charging for the item. Also known as internal requisition. See also internal sales order. purchasing site A supplier site from which you order goods or services. You must enter at least one purchasing site before Purchasing will allow you to enter a purchase order. query A search for applications information that you initiate using an Oracle Applications window. raw costs Costs that are directly attributable to work performed. Examples of raw costs are salaries and travel expenses. receipt currency The currency in which an expense report item originates.
record A record is one occurrence of data stored in all the fields of a block. A record is also referred to as a row or a transaction, since one record corresponds to one row of data in a database table or one database transaction. receiver operating unit An operating unit whose projects receive services from another project or organization. For interproject billing , the receiver operating unit is the project operating unit that owns the receiver project. receiver organization The operating unit whose projects receive services from another project or organization. For cross charged transactions, the receiver operating unit is the project operating unit that owns receiver project A project for which work is performed by another (provider) project. In interproject billing, the receiver project incurs costs from a Payables invoice generated by the Receivables tieback process performed by the provider project. receiver task A task in the receiver project to which costs are assigned on the Payables invoice. region A collection of logicallyrelated fields set apart from other fields by a dashed line that spans a block. Regions help to organize a block so that it is easier to understand. Regions in Release 11i and higher are defined by Tabs. reimbursement currency The currency in which an employee chooses to be reimbursed for an expense report. See also transaction currency.
Glossary 30
related transaction Additional transactions that are created for labor transactions using the Labor Transaction Extension. All related transactions are associated with a source transaction and are attached to the expenditure item ID of the source transaction. You can identify and process the related transactions by referring to the expenditure item ID of the source transaction. Using labor transaction extensions, you can create, identify, and process the related transactions along with the source transaction. released date The date on which an invoice and its associated revenue is released. remit to addresses The address to which your customers remit their payments. report an organized display of information drawn from Oracle Applications that can be viewed online or printed. Most applications provide standard and customizable reports. Oracle General Ledgers Financial Statement Generator lets you build detailed financial reports and statements based on your business needs. report headings A descriptive section found at the top of each report detailing general information about the report such as set of books, date, etc. report option See report parameter. report parameter Submission options in Oracle Applications that allow you to enter date and account ranges. You can also sort, format, select, and summarize the information displayed in your reports. Most standard reports require you enter report parameters.
report security group A feature that helps your system administrator control your access to reports and programs. Your system administrator defines a report security group which consists of a group of reports and/or programs and assigns a report security group to each responsibility that has access to run reports using Standard Report Submission. When you submit reports using Standard Report Submission, you can only choose from those reports and programs in the report security group assigned to your responsibility. report set A group of reports that you submit at the same time to run as one transaction. A report set allows you to submit the same set of reports regularly without having to specify each report individually. For example, you can define a report set that prints all of your regular monthend management reports. requirement Unfilled work position on a project. resource A userdefined group of employees, organizations, jobs, suppliers, expenditure categories, revenue categories, expenditure types, or event types for purposes of defining budgets or summarizing actuals. responsibility A level of authority set up by your system administrator in Oracle Applications. A responsibility lets you access a specific set of windows, menus, set of books, reports, and data in an Oracle application. Several users can share the same responsibility, and a single user can have multiple responsibilities.
Glossary 31
responsibility type See process responsibility type. result code In Oracle Workflow, the internal name of a result value, as defined by the result type. See also result type, result value. result type In Oracle Workflow, the name of the lookup type that contains an activitys possible result values. See also result code, result value. result value In Oracle Workflow, the value returned by a completed activity, such as Approved. See also result code, result type. revenue In Oracle Projects, the amounts recognized as income or expected billing to be received for work on a project. revenue accrual The function of calculating and distributing revenue. revenue authorization rule A configurable criterion that, if enabled, must be met before a project can accrue revenue. For example, an active mandatory revenue authorization rule states that a project manager must exist on a project before that project can accrue revenue. Revenue authorization rules are associated with revenue distribution rules. See also revenue distribution rule. revenue budget The estimated revenue amounts at completion of a project. Revenue budget amounts can be summary or detail. revenue burden schedule A burden schedule used for revenue accrual to derive the revenue amount for an expenditure item. This schedule may be different from your invoice burden schedule, if you want to accrue revenue at a different rate than you want to invoice.
revenue category An implementationdefined grouping of expenditure types by type of revenue. For example, a revenue category with a name such as Labor refers to labor revenue. revenue credit Credit that an employee receives for project revenue. See revenue sales credit. revenue distribution rule A specific combination of revenue accrual and invoicing methods that determine how Oracle Projects generates revenue and invoice amounts for a project. See revenue authorization rule. revenue item A single line of a projects revenue, containing event or expenditure item revenue summarized by top task and revenue category or event. revenue sales credit Sales credit you assign to your salespeople that is based on your invoice lines. The total percentage of all revenue sales credit must be equal to 100% of your invoice lines amount. Also known as quota sales credits. See also nonrevenue sales credit, sales credit. revenue writeoff An event type classification that reduces revenue by the amount of the writeoff. You cannot writeoff an amount that exceeds the current unbilled receivables balance on a project. See also invoice writeoff.
