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
                      Burden Cost = Raw Cost x 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:
                     Total Burdened Cost = Raw Cost + Burden Cost
You use the burden multiplier to derive the total amount of the burden cost.

The following illustration shows the burden calculation process.

Burden Set up
To implement Burdening in Oracle Projects, you must complete the following setup steps using the Projects Implementation Super User responsibility:

You must also complete the following procedures using the System Administrator responsibility: