Oracle Fusion

Cloud Project
Management

Using Project Costing

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Oracle Fusion Cloud Project Management
Using Project Costing

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G12760-02

Copyright © 2011, 2024, Oracle and/or its affiliates.

Author: Rakesh Chaudhary

Oracle Fusion Cloud Project Management
Using Project Costing

Contents

Get Help ................................................................................................................................ i

1 Project Costs 1
Overview of Capturing Project Costs ......................................................................................................................................... 1
Project Costs Capture ..................................................................................................................................................................... 1
How does Projects handle rounding of project cost amounts? ........................................................................................... 5
Sponsored Project Costs Capture ............................................................................................................................................... 6
Enter Project Costs with ADFdi Spreadsheets ......................................................................................................................... 7
How Project Costs are Imported ................................................................................................................................................. 8
Internal and External Commitments ........................................................................................................................................ 10
How External Commitment Transactions are Imported ....................................................................................................... 11
How External Commitment Transactions are Validated ....................................................................................................... 12
How External Commitment Transactions are Processed ..................................................................................................... 14
How can I remove canceled purchase orders that continue to appear as committed costs? ....................................... 15
Can I view only approved project commitments? ................................................................................................................. 15
Time Card Adjustments for Projects ........................................................................................................................................ 15
How Time and Labor Works with Project Costing ................................................................................................................ 16
Considerations for Capturing Inventory Costs ...................................................................................................................... 20
Considerations when Importing Overheads from Inventory Management ..................................................................... 21
Import Costs Process ................................................................................................................................................................... 22
HCM Assignment Status Validations When Importing Person-Related Costs ............................................................... 24
Project Expenditure Batch Approval Workflow ...................................................................................................................... 25
FAQs for Project Costs ................................................................................................................................................................ 28

2 Project Cost Transactions 33

Overview of How Project Cost Transactions are Processed ............................................................................................... 33
How Project Costs are Processed ............................................................................................................................................. 33
View and Resolve Errors in Unprocessed Project Cost Transactions ................................................................................ 37
How Accounting and Project Accounting Dates are Determined ..................................................................................... 37
How are project transaction dates defaulted in Oracle Projects? ..................................................................................... 38
How Project Costs are Validated ............................................................................................................................................... 41
Considerations When Selecting Billable or Capitalizable Status for Transactions ......................................................... 44
Oracle Fusion Cloud Project Management
Using Project Costing

How Expenditure Item Chargeable Status is Determined .................................................................................................. 44

Transaction Controls ................................................................................................................................................................... 47
Budgetary Control Funds Status .............................................................................................................................................. 48
Considerations when Editing Burden Schedule Multipliers ................................................................................................ 53
What are project cost reversals? ............................................................................................................................................... 53
How can I reverse processed project costs? .......................................................................................................................... 54
FAQs for Project Cost Transactions ......................................................................................................................................... 57

3 Overhead Costs to Projects 59

Overview of How Overhead Costs are Distributed to Projects .......................................................................................... 59
How Burden Costs Are Calculated ........................................................................................................................................... 59
Recalculate Burden Costs ........................................................................................................................................................... 63
Examples for Additive and Precedence Burden Structures ............................................................................................... 64
Considerations for Burden Cost Options for Project Types ................................................................................................ 65
Burden Cost Calculations Test .................................................................................................................................................. 67
FAQs for Overhead Costs to Projects ...................................................................................................................................... 68

4 Project-Driven Supply Chain 71

Overview of Project-Driven Supply Chain ............................................................................................................................... 71
Capture Purchase Order Costs in Projects ............................................................................................................................. 73
Capture Transfer Order Costs in Projects ............................................................................................................................... 74
Capture Sales Order Issues in Projects ................................................................................................................................... 75
Capture Manufacturing and Maintenance Work Order Costs in Projects ....................................................................... 76
Forecasting and Reporting on Supply Chain Transactions with Multiple Cost Distributions ...................................... 77
How can I perform budgetary control and encumbrance accounting for my transactions? ....................................... 79
FAQs for Project-Driven Supply Chain .................................................................................................................................... 85

5 Project Cost Adjustments 87

Overview of Reviewing and Adjusting Project Costs ........................................................................................................... 87
Project Costs Adjustment Approval Workflow ...................................................................................................................... 87
How Project Cost Adjustments are Processed ...................................................................................................................... 89
Expenditure Item Adjustment Statuses .................................................................................................................................. 90
Review Budgetary Control Validation Errors .......................................................................................................................... 91
Configure Approval Notifications for Project Cost Adjustments ........................................................................................ 91
FAQs for Project Cost Adjustment ........................................................................................................................................... 92
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6 Project Rate Schedules 97

Overview of Project Rate Schedules ........................................................................................................................................ 97
Rate Schedule Types ................................................................................................................................................................... 97
Import Project Rate Schedules Process .................................................................................................................................. 99
FAQs for Project Rate Schedules ............................................................................................................................................ 100

7 Accounting for Project Transactions 103

Overview of Accounting for Project Transactions .............................................................................................................. 103
How Accounting Burden Costs are Processed .................................................................................................................... 103
Options to Maintain Accounting Periods and Project Accounting Periods ................................................................... 106
Project Costs and Revenue Accounting Entries .................................................................................................................. 109
Considerations when Creating Accounting for Transactions ............................................................................................ 110
Accounting Class Usages in Projects ...................................................................................................................................... 111
How Accounting Periods and Project Accounting Period Closing are Validated ........................................................... 111
Sweeping Transaction Accounting Events ............................................................................................................................. 113
Account Rules .............................................................................................................................................................................. 114
Verify Accounting Sources for Projects .................................................................................................................................. 116
Post Subledger Transactions to the General Ledger ........................................................................................................... 117
Accounting Project Costs Externally ....................................................................................................................................... 119
Project Costing Accounts for Budgetary Control ................................................................................................................ 120
FAQs for Accounting for Project Transactions ...................................................................................................................... 121

8 Project Cost Allocations 123

Overview of Allocating Project Costs ..................................................................................................................................... 123
How Project Cost Allocations are Processed ........................................................................................................................ 123
Considerations for Allocation Methods ................................................................................................................................. 125
Considerations for Allocations Basis Methods ..................................................................................................................... 127
Considerations for Allocation Offset Methods ..................................................................................................................... 128
Allocation Statuses ..................................................................................................................................................................... 129
AllocationSource Pool Amount: How It's Calculated ........................................................................................................... 131
Examples for Calculating Prorate Amounts using Allocation Basis Method ................................................................. 132
Considerations for Expenditure Type Class of Allocation Transactions ......................................................................... 135
Define Allocation Rules to Allocate Labor Costs from a Shared Services Project ........................................................ 135
Define Allocation Rules to Allocate Rent Costs from General Ledger ............................................................................ 139
FAQs for Project Cost Allocations ........................................................................................................................................... 142
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9 Capital Asset Costs 147

Overview of Capital Asset Costs ............................................................................................................................................. 147
Capital Projects Processing ...................................................................................................................................................... 147
What are asset lines, and why do I need them? ................................................................................................................. 148
Generating Asset Lines ............................................................................................................................................................. 149
Asset Cost Allocation Methods in the Project Costs to Fixed Assets Process ............................................................... 151
Project Cost Collection Methods and Their Implications for Asset Cost Allocation ..................................................... 153
Considerations for Asset Assignment to Projects or Tasks .............................................................................................. 154
How to decide where to assign project assets? ................................................................................................................... 155
Allocating Project Asset Costs to Projects and Tasks ......................................................................................................... 157
Asset Cost Allocation Methods Available in Oracle Projects ............................................................................................ 158
Capitalization Options for Project Types ............................................................................................................................... 172
How Project Costing Source Lines Are Imported ................................................................................................................ 175
Automatically Derive Depreciation Expense Account for Assets ..................................................................................... 176
Import Assets ............................................................................................................................................................................... 177
Import Unassigned Asset Lines .............................................................................................................................................. 178
Verify Accounting Sources for Projects ................................................................................................................................. 180
Can I delete a project asset that has been transferred into Oracle Assets? .................................................................. 180
How can I resolve project asset lines that are identified as assets without assignments? .......................................... 181
Why did my adjustment asset lines not get transferred into Oracle Assets? ................................................................ 182
Why am I unable to assign capitalizable costs associated with a project task to an asset? ........................................ 182
Why does my asset cost appear as zero in Oracle Assets? ............................................................................................... 182
At what task level can I assign project assets? .................................................................................................................... 183
Why are some of my transferred assets appearing in error in the Transfer Assets to Oracle Fusion Assets Execution
Report? .......................................................................................................................................................................................... 185
FAQs for Capital Asset Costs ................................................................................................................................................... 185

10 Labor Distribution 189

Overview of Labor Distribution ............................................................................................................................................... 189
Labor Schedules ......................................................................................................................................................................... 190
Managing Labor Schedules ..................................................................................................................................................... 207
Managing Project Payroll Pay Elements ............................................................................................................................... 209
Managing Pay Element Expenditure Type Derivation ....................................................................................................... 209
Import Payroll Costs .................................................................................................................................................................. 209
Manage Labor Costs .................................................................................................................................................................. 214
Creating Labor Distribution Data Analyses Using OTBI ..................................................................................................... 216
Retrieving Labor Distribution Data Using the Visual Builder Plugin ............................................................................... 217
Oracle Fusion Cloud Project Management
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FAQs for Labor Distribution ..................................................................................................................................................... 217

11 Oracle Digital Assistant for Time Entry 219

Introduction to Oracle Digital Assistant ................................................................................................................................ 219
Time Entry Using Oracle Digital Assistant ........................................................................................................................... 220
Oracle Fusion Cloud Project Management
Using Project Costing
Oracle Fusion Cloud Project Management Get Help
Using Project Costing

Get Help
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your page, click your user image or name in the global header and select Show Help Icons. If the page has contextual
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Oracle Fusion Cloud Project Management Get Help
Using Project Costing

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Oracle Fusion Cloud Project Management Chapter 1
Using Project Costing Project Costs

1 Project Costs

Overview of Capturing Project Costs

Capture project costs and commitments, including sponsored projects and time cards, in Oracle Fusion Project Costing
or import them from third-party applications.

You can do this by using the application directly or through desktop Excel integration spreadsheets.

Project Costs Capture

You can capture project-related costs from both Oracle Cloud and third-party applications, and then transfer them to
Oracle Projects. You can also capture costs manually by creating uncosted, costed, and accounted transactions for third-
party application sources in Projects.

Transaction Sources
Here's a table that lists the cost types and the corresponding source applications.

Source Name Transaction Type

Oracle Payables • Supplier invoice

• Self-Assessed Tax
Create self-assessed tax transactions from Payables as payable commitments in Projects.

Oracle Purchasing • Self-Assessed Tax

Create self-assessed tax transactions from Purchasing as PO commitments in Projects.

• Purchase Orders
• Purchase Requisitions

Purchase orders and purchase requisitions are available as committed costs for reporting in
Projects.

Oracle Cost Management • Expense-Based Receipts

• Inventory Miscellaneous Transactions
• Inventory Movement Requests

Oracle Projects • Costs in Unreleased Expenditure Batches

• Adjustment Transactions
• Unprocessed Transactions

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Source Name Transaction Type

Third-Party Applications External costs imported using Desktop-Excel Integration, web services, or the Oracle Cloud interface.

How Costs are Captured

Here's a figure that illustrates how you can capture different types of costs from internal and external applications, and
then transfer them to Projects.

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Here's a table that shows how you can export transactions from various sources to Oracle Projects.

Source of Cost Transactions Description

Other Oracle Cloud applications Enter and process project-related transactions, and then submit the Import Costs process. For
example, you enter invoices with project-related distributions in Oracle Payables. You can then validate,
account, and import them to Oracle Projects.

Third-party applications Import costs using one of the following:

• Desktop-Excel integration
• Web services
• Load data to the interface table in Oracle Cloud

You can load data to interface tables using predefined templates and the Load Interface File for
Import scheduled process, which are both part of the External Data Integration Services for Oracle
Cloud feature. For more information, see the File Based Data Import guide for your cloud services.

Individual third-party transactions created You can create individual transactions with a third-party application source directly from the Manage
in Oracle Projects Unprocessed Costs page in the Costs work area.

Let's say you're approaching period close and have to create a few third-party transactions. Rather
than wait to receive the transactions from the third-party application, you can create them directly
using this method.

Foreign Keys to Important PJC_EXPENDITURE_ITEMS_ALL Table Fields

Here is a table that lists the foreign keys of the ORIGINAL_HEADER_ID, ORIGINAL_DIST_ID, and
ORIGINAL_LINE_NUMBER fields in the PJC_EXPENDITURE_ITEMS_ALL table in some of the most commonly-used
transaction sources and documents.

Source / Document ORIGINAL_HEADER_ID ORIGINAL_DIST_ID ORIGINAL_LINE_NUMBER

Column Attribute / Key Description NA NA NA

Oracle Payables / Supplier invoice / AP_INVOICES_ALL.INVOICE_ID AP_INVOICE_DISTRIBUTIONS_ AP_INVOICE_LINES_ALL.LINE_

Expense report / Intercompany ALL.INVOICE_DISTRIBUTION_ID NUMBER
invoice / Interproject Invoice

Oracle Payables / Payments AP_INVOICE_PAYMENTS_ AP_PAYMENT_HIST_ NA

ALL.INVOICE_PAYMENT_ID DISTS.PAYMENT_HIST_DIST_ID

Oracle Cost Management / CMR_RCV_ CMR_RCV_DISTRIBUTIONS.CMR_ NA

Purchase Receipt TRANSACTIONS.EXTERNAL_ SUB_LEDGER_ID (Expense)
SYSTEM_REF_ID (Expense)

CST_ CST_COST_DISTRIBUTION_ NA
TRANSACTIONS.TRANSACTION_ID LINES.DISTRIBUTION_LINE_ID
(Inventory) (Inventory)

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Source / Document ORIGINAL_HEADER_ID ORIGINAL_DIST_ID ORIGINAL_LINE_NUMBER

Oracle Fusion Cost Management / CST_ CST_COST_DISTRIBUTION_ NA

Miscellaneous Inventory TRANSACTIONS.TRANSACTION_ID LINES.DISTRIBUTION_LINE_ID

Oracle Fusion Cost Management / CST_ CST_COST_DISTRIBUTION_ NA

Sales Order Issue TRANSACTIONS.TRANSACTION_ID LINES.DISTRIBUTION_LINE_ID

Oracle Fusion Cost Management / CMR_ CMR_RCV_DISTRIBUTIONS.CMR_ NA

Transfer Order Delivery TRANSACTIONS.TRANSACTION_ID SUB_LEDGER_ID (Expense)
(Expense)

CST_ CST_COST_DISTRIBUTION_ NA
TRANSACTIONS.TRANSACTION_ID LINES.DISTRIBUTION_LINE_ID
(Inventory) (Inventory)

Oracle Fusion Cost Management / CST_ CST_COST_DISTRIBUTION_ NA

Work Order TRANSACTIONS.TRANSACTION_ID LINES.DISTRIBUTION_LINE_ID
(Material Transaction)

CST_RESOURCE_ CST_COST_DISTRIBUTION_ NA
TRANSACTIONS.RESOURCE_ LINES.DISTRIBUTION_LINE_ID
TRANSACTION_ID (Resource
Transaction)

Oracle Time and Labor HWM_TM_REC_GRP.PARENT_TM_ HWM_TM_REC_GRP_USAGES.TM_ HWM_TM_REC.TM_REC_ID

REC_GRP_ID REC_VERSION

Capturing Additional Transaction Attributes

You can capture project-specific attributes on actual cost and commitment transactions using the Cost Collection
flexfield. Manage naming, validation, and ordering of these attributes within each of the documents that capture
them, such as expense reports and purchase orders. You can capture, store, display, search, and report project-related
attributes in the transaction source applications.

How does Projects handle rounding of project cost

amounts?
This topic explains how Oracle Projects stores and displays project cost amounts that contain decimal values with more
numbers than defined for the associated transaction currency.

When you import a project cost into Project Costing, the amount stored in the database matches the amount you
provided if you are creating a precosted transaction. SImilarly, when loading a rate-based transaction, if the calculation
of the raw cost (Rate * Quantity) results in a raw cost with a greater precision than is defined for the transaction
currency, then the raw cost is stored as-is.

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However, when the application displays these raw costs in pages such as Manage Project Costs, it rounds decimal values
in these numbers based on the chosen currency's configured precision.

For example, the configured precision for the US Dollar currency is 2. Therefore, if you import a project cost of $123.456,
the amount stored in the database is $123.456, but the amount displayed is $123.46.

Rounding During Split or Split and Transfer Adjustments

When you perform a Split or Split and Transfer adjustment on a project cost, if the newly created split project cost
contains more decimal numbers than the configured precision, these values are stored in the database as-is, but the
application rounds each of these split values when it displays them.

Here's a table that captures details associated with a split adjustment, for example:

Details Associated with a Split Adjustment

Head Quantity Stored Raw Cost UOM Accounted Amount Displayed Value

Original Transaction 1 $8365 Currency NA NA

Transactions 0.725 $6064.625 Currency $6064.63 $6064.63

Resulting from a Split
Adjustment 0.275 $2300.375 Currency $2300.38 $2300.38

Total 1 $8365 NA $8365.01 $8365.01

In the table above:

• The original transaction has a quantity of 1, and a raw cost of $8365.

• The split adjustment splits this transaction into two project costs, one with a quantity of 0.725, resulting in a raw
cost of $6064.625; and another with a a quantity of 0.275, resulting in a raw cost of $2300.375. When you add
these raw costs, you get the raw cost associated with the original transaction, $8365.
• As you can see, the currency used for this transaction is the US dollar, which has a configured precision of 2.
Therefore, when accounting these split amounts, the application rounds the decimal values to 2 places using
the half-up rounding method, resulting in the slightly modified accounted amounts of $6064.63 and $2300.38,
which add a cent to the total cost of the project transaction.
• If you search for the details associated with the newly split amounts in the Manage Project Costs page, the
values you see will be the rounded amounts, and they will be off, in this example, by a cent. However, the actual
raw cost values stored in the database will remain unrounded.

To report on the cost amounts with the full precision values, you can use Oracle Transactional Business Intelligence
subject areas, such as the Project Costs - Actual Costs Real Time subject area. Custom number formats can be
specified on the column properties for cost measures used in a report to display as many decimal places as needed.

Sponsored Project Costs Capture

Grants accountants can capture and adjust sponsored project costs in the Costs work area or by using the Costs file-
based data import Excel templates.

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Prerequisite Conditions
To capture and adjust sponsored project costs:

• The Grants Management offering must be implemented.

• The projects must be sponsored.
• Sponsored projects must be associated with at least one valid award or contract, and one external funding
source.

Prerequisite Steps
The grants administrator creates and submits the awards in the Awards work area. The sponsored project from the
award is automatically associated to the contract line.

