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:-

 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 preapproved 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

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