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 quantity by a rate (if quantity is not in currency).

You can define cost rates for usage and miscellaneous costs as follows:

• Cost rates by expenditure type.
• Cost rates by non-labor resource and owning organization for usages (optional); overrides expenditure type cost rate.

 
To implement non-labor costing in Oracle Projects, you must:

1. Define non-labor resources at the site level.
2. Define non-labor cost rates at the operating unit level.
3. Define non-labor cost rate overrides at the operating unit level.

Define a non-labor resource

A non-labor resource may be a piece of equipment whose capacity is consumed, such as training room, or equipment whose physical output is consumed, such as a copier.

You specify a name and a description of an asset, or pool of assets, to define a non-labor resource. For example, you can define a non-labor resource with a name such as PC to represent multiple personal computers your business owns.

Define non-labor cost rate

An expenditure type cost rate is a currency amount that Oracle Projects multiplies by the expenditure type unit to calculate cost.

You define a cost rate in the Expenditure Types page by selecting an expenditure type and entering a cost rate for it. You cannot define a cost rate for a non-labor expenditure type that does not require a cost rate.

Define non-labor cost rate overrides

You can define a usage cost rate override for any non-labor resource. Usage cost rate overrides are defined by the non-labor resource and organization. The cost rate override applies only to a specific non-labor resource owned by that organization.