Glossary 32
root window The root window displays the main menu bar and tool bar for every session of Oracle Applications. In Microsoft Windows, the root window is titled Oracle Applications and contains all the Oracle Applications windows you run. In the Motif environment, the root window is titled Toolbar because it displays just the toolbar and main menu bar. row One occurrence of the information displayed in the fields of a block. A block may show only one row of information at a time, or it may display several rows of information at once, depending on its layout. The term row is synonymous with the term record. sales credit Credits that you assign to your salespeople when you enter orders, invoices, and commitments. Credits can be either quota or nonquota and can be used in determining commissions. See also nonrevenue sales credit, revenue sales credit. sales tax A tax collected by a tax authority on purchases of goods and services. The supplier of the good or service collects sales taxes from its customers (tax is usually included in the invoice amount) and remits them to a tax authority. Tax is usually charged as a percentage of the price of the good or service. The percentage rate usually varies by authority and sometimes by category of product. Sales taxes are expenses to the buyer of goods and services. salesperson A person who is responsible for the sale of products or services. Salespeople are associated with orders, returns, invoices, commitments, and customers. You can also assign sales credits to your salespeople.
schedule The working hours defined by the calendar and schedule exceptions. schedule fixed date The date used to freeze bill rate or burden schedules for a project or task. You enter a fixed date to specify that you want to use particular rates or multipliers as of that date. You do not use schedule fixed dates if you want to use the current effective rates or multipliers for a particular schedule. scrollable region A region whose contents are not entirely visible in a window. A scrollable region contains a horizontal or vertical scroll bar so that you can scroll horizontally or vertically to view additional fields hidden in the region. segment A single subfield within a flexfield. You define the structure and meaning of individual segments when customizing a flexfield. service type An implementationdefined classification of the type of work performed on a task. set of books Defined in Oracle General Ledger, an organization or group of organizations that share a common chart of accounts, calendar, and currency. A set of books is associated with one or more responsibilities. To use Multiple Reporting Currencies, you must create a primary set of books and separate reporting sets of books for each reporting currency. soft limit The default option for an agreement that generates a warning when you accrue revenue or generate invoices beyond the amount allocated to a project or task by the agreement, but does not prevent you from running these processes. See also hard limit.
Glossary 33
shorthand flexfield entry A quick way to enter key flexfield data using shorthand aliases (names) that represent valid flexfield combinations or patterns of valid segment values. Your organization can specify flexfields that will use shorthand flexfield entry and define shorthand aliases for these flexfields that represent complete or partial sets of key flexfield segment values. shorthand window A singlesegment customizable field that appears in a popup window when you enter a key flexfield. The shorthand flexfield popup window only appears if you enable shorthand entry for that particular key flexfield. signon An Oracle Applications user name and password that allows you to gain access to Oracle Applications. Each signon is assigned one or more responsibilities. Single Business Group Access mode (SBGA mode) An installation that has selected No for the profile option HR: Cross Business Group is operating in SBGA mode. source pool The combination of all the source amounts defined by an allocation rule. See also allocation rule. source transaction For related transactions, the identifying source transaction from which the related items are created. spot exchange rate A daily exchange rate you use to perform foreign currency conversions. The spot exchange rate is usually a quoted market rate that applies to the immediate delivery of one currency for another. standard bill rate schedule currency The functional currency of the operating unit in which the standard bill rate schedule is maintained.
Standard Request Submission A standard interface in Oracle Applications in which you run and monitor your applications reports and other processes. start organization An organization that defines a set which includes itself and all subordinate organizations in the organization hierarchy. When you choose a start organization as a report parameter, all organizations below the start organization are included in the report. status line A status line appearing below the message line of a root window that displays status information about the current window or field. A status line can contain the following: ^ or v symbols indicate previous records before or additional records following the current record in the current block; Enter Query indicates that the current block is in Enter Query mode, so you can specify search criteria for a query; Count indicates how many records were retrieved or displayed by a query (this number increases with each new record you access but does not decrease when you return to a prior record); the <Insert> indicator or lamp informs you that the current window is in insert character mode; and the <List> lamp appears when a list of values is available for the current field. stepdown allocation In Oracle Projects, a set of allocation rules that carries out the rules (steps) an autoallocation set serially, in the sequence specified in the set. Usually the result of each step will be used in the next step. Oracle Workflow controls the flow of the autoallocations set. See also autoallocation set, parallel allocation. straight time cost The monetary amount that an employee is paid for straight time (regular) hours worked.
Glossary 34
streamline process See streamline request. streamline request A process that runs multiple Oracle Projects processes in sequence. When using streamline processing, you can reschedule your streamline requests by setting rescheduling parameters. Rescheduling parameters allow you to configure your processes to run automatically, according to a defined schedule. When you reschedule a process, the concurrent manager submits another concurrent request with a status of Pending, and with a start date according to the parameters you define. structure A structure is a specific combination of segments for a key flexfield. If you add or remove segments, or rearrange the order of segments in a key flexfield, you get a different structure. subtask A hierarchical unit of work. Subtasks are any tasks that you create under a parent task. Child subtasks constitute the lowest level of your work breakdown structure; where Oracle Projects looks when processing task charges and for determining task revenue accrual amounts. See task. summarization Processing a projects cost, revenue, commitment, and budget information to be displayed in the Project, Task, and Resource Project Status windows. You must distribute costs for any expenditure items, accrue and release any revenue, create any commitments, and baseline a budget for your project before you can view summary project amounts. Formerly known as accumulation. supplier A business or individual that provides goods or services or both in return for payment. supplier invoice An external suppliers invoice entered into Oracle Payables.