Capturing Sponsored Project Costs on the Manage Unprocessed Costs

Page
On the Manage Unprocessed Costs page, depending on the number of awards or funding sources, and if funding
patterns (see the Award Distribution section for more information) are associated with the sponsored project, the grants
accountant enters a sponsored project transaction with an associated award or contract:

• For sponsored projects that are associated to a single award and funding source, the contract number and
funding source are automatically derived.
• For sponsored projects that are associated to one award with multiple funding sources, only the contract
number is automatically derived. You must select the funding source from the list of values.
• For sponsored projects that are associated to multiple awards, you must select the award and funding source
from the list of values.

Adjusting Sponsored Project Costs on the Manage Project Costs Page

You can edit the contract and funding source for a cost transaction that belongs to a sponsored project, which is
associated to multiple awards or funding sources. You can perform a transfer, or a split and transfer adjustment, for
sponsored project cost transactions, between contracts and funding sources within the same project or across projects.

Enter Project Costs with ADFdi Spreadsheets

Capture different types of project cost transactions using Application Development Framework Desktop
Integration(ADFdi) Microsoft Excel spreadsheets. Enter transaction attributes based on the nature and source of the
transaction and export them to Oracle Fusion Project Costing.

You can use specific spreadsheets to capture costs from Project Costing and third-party applications.

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Spreadsheets for Capturing Costs from Project Costing

Download the spreadsheets from the Capture Costs task under the Capture group in the Tasks panel tab on the Costs
Overview page to create cost transactions belonging to Oracle Fusion Project Costing.

• Create Labor Costs: Use this for creating and exporting uncosted time card batches.
• Create Nonlabor Costs: Use this for creating and exporting uncosted nonlabor batches such as usages or
miscellaneous transactions.

Spreadsheets for Capturing Costs from Third-Party Applications

Download the spreadsheets from the Capture Costs task under the Capture group in the Tasks panel tab on the Costs
Overview page to create cost transactions for third-party applications.

• Create Labor Costs for Third-Party Applications: Use this for creating and exporting uncosted labor batches.
• Create Nonlabor Costs for Third-Party Applications: Use this for creating and exporting uncosted nonlabor
batches.
• Create Costed or Accounted Transactions for Third-Party Applications: Use this for creating and exporting
costed or accounted labor or nonlabor batches.

Related Topics
• Project Costs Capture

How Project Costs are Imported

Collect and import all types of project costs from Oracle Fusion and third-party applications. During this process you
can validate transactions to reduce corrections and rework. Before you import the transactions, you can review the
exceptions and correct the errors.

Settings That Affect Transactions Import

Setup options in the transaction document and document entry specify how cost transactions are imported and
processed.

How Transactions Are Imported

You create, validate, and transfer the transactions to the Oracle Fusion Project Costing interface as specified in the
following table.

Transactions Type Creating Transactions Validating Transactions Importing Transactions

Oracle Fusion Project Costing Initially only in Excel templates. Validation is compulsory and is Click the Export button in the
performed automatically during Excel spreadsheet to export, and
• Uncosted labor transactions You can later edit or add transaction entry. optionally, process transactions.
transactions in the Manage
• Uncosted nonlabor Unreleased Costs page.
transactions

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Transactions Type Creating Transactions Validating Transactions Importing Transactions

Third-Party Application Web services, ADFdi Excel If you're using the ADFdi Excel, Methods to import:
spreadsheets, or Oracle Cloud optionally validate transactions
• Uncosted labor transactions templates. during export. • For ADFdi Excel, click the
Export button on the Excel
• Uncosted nonlabor You can also create transactions Validation is optional when you spreadsheet to export,
transactions in the Manage Unprocessed Costs enter or export transactions but is and optionally, process
page. always performed when you run transactions.
• Costed or accounted labor or
the Import Costs process.
nonlabor transactions • Use web services to transfer
transactions to the Oracle
Fusion Project Costing
interface.
• For Oracle Cloud, use the
Load Interface File for Import
process.

Other Oracle Fusion Applications Source applications Validation is compulsory. Use the Import Costs process.

The Import Costs process If you are using Labor Schedules to

revalidates the cost transactions distribute payroll costs, see Import
that you import if the Revalidate Payroll Costs.
during import option is enabled
at the transaction source
document level. This option
is available for the following
transaction sources:

• Oracle Fusion Payables

• Oracle Fusion Cost
Management
• Oracle Fusion Time and Labor

All transactions are validated but at different points, for example, transaction entry, transfer, or processing. If you're
exporting transactions from ADFdi Excel spreadsheets, you can release the transactions directly from the spreadsheet
by selecting the Process Costs option. Costs are submitted for the Import Costs process avoiding the need to do it
from the application.

The Process Costs option isn't available in the Excel template when the transaction source document requires
expenditure batch approval. You can review expenditure batches in the Manage Expenditure Batches page and submit
them for processing. If the transaction source document doesn't require expenditure batch approval, you can choose to
process costs or only validate them.

After you import the transactions, the application tracks transactions with errors including the details for the cause of
the error and the action to be taken to fix the error. The successful transactions are ready for cost processing.

Related Topics
• Transaction Document Import and Accounting Options
• How Source, Document, and Document Entry Components Work Together

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Internal and External Commitments

A commitment is a future cost transaction. A commitment can be an outstanding purchase requisition or purchase
order charged to a project, or received goods that aren't yet paid for.

A commitment can also be a transaction charged to a project that is invoiced but not transferred to Oracle Project
costing.

Internal and External Commitment Transaction Differences

Here are the key differences between internal and external commitment transactions.

Differentiating Factor Internal Commitments External Commitments

What are they? Commitments, such as requisitions, purchase Commitments that are created outside Oracle
orders, and payables invoices that are created applications in an external application.
within Oracle applications.
For more information on commitments, see
What's a commitment transaction?

Where to review them? Project accountants and grants accountants Project accountants and grants accountants
can view internal commitments in the Manage can view external commitments in the Manage
Committed Costs page. Committed Costs page. Project Managers can
All project-related commitments appear by view external commitments in the Manage
default in the Manage Committed Costs page. Project Costs page for their project, in the
Such commitments include all open project- Projects work area.
related requisitions and purchase orders that
are not canceled, closed, or final-closed, and all
project-related Payables invoices that are not
yet interfaced to Project Costing.

Project Managers can view internal

commitments in the Manage Project Costs
page for their project, in the Projects workarea.

How to import them? Run the Update Project Performance Data Use the Project Commitments REST API
process with the Summarize Commitment service.
Transactions parameter set to Yes. You must
also ensure that the Include in Summarization
check box is enabled for the appropriate
commitment types and statuses in the
Reporting Setup of the project unit. This will
also summarize the internal commitments.
Note that for the project to be impacted by the
committed costs you import, the status of the
commitments should be Active.

How to process them? They are processed automatically when you Run the Import Commitments process.
run the Update Project Performance Data
process.

For grants, they are processed automatically

when you run the Update Award Performance
Data Without Producing Report process.

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Differentiating Factor Internal Commitments External Commitments

How to summarize them? They are summarized automatically when you Run the Update Project Performance Data
run the Update Project Performance Data process to summarize them.
process.
For grants, run the Update Award
For grants, they are summarized automatically Performance Data Without Producing Report
when you run the Update Award Performance process.
Data Without Producing Report process.

Keep in mind that the parameter Summarize

Commitment Transactions should be set
to Yes and Include in Summarization check
box should be enabled for the appropriate
commitment types and statuses in the
Reporting Setup of the project unit.

Note: The summarized commitments

per the setup of the reporting options for
the project unit is viewable in the Project
Performance Dashboard only.

See also: Manage Project Unit Options

How to reprocess them? Run the Update Project Performance Data Run the Import Commitments process with
process. the Commitment Source Type set to External
and Process Mode set to Transactions with
If the setup issues have been resolved, the errors.
commitments are processed successfully. Else,
the output report provides the reason for
failure.

About the Update Project Performance Data process

How External Commitment Transactions are Imported

The Project Unprocessed Commitment Transaction service validates external commitment transactions. Upon
successful validation, it derives the list of transaction sources and projects from the validated transactions, imports the
new set of external commitment transactions, and reports their status.

Settings That Affect Import of External Commitment Transactions

Settings at the following levels affect the import of external commitment transactions:

• Transaction source
• Document
• Document entry
• Project type

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• Expenditure type
• Project and task
• Transaction controls

How External Commitment Transactions Are Imported

When you import external commitment transactions using the Project Unprocessed Commitment Transaction service, it
performs a series of processing steps. The following tasks listed in the table are performed in these steps.

External Commitment Transaction Description

Importing Tasks

Validate external commitment As an initial step of importing external commitment transactions into Project Costing Cloud, data
transactions using the Project entry, business rule, and transaction control validations are performed when you import external
Unprocessed Commitment Transaction commitment transactions using the Project Unprocessed Commitment Transaction service.
service

Derive transaction sources and projects list After successful validation of all external commitment transactions, the application derives the
from the successfully validated external transaction sources and list of projects to be checked for and identifies any existing commitment
commitment transactions transactions to be deleted.

Delete or retain existing external You can either delete the existing commitment transactions and insert new commitment transactions
commitment transactions for the derived or add the new commitment transactions to the existing commitment transactions without purging
transaction sources and list of projects them.

Display the status of imported external Displays the status of imported external commitment transactions, for example, successfully imported
commitment transactions or resulted in error.

How External Commitment Transactions are Validated

Oracle Fusion Project Costing validates all external commitment transactions for a set of predefined and configurable
criteria before importing them. External commitment transactions are validated against data entry, standard business
rules, and transaction controls.

Settings That Affect External Commitment Transaction Validation

The import and accounting options that you specify at the following levels affect external commitment transactions
validation.

• Transaction document
• Document entry
• Project type
• Transaction controls

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How External Commitment Transactions Are Validated

Validation is a key step in external commitment transaction processing. The following table describes the different types
of validations and sample rules within the validation type that govern the validation process.

Validations Description

Data entry validation For each commitment transaction, values must be provided for the following required attributes:

• Commitment transaction business unit ID or name

• Source ID or name
• Document ID or name
• Document entry ID or name
• Expenditure item date
• Project ID or name or number
• Task ID or name or number
• Expenditure type ID or name
• Commitment transaction expenditure organization ID or name
• Commitment transaction creation date
• Source application commitment transaction number
• Total commitment quantity
• Commitment transaction currency
• Original transaction reference
All the provided values must be valid.

Business rule validation Validations are performed to ensure the following:

• Costing and accounting attributes of the commitment transactions match with the source,
document, and document entry options.
• Transactions are charged to a project and not a project template. The current project status allows
new cost transactions to be incurred. Expenditure item lies within the project dates.
• Expenditure item lies within task transaction dates. Task is chargeable.
• Expenditure type of the external commitment transaction is active and is valid for the project unit.
• Expenditure organization is active.
• Expenditure item lies within expenditure organization dates.

Transaction control validation If there are any transaction controls defined at the project or task level, then the application validates
all defined transaction controls. The controls are based on combinations of project, task, expenditure
category, expenditure type, system person type, and job.

Data entry and business rule validations are performed when the administrator in the third-party application
independently validates the external commitment transactions with Oracle Fusion Project Costing validation service
or as a part of importing commitment transactions using Import External Commitment Transactions service in Oracle
Fusion Project Costing.

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If the transaction validation results in errors, the application tracks the errors including the cause of the error and the
action needed to fix the error. You can review the validation errors in the output from the Oracle Fusion Project Costing
external commitment transaction validation service.

Note: Validation rules vary for each transaction based on the transaction source, document and document entry
setup, and controls defined for the project and task for which the commitment transaction is incurred.

How External Commitment Transactions are Processed

After validating and importing data for external commitments, process the transactions to determine additional values
such as period information, capitalizable and billable status, and amounts in various currencies such as transaction,
ledger, and project currencies. Thereafter, commitment transactions are ready for summarization.

Settings That Affect Processing of External Commitment Transactions

Settings for the following affect processing of external commitment transactions:

• Organization
• Transaction source, document, and document entry
• Project and task: Currency conversion attributes at the project level determine how transaction currency
amount is converted to project currency amount. The billable status and work type of the task determine if the
commitment transaction is billable. Task-level burden schedule assignment is used for calculating the burden
amounts.
• Expenditure type: The required rate setting determines if a unit price is required to calculate the commitment
amount.
• Burden structure and schedules: These determine how commitment transaction is burdened.
• Currency conversion attributes for project, provider, and receiver business units: These determine how
amounts in transaction currency are converted to project, provider, and receiver ledger currencies.

How External Commitment Transactions Are Processed

You can process external commitment transactions in the following ways:.

• Manage Committed Costs page: Select transactions for processing based on the expenditure business unit,
commitment source type (external in this case), processing status, transaction source, document, document
entry, or project and task. From the search results, select a transaction and process it. Even though a single
transaction is selected, all transactions in the search results belonging to the same commitment source type
(external in this case) and processing status as that of the selected transaction will be processed.
• Import Commitments page: Select transactions for processing based on the expenditure business unit,
commitment source type, and process mode. The process mode setting determines whether to process all
transactions or only the transactions in a particular status.

Oracle Fusion Project Costing performs the following tasks when processing external commitment transactions:

1. Determines capitalizable and billable nature of the commitment transactions.

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2. Allocates overhead costs to the commitment transactions.

3. Determines project and subledger accounting periods.
4. Converts transaction amounts to project currency and project ledger currency.

How can I remove canceled purchase orders that

continue to appear as committed costs?
To remove canceled purchase orders, first finally close the purchase orders, then run the Update Project Performance
Data process.

To finally close a purchase order:

1. Navigate to Procurement > Purchase Orders and access the Manage Orders task using the Tasks panel.
2. Search and select the order you want to cancel and click Actions > Close. The Close Document modal appears.
3. Select Finally Close in the Action drop-down list, optionally, provide a Reason and click OK.

For more information, see What happens if a purchasing document status is finally closed? in the Using Procurement
guide.

Can I view only approved project commitments?

If you are a project manager, to view only approved commitments in a project:

1. Access the Projects work area and search for the project whose commitments you want to see.
2. Select the project from the search results and click the Actions panel tab.
3. From the list of actions, select Manage Project Costs. The Manage Project Costs page appears.
4. In the Filters panel on the left side of the page, select the Committed Costs cost type.
5. Enter the Date Range as appropriate. The page automatically displays all committed project costs that were
created in the date range that you specified, regardless of approval status.
6. Select Approved as the Commitment Status. The Manage Project Costs page now displays only approved
committed project costs.
Project accountants and grants accountants can view commitments in the Manage Committed Costs page.

Note: All project-related commitments appear by default in the Manage Committed Costs page. Such commitments
include all open project-related requisitions and purchase orders that are not canceled, closed, or final-closed, and all
project-related Payables invoices that are not yet interfaced to Project Costing.

Time Card Adjustments for Projects

Team members of a project can adjust their time cards in Oracle Fusion Time and Labor.

Project accountants and project managers can modify time cards in Oracle Fusion Project Costing after importing them.

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Project accountants or project managers import and process cost transactions in Oracle Fusion Project Costing, thereby
automatically importing the revised version of time cards into Oracle Fusion Project Costing from Oracle Fusion Time
and Labor. Adjustments in Oracle Fusion Time and Labor override any existing adjustments in Oracle Fusion Project
Costing.

The following table describes various time card adjustments, the location of the adjustment, and implications.

Adjustment Location Impact

Project accountants and project managers Oracle Fusion Project Costing No impact to the associated time card in Oracle
adjust project-related information, such as Fusion Time and Labor.
billable, capitalizable, or utilization statuses of
expenditure items directly in the time card.

Employees and contingent workers update their Oracle Fusion Time and Labor Two transactions are imported into Oracle
time cards to modify their project effort related Fusion Project Costing: one transaction for the
details such as hours, project, or task. revised time card, and the other negative entry
to nullify the existing time card.

Employees, contingent workers, or their Oracle Fusion Time and Labor When time cards are next imported into Project
managers delete their time cards. Costing, an adjustment is created to reverse
the expenditure item and maintain a record of
deletion in Project Costing.

Note: If employees and contingent workers

no longer have an active status in Oracle
Fusion Cloud Human Resources, you cannot
change their time card entries or create new
ones. You can only reverse (or delete) their
existing entries, if required.

How Time and Labor Works with Project Costing

The integration between Time and Labor and Project Costing allows project managers and accountants to manage time
cards for employees and contingent workers.

Employees and contingent workers can view and update the time cards that they create. Based on the setup, a time
card either displays all projects in the time reporter's business unit or only those projects on which the time reporter is a
team member.

Project managers review and approve time card entries created for their projects. Project accountants import the time
cards into Project Costing for costing, accounting, analysis (including reviewing actual effort against planned effort),
and potentially billing.

The following figure provides an overview of how time cards are created and approved in Time and Labor. It also
illustrates how approved time cards are validated and imported into Project Costing. Once these costs are imported,
project accountants can adjust them if required.

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Using Time and Labor

Employees and contingent workers report project-related time in the Time work area. They account for their worked
hours by selecting one or more projects, tasks, and expenditure types. Project managers approve the time cards
submitted for their projects.

Here are a few considerations that you must keep in mind while entering time card details:

• The application validates time cards before allowing the user to submit them. It then sends submitted time
cards to project managers for approval.
• Your organization may have opted to validate time cards once you save them instead of only upon submission.
• When the Project time card field filters projects based on team membership, then only those projects on which
the time reporter has been assigned as a team member will appear.

Using Project Costing

Project accountants use the Import Costs process to validate and import approved time cards into Project Costing.

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To import time cards into Project Costing:

1. Navigate to Projects > Costs and click Import Costs in the Process section of the tasks drawer.
The Import Costs page appears.
2. Click Process Options to manage options associated with project cost related details, such as language,
territory, number, time, and date format, and currency.
3. Select Notify me when this process ends to be notified once the import process completes, regardless of
whether the process succeeded.
4. Provide additional information associated with the import process in the Submission Notes field.
5. Select the Business Unit associated with the costs that you want to import.
6. Leave the Process Mode as Importing and Processing Transactions and the Transaction Status as Not
previously imported.
7. Select Oracle Fusion Time and Labor as the Transaction Source.
8. Optionally, select Time Card in the Document field.
9. Optionally, search and select the Expenditure Batch that you want to use to import time cards.
10. Enter the From Project Number and To Project Number values if you want to transfer these time cards from
one project to another.
11. Use the Process Through Expenditure Item Date field to specify the expenditure item date up to which time
cards must be imported, if required.
12. The process generates a summary report by default. Click the Generate Report drop-down list to specify
whether you want to see a detailed report, or whether you don't want to see any report at all.
13. Click the Advanced button at the top of the field-set to specify scheduling and notification details. Review the
sections below for guidance on working with these.
14. Once you're ready to submit your import job, click Submit.

Scheduling Project Cost Import

To schedule a process cost import job:

1. Click the Advanced button at the top of the field-set.

The Schedule and Notification tabs appear.
2. Click the Schedule tab.
3. The default setting is to run the import process as soon as possible. To change this setting, select the Run >
Using a schedule radio button.
The field-set expands to display additional scheduling options.
4. Click the Frequency drop-down list to select the frequency with which the import operation must be run.
Update the values in the additional frequency-related fields that appear based on your selection.

Specifying Notification Details

Use the Notification tab to enter details associated with the notifications that you want sent when the import succeeds,
or when there are warnings or errors generated.

