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R12 Project Costing Fundamentals
D47868GC10
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The Job Title [list@YourCompany.com?Subject=EDUxxxxx] is responsible for ensuring that this
document is necessary and that it reflects actual practice.
Costing Flow
Oracle Project Costing enables you to track and account for all project costs. You can enter
transactions directly into Oracle Project Costing using expenditure batches, import transactions
from other Oracle Applications, such as Oracle Time & Labor, or import transactions from
external systems.
Costing Flow Example (Labor Cost)
1. Enter or import expenditures - You can enter pre-approved expenditure batches or
import transactions from other Oracle applications or external applications.
2. PRC: Distribute Labor Costs - Calculates the raw and burden cost amounts for labor cost
expenditure items and uses AutoAccounting to determine the default debit account for
each expenditure item.
3. PRC: Generate Cost Accounting Events - Uses AutoAccounting to determine the default
credit account for expenditure items and generates accounting events for distributed
transactions.
4. PRC: Create Accounting - Creates subledger journal entries for eligible accounting
events. You can run the program in either draft or final mode. Optionally, the program can
post journal entries in Oracle General Ledger.
Manage Costs
After you collect costs, you can perform adjustments as needed. You can also use features such
as cross charge, burdening, project allocations, and asset capitalization to further process the
costs. The adjustment functionality in Oracle Project Costing gives you control over your
project costs. You can adjust your project costs online, create accounting for the adjustments,
and provide a historical audit trail of all activities. You can perform a wide variety of
adjustments - including correcting approved expenditures, changing the capitalizable or billable
status of expenditure items, recalculating raw or burdened costs, splitting expenditure items, and
transferring expenditures to another project.
Cross Charge
A cross charge takes place when the expenditure organization of an expenditure item is different
from task owning organization of the task being charged. These organizations are called the
provider and receiver organizations. The organizations can be within the same operating unit or
belong to different operating units. You may perform additional cross charge processing to pass
costs or share revenues between the provider and receiver organizations. This processing
includes creating borrowed and lent accounting entries or generating intercompany invoices.
Burdening