system linkage An obsolete term. See expenditure type class. tablespace The area in which an Oracle database is divided to hold tables. target A project, task, or both that receives allocation amounts, as specified by an allocation rule. See also source pool task A subdivision of project work. Each project can have a set of top level tasks and a hierarchy of subtasks below each top level task. See also Work Breakdown Structure, subtask. task organization The organization that is assigned to manage the work on a task. task service type See service type. tax authority A governmental entity that collects taxes on goods and services purchased by a customer from a supplier. In some countries, there are many authorities (e.g. state, local, and federal governments in the U.S.), while in others there may be only one. Each authority may charge a different tax rate. You can define a unique tax name for each tax authority. If you have only one tax authority, you can define a unique tax name for each tax rate that it charges. A governmental entity that collects taxes on goods and services purchased by a customer from a supplier. In some countries, there are many authorities (e.g. state, local and federal governments in the U.S.), while in others there may be only one. Each authority may charge a different tax rate. Within Oracle Receivables, tax authority consists of all components of your tax structure. For example: California. San Mateo. Redwood Shores for State. County. City. Oracle Receivables adds together the tax rates for all of these locations to determine a customers total tax liability for an invoice.
Glossary 35
tax codes Codes to which you assign sales tax or valueadded tax rates, tax type, taxable basis, tax controls, and tax accounting. You can define a tax code for inclusive or exclusive tax calculation. Oracle Receivables lets you choose state codes as the tax code when you define sales tax rates for the United States. (Receivables Lookup) team role Specific position on a project representing either requirements or assignments. Time and Materials (T&M) A revenue accrual and billing method that calculates revenue and billings as the sum of the amounts from each individual expenditure item. The expenditure item amounts are calculated by applying a rate or markup to each item. time intervals The units that define how budget amounts are accumulated to determine the available funds for a transaction. Used to define budgetary controls for a project. timecard A weekly submission of labor expenditure items. You can enter timecards online, or as part of a preapproved batch. toolbar The toolbar is a collection of iconic buttons that each perform a specific action when you choose it. Each toolbar button replicates a commonlyused menu item. Depending on the context of the current field or window, a toolbar button can be enabled or disabled. You can display a hint for an enabled toolbar button on the message line by holding your mouse steadily over the button. The toolbar generally appears below the main menu bar in the root window. top task A task whose parent is the project.
transaction currency The currency in which a transaction originally takes place. For processing purposes, the reimbursement currency in an expense report is the transaction currency. transfer price The price agreed upon by the provider and receiver organizations in a cross charged transaction. transfer price base currency The transfer price basis determines the currency. For a basis of raw or burdened cost, the transfer price base currency is the transaction currency of the cross charged transaction. For a basis of revenue, the transfer price base currency is the functional currency of the set of books for the receiver operating unit. For a basis calculated using the bill rate schedule, the transfer price base currency is the standard bill rate schedule currency. transferred date The date on which you transfer costs, revenue, and invoices to other Oracle Applications. transformation function A seeded or userdefined rule that transforms and standardizes TCA attribute values into representations that can assist in the identification of potential matches. transition In Oracle Workflow, the relationship that defines the completion of one activity and the activation of another activity within a process. In a process diagram, the arrow drawn between two activities represents a transition. See also activity, Workflow Engine.
Glossary 36
unassigned time The net amount of hours for a given period for which a resource does not have any scheduled assignments (capacity hours minus scheduled hours.) unbilled receivables The amount of open receivables that have not yet been billed for a project. Oracle Projects calculates unbilled receivables using the following formula: (Unbilled Receivables = Revenue Accrued Amount Invoice) unearned revenue Revenue received and recorded as a liability or revenue before the revenue has been earned by providing goods or services to a customer. Oracle Projects calculates unearned revenue using the following formula: (Unearned Revenue = Amount Invoiced Revenue Accrued) unit of measure A classification created in Oracle General Ledger that you assign to transactions in General Ledger and subledger applications. Each unit of measure belongs to a unit of measure class. For example, if you specify the unit of measure Miles when you define an expenditure type for personal car use, Oracle Projects calculates the cost of using a personal car by mileage. Or, in Oracle Payables, you define square feet as a unit of measure. When you enter invoices for office rent, you can track the square footage addition to the dollar amount of the invoice. In Oracle Assets, a label for the production quantities for a units of production asset. The unit used to measure production amounts. UOM See unit of measure. usage See nonlabor resource.
usage cost rate override The cost rate assigned to a particular nonlabor resource and nonlabor organization which overrides the rate assigned to its expenditure type. usage logs Usage logs record the utilization of company assets on projects as the asset is used. user profile A set of changeable options that affect the way your applications run. You can change the value of a user profile option at any time. See profile option. utilization A measure of how effectively a resource was used or is projected to be used. utilization method Capacity Utilization Method compares the actual (productive) work performed and forecasted (productive) work to be performed by the resource to the capacity of a resource. Worked Hours Utilization Method compares the actual (productive) work performed and forecasted (productive) work to be performed by the resource to the total number of hours recorded (actuals) or assigned (forecasted) of a resource. utilization category An implementationdefined category used for utilization reporting. This reporting grouping combines one or more work types for organization and resource utilization views. utilization view Utilization views enable you to measure a resource or organization utilization percentage based on different groupings of work types.