Importing Costs: Considerations

• Validations ensure that the project is valid, active, and supports transaction charges. The process also validates
the following attributes.
◦ Business unit
◦ Transaction source information

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◦ Expenditure type and organization

◦ Expenditure item date
◦ Person
◦ Worked hours
◦ Project role
◦ Contract number
◦ Funding source

• All time entries on a time card must be approved before the time card can be imported.

Certain expenditure item attributes are derived during import. The following table describes the derivation rules for the
expenditure item attributes derived during import.

Attribute Derivation

Expenditure end date Calculated from expenditure item date and business unit.

Expenditure batch end date Set to the latest expenditure end date in the batch.

Work type Derived from task details if the work type isn't entered on the time card.

Adjusting Time Cards

Employees and contingent workers can't modify their time cards in Project Costing. However, they can modify their time
cards in the Time work area. For example, they can delete time cards for their projects or adjust time card details such as
project, task, hours, or expenditure type.
Project accountants and project managers can adjust time cards in Project Costing using the following adjustments
after importing them. You can make most of these adjustments using the Project Costing application interface; a few of
these adjustments, however, can only be made using the Adjust Project Costs REST API.

Here's a table that lists out some of the key attributes that are frequently adjusted and explains how you can make these
adjustments.

Time Card Attribute Using the Projects > Costs > Using the Projects > Project Using the Adjust Project Costs
Manage Project Costs Page Management > Manage Project REST API
Costs Page

Project, Task, or Both Use the Transfer or Split and N/A Use the Transfer adjustment type.
Transfer adjustment action.

Expenditure Type N/A N/A Use the Transfer adjustment type.

Quantity You can’t update the quantity N/A Use the Split adjustment type.
attribute directly, but you can
perform a Split adjustment.

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Time Card Attribute Using the Projects > Costs > Using the Projects > Project Using the Adjust Project Costs
Manage Project Costs Page Management > Manage Project REST API
Costs Page

Billable Indicator Use the Set to Billable or Set to Use the Set to Billable or Set to Use the Set to billable or Set to
Nonbillable adjustment action. Nonbillable buttons. nonbillable adjustment type.

Capitalizable Use the Set to Capitalizable or Set N/A Use the Set to capitalizable or Set
to Noncapitalizable adjustment to noncapitalizable adjustment
action. type.

Utilization Use the Change Work Type N/A N/A

adjustment action.

Project Role N/A N/A Use the Transfer adjustment type.

Contract Number N/A N/A Use the Transfer adjustment type.

Funding Source N/A N/A Use the Transfer adjustment type.

Note:
• Adjustments made in Project Costing are reversed if the time card is modified in Time and Labor and
reimported.
• Adjust time cards in Time and Labor and then import them to Project Costing instead of performing
adjustments in Project Costing. This ensures that the latest time card information is present in Time and Labor.

Importing Person-Related Project Cost Transaction Reversals

Time managers can delete time cards in Oracle Fusion Cloud Time and Labor for persons who no longer have active
HCM assignments. This results in reversals for the original transactions already imported into Project Costing. For
example, if employees or contractors leave the organization and no longer have an active status in Oracle Fusion Cloud
Human Resources, time managers can delete their time cards in Oracle Time and Labor and import these deletions as
reversals in Project Costing.

Project Accountants can also perform transfers, splits, and other adjustments on transactions originating from Oracle
Time and Labor even though the corresponding Oracle Human Resources assignment is no longer active.

Considerations for Capturing Inventory Costs

You can capture inventory costs using one of the following options:

• ADFdi Excel workbooks, such as Create Costed or Accounted Transactions for Third-Party Applications
• Import Project Inventory Costs file-based data import feature
• Create Transaction action on the Manage Unprocessed Costs page
• Create Miscellaneous Transaction action on the Inventory work area

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Consider the following settings to capture inventory costs.

Transaction Source Document Entry

You must use a transaction source document entry which supports the inventory expenditure type class. Set the value
of the expenditure type class in the document entry to Inventory by using the Manage Project Transaction Sources
task from the Setup and Maintenance work area.

Expenditure Organization
You must set the inventory organization to which the inventory item is assigned as the project expenditure organization.
Enable the option Classify as project expenditure organization for the inventory organization by using the Manage
Project Organization Classifications task from the Setup and Maintenance work area.

If the organization hierarchy type isn't set to None in the Manage Organization Hierarchies and Classifications setup
task, then you must additionally include the inventory organization in the organization hierarchy.

Rate Derivation for Inventory Items

For planning:

• If organization is part of the resource breakdown structure format, then the application considers the
organization as inventory organization and inventory item rates are derived based on that organization.
• If organization isn't part of the resource breakdown structure format, then the application derives inventory
item rates based on the default organization that's defined as the item master in the Manage Resource Classes
setup task.
• If inventory item is part of the resource breakdown structure format and organization is included in the format
hierarchy, then the organization defined in the resource breakdown structure format hierarchy determines the
planned inventory item rate.

For cost transactions created in Project Costing, the inventory item rates are derived based on the nonlabor cost rate
schedule assigned in the project organization costing rule. For transactions that are imported from Oracle Fusion
Inventory Management, the expense cost profile of the inventory item defined in the Manage Item Cost Profiles setup
task determines if the application derives average or standard cost rate for the item.

Considerations when Importing Overheads from

Inventory Management
Project accountants can import overheads for a project from Oracle Fusion Inventory Management into Oracle Fusion
Project Costing.

Prerequisite Condition
To import overhead transactions, you must enable your projects for burdening.

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Processing Imported Overheads

To import and process overhead transactions from Inventory Management, you must select the following values while
submitting the Import Costs process.

• Source: Oracle Fusion Cost Management

• Document: Miscellaneous Inventory

Overheads are imported as separate expenditure items. The imported overhead is accounted in Project Costing as
burdened cost with zero raw cost.

Import Costs Process

You can import transactions from Oracle Cloud and third-party applications, validate them, and process them to create
project costs and cost distributions.

You can track exceptions for invalid transactions on the Costs > Overview page, and in the Import Costs report.

To import the costs using file based data import, you must:

1. Prepare your data in the Import Costs macro-enabled Excel workbook template.
2. Click Generate CSV File in the template to create a comma-separated values file.
3. Navigate to the Scheduled Processes page or Tasks pane on the Overview page in the Costs work area.
4. Submit the Load Interface File for Import process to load the project costs from your CSV file into the Project
Costing open interface table.
5. Submit the Import Costs process and select the CSV file to upload.
You can load data to interface tables using predefined templates and the Load Interface File for Import scheduled
process, which are both part of the External Data Integration Services for Oracle Cloud feature. For more information,
see the File Based Data Import guide for your cloud services.

You can schedule the Import Costs process to run at a predefined frequency and process project costs through the
date on which the run is being performed. For example, if you schedule the process to run daily, then the value of the
parameter Process Through Expenditure Item Date is set to the system date of the day on which the run is executed
so that all project costs till that date are processed.

Note: If the project expenditure batches are eligible to undergo approval, the Import Costs process will only process
transactions that belong to approved batches.

Parameters
Business Unit

Business unit that owns the project transaction.

Process Mode

Mode for processing imported transactions or adjustments.

Transaction Status

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Status of transactions identified for processing: For example, All statuses, Not previously imported, or Rejected during
processing.

Transaction Source

Name of the transaction source application.

Document

Document associated with the transaction.

Expenditure Batch

Expenditure batch for which transactions are processed.

From Project Number

Initial project number in the range of projects provided for importing and processing cost transactions.

To Project Number

Final project number in the range of projects provided for importing and processing cost transactions.

Process Through Expenditure Item Date

Expenditure item date of transactions through which transactions are processed and imported, which may include
future dates. You can enable the option to increment the value of this parameter to match the system date if the job is
scheduled. You can leave the default date as blank to import all pending costs for a specific source. This lets you import
transactions from other modules, such as Payables, providing the project team with full visibility on the project actual
cost.

Output Report
After the process completes, review the Import Costs report for the successful transactions and exceptions, if any.
Review and resolve the issues and resubmit the process. There are 2 exception reports:

• The first report is an Excel spreadsheet that tracks exception transactions without valid names and numbers.
For example, an invalid project name or project ID. Correct the issue in the source spreadsheet and export the
transactions again to the staging table PJC_TXN_XFACE_STAGE_ALL.
• The second report is a portable document format (PDF) that tracks the business validation exceptions, which
can be corrected in the Manage Unprocessed Costs page.

Related Topics
• How Project Costs are Processed
• How Project Costs are Validated
• How Project Costs are Imported
• Overview of External Data Integration Services for Importing Data

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HCM Assignment Status Validations When Importing

Person-Related Costs
By default, Project Costing doesn't allow you to import a person-related project cost transaction if the person's HCM
assignment status on the date of the project cost is Inactive or Suspended.

If you want to import project costs associated with persons whose work relationships have recently
been terminated, use the Allow Cost Transactions Until Certain Days After Person Termination
(ORA_PJC_ALLOW_COSTS_UNTIL_DAYS_AFTER_PERS_TERM) administrator profile option to specify the number
of days after the termination date during which Project Costing will accept project cost transactions associated with
terminated persons.

Note: This setting is applicable only for work relationship termination cases, and doesn't apply to suspended
assignments or assignments that naturally ended without a termination.

However, if you want to skip HCM assignment status validations altogether when you import person-related project
cost transactions from specific transaction source documents, select the Allow transactions for inactive or suspended
person assignments option associated with that document.

For example, a person's HR assignment can be suspended, but the person can still be eligible for payroll processing. If
you're using Labor Distribution to distribute payroll costs to projects, then the payroll costs incurred for the person's
suspended HR assignment will be rejected during processing, as the assignment is not active as of the project cost
dates. But if you want to allow these transactions, enable the Allow transactions for inactive or suspended person
assignments in the Labor Distribution project transaction source document.

If you feel this ability must be enabled for specific transaction source documents, reach out to your project application
administrator.

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Note:
• Time and Labor doesn't transfer hours to Project Costing if they are reported on days after a person's
termination date even if you allow transactions for inactive or suspended person assignments for the Oracle
Fusion Time and Labor Time Card document.
• The Allow transactions for inactive or suspended person assignments document option takes
precedence over the Allow Cost Transactions Until Certain Days After Person Termination
(ORA_PJC_ALLOW_COSTS_UNTIL_DAYS_AFTER_PERS_TERM) administrator profile option, if you have
enabled both.
• When you enable the Allow transactions for inactive or suspended person assignments document option,
the status of a person's assignment is not validated. However, Project Costing still requires an HR assignment
with a valid person type and job as of the transaction date for a person-related project cost. These values,
which are mandatory for a person-related project cost, are always derived from the HR assignment.

The department is also derived from the HR assignment if the Allow override of person organization check
box is deselected and an override value hasn’t been provided on the unprocessed cost.

Project Expenditure Batch Approval Workflow

Project expenditure batches imported from subledger and third-party applications may contain inaccurate or
incomplete data, or use unknown predefined transaction sources. Use the Manage Expenditure Batches page to review
and approve imported project expenditure batches before importing them into Project Costing.

You must enable the Requires expenditure batch approval option on the Edit or Create Document window in the
Manage Project Transaction Sources setup task. You can then configure the Project Expenditure Batch Approval Task
workflow with appropriate approval rules in the BPM Worklist using the Define Approval Management for Project
Financial Management setup task.

The Project Cost Transaction Approval Flow

Here's a graphic that illustrates how cost transactions can be imported, reviewed, and approved in Costing.

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Here are the high-level tasks associated with cost transaction import, review and approval.

1. Create new project cost transactions for approval-enabled transaction source documents using either ADFdi or
FBDI.
2. The application validates and creates the imported transactions.

◦
For batches that you create using the FBDI flow, the application validates the transactions and creates
them in the application, regardless of validation failures. You can review all imported transactions (with
appropriate statuses) on the Manage Expenditure Batches page.
◦ For batches that you create using the ADFdi flow, the application validates the transactions, and if even
one transaction fails validation, it rejects the entire batch. You must correct the errors and retry exporting
the batches.
3. Update the transactions as required and submit them for approval.

◦ If the transactions are valid, you can submit the batch for approval.

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◦
If the transactions aren't valid, then you must edit them. The application validates transactions every time
you save them, one at a time. If they are valid, then you can submit the batch for approval.
4. The application runs the Project Expenditure Batch Approval workflow on the rules.

◦ If the batch is approved, then the application updates the status of the batch to Approved.
◦ If the batch is rejected, then the status of the batch is updated to Rejected, and you can edit the batch as
well as its transactions. After reediting the transactions, you can resubmit the batch for approval.
5. Once the batch is approved, run the Import Costs process to pick up the transactions and convert them to
project costs.
6. As part of the Import Costs process, the application validates the transactions again. If the transactions are
valid, they are converted to project costs, and appear on the Manage Project Costs page.
7. If transactions fail validation during the Import Costs process, then the status of the batch is updated
to Validation Error, and you can edit the batch and its transactions by drilling down from the Manage
Expenditure Batches page.
8. Update the transactions that have validation errors and resubmit the batch for approval. Once the batch is
approved, the application runs them through the Import Costs process to convert them to project costs.

Configuring Project Expenditure Batch Approval Rules

Project application administrators can use the Project Expenditure Batch Approval workflow in the Define Approval
Management for Project Financial Management setup task to configure appropriate approval rules to notify approvers
to review and approve expenditure batches. This workflow uses various expenditure batch attributes, such as
expenditure business unit, transaction source, document, document entry, and quantity to define appropriate approval
rules. You can also define a serial or a parallel hierarchy of approval for your batches to ensure adequate review of cost
transactions to prevent unwarranted project costs.

Further, you can configure the Project Expenditure Batch Approval Report in the BI Reports and Analytics catalog to
display relevant information for your batches. For example, you can change the report layout, add a company logo, and
include or remove information from the report based on your business needs.

Managing Project Expenditure Batches

Use the Manage Expenditure Batches page in Project Costing to select and edit project expenditure batches that are
eligible for review and approval.

• Track batch approval by clicking the View Approval History icon at the beginning of the row representing a
specific batch.
• Use the Edit icon to update the batch description.
• Use the Create in Excel options to download FBDI templates for creating labor or nonlabor expenditure
batches.
• Click Withdraw to remove a submitted project expenditure batch from the approval workflow. The withdrawn
batch will remain in unapproved state until you either resubmit it for approval or delete the batch.

Note: You must enable the Requires expenditure batch approval option in the Manage Project Transaction
Sources page to require batch approval for the source document associated with the project expenditure
batch before you can submit or withdraw them.

• Click Submit to send a batch, including all its attachments, for approval.

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Manage Attachments to Project Expenditure Batches

You can't add attachments to project expenditure batches when you import them. However, you can manage
attachments to these batches once they are in Costing. Use the Manage Attachments icon on the right end of the row
representing a batch to upload or remove attachments to the batch. You can manage three types of attachments: files,
texts, and URLs. Once you upload attachments to a batch, they remain available to approvers as long as the batch exists,
or until you delete them. This is regardless of whether the batch was approved.

Considerations for Using the Project Expenditure Batch Approval Workflow

Here are a few tips and considerations that you must keep in mind while working with project expenditure batch
approval workflows.

• You can't disable the Requires expenditure batch approval option after enabling it for a document. Project
expenditure batches belonging to such documents will always require an explicit approval before they can be
processed.
• Review and approve expenditure batches and cost transactions that are created using file-based data import
or desktop integration spreadsheets only. Expenditure batches created using the Manage Unprocessed Costs
page, Unprocessed Project Costs REST API, or SOAP services aren't supported by this feature.
• You can review and approve project expenditure batches belonging to Projects and third-party transaction
sources.
• An expenditure batch that includes transactions belonging to a document that requires expenditure batch
approval can't include transactions that belong to other documents. An expenditure batch that should undergo
approval must include transactions belonging to a single transaction source, document, and business unit.
• The default approval rule delivered for the Project Expenditure Batch Approval Task workflow is set to auto-
approve the expenditure batch. Define approval rules using the available attributes to meet your specific
business needs.
• Navigate to the Task > payload > batchInfoPayload folder in the payload of the Project Expenditure Batch
Approval Task workflow to view the attributes associated with expenditure batches.
• You can view the Project Expenditure Batch Approval notification report in the Reports and Analytics catalog in
Shared Folders > Projects > Workflow Notifications > Project Cost.

Related Topics
• Workflows in Oracle Project Management

FAQs for Project Costs

When is the transaction marked as a converted transaction?
When the expenditure item is captured from a legacy application, it is indicated as a Converted Transaction in the Excel
template.

Note: You cannot perform expenditure adjustments that may result in the recalculation of cost, revenue, or invoices
for converted transactions.

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Why can't I find the business unit in the downloaded desktop Excel
integration spreadsheets?
If your access is revised, then you have to download the desktop Excel integration spreadsheets again.

For example, if you initially have access to Vision Operations business unit, then you view only this business unit listed
in the Excel spreadsheets. If new business units are assigned or removed, you must download the templates again to
view the business units according to your access in the Excel spreadsheets.

Can I define global segments for the Cost Collection flexfield?

No. You must not define global segments, instead you can define additional context sensitive segments.

Can I change the source and document for transactions after

exporting them to Oracle Fusion Project Costing?
No. You can't change the source, document, or document entry after exporting a transaction to Project Costing.

Can I edit unprocessed transactions?

Yes. You can edit unprocessed or error transactions from third-party application sources if the Allow Modifications to
Unprocessed Transactions option is enabled for that transaction document entry. Use the Manage Project Transaction
Sources page to update this property.

However, an unprocessed transaction appears as a read-only record when any of the following is true:

• The transaction is sourced from a predefined source, such as Payables, SCM Costing, and Oracle Time & Labor.
• The Allow Modifications to Unprocessed Transactions flag at the document enty level for the transaction is
set to False.

Can I delete unprocessed transactions?

Yes. You can delete unprocessed transactions from the predefined source Oracle Fusion Projects and third-party
application sources, if the transaction document entry setup option Allow modifications to unprocessed transactions is
enabled. However, you can't delete unprocessed transactions from other predefined sources.

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How can I capture and process accrual items?

You can create cost accruals for nonlabor miscellaneous transactions by using the Create Nonlabor Costs ADFdi Excel
or the Import Project Miscellaneous Costs file-based data import feature. Set the Accrual Batch option to Yes on these
workbooks while creating accrual transactions.

If you set the Accrual Batch option to Yes while entering cost transactions, the application creates reversal expenditure
items in addition to the original expenditure items. The reversal expenditure items are created in the open or future
enterable period following the period in which the original expenditure item was created.

What happens if I validate project cost transactions in the desktop

Excel integration spreadsheets?
Project cost transactions are validated for transaction controls and business rules during export to the Project Costing
interface. After validation, errors are listed in desktop Excel integration spreadsheets. Costs from Project Costing are
automatically validated when you export them.

If one transaction from Oracle Fusion Project Costing is invalid, then the export fails for the entire expenditure batch.
You must fix the errors before you can export the transactions.

Note: If don't validate third-party application transactions in the source application, you can validate them during
export. Otherwise, the transactions are validated when you submit the Import and Process Cost Transactions process.

What's an unmatched negative transaction?

Negative transactions that don't have matching positive items. For Oracle Fusion Project Costing transactions, the
matching criteria is based on employee, organization, date, expenditure type, project, task, and reversing quantity, while
third-party application transactions are matched to the reversed original transaction reference.

What's a commitment transaction?

A financial commitment is a future expenditure. In Oracle Fusion Project Financial Management, a commitment is a
future cost transaction.

A commitment can be an outstanding purchase requisition or purchase order charged to a project, or received goods
that aren't yet paid for. A purchase order is legally binding whereas a purchase requisition isn't.

A commitment can also be a project transaction that is invoiced but not transferred to Oracle Fusion Project Costing yet.

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Related Topics
• Internal and External Commitments

What's an external commitment transaction?

A commitment transaction created in a third-party application.

How can I delete existing external commitment transactions in

Oracle Fusion Project Costing?
Existing external commitment transactions are deleted when new commitment transactions are imported into Project
Costing Cloud and the import parameter is set to not retain the existing commitment transactions.

If you choose to delete the existing external commitment transactions, you must import external commitment
transactions for the project or transaction source and project combination.

How can I search for transactions associated with an award?

Open the Manage Unprocessed Costs page and search for award-related transactions by the project name or project
number. You can narrow your search results by also entering the contract name, contract number, and funding source.

How can I search for the expenditure items of an award?

Open the Manage Project Costs page and search for expenditure items of an award by the project name or project
number. You can narrow your search results by also entering the contract name, contract number, and funding source.

How can I view the project costs that make up a processed project
expenditure batch?
To view the project costs that make up a processed project expenditure batch, search and click the processed
expenditure batch in the Manage Expenditure Batches page. The Manage Project Costs page appears, listing the costs
associated with the expenditure batch.

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Can I monitor and troubleshoot project cost adjustment and

project expenditure batch approval workflows?
Project application administrators can use the Transaction Console to monitor workflow tasks and resolve any
exceptions for the Project Cost Adjustment Approval and Project Expenditure Batch Approval workflows.

Project application administrators can review and prioritize workflow exceptions and either resubmit tasks after making
a correction to the underlying rules, or withdraw the tasks in progress. The Transaction Console also provides details
associated with workflows, such as approval history and comments, as well as diagnostic logs to assist with debugging.

Project application administrators can also use the Approval Rules page on the Transaction Console to quickly launch
BPM Worklist to modify approval workflow rules as appropriate.

For more information on working with the Transaction Console, see the Workflow Transaction Console section in the
Implementing Common Features for Financials and Project Portfolio Management guide.

Why don't I see reserve-for-encumbrance details of project cost

transactions imported from Payables?
Projects imports applicable Accounts Payable invoice distributions as project costs. When you invoke View Accounting
at the project cost level in Projects, the application directs you to view the accounting for that specific Accounts Payable
invoice distribution alone.

Reserve for Encumbrance journal lines are associated with the entire Accounts Payable invoice and not for a
specific Accounts Payable invoice distribution. To this end, it is presently not possible in Projects to view Reserve for
Encumbrance journal lines when View Accounting is invoked for a project cost associated with an Accounts Payable
invoice distribution.

To review the Reserve for Encumbrance details of project cost transactions imported from Accounts Payable, access
them at the Accounts Payable level, or from Review Journals in the General Ledger.

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2 Project Cost Transactions

Overview of How Project Cost Transactions are

Processed
Process project cost and commitment transactions, including billable and capitalizable transactions, and perform
accounting in Oracle Fusion Project Costing.

You can also validate these transactions before processing based on your transaction and budgetary control choices.

How Project Costs are Processed

Use the Import Costs process to import and process project costs from Oracle Fusion applications or third-party
applications. This process imports transactions, derives transaction attributes, validates transactions, calculates cost,
checks funds, and creates expenditure items, cost distributions, and accounting events.

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This flow chart explains the processing of project cost transactions.

Setup Options: Import Costs

Transaction document and document entry options specify how cost transactions are imported and processed. The
following table describes other setup options that determine the processing of project cost transactions.

Option Setup Level Description

Burden costs Project type Enable burdening, assign burden schedule, and
manage burden cost accounting options.

Billable transactions Work type Indicate whether transactions are billable.

Project type

Project

Task

Transaction

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Option Setup Level Description

Expenditure organization validation and Business unit Validate expenditure organization and
currency conversion determine project ledger currency
conversion rate as part of your business unit
implementation.

Funds check Business unit Business Unit: Enable budgetary control and
encumbrance accounting.
Project
• You must first enable budgetary control
Financial Plan Type for a ledger before you can enable
budgetary control and encumbrance
accounting for business units using that
ledger. Use the Manage Budgetary Control
or Manage Encumbrance Accounting task
from the Setup and Maintenance work
area to enable budgetary control and
encumbrance accounting for your ledger
and business unit.
• Procure-to-Pay Business Functions:
Enable budgetary control and
encumbrance accounting, and select
transaction types and transaction
subtypes to be included in funds check.
• Project Accounting Business Function:
Enable budgetary control and select
transaction sources and documents to be
excluded from funds check.
Project: Enable budgetary control

• If a project is enabled for budgetary

control. then the transactions are included
in the funds check by default.
• If a project is enabled for budgetary
control and the business unit or ledger
is also enabled for budgetary control,
then a baselined budget version that's
created using a budgetary control
enabled financial plan type must exist for
transactions that must be subjected to
project budgetary controls.
• You can enable budgetary control only if
no transactions exist in the project. If cost
transactions exist, an error message is
displayed. To resolve this error, create a
new project that’s enabled for budgetary
control, then create a budget and set it to
baseline, and then transfer the existing
costs to the new project.
Financial Plan type: Enable budgetary control
• Financial plan types and budget versions
in Project Control contain attributes
that enable you to automatically create
control budgets in Budgetary Control.
Configuring the budgetary control
settings of a financial plan type enable
the budget versions that you create from

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Option Setup Level Description

that financial plan type to create control

budgets.
• A project can have only one financial plan
type that's enabled for budgetary control.
If a financial plan type that's enabled for
budgetary control is used by a budget
version on a project, then you can't create
another budget version with a different
financial plan type enabled for budgetary
control.

Transaction controls Project Specify whether transactions are chargeable.

Task

How Transactions Are Processed

The Import Costs process performs the following steps on unprocessed transactions.

Transaction Processing Task Description

Load transactions Loads transactions for import into Oracle Fusion Project Costing from other Oracle Fusion applications.

Derive transaction attributes Derives transaction attributes, such as human resource assignment details for the person, accounting
date, project accounting date, and period information. These attributes are used to derive cost rate
information and perform accounting.

Validate transactions Validates transactions for business and transaction control rules. If the Revalidate during import
option is enabled at the transaction source document level, the process revalidates the cost
transactions imported from other Oracle Fusion applications such as Payables, Cost Management, and
Time and Labor.

Create additional transactions Creates additional transactions if overtime is enabled. This is an optional task.

Calculate costs Calculates raw and burdened costs, and also converts amounts from the transaction currency to
project currency, provider ledger currency, and receiver ledger currency.

Check funds Validates transactions based on budgetary control and encumbrance accounting rules and computes
funds status.

Generate accounting events Generates cost accounting events, which are used to create cost accounting entries for transactions.

Create expenditure items and cost Creates expenditure items and cost distributions after costs are calculated and validated.
distribution lines

Reconcile transaction details with the Reconciles the transaction processing status with the source application. Third-party applications
source application use a service to update the transaction status and error details. For Oracle Fusion applications, the
transaction status is always updated.

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Transaction Processing Task Description

You can review the errors for pending and rejected transactions in the Manage Unprocessed Costs page or in the
Import Costs Report. After fixing the errors, you can submit the transactions for reprocessing. Instead of reinitiating
the process, the application reprocesses transactions from the point of error. For example, if a transaction is rejected
while determining the cost rate, the application reprocesses the transaction from the cost rate determination stage and
not earlier.

Note:
• You cannot delete expenditure batches that have both processed and unprocessed cost transactions,
irrespective of the batch status. You can delete each unprocessed cost transactions in the batch individually,
or you can correct the exceptions and reprocess the batch as usual. Once all transactions in the batch are
successfully processed, the batch will also be set to Processed.
• If you have a processed expenditure batch that still contains unprocessed cost transactions and is in a status
of Exception, you cannot delete the batch itself. You can, however, delete each unprocessed cost transaction
in the batch individually, until there are no unprocessed cost transactions left in the batch. The status of the
expenditure batch then changes to Processed, and you can then delete the batch if required.

Related Topics
• What happens if I validate project cost transactions in the desktop Excel integration spreadsheets?
• How Project Costs are Validated
• How Accounting Burden Costs are Processed

View and Resolve Errors in Unprocessed Project Cost

Transactions
Use the Project Costing - Unprocessed Transactions Real Time subject area in Oracle Transactional Business Intelligence
to view error details associated with unprocessed cost transactions.

You can also access project and task transaction controls to identify and resolve import cost errors.

Update unprocessed transactions as required and rerun the report to ensure that there are no transactions with errors.

How Accounting and Project Accounting Dates are

Determined
Accounting and project accounting dates are determined based on various factors including the status of accounting
and project accounting periods.

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How Accounting and Project Accounting Dates are Determined

Typically, here's how accounting and project accounting dates are determined if the accounting and project accounting
periods are the same:

• If the periods are active on the transaction date, the transaction date becomes the accounting date and project
accounting date.
• If the periods are inactive and if there are future enterable periods, then the start date of the earliest open or
future enterable accounting period and project accounting period become the accounting date and project
accounting date respectively.
• If the periods are inactive and there are no open or future enterable periods, it results in an error.
• The derived project accounting date must be in the accounting period. If it isn’t, then the project accounting
date is derived as the start date of the first project accounting period within the derived General Ledger period.

How are project transaction dates defaulted in Oracle

Projects?
When you create project cost transactions outside Projects, such as supplier invoices in Oracle Payables, or purchase
requisitions in Oracle Procurement, subledger applications use business rules to derive the project cost transaction date
(also known as the expenditure item date).

In some applications, this date appears by default, but you may need to enter the date in a few other subledger
applications, or alter the derived date if required.. When you import transactions from other subledgers into Oracle
Project Costing, an understanding of how expenditure item dates are populated and saved in each of these subledgers
can significantly simplify your task.

The derivation of the project cost transaction date depends on the functional flow, for example, procure-to-pay, time
cards, and expenses.

Project Cost Transaction Date Derivation in the Procure-to-Pay Flow

The Procure-to-Pay (P2P) flow refers to the process of procuring goods and services required for a project. This flow
typically involves the following tasks:

1. Creating purchase requisitions

2. Generating purchase orders
3. Creating and processing invoices for payment
4. Creating the project cost
Project cost date derivation can be configured at each of these stages; however, here are the derivation rules that are
shipped by default:

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Project Cost Derivation in the Procure-to-Pay Flow when Period-End

Accrual is Enabled for Matched Invoices
Here's a table that lists out the project cost date derivation rules that apply when period-end accrual is enabled for
invoices that must match purchase orders associated with them. For a quick definition of period-end accrual, see
Considerations for Accruing Expense Items in the Implementing Payables Invoice to Pay guide.

The same set of rules apply when the item is being purchased for an inventory destination.

Note:
• You can't update the expenditure item date on a purchase order matched invoice. However you can use the
Default Expenditure Item Date for Supplier Cost Transactions profile option to allow for a more current/
accurate date to be derived and used on matched invoices.
• For more information on profile options associated with Project Costing, see the Project Costing Profile Options
section in the Oracle Fusion Cloud Project Management Profile Options page.

Project Cost Date Derivation Rules that Apply when Period-End Accrual is Enabled for Invoices that Must Match
Purchase Orders

Task / Stage Description Project Cost Transaction Date Additional Comments

Derivation

Purchase Requisition Creation Team member raises a purchase Defaults from the request delivery NA
requisition that includes a request date.
delivery date, for goods or services.

Purchase Order Creation A member of the buyer team raises Derives from the request delivery NA
a purchase order for the goods or date.
services required.

Goods or Services Receipt A member of the buyer team raises Matches the date of receipt. If the team has enabled accrual on
a receipt for goods or services receipts, the actual project cost is
received. brought in from the receipt and not
from the invoice.

Invoicing The vendor submits an invoice for Derives based on the settings in If the date on a matched supplier
the goods or services delivered. the Default Expenditure Item Date invoice is not within the duration
for Supplier Cost Transactions of a task, project, and award, the
profile option. project administrator can use the
earliest project, task, and award
end date to override the project
cost date on invoice distributions.

Project Cost Creation. The project accountant creates the Derives from the project cost date If there is a difference between
project cost in Projects. in the invoice. the project cost in the invoice
and the receipts, then the project
accountant brings in the additional
cost update into Projects as a
separate project cost.

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Project Cost Derivation in the Procure-to-Pay Flow when Period-End

Accrual is Enabled for Unmatched Invoices
Here's a table that lists out the project cost date derivation rules that apply when period-end accrual is enabled for (two-
way or three-way) unmatched invoices. For a quick definition of period-end accrual, see Considerations for Accruing
Expense Items in the Implementing Payables Invoice to Pay guide.

Project Cost Date Derivation Rules that Apply when Period-End Accrual is Enabled for Unmatched Invoices

Task / Stage Description Project Cost Transaction Date Additional Comments

Derivation

Invoicing The vendor submits an invoice for Derives based on the settings If the date on a matched supplier
goods or services delivered, but in the Default Expenditure invoice is not within the duration
there aren't any matching purchase Item Date for Supplier Cost of a task, project, and award, the
orders or requisitions. Transactionsprofile option. project administrator can use the
earliest project, task, and award
end date to override the project
cost date on invoice distributions.

Project Cost Creation. The project accountant creates the Derives from the project cost date NA
project cost in Projects. in the invoice.

Project Cost Derivation in the Procure-to-Pay Flow when Accrual on

Receipt is Enabled
Here's a table that lists out the project cost date derivation rules that apply when accrual on receipt is enabled.

Accrual on receipt ensures that project costs get created as goods are shipped and receipts are created. If buyers have
enabled accrual on receipt on their purchase orders, the project accountant creates accounting entries against receipts
and also bring in the project item if it's project related. If the supplier invoice that arrives (after all goods and services
have been delivered) has a cost variation, the project accountant brings in the delta as a new project cost.

Project Cost Date Derivation Rules that Apply when Accrual on Receipt is Enabled

Task / Stage Description Project Cost Date Derivation Additional Comments

Purchase Requisition Creation Team member raises a purchase Defaults from the request delivery NA
requisition that includes a request date.
delivery date, for goods or services.

Purchase Order Creation A member of the buyer team raises Derives from the request delivery NA
a purchase order for the goods or date.
services required.

Goods or Services Receipt A member of the buyer team raises Matches the date of receipt. If the team has enabled accrual on
a receipt for goods or services receipts, the actual project cost is
received. brought in from the receipt and not
from the invoice.

Invoicing The vendor submits an invoice for Derives based on the settings in If the date on a matched supplier
the goods or services delivered. the Default Expenditure Item Date invoice is not within the duration
for Supplier Cost Transactions of a task, project, and award, the
profile option. project administrator can use the
earliest project, task, and award

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Task / Stage Description Project Cost Date Derivation Additional Comments

end date to override the project

cost date on invoice distributions.

Project Cost Creation. The project accountant creates the Derives from the project cost date If there is a difference between
project cost in Projects. in the invoice. the project cost in the invoice
and the receipts, then the project
accountant brings in the additional
cost update into Projects as a
separate project cost.

How Project Costs are Validated

The application validates cost transactions for data entry, standard business rules, transaction controls, and budgetary
control that you set up during implementation.

Setup Options: Transaction Validation

The following table describes the setup options at various levels for validating the project costs.

Setup Level Validation

Transaction Document Import and accounting options

Document Entry

Project Type Transaction processing options

Project Transaction controls

Task

Data entry and business rule validations are performed when you create transactions. You can also validate transactions
from third-party and certain Oracle Fusion applications before importing them.

How Costs Are Validated

The following table describes the different types of validations performed on project cost transactions.

Validation Description

Data Entry The application validates the project name, project number, task name, and task number.

Business Rules Transaction sources must be valid. Document and document entry must be valid for the transaction
source.

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Validation Description

Transactions aren't charged to a project template or an intercompany provider project.

Transactions are billable only if the project type is enabled for billing.

Transactions must have an active expenditure type.

Transactions with negative quantities must have matching expenditure items, unless they are
unmatched transactions.

Expenditure item dates must be within expenditure organization dates. Usage item dates must be
within the nonlabor resource organization dates.

Project status determines whether you can enter new transactions. Expenditure items must be within
the project date range. Transaction controls must allow charges of this expenditure type.

Tasks for transactions must be lowest level tasks and chargeable. You must charge expenditure items
to tasks within the task date range.

Employees must be active and have valid human resource assignments for the expenditure item dates.

Transaction Control All transaction controls based on combinations of project, task, expenditure category, expenditure
type, nonlabor resource, person, job, organization, and system person type must pass validation.

Budgetary Control The application validates transaction amounts against budgetary control that is set at the award and
funding source segments or at the project or project and top resource levels. Both actual raw costs and
actual burdened costs are checked for funds validation.

Only the transactions that fail funds check in a batch are excluded from further processing.

The application tracks validation errors and the corrective actions. You can view the rejected transactions in the Manage
Unprocessed Costs page, and rejected adjustment transactions in the Manage Project Costs page. You can reprocess
the transactions after fixing the errors.

Validation rules vary for uncosted labor transactions, uncosted nonlabor transactions, and costed and accounted
transactions. The following example provides validation checks for uncosted labor transactions.

Example: Validation Checks for Uncosted Labor Transactions

The application validates uncosted labor cost transactions for the following attributes.

Validation Attribute Criteria

Business Unit Name Required

Transaction Source Required

Transaction Document • Required

• Valid for the expenditure item date

Transaction Document Entry • Required

• Valid for the expenditure item date

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Validation Attribute Criteria

The combination of transaction source,

transaction document, and transaction
document entry must be valid.

Project • Project number or name is required

• Enabled for cross-charge processing
• Not a project template
• Active for the expenditure items date
• Valid project status that allows creation of new transactions

Task • Valid task number or name

• Active for the expenditure item date
• Chargeable

Expenditure Item Date Required

Expenditure Type • Required

• Valid and active for the expenditure item date, project unit, and expenditure type class associated
to the document entry of the transaction

Organization Active expenditure-owning valid for the expenditure item date

If you don't provide the organization, If the organization isn't the same as the organization assigned to the primary assignment of the person
the application derives the organization in HCM, and the transaction document setup doesn't allow for override of person organization, then
based on the primary human resources organization validation fails.
assignment of the person.

Person • Valid person name or number

If you don't provide the assignment, • Valid person assignment that is active for the expenditure item date
then the application derives the primary
assignment, job, and expenditure
organization from the primary assignment
of the person for the expenditure item
date.

Time Card Quantity Required

Related Topics
• Considerations When Selecting Billable or Capitalizable Status for Transactions
• How Project Costs are Processed

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Considerations When Selecting Billable or Capitalizable

Status for Transactions
While creating transactions, you can specify the billable and capitalizable status of a transaction if the billable and
capitalizable status attributes are enabled in the cost collection flexfield.

If you don't specify anything during the point of entry, then the application considers the billable and capitalizable
details specified on the lowest task, transaction controls setup, and work type setup. To ensure that transactions are
billable or capitalizable by default, you can specify the options for the entire project type or transaction controls setup
options. You can also specify these options when you set up a task.

Billable Status of Transactions

The application considers the following specifications for the billable status of a transaction in the listed order if the
project type of the project on the transaction is enabled for billing.

1. If you specify the transaction billable status in the source application.

2. If the option to derive the billable indicator from the work type is enabled, then the billable indicator on the
transaction is determined by the work type.
3. If the transaction control setup for the project or task indicates that the transaction is billable.
4. If the task is billable.
5. If the transaction has zero quantity, then the value of the profile option Cost Transactions with 0 Quantity Set
as Nonbillable determines if the transaction is billable.
If the project type of the project on the transaction isn't enabled for billing then the transaction isn't billable.

Note: When the project type of the project on the transaction isn't enabled for billing and in the flexfield you specify
that the transaction is billable, then the transaction is rejected.

Capitalizable Status of Transactions

The application considers the following specifications for the capitalizable status of a transaction in the listed order if
the project type of the project on the transaction is enabled for capitalization.

1. If the task isn't a retirement task.

2. If the transaction control setup for the project and task indicates that the transaction is capitalizable.
3. If the task is capitalizable.
If the project type of the project on the transaction isn't enabled for capitalization then the transaction isn't capitalizable.

How Expenditure Item Chargeable Status is Determined

Oracle Fusion Project Costing checks all levels of chargeable controls when you try to charge a transaction to a project.

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The application checks the chargeable status when you enter a new cost transaction or transfer expenditure items to
another project or task, and you save the record.

Settings That Affect Chargeable Status

Use the exclusive and inclusive transaction control options to set the chargeable status for all expenditures charged to
the project.

Inclusive transaction controls prevent all charges to a project or task except the charges you specifically allow. Specify
the types of expenditures that you want to allow, and enable the Chargeable option.

By default, exclusive transaction controls allow all charges to a project or task. Specify the types of expenditures that
you don't want charged to the project or task.

How Chargeable Status Is Determined

The following figure shows the steps that Oracle Fusion Project Costing uses to determine the chargeable status of an
expenditure item.

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If the inclusive option is selected and applicable transaction controls don't exist, then the transaction isn't chargeable. If
applicable controls exist, then the application checks whether the transaction controls allow charges.

If the exclusive option is selected and there are no applicable controls, then the transaction is chargeable. If applicable
controls exist, then the application checks whether the transaction controls allow charges.

For both inclusive and exclusive transaction controls, a transaction is chargeable if the Chargeable check box is enabled
for an applicable control. If the Chargeable check box isn't enabled, then the transaction isn't chargeable.

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Transaction Controls
Define transaction controls to specify the types of transactions that are chargeable or nonchargeable for projects and
tasks. Use transaction controls to configure your projects and tasks to allow only charges that you expect or plan.

You can also define which items are billable and nonbillable on your projects that are enabled for billing. For capital
projects, you can define which items are capitalizable and noncapitalizable.

You create transaction controls by configuring the following components:

• Expenditure category
• Expenditure type
• Nonlabor resource
• Person
• Job and organization for the person
• Person type
• Chargeable status
• Billable or Capitalizable status
• From and To dates
You can create any combination of transaction controls that you want. For example, you can create a transaction
control for a specific person and expenditure type, or you can create a combination for a person, expenditure type,
and nonlabor resource. You also specify the date range to which each transaction control applies. If you don't enter
transaction controls, you can charge expenditure items from any person, expenditure category, expenditure type, and
nonlabor resource to all lowest tasks on the project.

Chargeable Status
You can further control charges for each transaction control record by specifying whether to allow charges. The default
value is to allow charges.

You usually select Chargeable when you're using inclusive transaction controls. For example, if you want to allow people
to charge only labor to your project, you define a transaction control with the Labor expenditure category, and allow
charges to the project or task.

You usually don't select Chargeable when you're using exclusive transaction controls because exclusive transaction
controls list the exceptions to chargeable transactions.

System Person Type

You can use this control to specify whether transactions incurred by employees, contingent workers (contractors), or
both are chargeable.

The following table describes the validation rules for system person type controls.

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Transaction Control Type System Person Type Validation Rule

Inclusive No value Transactions incurred by employees and

contingent workers aren't chargeable.

Inclusive Employee Only transactions incurred by employees are

chargeable.

Inclusive Contingent worker Only transactions incurred by contingent

workers are chargeable.

Exclusive No value Transactions incurred by employees and

contingent workers aren't chargeable.

Exclusive Employee Transactions incurred by employees aren't

chargeable.

Exclusive Contingent worker Transactions incurred by contingent workers

aren't chargeable.

Billable and Capitalizable Status

You can define billable transactions for billable projects and capitalizable transactions for capital projects by selecting
the billable or capitalizable option. You can choose between the options of No andTask Level. Select No if you want the
charges to be nonbillable or noncapitalizable. Select Task Level if you want the billable or capitalizable status to use the
value from the task to which the item is charged.

You define the billable or capitalizable status for a task in the Task Details section.

Note: The billable or capitalizable status of an individual transaction takes precedence over the billable or
capitalizable status of a task.

From and To Dates

You can define transactions as chargeable for a date range by entering a From Date and To Date for each transaction
control record.

Budgetary Control Funds Status

Budgetary control funds status indicates the validation result of the transaction amount against the budget amount.
You can set budgetary control for a project, task, resource, award, and funding source segments.

If a project is enabled for budgetary control and the business unit or ledger is also enabled for budgetary control,
then a baselined budget version that's created using a budgetary control enabled financial plan type must exist for
transactions that must be subjected to project budgetary controls. The following transactions are validated for funds:
• Purchase orders to an inventory destination and direct procurement of materials to a work order destination

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• Transfer order expense costs

• Expense related requisitions
• Expense related purchase orders
• Supplier invoices (includes variances, prepayments, and application of prepayments)
• Expense related purchase order receipts
• Project cost transactions (created with Oracle Projects or third-party application source and imported using the
Import Costs process)
The following transactions aren't validated for funds:
• Work order costs excluding costs for direct procurement of materials to a work order destination
• Sales order costs
• Miscellaneous inventory issues
• Transfer order inventory costs
• Burden cost amounts for spend authorizations
• Payments
• Cross-charge transactions
• Transactions that are excluded for the ledger or business unit in the Manage Budgetary Control page.

Reviewing Funds Status Results

You can review transaction and budget level budgetary control results on the following pages listed in the table.

Page Section Action

Manage Unprocessed Costs Search Results 1. Select the transaction row.

2. Click the Failed icon in the Funds Status
This page displays funds check results at the column to open the Funds Reservation
transaction level. window.
Alternatively,

1. Select the transaction row.

2. Click the View Results option from the
Actions menu.

Manage Project Costs Search Results 1. Select the transaction row.

2. Click the Failed icon in the Funds Status
This page displays: column to open the Funds Reservation
window.
• Cost and cost adjustments made to Alternatively,
transactions.
• Results at the transaction level. 1. Click the transaction number.
2. Click the Adjustment History tab on the
Expenditure Item page.
3. Click View Budgetary Control Results in
the Adjustment Errors region to open the
Funds Reservation window.
Else,

1. Select the transaction row.

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Page Section Action

2. Click the View Results option from the

Actions menu.

Manage Project Costs Errors 1. Select the transaction row in the Search
Results region.
If the original transaction passes budgetary 2. Click View Budgetary Control Results
control validations but the adjustments: in the Errors region to open the Funds
Reservation window.
• Pass with warning, then the overall status
is Warning.
• Fail, then the overall status is Passed. Cost
distribution lines aren't generated for the
transactions that fail budgetary control
validations.

Manage Cost Distributions Search Results 1. Select the transaction row.

2. Click the Failed icon in the Funds Status
This page displays: column to open the Funds Reservation
window.
• Cost and cost adjustments made to Alternatively,
transactions.
• Results at the distribution level. 1. Click the transaction number.
2. Click the Adjustment History tab on the
Expenditure Item page.
3. Click View Budgetary Control Results in
the Adjustment Errors region to open the
Funds Reservation window.

Diagnostic Dashboard Diagnostic Test Run Status Generate the Project Budgetary Control
Validation and Balance Activities diagnostic
report.

By default, transaction-level results are displayed in the secondary window. You can change the view to display budget-
level results.

Understanding Funds Status Results

The following table describes funds status results of budgetary control on cost transactions.

Status Description

Blank Transaction isn't eligible for funds check or transaction isn't validated for funds.

Passed Transaction successfully passed funds check.

Failed Transaction failed funds check.

Warning Transaction passed funds check with warnings.

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Failure Scenarios for Funds Check

Note: When the funds check fails, first identify if the failure is in the Project Management control budget or the
General Ledger control budget and then take the appropriate action to resolve the error.

The following table lists the scenarios in which transactions that are enabled for budgetary control validation can fail
funds check.

Failure Scenario Resolution

No control budget exists Navigate to the Manage Budget Versions page, create a control budget by setting the budget to
baseline, and then trigger the funds check from the respective transaction page.
• The budget version should be enabled for budgetary control and must be created using a
financial plan type that's enabled for budgetary control.
• For a project that’s enabled for budgetary control, the control budget exists only if the budget is
created using a budgetary enabled financial plan type and set to baseline.

Control budget is created but the budget For a non-sponsored project, you must either change the budget date or project dates and set the
date is outside the control budget date budget to re-baseline such that the control budget dates are updated.
range
For a sponsored project, you must either change the budget date or the dates of the project and the
award, and then submit the date changes from the Edit Award Details page.

Control budget is created but the Reduce the amount charged on the transaction or increase the budget amount.
transaction amount is higher than the
available budget

Control budget is created but the control For a closed control budget, you will need to redefine the control budget.
budget is in closed or permanently closed
status. For a permanently closed control budget, you can't redefine and have to use another project.

Control budget is created but the control For a permanently closed control budget period, you can't reopen and have to use another project.
budget period is closed or permanently
Closed status. For a closed control budget period, you need to reopen the control budget period. To open the control
budget period:
1. Click Navigator>Budgetary Control.
2. Click the Budget Period Statuses task in the panel drawer.
3. Search for the control budget and then click the name of the control budget for which you want to
edit the budget period status.

Note: Use the first few characters of the project number to search for the control budget.

4. Select Open from the Status drop-down list, and click Save and Close.

Note: By default, all users don't have access to the control budget. You can grant control budget
data access to users using the Manage Control Budget Data Access for Users task in the Setup
and Maintenance work area.

Burden enabled project but the burden Build the burden schedule for the project.
schedule is inactive.

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Failure Scenario Resolution

Burden enabled project with an active Provide the burden multiplier for that exception type.
burden schedule but the burden multiplier
for a particular expenditure type is not
present.

The transaction failed budgetary control • If you see the missing currency conversion information on transaction error for cost transactions,
validation with one or more errors. then ensure that the currency conversation attributes are defined in the Budgetary Control
settings of the planning options for the plan version. After you define the currency conversion
attributes, set the budget to baseline, and then import the cost transactions.
• If the requesting amount is more than the available budget amount, then increase the budget
amount such that the costs get processed. However, if the costs can be reduced, then you can
choose to reduce the budget amount being processed and reserved.
• If the transaction fails for the General ledger control budget indicating that the budget account
can't be derived, then ensure that a budget account is derived using the Transaction Account
Definition (TAD) rules.
◦ Even if the project isn't enabled for budgetary control, the application derives the budget account
from the Transaction Account Definition and triggers funds check. So, create a Transaction
Account Definition, map the accounting rules, activate it, and then associate it to a ledger to
derive the budget account using the account rule assignments.
◦ Don't use the seeded Transaction Account Definition. Create one by duplicating the existing one.

Insufficient Funds Check for the available funds and then take the appropriate corrective action. For example, the
corrective action could be to increase the project budget with the missing amount and re-baseline or
limit the transaction to the available amount.

Note: For sponsored projects, you can check the budgetary control balances on the Award
Overview page. For non-sponsored projects, use the Budgetary Control Analysis Report to check the
budgetary control balances.

The account rules assigned to the If you're using mapping sets, then verify the mapping set input and output values defined in the
transaction account type are insufficient to subledger accounting setup and edit these values as appropriate. For more information, see Mapping
derive a value for any of the segments of Sets and How You Define Mapping Sets.
the chart of accounts.

Related Topics
• Review Budgetary Control Validation Errors
• Can I perform budgetary control validation for cross-charge transactions?
• Update Control Budget Dates with Project, Task, or Budget Line Dates for Nonsponsored Projects
• Update Control Budget Dates with Award Dates for Sponsored Projects
• Set Up Default Budget Account
• Secure Control Budget Definitions

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Considerations when Editing Burden Schedule

Multipliers
When you edit burden multipliers for burden schedules, certain procure-to-pay financial transactions are impacted
whereas others aren't.

Transactions Impacted
The revised burden multiplier is used to:

• Reserve burden cost for purchase requisitions, payable invoices, purchase orders, and Oracle Fusion Project
Costing expenditure items.
Note: For change orders, it applies only to new distributions for an approved PO.

• Reserve burden cost for payable credit and debit memos not associated to a validated invoice.
• Reserve receipt accounting distribution funds for receipt cost, retroactive price adjustments, and invoice price
variances.

Transactions Not Impacted

The previous burden multiplier continues to be used to:

• Reserve burden cost while adjusting the original PO distributions through a change order.
• Liquidate a requisition while reserving or approving a PO matched to the requisition.
• Liquidate a PO while reserving a payable invoice matched to the PO.
• Liquidate payable cost while importing payable cost to Oracle Fusion Project Costing.
• Cancel, withdraw, and reject requisitions and POs.
• Cancel payable invoices and make prepayment applications for supplier invoice corrections.
• Reserve burden cost for payable credit and debit memos for a validated invoice.
• Reserve receipt accounting distribution funds for receipt correction and return, liquidation of receipt
accounting distribution cost, and retroactive price adjustments during interface to project costing.

What are project cost reversals?

You typically need to reverse a processed cost when:
• You want to reverse a project cost that contains incorrect project details.
• You want to remove an expenditure that's not applicable.
You can only reverse processed project costs from non-predefined sources. Reversals also result in a reversing debit or
credit depending on the original transaction.

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How can I reverse processed project costs?

Before you attempt to reverse a processed project cost, you must ensure that the project cost's eligible for reversal.

Eligibility Criteria for Project Cost Reversal

To be eligible for reversal, a processed project cost:
• Must not be a net-zero item
• Must not be a converted item. Converted items enable you to load upgrade data and prohibit further actions on
such project costs.
• Must not be a summarized burden transaction cost
• Must not be a Labor Distribution cost
• Must have Allow reversal enabled at the document entry level (For predefined transaction sources, such as
Account Payables and Supply Chain Management, this option's disabled; therefore, you cannot reverse project
costs coming in from predefined transaction sources.)
• Must not have pending, pending approval, or rejected adjustments
• Must have a project status that allows project cost adjustments

Performing Project Cost Reversal Using the Manage Unprocessed Costs

Page
Note:
• Before you create a reversing project cost, you must ensure that the project cost that you want to reverse is
eligible for reversal. See the Eligibility Criteria for Project Cost Reversal section for more information.
• The attributes that you use to create the reversing expenditure batch must precisely match the attributes of the
project cost that you want to reverse. See the Reversal Attributes that Must Match Original Transaction Details
section for more information.

To reverse a project cost using the Projects Costing user interface:

1. In the Projects > Costs > Manage Unprocessed Costs page, click Create.
2. Enter and confirm the required values in the Create Transaction modal. Ensure that the values you choose
in the Source, Business Unit, Document, and Document Entry fields match corresponding values in the
transaction that you want to reverse.
3. In the General Details > Cost Collection Details section of the Create Transaction page that appears, enter the
Project Number, Task Number, Expenditure Item Date, Expenditure Type, and Expenditure Organization
details. Again, these details must match corresponding values in the transaction that you want to reverse.
4. In the Usage Details section, enter the quantity and cost details associated with the project cost. This must
be the exact opposite of the quantity and cost in the project cost that you want to reverse. For example, if the
quantity in the project cost that needs reversal is 10, the quantity in the reversing project cost must be -10.
5. Enter the Nonlabor Resource and Nonlabor Resource Organization details. These details must also match
corresponding values in the transaction that you want to reverse.
6. Enter an Original Transaction Reference value. This must be a unique value.

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7. In the Additional Details tab, enter the original transaction reference of the project cost that you want to reverse
in the Reversed Original Transaction Reference field.
8. Leave the Unmatched Negative Transaction check box deselected to tell the application that the details that
you provided in this expenditure batch must match an existing project cost.
9. Click Save and Close to submit the expenditure batch. If the project cost details that you provided match an
existing project cost, and if that project cost is eligible for reversal, the expenditure batch appears in the list of
unprocessed project costs.
10. Click Import Costs, and click Yes in the warning message that appears, to trigger the import.
11. Click the Refresh button in the Process Monitor section of the Project Costing landing page to view the status
of your project cost reversal. After the import succeeds, the status of the process ID associated with the import
job changes to Succeeded.
After the import succeeds, you can view a report associated with the process by clicking the View Output icon adjacent
to the process ID.

Performing Project Cost Reversal Using FBDI

Note:
• Before you create a reversing project cost, you must ensure that the project cost that you want to reverse is
eligible for reversal. See the Eligibility Criteria for Project Cost Reversal section for more information.
• The attributes that you use to create the reversing expenditure batch must precisely match the attributes of the
project cost that you want to reverse. See the Reversal Attributes that Must Match Original Transaction Details
section for more information.

To reverse a project cost using FBDI, you must choose the FBDI spreadsheet meant for the transaction source
associated with the project cost that you want to reverse. Follow the instructions provided in the downloaded
spreadsheet to complete the import.

For additional details on importing project costs, see Import Costs Process in the Using Project Costing guide.

Reversal Attributes that Must Match Original Transaction Details

Here's a table listing out the reversal attributes that must match the corresponding attributes of the original transaction,
for the reversal to succeed:

Project Cost Reversal Attributes that Must Match the Original Project Cost

Attribute Description

Expenditure Item Date Date on which the project cost was recorded.

Expenditure Type A classification of cost that's assigned to the transaction.

Project Details of the project associated with the project cost that you want to reverse. Examples: Project
Name, Project Number.

Task Details of the task associated with the project cost that you want to reverse. Examples: Task Name,
Task Number.

Transaction Source Details of the transaction source of the reversing transaction. Example: Transaction Source Name.

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Attribute Description

Document Details of the document associated with the project cost that you want to reverse. Example: Document
Name.

Document Entry Details of the document entry associated with the project cost that you want to reverse. Example:
Document Entry Name.

Person Details of the person associated with the project cost that you want to reverse. Example: Person Name.

Expenditure Organization Details of the expenditure organization associated with the project cost that you want to reverse.
Example: Expenditure Organization Name.

Non Labor Resource Organization Details of the non-labor resource organization associated with the project cost that you want to
reverse. Example: Non Labor Resource Organization Name.

