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Cost Collection

An Expenditure Type Class determines how an expenditure item will be processed by Oracle.

These are pre-defined by Oracle and cannot be added by the user:

Straight Time Overtime Expense Reports Usages Supplier Invoice Misc Transactions Burden Transaction Work In Process – Inventory Expenditure Type:-

Cost Collection • An Expenditure Type Class determines how an expenditure item will be processed by

• POET refers to:

Project Number Organization (Expenditure) Expenditure Type Task Number – Date (Expenditure) • All project cost needs to have POET information.

• This may be entered manually by user (in Payables, Purchasing, Projects) or may be derived automatically by Oracle (in Inventory, WIP).

POET – AP Invoice Distribution

• In Projects context, Accounted costs means costs for which accounting entry is already recorded in General Ledger (GL). Therefore, accounting will not be generated in Projects module.

• Accounting Entry will be generated in Projects for Unaccounted transactions and transferred to GL. This will be done using SubLedger Accounting in 12i.

• Following are the main sources of project cost collection:

Payables: Accounted supplier invoices with POET information will be interfaced to Projects.

Purchasing: POs and Requisitions will be interfaced as Commitments to Projects. When AP invoice is interfaced, requisition will be removed.

Expense Reports: iExpense allows entry of Project related expense reports. Once reports are imported as invoice, these can be interfaced to Projects.

Inventory and WIP: Accounted manufacturing cost will be interfaced if Project Manufacturing is used.

WebADI: Accounted or Unaccounted costs can be uploaded directly into Projects using WebADI.

Manual Exp Batch: Unaccounted pre- approved manual expenditure batches can be entered in Projects.

Burden Cost: Cost collected as above can further be loaded with markup in Projects. This will create accounting for additional markup cost.

• Once a Supplier invoice is accounted in Payables, it can be collected immediately in Projects.

• Program “PRC: Interface Supplier Costs” needs to be run to collect costs from Payables.

• Manual Expenditure Batch can be entered for Timecards, Usage, Misc Transaction, etc.

• After expenditure batch entry, following program needs to be run for generating cost and accounting:

PRC: Distribute Usage and Misc Costs

(This will change depending on Exp Type Class entered)

PRC: Generate Cost Accounting Events

PRC: Create Accounting

Manual Exp Batch - Header

Manual Exp Batch - Lines

Projects Billing

Business Process

Invoicing and Revenue Process Flow

Project Invoicing Flow

Billing and Revenue Generation Methods

End

Billing and Revenue Generation Methods

• Oracle Provides the following combination for Billing and Revenue Generation

Distribution Rule in Project Template

• Accrue on % Complete and Bill on % complete

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Revenue = (50,000/80,000)*120,000 = $

75,000

Billing = (50,000/80,000)*120,000 = $ 75,000

• Accrue on % complete and Bill on events

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000 Event created for $ 80,000 when actual cost reaches $ 50,000

Revenue = (50,000/80,000)*120,000 = $

75,000

Billing = $ 80,000

• Accrue on % complete and Bill as work occurs

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Employee on a project ‘A’ has worked for 100 hours.

Billing rate for this employee is 650

Revenue = (50,000/80,000)*120,000 = $

75,000

Billing = 650*100 = $ 65,000

• Accrue on events and bill on events

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Event created for $ 80,000 when actual cost reaches $ 50,000

Revenue = $ 80,000

Billing = $ 80,000

• Accrue on events and bill as work occurs

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Event created for $ 80,000 when actual cost reaches $ 50,000 Employee on a project ‘A’ has worked for 100 hours. Billing rate for this employee is $ 650 per hour

Revenue = $ 80,000

Billing = $ 650 * 100 = $ 65,000

• Accrue on events and bill as work occurs

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Event created for $ 80,000 when actual cost reaches $ 50,000 Employee on a project ‘A’ has worked for 100 hours. Billing rate for this employee is $ 650 per hour

Revenue = $ 80,000

Billing = $ 650 * 100 = $ 65,000

• Accrue as the work occurs and bill on events

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Event created for $ 80,000 when actual cost reaches $ 50,000 Employee on a project ‘A’ has worked for 100 hours. Cost rate for this employee is $ 450 per hour

Revenue = $ 450 * 100 = $ 45,000

Billing = $ 80,000

• Accrue as work occurs and bill on work occurs

Actual Cost on a Project = $ 50,000 Budgeted Cost on a Project = $ 80,000 Budgeted Revenue on a Project = $ 120,000

Employee on a project ‘A’ has worked for 100 hours. Cost rate for this employee is $ 450 per hour Billing rate for this employee is $ 650 per hour

Revenue = $ 450 * 100 = $ 45,000

Billing = $ 650 * 100 = $ 65,000

Fixed Assets

Accounted entries in Projects not interfacing to GL

Natural Account

Cost Center

Location

Amount

General Ledger Source

• Natural Account • Cost Center • Location • Amount • General Ledger Source
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