Glossary 37
value Data you enter in a parameter. A value can be a date, a name, or a code, depending on the parameter. value set A group of values and related attributes you assign to an account segment or to a descriptive flexfield segment. Values in each value set have the same maximum length, validation type, alphanumeric option, and so on. vendor See supplier. window A box around a set of related information on your screen. Many windows can appear on your screen simultaneously and can overlap or appear adjacent to each other. Windows can also appear embedded in other windows. You can move a window to a different location on your screen. window title A window title at the top of each window indicates the name of the window, and occasionally, context information pertinent to the content of the window. The context information, contained in parenthesis, can include the organization, set of books, or business group that the window contents is associated with. WIP See work in process. word replacement A word mapping that is used to create synonyms which are treated as equivalents for searching and matching. work breakdown structure (WBS) The breakdown of project work into tasks. These tasks can be broken down further into subtasks, or hierarchical units of work. work in process An item in various phases of production in a manufacturing plant. This includes raw material awaiting processing up to final assemblies ready to be received into inventory.
work site The customer site where project or task work is performed. work type Work types are an implementationdefined classification of work performed. Work types are used to classify both actual and forecast amounts. Examples are Billable, NonBillable, Training, and Personal. Work types are grouped together by Utilization Categories. worksheet A specific grouping of information within an Analysis Workbook. A workbook is composed of one or more worksheets, each with its own set of data and graphs. Conceptually, this is similar to the sheets and workbook concept within a spreadsheet application. Workflow Engine The Oracle Workflow component that implements a workflow process definition. The Workflow Engine manages the state of all activities, automatically executes functions, maintains a history of completed activities, and detects error conditions and starts error processes. The Workflow Engine is implemented in server PL/SQL and activated when a call to an engine API is made. See also Account Generator, activity, function, item type. writeoff See invoice writeoff, revenue writeoff. writeon An event type classification that causes revenue to accrue and generates an invoice for the amount of the writeon. Zoom A forms feature that is obsolete in GUI versions of Oracle Applications.
Glossary 38
Index
A
account generator Oracle Payables, 735 Oracle Purchasing, 735 accounting for burden costs, 323 burden cost component, by, 330 burden cost component, setup, 331 no accounting impact, when, 336 overview, 329 schedule revisions, 337 total burdened cost, by, 333 total burdened cost, setup, 334 accounting lines, viewing, 247 drill down from General Ledger, 248 accounting transactions, capital project costs, 510 adjusting expenditures, 253 to 280 mass, 262 restrictions, 259 adjusting supplier invoices, 276 in Oracle Payables, 278 in Oracle Projects, 277 adjustments asset lines, 546 after interface to Oracle Assets, 548 assets, 749 burden transactions, 266 capital project costs, 549 cross charge transactions, 646 expenditure items, 253 approved item attributes, 254 to 259 billable status change, 255 to 259 billing hold, set and release, 255 to 259 burden cost recalculation, 256 to 259 burden transactions, 266 capitalizable status change, 255 to 259 comment change, 257 to 259 cost and revenue recalculation, 257 to 259 currency attributes change, 258 to 259 marking, 269 mass, 262 multicurrency transactions, 265 raw cost recalculation, 256 to 259 related transactions, 266 restrictions, 259 revenue recalculation, 256 to 259 split item, 257 to 259 splitting, 263 transfer item, 258 to 259 transfers, 262 types of, 254 to 259 viewing, 245 work type change, 257 to 259 expense reports, 719 created in Oracle Internet Expenses, 720 created in Oracle Projects, 720 interfacing to other products, 273 invoices, 276 marking expenditure items, 269 multicurrency transactions, 265 processing, 271 reviewing results of, 272 purchase orders, 740 receipt accruals, restrictions, 743 related transactions, 266 reporting, audit, 253 requisitions, 740
Index 1
restrictions, 253 reviewing, 272 cost, 272 invoice, 275 revenue, 273 supplier invoices, 740 in Oracle Payables, 741 in Oracle Projects, 742 restrictions, 743 advances, 718 allocating costs, 46 Allocation Rule window, 45 allocations and burdening, 42 and cross charge, 46 AutoAllocations, 417 creating, 44, 46 incremental and full, 415 missing amounts, 416 overview, 42 previous amounts, 416 processing, 46 creating runs, 48 missing amounts, 416 precedence, 47 previous amounts, 416 releasing runs, 48 reversing, 413 run status, 47 troubleshooting, 412 viewing results, 48 viewing runs, 410 releasing, 48 reversing, 413 rules, 45 defining, 45 run status, 47 runs creating, 48 releasing, 48 reversing, 413 troubleshooting, 412 viewing, 410 transactions creating, 46
viewing, 413 viewing, 410 transactions, 413 asset lines adjusting, 546 assigning, unassigned lines, 546 changing assignments, 547 generating, 531 to 535 reversing capitalized, 549 reviewing, 546 sending to Oracle Assets, 537 splitting, 547 assets abandoning, 552 accounting, 59 adjusting, after interface to Oracle Assets, 548 adjustments, 749 allocating costs, 536 asset lines adjusting, 546 changing assignments, 547 generating, 531 reviewing, 546 splitting, 547 unassigned, 546 Assets window, attributes, 521 assigning, to grouping levels, 540 assignments, example, 544 attributes, 521 capital events, 529 capital projects, accounting for, 59 capitalization, 52 category, 522 creating, 58, 515 creating asset lines, 529 defining, 519 defining and processing, 515 allocating costs, 536 attributes, 521 creating asset lines, 529 creating assets, 515 creating capital events, 529 generating asset lines, 531 interface to Oracle Assets, 537 placing in service, 527
Index 2
specifying a retirement date, 528 description, 522 grouping options, 539 to 545 grouping level types, 539 to 545 grouping levels, 539 to 545 integration with Oracle Assets, 745 interface to Oracle Assets, 537, 747 key, 522 mass additions, 747 name, 521 number, 522 placing in service, 527 reversing, capitalization, 549 specifying a retirement date, 528 viewing in Oracle Assets, 748 assigning asset lines changing, 547 unassigned, 546 assets, 540 burden multipliers, 316 burden schedules, 319 audit, reporting, expenditure adjustments, 253 AutoAccounting cost accruals, 214 labor costs overtime, 115 straight time, 113 AutoAllocations, 417 creating sets, 417 prerequisites, 418 profile option, 419 submitting sets, 419 troubleshooting, 421 viewing, set status, 422