Non Labor Resource Details of the non-labor resource associated with the project cost that you want to reverse. Example:
Non Labor Resource Name.

Net Zero Item Indicates that the project cost has either been reversed or is reversing another project cost, resulting in
a sum of zero for the two costs together. For the transaction being reversed, the net zero value must be
False.

Reversed Original Transaction Reference The original transaction reference of the existing project cost that the current unprocessed cost,
usually negative, is reversing.

Expenditure Business Unit Name Name of the expenditure business unit to which the project cost is charged.

Transaction Currency The currency in which the project cost is incurred.

Importing Person-Related Project Cost Transaction Reversals

You can create a matched reversal for an existing person-related transaction, regardless of the person’s current Oracle
Fusion Cloud Human Capital Management status, such as Terminated, Suspended, or Canceled.

You can use either the Unprocessed Project Costs REST API or one of the Import Project Cost FBDI templates to use
Person ID to create reversals for persons with canceled work relationships.

Importing Person-Related Project Cost Transaction Reversals:

Considerations
• When using the Unprocessed Project Costs REST API to create a reversal, you don't need to specify any
assignment-related attributes in the request, because assignment information from the original transaction
will be copied to the reversing transaction. If you do specify the person’s assignment in the request, use
Assignment ID. If you use Assignment Name or Assignment Number, errors will be returned for persons
without active HCM assignments.
• When using one of the Import Cost FBDI templates to create a reversal of a person-related transaction, you
don't need to specify any assignment-related attributes in the file, as the assignment information from the
original transaction will be copied to the reversing transaction if successfully imported. If you do populate any
of the assignment-related columns in the template, these values will be ignored during import processing.

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• When using the Unprocessed Project Costs REST API to create a reversal for persons with canceled or
terminated work relationships, identify the person using Person ID in the request. If you use Person Name or
Person Number instead of Person ID, then errors will be returned.

FAQs for Project Cost Transactions

How can I determine the expenditure organization for a
transaction?
Based on the type of transaction, you can specify the expenditure organization for a transaction.

For example, for time cards and expense reports, the organization to which the employee is assigned is the expenditure
organization, unless you allow the override of person organization. For usage, supplier invoices, and purchasing
commitments, it is the expenditure-incurring organization that is entered on the expenditure.

How can I identify if the control budget is a Project Management

control budget or a General Ledger control budget?
Follow these steps:

1. Navigate to the Manage Project Costs page.

2. Search for the transaction.
3. From the search results, select the transaction and click the icon in the Funds Status column.

The Funds Reservation dialog box appears. If the name in the Control Budget column starts with the project
name, then it's a Project Management control budget. You can hover over the budget account in the Budget
Account column to view the details.

Which reports should you use to review budgetary control

balances?
Use the Budgetary Control Analysis Report to check the budgetary control balances. For sponsored projects, you can
also check the budgetary control balances on the Award Overview page.

Additionally, you can use predefined reports for further inquiry and reporting. For more information, see Oracle Fusion
Budgetary Control Predefined Reports.

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What's a borrowed and lent processing method?

A method of processing cross-charge transactions that generates accounting entries to share revenue or transfer costs
from the provider organization to the receiver organization within a legal entity.

An internal invoice isn't created but costs or revenue are shared based on the transfer price rules. This method provides
a financial view of the performance of an organization.

Why aren't burdened costs calculated based on the selected

burden schedules for a sponsored project or task?
Actual cost transactions for sponsored projects use the burden schedules and burden schedule overrides that you select
in the associated award. These transactions don't use the burden schedules and burden schedule overrides that you
assign for a sponsored project or task.

You can select burden schedules for planning cost transactions in the planning options of the financial and project plan
types. Alternatively, you can set planning options to use actual rates instead of planning rates for planning transactions,
in which case, burden schedules and burden schedule overrides assigned in the associated award are also used for
planning cost transactions.

If you are using planning rates for financial or project planning, you can select specific rate schedules and burden
schedules for the plan type.

Can I perform budgetary control validation for cross-charge

transactions?
The application performs budgetary control validation in context of the transaction ledger and expenditure business
unit.

If you enable budgetary control for the transaction ledger and business unit, then budgetary control validation is
performed against project control budgets if the project control budgets also exist in the same ledger.

How does the budgetary control engine sort transactions?

The budgetary control engine processes transactions in the order in which they are passed, without sorting them.

For example, consider the following batch, which contains two transactions:

• Project Cost 13030 for $75000 (with burden of $28875)

• Project Cost 13031 for $1000 (with burden of $385)
In this case, the budgetary control engine processes Project Cost 13030 first, and then Project Cost 13031.

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3 Overhead Costs to Projects

Overview of How Overhead Costs are Distributed to

Projects
Perform burdening for project costs using Oracle Fusion Project Costing.

You can also set burdening options, including additive and precedence burden structures, adjust, and recalculate
burdening your projects.

How Burden Costs Are Calculated

Burdening provides the aggregate of raw and burden costs to represent the total cost of doing business accurately. You
can calculate burdened costs as a markup of costs by using a precedence of multipliers.

The application performs a summation of burden costs with raw costs to provide a true representation of costs. Using
burdening, you can perform internal costing, revenue accrual, billing, asset capitalization, and budgetary control
including the type of burden costs that your company applies to raw costs.

Settings That Affect Burden Cost Calculation Processing

You define the projects that need to be burdened by enabling project types for burdening. When you specify that
a project type is burdened, you must then specify the burden schedule to be used. The burden schedule stores the
burden multipliers and indicates the transactions to be burdened, based on cost bases defined in the burden structure.
You specify the expenditure types that are included in each cost base. With burdening, you can use an unlimited
number of burden cost codes, easily revise burden schedules, and retroactively adjust multipliers. You can define
different burden schedules for costing, revenue, and billing purposes.

If you enable the option to create separate expenditure items for burden costs at the project type level and the
transaction is eligible for budgetary control, then you must associate an expenditure type to the burden cost code in the
cost bases of the burden structure.

How Burden Costs Are Calculated

The following graphic shows the decision points and process for calculating burdened costs.

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1. The application selects the expenditure items with raw cost amounts for processing.
2. The process determines if the related project type of the expenditure item is enabled for burdening.
3. If the project type is enabled for burdening, then the process determines the burden schedule to be used.
4. If the project type is not enabled for burdening, then the expenditure item is not burdened. The process
assumes the burden multiplier is zero; therefore, burden cost is zero and thus burdened cost equals raw cost.
5. To determine which burden multiplier to use, the process determines if there is a burden schedule override for
the expenditure.
6. If a burden schedule override exists, then the process uses the task burden schedule override on the associated
task. For sponsored projects, the process ignores the task burden schedule overrides.
7. If no task burden schedule override exists on the associated task, then the process uses the project burden
schedule override on the associated project. For sponsored projects, the process ignores the project burden
schedule overrides.

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8. If there are no burden schedule overrides, the process uses the burden schedule assigned at the task level for
burden cost calculations.

For sponsored projects, the process determines the burden schedule to use for burden cost calculations in the
following order:

a. Burden schedule assigned at the summary task level of the award project
b. Burden schedule assigned at the award project level
c. Burden schedule assigned at the award level
9. If the burden schedule type is a firm schedule, then the process checks if a fixed date is specified for burdening.
If yes, it uses the fixed date to determine the schedule version. If a fixed date isn't specified, then the process
uses the expenditure item to determine the burden schedule version.
10. After a schedule version is determined, the process verifies that the expenditure type of the expenditure item is
found in any of the cost bases of the selected burden schedule version.
11. If an expenditure type is excluded from all cost bases in the burden structure, then the expenditure items that
use that expenditure type aren't burdened (burden cost equals zero, thus burdened cost equals raw cost).
12. The process then checks if burden multipliers exist for the organization to which the cost transaction belongs. If
burden multipliers aren't defined for the organization, then the process checks if multipliers are defined for any
of the parent organizations in the hierarchy. If burden multipliers don't exist for the organization or any of the
parent organizations, then the expenditure isn't burdened.
13. The application calculates burden cost and burdened cost amounts according to the following calculation
formulas:

◦ For additive burden structures, burden cost equals raw cost multiplied by a burden multiplier.

burden cost = raw cost * burden multiplier

◦ For precedence burden structures, burden cost equals the sum of raw cost and preceding burden costs
multiplied by a burden multiplier.

burden cost = (raw cost + preceding burden cost) * burden multiplier

◦ Burdened cost equals the sum of raw cost and burden costs.

burdened cost = raw cost + burden cost

Burdened Cost Calculation

The burden structure assigned to the burden schedule version determines whether calculations are additive or based on
the precedence assigned to each cost code. A burden structure can be additive or precedence based.

If you have multiple burden cost codes, an additive burden structure applies each burden cost code to the raw costs
in the appropriate cost base. The examples in the following tables illustrate how burdened cost is calculated as a
combination of raw and burden costs and how different burden structures using the same cost codes can result in
different total burdened costs.

The following table lists the cost codes and multipliers for calculating burdened cost using the additive burden structure.

Cost Code Precedence Multiplier

Overhead 1 0.10

Material Handling 1 0.10

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Cost Code Precedence Multiplier

General Administrative Costs 1 0.10

The following table describes an example of calculating the burdened cost using the additive burden structure for an
expenditure item that is not rate based.

Cost Type Calculation Amount

Raw Cost Not Applicable 1000.00

Overhead 1000.00 * 0.10 100.00

Material Handling 1000.00 * 0.10 100.00

General Administrative Costs 1000.00 * 0.10 100.00

Burdened Cost 1000.00 + 100.00 + 100.00 + 100.00 1300.00

A precedence burden structure is cumulative and applies each cost code to the running total of the raw costs, burdened
with all previous cost codes. The calculation applies the multiplier for the cost code with the lowest precedence number
to the raw cost amount.

The calculation applies the cost code with the next lowest precedence to the subtotal of the raw cost plus the burden
cost for the first multiplier. The calculation logic continues in the same way through the remaining cost codes. If two
cost codes have the same precedence number, then both are applied to the same subtotal amount.

The following table lists the cost codes and multipliers for calculating burdened cost using the precedence burden
structure.

Cost Code Precedence Multiplier

Overhead 10 0.10

Material Handling 20 0.10

General Administrative Costs 30 0.10

The following table describes an example of calculating the burdened cost using the precedence burden structure for an
expenditure item that is not rate based.

Cost Type Calculation Amount

Raw Cost Not Applicable 1000.00

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Cost Type Calculation Amount

Overhead 1000.00 * 0.10 100.00

Material Handling (1000.00 + 100.00) * 0.10 110.00

General Administrative Costs (1000.00 + 100.00 + 110.00) * 0.10 121.00

Burdened Cost 1000.00 + 100.00 + 110.00 + 121.00 1331.00

The order of the burden cost codes has no effect on the total burdened cost with either additive or precedence burden
structures.

Related Topics
• Recalculate Burden Costs

Recalculate Burden Costs

When you perform certain actions on a project that's enabled for burdening, you need to recalculate the existing burden
costs.

Let's say that you change the multiplier on an organization's burden schedule version. All of the existing transactions
that are associated with that organization need to be recalculated.

The conditions that require burden cost recalculation are:

• You updated a previously built burden schedule.
• You built an actual burden schedule version to replace a provisional burden schedule version.
• You modified the version dates such that the transactions for which burden is calculated using existing version
no longer fall within the new version dates.
• You have previous unprocessed adjustments on transactions.
• An error occurs during the process.

Recalculate the costs for a burden schedule version.

1. In the Costs work area, click the Manage Burden Schedule task.
2. On the Manage Burden Schedules page, select the burden schedule.
3. Click the Recalculate Burden Costs button. The Recalculate Burden Costs process initiates the Import Costs
process to create expenditure items and cost distribution lines for the eligible transaction. In case of separate
line burdening, you must also run the Generate Burden Costs process after recalculating the burden costs.
4. Review the Recalculate Burden Cost output report and the Import Costs output report. If any transactions were
excluded from the recalculation, fix the conditions and recalculate again.

Related Topics
• Considerations when Editing Burden Schedule Multipliers

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Examples for Additive and Precedence Burden

Structures
A burden structure can be additive or precedence based. If you have multiple burden cost codes, an additive burden
structure applies each burden cost code to the raw cost in the appropriate cost base.

A precedence burden structure is cumulative and applies each cost code to the running total of the raw cost, burdened
with all previous cost codes. You assign the multiplier on the burden schedule that Oracle Fusion Project Costing uses to
perform the cost buildup for each detailed transaction.

Additive Burden Structure

Create an additive burden structure to apply each burden cost code assigned to a cost base using the same precedence
when calculating burden costs. The following table describes an example of calculating burdened cost using an additive
burden structure.

Cost Code Precedence Multiplier Formula Amount (USD)

Raw Cost 0 0 0 100.00

Overhead 1 0.50 0.50 * 100.00 50.00

Fringe Benefits 1 0.30 0.30 * 100.00 30.00

General and Administrative 1 0.20 0.20 * 100.00 20.00

Burdened Cost 0 0 0 200.00

Precedence Burden Structure

The following table lists an example which explains how each burden cost code assigned to a cost base is applied to raw
costs.

Cost Code Precedence Multiplier Formula Amount (USD)

Raw Cost 0 0 0 100.00

Overhead 10 0.50 0.50 * 100.00 50.00

Fringe Benefits 20 0.30 0.30 * 150.00 45.00

General and Administrative 30 0.20 0.20 * 195.00 39.00

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Cost Code Precedence Multiplier Formula Amount (USD)

Burdened Cost 0 0 0 234.00

Considerations for Burden Cost Options for Project Types

Burdening is a method of applying one or more burden cost components to the raw cost amount of each individual
transaction to calculate burden cost amounts. Use project types to control how burden transactions are created and
accounted.

If you enable burdening for a project type, you can choose to account for the individual burden cost components or the
total burdened cost amount.

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The following graphic illustrates the burden cost accounting options for project types.

You specify the following options when setting up burdening options for project types.

• Default Cost Burden Schedule

• Allow Cost Burden Schedule Change for Projects and Tasks
• Include Burden Cost on Same Expenditure Item

◦ Create Expenditure Items for Burden Cost Components

• Create Separate Expenditure Item for Burden Cost

• Create Burden Cost Accounting Journal Entries
• Create Burdened Cost Accounting Journal Entries

Default Cost Burden Schedule

If you enable burdening for the project type, you must select the burden schedule to use as the default cost burden
schedule for projects that are defined with this project type.

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Allow Cost Burden Schedule Change for Projects and Tasks

Enable this option to allow a change of the default cost burden schedule when entering and maintaining projects and
tasks. Don't enable this option if you want all projects of a project type to use the same schedule for internal costing.

Include Burden Cost on Same Expenditure Item

Enable this option to include the burden cost amount in the same expenditure item. You can store the total burdened
cost amount as a value with the raw cost on each expenditure item. Oracle Fusion Project Costing displays the raw and
burdened costs of the expenditure items on windows and reports.

If you include burden cost amounts on the same expenditure item, but want to see the burden cost details, enable the
option to create expenditure items for each burden cost amount on an indirect project and task.

Create Separate Expenditure Item for Burden Cost

Enable this option to account for burden cost amounts as separate expenditure items on the same project and task
as the raw expenditures. The expenditure items storing the burden cost components are identified with a different
expenditure type that's classified by the expenditure type class Burden Transaction. Oracle Fusion Project Costing
summarizes the cost distributions to create burden transactions for each applicable burden cost code. The most
important summarization attributes are project, lowest task, expenditure organization, expenditure classification,
supplier, project accounting period, and burden cost code.

Create Burden Cost Accounting Journal Entries

Indicate whether to create an entry for the burden cost amount.

If burdened costs are calculated for reporting purposes only, and you don't want to interface burdened costs to the
general ledger, you can disable the creation of accounting journal entries. If you select this option, only the burden cost,
which is the difference between the burdened cost and raw cost, is interfaced to general ledger.

Create Burdened Cost Accounting Journal Entries

Indicate whether to account for the total burdened cost amount of the items. You typically use this option to track the
total burdened cost amount in a cost asset or cost work-in-progress account.

The burdened cost is the sum of raw and burden costs. Therefore, selecting this option may result in accounting for raw
cost twice. For example, assume that the raw cost of an item is 100 USD, the burden cost is 50 USD, and the burdened
cost is 150 USD. When the application creates a journal entry for 150 USD, it accounts for the 100 USD that was already
accounted for as raw cost, plus the 50 USD burden cost.

Burden Cost Calculations Test

Test burden cost calculations to view a breakdown of the total burdened cost for a specific project transaction and to
verify your burden structure and burden schedule implementation.

The test emulates an actual burden cost transaction for a set of criteria consisting of the project, task, burden schedule,
expenditure type, expenditure organization, raw cost, quantity, and transaction date.

The application uses the burden schedule that you specify as burden cost criteria to calculate burden amounts. If you
specify a project as burden cost criteria, and you don't specify a task or burden schedule, then the application uses the

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burden schedule on the project. If you specify a project and task, and you don't specify a burden schedule, then the
application uses the burden schedule on the task.

Test burden cost calculations to:

• Verify that the amounts for each burden cost code and for the total burdened cost are calculated correctly
according to the specified criteria.
• Confirm that the correct schedule is used for the given project and task.
• Confirm that the desired burden cost codes and rates are used for the organization and expenditure type.

FAQs for Overhead Costs to Projects

What's the difference between allocation and burdening?
Both allocation and burdening are related to expenditure item costs. Allocation uses actual amounts from sources such
as project sources, ledger sources, and fixed amount source to provide the source pool amount. Allocation generation
apportions these source pool amount to target projects and tasks.

Burdening uses a set of estimated burden multipliers to increase the total cost amount of expenditure items. This fixed
percentage is an estimate of the indirect or burden costs associated with the raw costs for each expenditure item.

Allocations and burdening aren't mutually exclusive; you can use both. Whether your company uses allocations,
burdening, or both in a particular situation depends on how your company works and how you have implemented
Oracle Fusion Project Costing.

How can I charge burden cost to a task in another project?

You can charge burden cost to a task in another project by selecting to create separate expenditure items for burden
cost components and by specifying the target project and task where you define burden options for a project type.

How can I correct burden costs?

Recalculate the burden cost of an expenditure item or a group of expenditure items if the burdened cost amount is
incorrect.

To produce correct recalculation results, you must first correct the source of the problem before redistributing the items.
You must verify burden setup details, such as the burden structure, burden multiplier in burden schedule, and burden
schedule at the project or task level. After changing the burden setup, identify and mark the impacted expenditure
items for recalculating the burden cost amount and then perform the adjustment.

Related Topics
• Recalculate Burden Costs

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What happens to processed expenditure items when I add a

project or task burden schedule override?
If you change the burden schedule for a lowest-level task with processed expenditure items, then the expenditure items
aren't automatically marked for reprocessing.

Only new expenditure items charged to the task use the new burden schedule. You can mark the expenditure items
for recalculation and reprocess using the new burden schedule assigned to the task. You can manually adjust the
expenditure items to recalculate the burden cost amounts by using the new burden schedule assigned to the task and
then reprocessing the expenditure items.

