Project Costing

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Project 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:

1. Pre-approved expenditures.

  • Labor
  • Usages & Miscellaneous Transactions
  • Expense reports

2. Burden transactions.
3. Expenditures submitted from Oracle Internet Expenses.
4. Supplier Costs (Supplier invoice from AP).
5. Imported expenditures.
6. Adjusted expenditures in Oracle Projects that need re-costing.
 

Project Costing Process

1. Labor :

  • Define an expenditure type of overtime and straight. You can assign a cost rate if the expenditure type has same rate for all employees/jobs
  • Define the rate schedule of employee & job. Enter the rate of each employee.($100 /hour)
  • Define the labour costing rules . Assign the rate schedule defined in point ii to the organization labour costing rules.
  • Enter a pre approved expenditure of overtime. Enter the employee, expenditure type & qty as 10. Submit & Release the batch
  • Run the program ‘PRC: Distribute Labor Costs’. Verify the cost. The amount should be 10 * 100 = 1000
  • Run the program ‘PRC: Interface Labor Costs to General Ledger’

2. Non Labor Resources :

  • Define an expenditure type of usage. You can assign a cost rate if the UOM is not currency
  • Define the Non Labour resource and assign the expenditure type created in step i. Assign a cost rate for the project organization/OU. ($100 /Ea)
  • Define the rate schedule of the NLR. This rate is used for billing rate. The cost rate is taken from the NLR or expenditure type form.
  • Enter a pre approved expenditure of Usage. Enter the organization, expenditure type & qty as 10. Submit & Release the batch
  • Run the program ‘PRC: Distribute Usage and Miscellaneous Costs’. Verify the cost. The amount should be 10 * 100 = 1000
  • Run the program ‘PRC: Interface Usage and Miscellaneous Costs to General Ledger’

3. Non-labor expenditure type :

  • Define an expenditure type of supplier invoice/expense report/wip/inventory/misc transaction. You can assign a cost rate if the UOM is not currency. The UOM of NLE is mostly currency and the amount comes from invoice/expense report/inv/wip. You should assign a rate for Misc expenditure type
  • Define the rate schedule of the Non labor expenditure type. This rate is used for billing rate. The cost rate is taken from the NLR or expenditure type form.
  • Enter a pre approved expenditure of expense report/wip/inventory/misc transaction. Enter the organization, expenditure type &. Submit & Release the batch.
Pre approved expenditure for supplier invoice is not available. You need to enter an invoice in oracle payables with the project details. Validate and account the invoice. Run PRC: Transaction Import / PRC: Interface Supplier Costs program. You can follow the same method of expense report/wip/inventory

 

  • Run the program ‘PRC: Distribute Usage and Miscellaneous Costs’/ ‘PRC: Distribute Expense Report Costs’ /’ PRC: Distribute Supplier Invoice Adjustment Costs’. Verify the cost.
  • Run the program ‘PRC: Interface Usage and Miscellaneous Costs to General Ledger’

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