B
billable controls, 235 billing burden schedules, 314 burdening, transactions, 343 to 344
intercompany, 631 approving and releasing invoices, 639 determining accounts, 631 generating invoices, 636 interface tax lines, 643 interface to Payables, 641 interface to Receivables, 639 processing flow, 620 processing methods, 610 borrowed and lent accounting adjustments, 650 processing, 625 determining accounts, 625 flow, 620 generating transactions, 627 methods, 610 budgetary controls, funds check in Oracle Payables, 734 in Oracle Purchasing, 734 burden, 19 burden calculation process, 33 burden schedules assigning, 319 fixed dates, 320 project level, 319 to 320 task level, 319 to 320 changing, 320 default changing, 320 defining, 319 overriding, 319, 321 determining which to use, 322 multipliers assigning, 316 hierarchy, 317 overriding, 321 project types, 319 types, 314 using, 314 versions, defining, 315 burden structures components, 311 using, 310 burden transactions adjusting, 266 expenditure item date, 326
Index 3
burdening accounting for burden cost component, by, 330 burden cost component, setup, 331 no accounting impact, when, 336 overview, 329 schedule revisions, 337 total burdened cost, by, 333 total burdened cost, setup, 334 accounting for costs, 323 accounting transactions, cost reporting, 350 and allocations, 42 billing transactions, 343 building costs, 37 example, 37 schedules, 314 schedules, assigning, 319 schedules, changing, 320 schedules, overriding, 321 structures, 310 calculation, 37 costs accounting for by component, 330 accounting for no impact, 336 accounting for schedule revisions, 337 accounting for total burdened cost, 333 accounting for, overview, 329 basis for, 351 building, 37 reporting, 342, 345 to 365 schedule revisions, 337 storing, accounting, and viewing, 323 to 344 expenditure items, costs, storing, 323, 325, 327 labor costs, 112 multipliers algorithm, 347 assigning, 316 to 318 overview, 32 process, 33 process, 33 reporting, 345 to 365 custom reports, in, 342 general ledger, 345 middle management, 355
project management, 356 to GL, 351 upper management, 345 revenue transactions, 343 schedule revisions, processing transactions, 337 schedules assigning, 319 to 320 changing, 320 to 321 default, changing, 320 to 321 determining which to use, 322 fixed dates, assigning, 320 multipliers, assigning, 316 to 318 multipliers, hierarchy, 317 to 318 overriding, 319 to 320, 321 to 322 types, 314 to 315 using, 314 versions, defining, 315 to 316 storing costs, 323 same expenditure item, 323 same project, 325 separate expenditure item, 325 separate project, 327 storage method, choosing, 327 storage method, setting up, 328 structures components, 311 to 313 using, 310 to 311 transactions billing, 343 burden cost components, 330 revenue, 343 schedule revisions, 337 total burdened cost, 333 using, 37 viewing costs, 323
C
calculating costs, 17 to 110 burden, 19 to 112 expense reports, usages, miscellaneous, 18 to 111 labor, 17 to 110 supplier invoices, 19 to 112 capital events, 529
Index 4
capital information options, capitalized interest, 556 capital projects abandoning assets, 552 accounting for costs, 510 adjusting costs, 549 allocating asset costs, 536 asset grouping options, 539 to 545 grouping level types, 539 to 545 grouping levels, 539 to 545 asset lines adjusting, 546 assigning, 546 changing assignments, 547 generating, 531 reviewing, 546 sending to Oracle Assets, 537 splitting, 547 assets, accounting for, 59 assigning assets, to grouping levels, 540 capital events, 529 capital information options, capitalized interest, 556 capitalized interest, 554 capital information options, 556 generating expenditure batches, 557 project status, 557 rate names, 555 rate schedules, 555 releasing, reviewing, and deleting expenditure batches, 558 reviewing expenditure batches, 557 setting up, 556 charging expenditures to, 57 defining and processing, 515 defining assets for, 519 expenditures, capitalized interest, 557 integration, 53 invoices, 56 overview, 52 placing assets in service, 57, 527 processing flow, 53 purchase orders for, 54 reversing capitalized assets, 549 specifying a retirement date, 528 supplier invoices, 56
capitalizable controls, 235 capitalization, for capital project WBS levels, 518 capitalized interest, 554 capital information options, 556 capital projects, setting up, 556 expenditure batches generating, 557 releasing, reversing, and deleting, 558 reviewing, 557 overview, 554 project status, 557 rate names, 555 rate schedules, 555 setting up, 556 changing burden schedules, 320 charge controls, 229 project status, 229 start and completion dates, 229 task chargeable status, 229 transaction controls, 229 chargeable controls, 233 CIP, assets, overview, 52 commitments from Oracle Payables, 736 from Oracle Purchasing, 736 reporting, 736 example, 737 control counts, 224 control totals, 224 copying expenditure batches, 223 timecard batches, 223 correcting expenditure batches, 227 cost accruals, 213 accounting rules, 214 costing burden, 19 to 112 burden schedules, 314 to 321 calculating costs, 17 to 110 burden, 19 to 112 expense reports, usages, miscellaneous, 18 to 111 labor, 17 to 110 supplier invoices, 19 to 112
Index 5
expense reports, usages, miscellaneous, 18 to 111 labor, 17 to 110 overview, 12 to 14 processes, 15 supplier invoices, 19 to 112 costing processes, 15 costs burdening, 32 calculating, 17 to 110 burden, 19 to 112 expense reports, usages, miscellaneous, 18 to 111 labor, 17 to 110 supplier invoices, 19 to 112 distributing expense report, 78 labor, 110 to 113 labor, distributing, 110 to 113 creating allocation runs, 48 allocations, 44 AutoAllocations sets, 417 expenditure batches, 214 cross charge adjustments, 646 borrowed and lent accounting, 650 intercompany billing accounting, 651 overview, 646 process flow, 650 allocations and, 46 borrowed and lent accounting adjustments, 650 generating transactions, 627 processing, 625 business needs, 63 controls, 611 interoperating unit, 612 intercompany, 612 intraoperating unit, 611 processing, 613 distributions, interface to GL, 644 example, 63 intercompany billing accounting, 631 adjustments, 651
approving and releasing invoices, 639 determining accounts, 631 generating invoices, 636 interface tax lines, 643 interface to Payables, 641 interface to Receivables, 639 overview, 62 process flow, 619 borrowed and lent, 620 intercompany billing, 620 processing borrowed and lent, 620, 625 intercompany billing, 620 intercompany billing accounting, 631 methods, 610 overview, 619 processing controls, 613 client extensions, 616 expenditure item adjustments, 616 implementation options, 613 project and task, 616 provider and receiver, 614 transaction source, 616 transfer price, 614 processing methods, 610 borrowed and lent accounting, 610 intercompany billing accounting, 611 no cross charge process, 611 transactions adjusting, 646 creating, 622 types of, 68 transfer pricing, 617 types, 68 cross charge processing methods and controls, 610 currency fields, 219 expenditure items, 220 expenditures, 219
D
defining allocation rules, 45 assets, 515 burden schedule, versions, 315
Index 6