What happens to the existing expenditure items if I rebuild a

burden schedule version?
When you rebuild burden schedules and recalculate burden cost amounts, Oracle Fusion Project Costing identifies the
existing transactions that are impacted by the adjustments and marks the transactions for reprocessing.

For example, if the multiplier for an organization and the burden cost code change, all transactions that are charged
to an expenditure type associated with the burden cost code in that organization are marked for reprocessing. The
adjustments are processed and burden costs are updated.

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4 Project-Driven Supply Chain

Overview of Project-Driven Supply Chain

Project managers and project accountants can use the Project-Driven Supply Chain solution to manage the costs of the
supply chain processes in the context of projects without creating separate organizations for each project.

The integration of Oracle Project Portfolio Management and Oracle Supply Chain enables supply chain products to
support project attributes, which allows the capture of supply chain costs as project expenditures. Project Number
and Task Number are available to segregate and value the inventory, and support project-specific transactions that are
based on rules in the Supply Chain Materials Management and Inventory Organization.

Project attributes are also added to supply chain execution documents such as purchase requisition, purchase
order, sales order, transfer order, and manufacturing and maintenance work order. These project-specific execution
documents follow the business rules that are defined for the project. Any transactions associated with these documents
that create a commitment or actual cost to the project are captured with the project attributes to ensure that these costs
are posted as expenditures to the project.

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Here is an illustration that explains how the project-driven supply chain solution works.

Here's the list of set up tasks in Project-Driven Supply Chain along with a brief description.

Set Up Task Is This Mandatory? Description

Opt in the Project-Driven Supply Chain feature Yes Enable the Project-Driven Supply Chain feature
by opting in via the Manufacturing and Supply
Chain Materials Management offering.

Enable inventory tracking by project Yes Enable projects integration on individual

inventory organizations via the Manage
Inventory Organizations task under the
Manufacturing and Supply Chain Materials
Management offering.

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Set Up Task Is This Mandatory? Description

Materials management transactions and

manufacturing transactions will gather the
project details.

Ensure that the organization is classified as

project expenditure organization.

Set up the default expenditure types Yes Review and maintain the default expenditure
types to use in supply chain transactions that
support integration with projects

Manage orchestration process definitions Yes Prevent Order Management from sending order
lines that include project details to Receivables.

Here's the list of project costing specific tasks in Project-Driven Supply Chain along with a brief description.

Tasks Is This Mandatory? Description

Review approved commitments No Review approved requisition , purchase order,

and transfer order project commitments.

Perform adjustments No Perform adjustments on one or more

expenditure items.

Manage accounting No Review and validate accounting entries based

on the settings for your accounting and project
accounting periods, and the source accounting
lines of debit and credit events.

Manage burdening No Review the raw cost, burden cost, and burdened
cost of each transaction. Create accounting
for burden costs even when raw costs are
accounted in a third-party application.

Create and track accounting independently for

raw costs, burden cost, and burdened cost.

Capture Purchase Order Costs in Projects

Create a purchase order with project inventory as the destination to capture the cost of the inventory item and send it to
Oracle Project Costing, so that a project accountant can have an accurate view of the project's actual costs.

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Here are the steps you need to perform:

1. Run the Update Project Performance Data process to review the committed costs for requisitions on the
Manage Committed Costs page.
2. Import the approved purchase orders into Oracle Project Costing using the Import Costs process with the
transaction source set as Purchase Receipt after the item is shipped and the transaction is accounted and
costed in Oracle Cost Management.
3. After importing the transactions, you can view them on the Manage Project Costs page when you filter by
Document = Purchase Receipt and Transaction Source = Oracle Cost Management.
4. Then, add the Purchase Order, Distribution Line, Supplier, and Receipt Number references as columns via
the View menu on the Manage Project Costs page to identify the transaction source.
5. You can view these references on the Manage Unprocessed Costs page.
6. You can search by Purchase Order or Receipt Number on the Manage Cost Distribution page.
Project accountants and project managers can open the expenditure item to view the complete transactions details,
including the source document. Adjust one or more expenditure items using the Actions menu on the Manage Projects
page. Adjustments you perform in Oracle Project Costing won't be reflected in the source supply chain transaction.

Optionally, you can perform intercompany, burden and cost allocation business functions on expenditures items
incurred from supply chain activities. You can also view and adjust these transactions in the Manage Cost Distributions
task, and resolve any cost exception using the Manage Unprocessed Costs task.

Considerations for Capturing Purchase Order Costs in Projects

• The expenditure item date of the purchase order is the shipment date.
• You can't perform reverse type of adjustments for purchase orders.
• Project Costing receives the cost of the item as defined in Cost Management.
• Project Costing doesn't support budgetary control for inventory destination type of purchase orders. Inventory
destination type purchase orders are subjected to ledger control budgets and not to project control budgets.
• Project Costing supports budgetary control for expense destination type of purchase orders.
• Project Costing doesn't support billing by material item and service item.
• You can't delete a project task that has a purchase order.
• You can't move or copy existing tasks or directly create subtasks under a task that has a purchase order.

Capture Transfer Order Costs in Projects

Capture project attributes on a transfer order to transfer project-specific material that can be sourced from common
inventory or project inventory to meet project requirements.

Track the cost of the material received to the project, perform budget versus actual analysis, and capitalize the cost of
the investment.

Project accountants and project managers can track commitments for internal material transfer orders and requisitions
with inventory or expense destinations. Once the item is received, the committed costs are relieved and can be seen in
Project Costing as actual cost after running Import Costs.

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Here are the steps you need to perform:

1. Run the Update Project Performance Data process to review the committed costs for requisitions and transfer
orders on the Manage Committed Costs page.
2. Import the transfer orders into Oracle Project Costing using the Import Costs process with the transaction
source set as Oracle Fusion Cost management after the item is shipped and the transaction is accounted and
costed in Oracle Cost Management.
3. After importing the transactions, you can view them on the Manage Project Costs page when you filter by
Document = Transfer Order Delivery and Transaction Source = Oracle Fusion Cost Management.
4. Then, add the Transfer Order Number, Shipment Number, and Cost Element references as columns via the
View menu on the Manage Project Costs page to identify the transaction source.
5. You can view these references on the Manage Unprocessed Costs page.
6. You can search by Transfer Order Number or Shipment Number on the Manage Cost Distribution page.
Project accountants and project managers can open the expenditure item to view the complete transactions details,
including the source document. You can perform one or more adjustments on one or multiple expenditure items using
the action menu on the Manage Project Costs page. Adjustments you perform in Oracle Project Costing won't be
reflected in the source supply chain transaction.

Optionally, you can perform intercompany, burden and cost allocation business functions on expenditures items
incurred from supply chain activities. You can also view and adjust these transactions in the Manage Cost Distributions
task, and any cost exception can be resolved using the Manage Unprocessed Costs task.

Considerations for Capturing Transfer Order Costs in Projects

• The expenditure item date of the transfer order is the shipment date.
• You can't perform reverse type of adjustments for transfer orders.
• Project Costing receives the cost of the item as defined in Cost Management.
• Project Costing doesn't support budgetary control for inventory destination type of transfer orders. Inventory
destination type purchase orders are subjected to ledger control budgets and not to project control budgets.
• Project Costing supports budgetary control for expense destination type of transfer orders.
• Project Costing doesn't support billing by material item and service item.
• You can't delete a project task that has a transfer order.
• You can't move or copy existing tasks or directly create subtasks under a task that has a transfer order.

Capture Sales Order Issues in Projects

You can capture project details on sales orders to enable tracking the cost of goods shipped from common inventory to
a project.

Here are the steps you need to perform:

• Import Sales Order Issue transactions into Oracle Project Costing using the Import Costs process after the item
is shipped and the transaction is accounted for in Cost Management.
• After importing the transaction, you can add the Sales Order Number and Shipment Number references to
identify the transaction source via the View menu on the Manage Project Costs page.
• You can then view these transactions on the Manage Unprocessed Costs page.

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• You can search by Sales Order Number or Shipment Number on the Manage Cost Distribution page as well.
Project accountants can open the expenditure item to view the complete transactions details, including the source
document.

Points to Consider
Here are a few points to note about this feature:

• The expenditure item date of the sales order issue transaction is the shipment date.
• Project Costing receives the cost of the item as defined in Manufacturing Costing.
• Project Costing doesn't support billing by material item and service item.
• Drop shipments and back to back processing of project sales order lines aren't supported.

Capture Manufacturing and Maintenance Work Order

Costs in Projects
Capture project attributes on a work order so that you can track the cost of the material and resources used in the
product completion or maintenance activities against a project.

Import project related transactions and perform budget versus actual analysis, and invoice your customer based on the
percentage of completion or milestones achieved.

Here are the steps you need to perform:

1. Run the Update Project Performance Data process to review the committed costs assigned to requisitions,
purchase orders, or transfer orders with work order destination on the Manage Committed Costs page.
2. Import the work orders into Oracle Project Costing using the Import Costs process with the transaction
source set as Oracle Fusion Cost management after the transaction is costed and accounted in Oracle Cost
Management.
3. After importing the transactions, you can view them on the Manage Project Costs page when you filter by
Document = Manufacturing Work Order or Maintenance Work Orderand Transaction Source = Oracle
Fusion Cost Management.
4. Then, add the Work Order Number, Resource, Inventory Transaction, Resource Transaction, and Resource
Instance references as columns via the View menu on the Manage Project Costs page to identify the
transaction source.
5. You can view these references on the Manage Unprocessed Costs and Manage Cost Distribution page .
Project accountants and project managers can open the expenditure item to view the complete transactions details,
including the source document. You can perform one or more adjustments on one or multiple expenditure items using
the action menu on the Manage Project Costs page. Adjustments you perform in Oracle Project Costing won't be
reflected in the source supply chain transaction.

Optionally, you can perform intercompany, burden and cost allocation business functions on expenditures items
incurred from supply chain activities. You can also view and adjust these transactions in the Manage Cost Distributions
task, and resolve any cost exception using the Manage Unprocessed Costs task.

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Considerations for Capturing Manufacturing and Maintenance Work Order

Costs in Projects
• You can't perform reverse type of adjustments for work orders.
• By default, transaction control validations won't be performed during the Import Costs process, but you can
enable work order documents to revalidate transactions during import if required.
• Project Costing receives the cost of the item as defined in Cost Management.
• Project Costing doesn't support budgetary control for work orders.
• Project Costing doesn't support billing by material item and service item.
• You can't delete a project task that has a work order.
• You can't move or copy existing tasks or directly create subtasks under a task that has a work order.

Forecasting and Reporting on Supply Chain Transactions

with Multiple Cost Distributions
Oracle Projects tracks actual quantities on project-related item-cost or resource-cost transactions that have multiple
cost distributions in Supply Chain Management as a group. This enables forecasting and reporting on project tasks and
resources using transaction quantity, in addition to cost amounts.

Project-related supply chain costs that have multiple cost distributions in Fusion Cost Management are imported in
Projects as multiple project cost transactions but are treated as a group. The grouping is based on the inventory cost
distribution layer identifier for the applicable cost distributions in Fusion Cost Management. Only one of the project cost
transactions in the group, either a material or resource cost, displays the quantity value. All other transactions in the
group will have a quantity value of zero. The Source Transaction Quantity attribute continues to capture the quantity
value for all the transactions in the group. Because the quantity information is saved at the group level, forecasting and
reporting is more accurate. At the same time, you can view the quantity information associated with each project cost
transaction individually.

Here's an example to illustrate how grouping and quantity tracking happens.

Projects imports a project-related supply chain cost for the item Cable, which has a cost component for Material and
Overheads. Fusion Cost Management creates cost distributions for every cost element, and Projects imports multiple
cost distributions as individual project cost transactions (See table below.) Fusion Cost Management uses the inventory
cost distribution layer identifier to track inventory depletion, or Projects uses transaction receipts to group these cost
distributions from Fusion Cost Management. The Source Distribution Layer Reference attribute denotes this grouping
identifier. The quantity information is then captured against only a Material or Resource cost transaction in the group.
Other transactions in the group are updated with a zero-quantity value, while the attribute Source Transaction Quantity
continues to capture the quantity for each transaction. The Source Transaction Type denotes the inventory transaction
type associated with the group.

Here's a table depicting how the the Source Transaction Type, Source Transaction Quantity, and Source Distribution
Layer Reference columns appear in the Manage Project Costs page:

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Transaction Project Task Number Inventory Expenditure Quantity Source Source Source
Number Number Item Type Transaction Transaction Distribution
Quantity Type Layer
Reference

7234500 PDSC- 1.2.2 Cable Material 3 3 Miscellaneous 12345

TEST-001 Receipt

7234501 PDSC- 1.2.2 Cable Overhead 0 3 Miscellaneous 12345

TEST-001 Receipt

7234502 PDSC- 1.2.2 Cable Overhead 0 3 Miscellaneous 12345

TEST-001 Receipt

Select and add the Source Transaction Quantity, Source Distribution Layer Reference and Source Transaction Type
columns to the transaction list view of the Manage Unprocessed Costs, Manage Cost Distributions, and Manage Project
Costs pages in the Project Costing and Project Management work areas to identify and manage supply chain costs that
have multiple cost distributions.

Adjustments to Imported Supply Chain Transactions with Multiple Cost

Distributions
When you perform quantity-based adjustments, such as Split, Split and Transfer, and Transfer, on any project-based
supply chain cost that is part of a group, the adjustment impacts all project cost transactions in the group. Any quantity-
based adjustment to such transactions result in an update to the Source Transaction Quantity and Quantity values.
The Split, Split and Transfer and Transfer adjustment pages notify you of the impact if you attempt to adjust such
transactions. These pages also display the list of transactions related to the group that will be impacted as part of
the adjustment. If you perform adjustments to such transactions, any attempt to reconcile quantity balances with the
source application must always consider the quantity information across all adjustments made.

Non-quantity adjustments, such as adjusting billable and capitalizable values, and applying and releasing holds to
invoices and revenues, are allowed at the individual transaction level.

Billing Imported Supply Chain Transactions with Multiple Cost

Distributions
The application includes all zero and non-zero-quantity transactions that meet the invoicing eligibility criteria for
invoicing. It also includes transactions in the invoice line distributions for amount-based invoices based on the
transactions' billable or non-billable status. Rate-based billing does not apply to zero-quantity transactions.

Planning and Forecasting for Inventory Items that Require Multiple Cost
Transactions
The application rationalizes quantities across project cost transactions in a group to reflect actual quantities as
recorded in the supply chain activities. This enables you to review planned vs actual figures and use accurate quantity
information to reliably forecast requirements for supply chain inventory items that are planned on your project.

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Reporting on Supply Chain Transactions with Multiple Cost Distributions

The following OTBI Subject Areas of Project Costing offer Source Transaction Quantity, Source Transaction Type, and
Source Distribution Layer Identifier attributes that enable you to view quantity-related information associated with
project-based supply chain costs.

• Actual Cost Real Time

• Expenditure Items Performance Real Time
• Unprocessed Transactions Real Time
• Projects Cross Subject Area Analysis - Cross Transaction Measures

REST API for Managing Supply Chain Transactions with Multiple Cost
Distributions
Use the Source Transaction Quantity, Source Transaction Type, and Source Distribution Layer Identifier attributes in the
Project Costs and Unprocessed Project Costs REST APIs to manage supply chain transactions that have multiple cost
distributions.

Considerations for Managing Supply Chain Transactions with Multiple Cost

Distributions
• If you define the PJC_ZERO_QTY_NONBILL profile, the zero quantity transactions in the group of project-based
supply chain costs will be marked non-billable during import and adjustments. You can update the billable
information of the applicable project cost transactions only at the transaction level manually.
• When updating expenditure types on supply chain-based project cost transactions belonging to a group, it is
recommended to make changes or updates with the expenditure type of the same nature: from rate-based
expenditure type to rate-based expenditure type or non-rate-based to non-rate-based expenditure type.
• Split and Split-and-Transfer adjustments are not supported for supply chain-based project costs that involve
acquisition cost adjustments such as invoice price variances.
• Equal quantity adjustments for supply chain-based project costs belonging to a group are supported only for
Split-and-Transfer adjustments. For example, if you want to split an applicable transaction with a quantity of
100 at 50% and later transfer this to a different project and task, we recommend that you use the Split and
Transfer adjustment type instead of performing a split or transfer individually.

How can I perform budgetary control and encumbrance

accounting for my transactions?
You can perform budgetary control for both raw costs and burden costs and perform encumbrance accounting for
burden costs on project transactions.

Use the Manage Budgetary Control or Manage Encumbrance Accounting task from the Setup and Maintenance work
area to enable budgetary control.

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The project accounting business function requires that you enable budgetary control for a business unit before enabling
encumbrance accounting.

How can I perform budgetary control for project-specific procurement for

an inventory or work order destination?
Oracle Projects enables you to check for funds availability, reserve funds against control budgets, and account for
encumbrances, if applicable, when procuring material to an inventory destination for sponsored or non-sponsored
projects.

You have this ability even when procuring material directly to a work order destination from a project-specific
manufacturing or maintenance work order.

Use project-specific requisitions created with an inventory or work order destination, as well as back-to-back
requisitions, to reserve funds as commitments against projects or chart of account-based control budgets, or both,
when budgetary control is enabled for these transaction types. These funds can include both raw (requisition cost) and
related burden costs.

When you review a requisition in Procurement, you can check whether funds have been reserved for the requisition and
associated requisition lines. You can also see the destination of the requisition and project costing details, such as the
project number, budget date, and so on.

When you perform budgetary controlled validation on purchase orders created independently or from such requisitions,
you can see whether funds are reserved for them as an obligation. Liquidation of reserved funds on a requisition
happens when the requisition turns into a purchase order. Payables invoices do not play a part in this process. The
funds status on the purchase order is updated throughout the procurement lifecycle until the costs have been imported
into Project Costing.

The inventory receipt and costing of items for such purchase orders are not budgetary controlled in Receipt Accounting
or Cost Management. It is at the time of importing the purchase order related inventory costs from Supply Chain Cost
Management into Project Costing that the purchase order obligation is liquidated, and the inventory costs reserved as
project expenditures. This includes raw (inventory) costs and related burden costs. If the burden schedule associated
with the project has been updated with new rates between purchase order creation and the import of inventory costs
into Projects, the revised burden rates will be used to reserve the funds. Project Costing will also liquidate the raw and
burden costs originally reserved against the purchase order.

Use the Budgetary Control Analysis Report to view control budget balances for non-sponsored projects, and the
Manage Awards page to view control budget balances for sponsored projects.

Here's an image displaying the requisition, purchase order, and project cost created for the purchase order inventory
receipt, denoted in the image as Project Expenditure, which is our project cost.

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The Budget Control Analysis Report enables you to identify the stage in the lifecycle of a supply-chain-related project
cost at which the requisition becomes a purchase order, and the commitment becomes an obligation, and on receipt,
a project cost. This report enables you to track when a requisition was made, when the funds were reserved, when the
requisition was approved, and so on. For example, the report shows that when a requisition gets approved, related
funds get reserved, and the requisition creates a commitment. You can then see how, at the Purchase Order stage,
the commitment gets liquidated, and the purchase order amount becomes reserved as an obligation until goods are
received and payment made. The obligation is then liquidated, and a project cost is created.