distributing labor costs, 110 to 113 expenditure items, selecting, 111 to 114 overtime overview, 113 to 116 processing, 114 to 117 straight time, 112 to 115 drill down, from General Ledger, 248 drill down to, Oracle Payables, 246
E
employees, as suppliers, 75 entering expenditure batches, 212 expenditure items, 215 expenditures, 215 events, capital, 529 expenditure batches control totals and control counts, 224 copying, 223 correcting, 227 creating, 214 entering, 212 Microsoft Excel, 222 Microsoft Excel, 222 overview, 210 to 228 processing, 210 to 228 reversing, 226 automatically, 213 reviewing and releasing, 225 statuses, 213 submitting, 225 Expenditure Batches window, 212 expenditure inquiry, 245 expenditure items accounting lines drill down from General Ledger, 248 viewing, 247 adjusting, 549 adjustments, 253 to 280 approved item attributes, 254 to 280 audit reports, 253 to 280 billable status change, 255 to 280 billing hold, set and release, 255 to 280
burden cost recalculation, 256 to 280 burden transactions, 266 capitalizable status change, 255 to 280 comment change, 257 to 280 cost and revenue recalculation, 257 to 280 currency attributes change, 258 to 280 Expenditure Items window, 260 marking items, 269 mass, 262 multicurrency transactions, 265 processing, 271 raw cost recalculation, 256 to 280 related transactions, 266 restrictions, 259 revenue recalculation, 256 to 280 reviewing results of, 272 split item, 257 to 280 splitting, 263 supplier invoices, 276 transfer item, 258 to 280 transfers, 262 types of, 254 to 280 work type change, 257 to 280 burdening, storing, accounting, viewing, 323 control functions, 518 currency fields, 219 dates, summary burden transactions, 326 entering, 215 currency fields, 219 Expenditure Items window, 245, 249, 250 reference, 249 FInd Expenditure Items window, 249 splitting, 263 new transactions generated, 270 supplier invoices, adjusting, 276 transferring, 262 validation, 23 viewing, 245 to 251 Expenditure Items window, 245, 250 adjusting expenditures, 260 reference, 249 expenditures accounting lines, viewing, 247 adjustments, 253 to 280 audit reports, 253 to 280
Index 7
burden transactions, 266 Expenditure Items window, 260 marking items, 269 mass, 262 multicurrency transactions, 265 processing, 271 related transactions, 266 restrictions, 253 to 280 reviewing results of, 272 splitting, 263 supplier invoices, 276 transfers, 262 types of, 254 to 280 amounts, 22 batches control totals and control counts, 224 copying, 223 correcting, 227 creating, 214 entering, 212 Microsoft Excel, 222 reversing, 226 reviewing and releasing, 225 submitting, 225 billable controls, 235 burdening, 32 calculating costs, 17 to 110 capitalizable controls, 235 capitalized interest generating, 557 releasing, reviewing, and deleting, 558 reviewing, 557 chargeable controls, 232 chargeable status, determining, 233 classifications, 22 control totals, 224 controlling, 229 billable, 235 capitalizable, 235 chargeable, 232 examples, 236 transaction control extensions, 230 copying, 223 correcting, 227 costing burden, 19 to 112
expense reports, usages, miscellaneous, 18 to 111 labor, 17 to 110 supplier invoices, 19 to 112 currency fields, 219 distributing, labor, 110 to 113 entering, 215 currency fields, 219 Microsoft Excel, 222 entry methods, 23 expenditure items, adjustments, types of, 254 to 280 funds checks, 24 futuredated employees, 213 labor costs distributing, 110 to 115 overtime, 113 to 119 straight time, 112 to 117 Microsoft Excel, 222 overview, 22, 210 to 228 processing, 210 rejection reasons, 25 reports, adjustments, 253 to 280 reversing, 226 automatically, 213 reviewing and releasing, 225 submitting, 225 supplier invoices, adjusting, 276 transaction controls, 229 billable, 235 capitalizable, 235 chargeable, 232 examples, 236 exclusive, 230 extensions, 230 inclusive, 230 validation, 23 funds checks, 24 rejection reasons, 25 View Expenditure Accounting window, 247 viewing, 245 to 251 expenditures items drill down from General Ledger, 248 View Expenditure Accounting window, 247 Expenditures window, 215
Index 8
expense reports, 18 adjusting, 719 created in Oracle Internet Expenses, 720 created in Oracle Projects, 720 advances, 718 batch naming, 722 created in Oracle Internet Expenses, processing, 714 created in Oracle Projects, processing, 77 distributing costs, 78 error reports, 712, 718 GL date for, 79 importing in Payables from Oracle Internet Expenses, 716 from Oracle Projects, 710 integrating with Oracle Internet Expenses overview, 73 setup, 75 integrating with Oracle Payables overview, 73 setup, 75 integration Oracle Internet Expenses, 73 Oracle Payables, 73 interface, Oracle General Ledger, 714, 717 interface from Payables, 717 interface to Payables, 79 liability account, 710 prepayments, 718 purging, 721 reports and listings, 710 streamline processes. See streamline processes tying back from Oracle Payables, 712 viewing in Oracle Payables, 721
G
GL date, expense reports, 79
I
integration capital projects, 53 Oracle Assets, 58, 537, 745 adjusting assets, 749 implementing, 746 interface assets, 747 mass additions, 747 viewing assets, 748 Oracle Internet Expenses, 73 overview, 73 setup, 75 Oracle Inventory, 753 adjusting transactions, 756 collecting costs, 755 entering projectrelated transactions, 754 importing transactions, 755 reviewing transactions, 756 transferring costs, 755 Oracle Payables, 56 document flow, 724 entering default information for supplier invoices, 728 entering supplier invoices, 727 expense reports, 73 interface supplier costs, 729 interface supplier invoices, 729 matching invoices, 727 overview, 73 posting invoices, 728 setup, 75 supplier invoices, 724, 727 using distribution sets, 728 Oracle Project Manufacturing, 751 Oracle Purchasing, 54 document flow, 724 entering default information, 726 entering purchase orders, 726 entering releases, 726 entering requisitions, 725 recording receipt and delivery, 726
F
Find Expenditure Items window, 249 funds check, activation in Oracle Payables, 734 in Oracle Purchasing, 734 funds checks, 24 futuredated employees, entering transactions, 213
Index 9
requisitions and purchase orders, 724, 725 using AutoCreate, 725 overview, 72 intercompany billing accounting adjustments, 651 processing, 631 approving and releasing invoices, 639 determining accounts, 631 flow, 620 generating invoices, 636 interface tax lines, 643 interface to Payables, 641 interface to Receivables, 639 methods, 610 interface supplier costs, 729 interface supplier invoices, 729 interfaces Oracle Assets, 537, 745 adjustments, 548 Oracle General Ledger, expense reports, 714, 717 Oracle Internet Expenses, 73 expense reports, 714 Oracle Inventory, 753 Oracle Payables expense reports, 73, 77 supplier invoices, 724 Oracle Project Manufacturing, 751 Oracle Purchasing, requisitions and purchase orders, 724 invoices capital project, 56 intercompany approving and releasing, 639 interface to Payables, 641 interface to Receivables, 639 interfacing tax lines, 643 transactions, for capital projects, 56
labor costs distributing, 110 to 115 overtime, 113 to 119 straight time, 112 to 117 expenditure items, selecting, 111 to 116 overtime AutoAccounting, 115 calculating, 115 to 118 cost distribution lines, 115 overview, 113 to 118 processing, 114 to 119 tracking, 114 to 117 reports, 115 straight time, 112 to 117 AutoAccounting, 113 calculating, 112 to 117 cost distribution lines, 113 utilization, 116
M
marking expenditure items for adjustment, 269 mass adjustment of expenditures, 262 Microsoft Excel, using to enter expenditures, 222 miscellaneous transactions, 18 multicurrency transactions, adjusting, 265
O
Oracle Assets creating asset lines for, 529 integration, 745 adjusting assets, 749 implementing, 746 interface assets, 747 mass additions, 747 viewing assets, 748 Oracle General Ledger, burden amounts, reporting to, 345 Oracle Internet Expenses, integration, 73 overview, 73 setup, 75 Oracle Inventory, integration, 753 adjusting transactions, 756
L
labor, 17
Index 10
collecting costs, 755 entering projectrelated transactions, 754 importing transactions, 755 reviewing transactions, 756 transferring costs, 755 Oracle Payables account generator, 735 adjustments, 740 supplier invoices, 741 advances (prepayments), 718 funds check activation, 734 importing expense reports from Oracle Internet Expenses, 716 from Oracle Projects, 710 integration document flow, 724 entering default information for supplier invoices, 728 entering supplier invoices, 727 expense reports, 73 interface supplier costs, 729 interface supplier invoices, 729 matching invoices, 727 overview, 73 posting invoices, 728 setup, 75 supplier invoices, 724, 727 using distribution sets, 728 project information, entering, 730 viewing expense reports, 721 Oracle Project Manufacturing importing Project Manufacturing costs, 751 integration, 751 Oracle Purchasing account generator, 735 adjustments, 740 purchase orders, 741 requisitions, 740 funds check activation, 734 integration document flow, 724 entering default information, 726 entering purchase orders, 726 entering releases, 726
entering requisitions, 725 recording receipt and delivery, 726 requisitions and purchase orders, 724, 725 using AutoCreate, 725 project information, entering, 730 overriding burden schedules, 321 overviews allocations, 42 asset capitalization, 52 burdening, 32 capital projects, 52 capitalized interest, 554 controlling expenditures, 229 costing, 12 to 14 cross charge, 62 expenditure batches, 210 to 228 expenditures, 22, 210 to 228 integration with other applications, 72 transaction controls, 229
P
prepayments, 718 processes costing, 15 Create and Distribute Burden Transactions, 332 Distribute Expense Report Costs, 78 Distribute Labor Costs, reports, 115 Expense Report Import from Oracle Internet Expenses, 716 from Oracle Projects, 710 Interface Expense Reports from Payables, 717 Interface Expense Reports to Payables, 79 Interface Supplier Costs, 729 Interface Usage and Misc. Costs to GL, 332 Payables Transfer to General Ledger, 714, 717 streamline. See streamline processes Tieback Expense Reports from Payables, 712 Tieback Usage and Miscellaneous Costs from GL, 332
Index 11
processing adjustments expenditure items, 271 reviewing results of, 272 burden transactions, schedule revisions, 337 expenditure batches, 210 expense reports created in Oracle Internet Expenses, 714 created in Oracle Projects, 77 profile options PA: Allow Project Time and Expense Entry, 76 PA: Summarize Expense Report Lines, 76 PA: Web Expenses Invoices Per Set, 77 project, commitments, 736 Project Expenditure Accounting window, 248 project options capital information, capitalized interest, 556 transaction controls, 229 Project Revenue Accounting window, 248 project status adjustment restrictions, 253 capitalized interest, 557 project templates, expenditure batch, 223 project types, burden schedules, 319 projects capital, 52 costs, reporting, 345 to 365 Projects window, defining assets, 519 purchase orders, 725 adjustments, 740, 741 AutoCreate, 725 commitments, 736 creating for capital projects, 54 default information, 726 entering, 726 projectrelated information, 730 receipt and delivery, 726 releases, 726 validating, 734 purging, expense reports, 721
R
receipt accruals, adjustments, restrictions, 743 related transactions, adjusting, 266 releasing allocation runs, 48 expenditure batches, 225 reporting burdening, custom reports, 342 reports, expenditure adjustments, audit reporting, 253 to 280 reports and listings, interfaced and rejected expense reports, 710 invoice distributions, 718 requisitions, 725 adjustments, 740 commitments, 736 default information, 726 entering, 725 projectrelated information, 730 validating, 734 restrictions receipt accrual adjustments, 743 supplier invoice adjustments, 743 revenue burden schedules, 314 to 321 burdening, transactions, 343 to 344 reversing allocation runs, 413 assets, 549 cost accruals, automatically, 213 expenditure batches, 226 automatically, 213 Review Allocation Runs window, 410 reviewing, expenditure batches, 225 reviewing adjustments, 272 cost, 272 invoice, 275 revenue, 273
S
schedules, burden, 321 to 328 assigning, 319 to 326 setting up capital projects, capitalized interest, 556
Index 12
expense report integration Oracle Internet Expenses, 75 Oracle Payables, 75 splitting asset lines, 547 expenditure items, new transactions generated, 270 splitting expenditure items, 263 new transactions generated, 270 storing burden costs, 323 same expenditure item, 323 same project, 325 separate expenditure item, 325 separate project, 327 storage method choosing, 327 setting up, 328 streamline processes. See streamline processes submitting AutoAllocation sets, 419 expenditure batches, 225 supplier costs adjustments in Oracle Payables, 741 in Oracle Projects, 742 restrictions, 743 interfacing, 729 supplier invoices, 19, 727 adjustments, 276, 740 in Oracle Payables, 278, 741 in Oracle Projects, 277, 742 restrictions, 743 commitments, 736 default information, 728 distribution sets, 728 entering, 727 interfacing, 729 matching, 727 posting, 728 projectrelated information, 730 validating, 734 suppliers, as employees, 75
T
task options, transaction controls, 229 tasks, control functions, 518 taxes interface from Payables, 643 nonrecoverable, 736 tie back, expense reports, 712 transaction controls, 229 allowable charges, 231 billable, 232, 235 capitalizable, 232, 235 chargeable, 232 determining status, 233 effective dates, 232 employee expense reports, 231 scheduled work assignments, 231 usage and supplier transactions, 231 examples, 236 exclusive, 230 extensions, 230 in projects, 518 inclusive, 230 transaction types, cross charge, 68 transactions adjusting burden, 266 multicurrency, 265 related, 266 capitalized, 518 cross charge, creating, 622 funds checks, 24 unmatched negative, 228 transfer pricing, overview, 617 transferring expenditure items, 262 troubleshooting allocation runs, 412
U
usages, 18 using burden schedules, 314 burden structures, 310 burdening, 37
Index 13
utilization, calculating and reporting, 116
expenditure items, 245 to 251 expenditures, 245 to 251
V
View AutoAllocation Statuses window, 422 View Expenditure Accounting window, 247 viewing accounting lines, 247 drill down from GL, 248 allocation runs, 410 allocation transactions, 413 AutoAllocation sets, status, 422 burden costs, 323
W
window illustrations Allocation Rule, 45 Expenditure Batches, 212 Expenditure Items, 245 Expenditures, 215 Review Allocation Runs, 410 View AutoAllocation Statuses, 422 View Expenditure Accounting, 247
Index 14
Readers Comment Form

Oracle Project Costing User Guide Release 11i Part Number B1085501 Oracle welcomes your comments and suggestions on the quality and usefulness of this publication. Your input is an important part of the information we use for revision.
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Oracler Project Costing

User Guide Release 11i

Oracle Project Costing User Guide

Oracle Project Costing User Guide

Oracle Project Costing User Guide

Oracle Project Costing User Guide

Other Information Sources

Oracle Project Costing User Guide

Guides Related to All Products

Oracle Projects Documentation Set

User Guides Related to This Product

Oracle Project Costing User Guide

Installation and System Administration

Oracle Project Costing User Guide

Other Implementation Documentation

Oracle Project Costing User Guide

Training and Support

Do Not Use Database Tools to Modify Oracle Applications Data

Oracle Project Costing User Guide

Oracle Project Costing User Guide

Overview of Project Costing

Overview of Project Costing

Costing in Oracle Projects

Oracle Project Costing User Guide

Figure 1 1 Costing in Oracle Projects

Overview of Project Costing

Oracle Project Costing User Guide

Overview of Project Costing

Oracle Project Costing User Guide

Calculating Labor Cost

Overview of Project Costing

Calculating Cost for Expense Reports, Usages, and Miscellaneous Transactions

Oracle Project Costing User Guide

Calculating Burden Cost

Calculating Cost for Supplier Invoices

Overview of Project Costing

Distributing Labor Costs

Oracle Project Costing User Guide

Selecting Expenditure Items

Overview of Project Costing

Processing Straight Time

Oracle Project Costing User Guide

Creating Cost Distribution Lines

Overview of Project Costing

Oracle Project Costing User Guide

Run AutoAccounting Create cost distribution lines

Calculating Overtime Cost

Overtime may or may not be burdened, depending on your burdening setup.

Creating Cost Distribution Lines

Generating Labor Output Reports

Overview of Project Costing

Calculating and Reporting Utilization

Oracle Project Costing User Guide

Oracle Project Costing User Guide

Expenditure Entry Methods

Expenditure Item Validation

Standard Validation Process

Funds Checks for Transactions

Oracle Project Costing User Guide