Customers who are working on sponsored projects and are using these features can view similar details in the Grants
Management > Awards > Manage Awards > Award page.

Note: Payables invoices associated with project-specific purchase orders with inventory and work order destinations
are not applicable for budgetary control validation. Invoice variances, if any, will be budgetary controlled by the
Import Costs process in Project Costing when the acquisition adjustment costs are imported from Supply Chain Cost
Management. Payables Invoices now display project attributes at the invoice line and distribution levels for invoices
matched to project-specific purchase orders

If encumbrance accounting is enabled for the relevant business function and transaction subtypes, then accounting
and liquidation of the encumbered raw and burden costs is done when creating accounting for the requisition, purchase
order, receipt accounting, and project costs.

Returns, cancellations, and other adjustments on project-specific purchase orders to an inventory or work order
destination and back-to-back orders are budgetary controlled. Applicable encumbrances are also accounted.

Funds that the Project Costing subledger reserved at the time of importing purchase order costs from the Supply Chain
Cost Management application might differ from the accounted encumbrances on the same transaction. This is because
the Supply Chain Cost Management application could have imposed item cost overheads, resulting in additional costs
to the originally encumbered purchase order costs. Funds reservation in Project Costing will be based on these actual
costs received from the Supply Chain Cost Management application.

Tips and Considerations

Here are a few tips and considerations that you must keep in mind while using this feature:

Budgetary Control
• Transaction subtypes that support budgetary control and account encumbrances for a project-specific
procurement to an inventory or a work order destination and back-to-back orders are enabled by default for
newly created business units and ledgers that are enabled for budgetary control. These transaction subtypes
will remain disabled for business units and ledgers that were enabled for budgetary control before these
subtypes were created. They will have to be manually enabled if you would like to have budgetary control and
account encumbrances for project-specific procurement to an inventory or work order destination and back-to-
back orders.
• To successfully budgetary control and account encumbrances for a project-specific procurement that
involves use of both requisitions and purchase ordersto an inventory or a work order destination and back-
to-back orders, you must enable the budgetary control transaction subtypes for both the Requisitioning and
Procurement business functions. Failure to enable these subtypes for both the business functions will result in
funds being reserved or liquidated incorrectly.

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Requisitions
Project-specific requisitions for inventory or work order destination as well as back-to-back requisitions created before
enabling budgetary control or encumbrance accounting for requisition transaction subtypes will remain not applicable
for budgetary control and encumbrance accounting. Once you enable these transaction subtypes for the requisitioning
business function, only new requisitions will be subject to budgetary control and encumbrance accounting.

Purchase Orders
Project-specific purchase orders for inventory or work order destination, as well as back-to-back purchase orders
created before budgetary control is enabled for these transaction subtypes, will continue being excluded from
budgetary control and encumbrance accounting throughout their fulfillment cycle. Once budgetary control for these
transaction types is enabled for existing inventory or work order destination purchase orders, the changes listed below
will trigger budgetary control and encumbrance accounting.
• Changes to account, project, or budget date
• Addition of back-to-back or project-specific lines, schedules, or distributions

Receipt Accounting and Cost Management

• Verify that the journal sources for cost accounting and receipt accounting are displayed in the Budgetary
Control Journal Exceptions section, under the Ledger Options region in the Edit Budgetary Control and
Encumbrance Accounting page. Add these sources if they have not been previously included.

• The encumbrance liquidation of raw (purchase order) costs will be done by the Receipt Accounting subledger
using the following transaction types:

Transaction Flow Transaction Type

Delivery of Receipt into Inventory Delivery to Inventory Destination

Delivery of Receipt into Work Order Delivery to Work Order Destination

Correction to Delivery Event Correction to Deliver for Inventory

Correction to Deliver for Work Order

Return to Receiving Return to Receiving for Inventory

Return to Receiving for Work Order

Price update on Inventory Purchase Order Cost Adjustment - PO Price Update for Inventory Destination

Price update on Work Order Purchase Cost Adjustment - PO Price Update for Work Order Destination
Order

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• Encumbrance liquidation of raw costs due to price update to a purchase order is done only for the uninvoiced
receipt quantities in Receipt Accounting using the transaction types Cost Adjustment - PO Price Update for
Inventory Destination and Cost Adjustment - PO Price Update for Work Order Destination.

• To successfully reserve funds for invoice variance costs in projects for project-specific purchase orders to
an inventory and work order destination, disable the profile option to Exclude Invoice Variances from Cost
Management, if enabled.

• For description-based purchase orders without item reference and to a work order destination, the
encumbrance liquidation and budgetary check will be done directly in receipt accounting using the Delivery to
Expense transaction type.

Projects
• Project-specific purchase orders to an inventory or work order destination and back-to-back orders that were
created prior to enabling the new transaction subtypes may exist. This can also include inventory receipts
and returns. If these project costs are imported into the Project Costing subledger after enabling the new
transaction subtypes, they will be subject to budgetary control in Project Costing. Funds reservation will happen
in Project Costing for such scenarios irrespective of whether funds were originally reserved at the time of
creating the purchase order or not. It is recommended you review and adjust your control budgets to allow for
these reservations.

• Budgetary control, when enabled for this feature, is successful only for projects with project types that have not
been enabled for exclusion from cost collection in the Manage Project Type Cost Exclusions task.

• The encumbrance liquidation of the purchase order raw costs will be done by Receipt Accounting, and that
of burden costs associated with the purchase order by Project Costing. It is recommended that you run the
relevant create distributions and accounting processes for each application without delay to ensure the
encumbrances are accounted promptly.

Payables
• Before this feature, for budgetary control enabled ledgers, Payables reserved funds for invoice price variances
in the applicable control budgets when the invoice was matched to project-specific purchase orders to an
inventory destination. With this feature, Payables stops reserving funds for invoice price variances, and the
reservation will instead be done by Project Costing. We recommend that you review your existing user-defined
business flows that could be impacted by this change.

• When invoice price variances exist for project-specific purchase orders to an Inventory and Work Order
destination, the funds status for such distributions will show as not applicable. These distribution lines are also
not subject to further funds reservation at General Ledger.

• Before this feature, for capital projects or construction-in-process (CIP) projects, there was a possibility of
capitalization or asset lines being created twice, once in Payables and again in Projects, if the accrual account is
also an asset clearing account. With the project details being captured at Payables, this will no longer occur. It

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is recommended to review your existing user-defined business flows, if any, that could be impacted due to this
change.

• View and report project details on payables invoice lines and distributions, available in the Payables Invoices >
Transactions Real Time OTBI Subject Area.

Other
• Budgetary control for purchase orders related to outside processing services or contract manufacturing is not
supported at this time.

• Budgetary control and encumbrance accounting is not supported for project-specific internal material transfer
requisitions to an inventory destination.

FAQs for Project-Driven Supply Chain

How can I amend the project attributes on an open purchase
order?
Create a change order to edit the project-related attributes in an open purchase order, and resubmit the document for
approval.

If budgetary control is enabled, project funds checks, adjustments to funds reservations and encumbrance accounting
are automatically handled based on the new values defined on the project related purchase order line.

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5 Project Cost Adjustments

Overview of Reviewing and Adjusting Project Costs

Perform adjustments to your processed project costs and commitments after reviewing them in Oracle Fusion Project
Costing.

You can review and adjust your cost transactions both before and after importing them to Oracle Fusion Project
Costing.

Project Costs Adjustment Approval Workflow

By default, cost adjustments are automatically approved. If you want project costs adjustments to be approved by
authorized users, you can configure the ApproveAdjustment adjustment approval workflow. This workflow is triggered
when a user doesn't have adjustment approval privileges.

Note: Some adjustments, such as a change in a comment on project cost, or an update account operation, don't
trigger a workflow.

If you want to update the business rules associated with approval configuration, or configure the approval workflow
to incorporate parallel approval, request your project application administrator to configure the ApproveAdjustment
human task. The Manage Task Configurations for Project Financial Management task under Setup and Maintenance
enables authorized users to update the adjustment approval workflow.

Supported Adjustment Types

Here are the cost adjustments that can trigger the ApproveAdjustment adjustment approval workflow:

Note: The adjustment type codes are the lookup codes available for the lookup type PJC_ADJUSTMENT_TYPE.

Adjustment Type Adjustment Type Code Description

Hold invoice until released BILL_HOLD Hold a project cost from invoicing until
removed.

Hold invoice once ONE_TIME_HOLD Hold a project cost from invoice once.

Hold revenue until released REVENUE_HOLD Hold a project cost from recognizing revenue
until hold is removed.

Release invoice hold REMOVE_BILL_HOLD Remove a project cost from invoice hold.

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Adjustment Type Adjustment Type Code Description

Release revenue hold REMOVE_REVENUE_HOLD Remove a project cost from revenue hold.

Set to billable BILLABLE Set a project cost as billable.

Set to nonbillable NON_BILLABLE Set a project cost as nonbillable.

Set to capitalizable CAPITALIZABLE Set a project cost as capitalizable.

Set to noncapitalizable NON_CAPITALIZABLE Set a project cost as noncapitalizable.

Change work type CHANGE_WORK_TYPE Adjustment to change the project cost work
type.

Split SPLIT Adjustment to split a project cost.

Transfer TRANSFER Adjustment to transfer a project cost.

Split and transfer MULTI_SPLIT_TRANS Split and transfer a project cost.

Privileges Required to Approve Project Costs Adjustment Approval

Workflows
Each adjustment approval privilege provides the ability to approve specific adjustment requests. When users with these
privileges make adjustments, the adjustment approval workflow isn't triggered.

Users with the following privileges can perform project cost adjustments without triggering the approval workflow:

Privilege Description Supported Adjustments

Approve Project Expenditure Item Billing Hold Allows approval of billing hold on project costs. • Hold invoice until released
Change
• Hold invoice once
• Release invoice hold

Approve Project Expenditure Item Billing Status Allows approval of project costs billing status • Set to billable
Change change.
• Set to nonbillable

Approve Project Expenditure Item Capitalizable Allows approval of project costs capitalizable • Set to capitalizable
Status Change status change.
• Set to noncapitalizable

Approve Project Expenditure Item Revenue Allows approval of revenue hold on project • Hold revenue until released
Hold Change costs.
• Release revenue hold

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Privilege Description Supported Adjustments

Approve Project Expenditure Item Split and Allows splitting and transferring of project Split and Transfer
Transfer costs.

Approve Project Expenditure Item Split Allows approval of splitting project costs. Split

Approve Project Expenditure Item Transfer Allows approval of the transfer of project costs. Transfer

Approve Project Expenditure Item Work Type Allows approval of the work type change of Change work type
Change project costs.

Related Topics
• Workflows in Oracle Project Management

How Project Cost Adjustments are Processed

Project cost adjustments include expenditure item modifications that are required after you import project transactions
into Oracle Fusion Project Costing.

For example, a project cost adjustment is needed if a transaction is incorrectly charged to a project or task. You can
correct the transaction by performing an expenditure item adjustment of transferring the costs to a different project or
task or changing cost or burden rates for the expenditure item. Oracle Fusion Project Costing adjusts the expenditure
items and performs the related cost processing. You can review expenditure items and then perform various costing
and billing adjustments.

Settings That Affect Project Cost Adjustments

The document entry option to allow adjustments determines if adjustments can be performed on the expenditure items
created for that document entry.

How Adjustments Are Processed

Perform adjustments to recalculate cost or cross-charge amounts, recalculate currency conversions, change the billing
status, or split the quantity and transfer the expenditure items to another project or task. You can perform one or more
adjustments on one or multiple expenditure items. However, you can only perform one type of adjustment at a time,
regardless of the number of expenditure items that will be impacted. Depending on your privileges, you either submit
the adjustment for approval or approve adjustments and submit them for processing.

The application processes the expenditure items for the adjustment along with cost processing. The expenditure items
go through the basic validation. Then, depending on the adjustment type, the expenditure items are run through the
Import and Process Cost Transactions process.

The application rolls back the processing automatically for process validation errors such as those for pricing,
accounting, period derivation, and for transaction control violations. For split and transfer expenditure item
adjustments, if transferring of any one of the expenditure item fails, then the application doesn't create new expenditure
items or the associated cost distributions. The original expenditure item is set to rejected status and the error details

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are provided in the adjustment history of the expenditure item. For other adjustments such as billable status changes
or raw cost and burden cost recalculation, the application rolls back the creation of the reversing and new cost
distributions and updates the original expenditure item as rejected. You can't cancel an adjustment performed on an
expenditure item for which funds are already reserved against a control budget.

The application tracks adjustment history for the expenditure item, including details such as the person submitting the
adjustment and the submission date. It also records whether the adjustment comes from costing, invoice, or revenue.
Review the errors and then either cancel or reprocess the adjustment.

You can review the cost distributions for a specific period, and compare and reconcile the cost amounts to amounts in
other applications.

Related Topics
• Expenditure Item Adjustment Statuses

Expenditure Item Adjustment Statuses

After reviewing and submitting expenditure item adjustments for processing, Oracle Fusion Project Costing processes
expenditure items for the specified costing and billing adjustments. The application tracks the adjustment activity in the
Adjustment History of the expenditure item.

You can review the adjustment status and process the expenditure item accordingly.

Expenditure Item Adjustment Statuses

The following table describes the possible adjustment statues of expenditure items during adjustment processing.

Resulting Adjustment Status Description Tasks You Can Perform

Pending Approval Adjustment is submitted and is pending for You can't cancel an adjustment in this status.
approval. Once approved, the status changes to
completed.

Pending Adjustment is submitted for processing. You can cancel the adjustment.

Failed Adjustment isn't selected for processing You can't resubmit or cancel an adjustment
because of validation errors. Failure reasons are in this status. The transaction failed because
provided. of basic adjustment validation such as project
status is closed or not allowing adjustment on a
net-zero expenditure item.

The billing adjustments aren't validated for

the closed status of a project because you can
perform adjustments on a closed contract.

Rejected Adjustment is rejected for processing by the Review the error details, correct the issues, and
Import Costs process due to processing errors, then resubmit to process them again. You can
transaction control validation errors, or costing cancel the adjustment. Even if two adjustments
errors. in rejected status exist, you can cancel one of
them independently.

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Resulting Adjustment Status Description Tasks You Can Perform

Completed Adjustment is successfully completed. None

Canceled Adjustment is canceled. You can cancel only None

pending or rejected adjustments of any type
except rebuilding burden costs and updating
project and task organizations.

You can cancel only pending or rejected adjustments of any type except rebuilding burden costs and updating project
and task organizations. Also, you can't cancel an adjustment performed on an expenditure item for which funds are
already reserved against a control budget.

Review Budgetary Control Validation Errors

You can review budgetary control validation errors and resolutions in the Project Budgetary Control Validation and
Balance Activities diagnostic report.

You can generate the diagnostic report in the following manner.

1. Sign in as the application diagnostics administrator.
2. Select Run Diagnostics Tests... under Troubleshooting from your user profile menu.
3. Search for the test Project Budgetary Control Validation and Balance Activities on the diagnostic dashboard.
4. Click the check box to select the diagnostic test and click Add to Run on the toolbar.
5. Click the warning icon under the Input Status column to open the Input Parameters window.
6. Enter the required parameters under the New Value column and click OK.
7. Verify that the warning icon changes to success under the Input Status column and click Run on the toolbar.
8. Click OK to close the confirmation message and click the refresh icon on the toolbar of the Diagnostic Test
Run Status table.
9. Expand the test run so that the Project Budgetary Control Validation and Balance Activities test appears.
10. Click the View Test Results icon under the Report column to review the diagnostic report.

Configure Approval Notifications for Project Cost

Adjustments
Configure custom workflow notification reports by copying predefined templates from the Shared Folders/Projects/
Workflow Notifications/Project Cost folder in Oracle BI Publisher Enterprise and modifying them to suit your
notification requirements.

For example, you can change the report layout, include or remove information from the report based on your approvers'
needs, add a company logo, and so on. Changes made to notification templates are updated every 24 hours by default.
You can, however, configure the application to make your changes available sooner by creating relevant profile options.
See Apply Changes to Workflow Notifications Soon After Upload in the Oracle Applications Cloud Implementing
Applications guide for more details.

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You can use links in the notification report content to navigate to the Manage Project Costs or the Project Cost
Transaction page and view transaction details. You will, however, need data access to the project costs to be able to do
so.

Some of the attributes in the notification reports appear only if applications that manage these attributes are available
to your account. For example, transaction attributes like Contract Number and, Funding Source appear in the
notification only if Grants Management is enabled. Similarly, attributes such as Source Distribution Layer Reference and
Source Transaction Quantity appear only for project-driven supply chain transactions.

FAQs for Project Cost Adjustment

Can I adjust an expenditure item to be both billable and
capitalizable?
Yes, an expenditure item can be both billable and capitalizable. You can adjust expenditure items for both the attributes.

Can I perform all adjustments on multiple expenditure items?

You can perform all the adjustments when you select multiple expenditure items except adjustments that are performed
on a single expenditure item, such as the following.

• Edit comment
• Split
• Split and transfer

What happens if I split and transfer an expenditure item with

related expenditure items?
When you perform a split, transfer, or split and transfer adjustment on an expenditure item that has related items, the
application automatically reverses the source transaction and related transactions and creates expenditure items that
result from the split and transfer adjustments.

You can't split and transfer a related item independently to another project or task. However, you can perform billing
adjustments and other adjustments such as changing the capitalizable status of an expenditure item and the related
expenditure items independently.

Note: The quantity of the split expenditure type must be less than the oiginal expenditure item quantity.

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Can I prevent expenditure items from being recognized for

revenue?
Yes. You can place expenditure items on revenue hold to stop the expenditure items from being recognized for revenue.

If the expenditure items are already recognized, then they're identified for reversing during the next revenue generation
and aren't eligible until the revenue hold is released.

Can I prevent expenditure items from being invoiced?

Yes. You can place expenditure items on invoice hold to stop the expenditure items from being invoiced. If the
expenditure items are already invoiced, then they're identified for reversing during the next invoice generation and
aren't eligible until the invoice hold is released.

For external or interproject billing, you can select either the Hold Invoice Once or Hold Invoice Until Released option
to place expenditure items on invoice hold. For intercompany billing, you can select only the Hold Invoice Until
Released option to place expenditure items on invoice hold.

Selecting Hold Invoice Once prevents an expenditure item from being invoiced until an invoice is released for a contract
line which is associated with the expenditure item. Selecting Hold Invoice Until Released prevents an expenditure item
from being invoiced until you release the invoice hold by selecting the Release Invoice Hold option.

Why are some of the expenditure items adjustments not

processed?
Expenditure item adjustments aren't processed if:

• The document entry of the expenditure item doesn't allow adjustments.

• The Adjust transactions status control of project status doesn't allow transaction adjustments.
• The expenditure item is already adjusted or reversed.
• The expenditure item is a net zero expenditure item.
• The same adjustment type for the expenditure item is already pending or rejected.
• The expenditure item is marked as a converted transaction and the adjustment type is other than Edit
Comment, or Hold and Release Invoice and Revenue.
• You don't have the privilege to adjust.

What's the source of summarized amounts?

Cost distribution lines become the source because they provide detailed data for summarized amounts.

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Summarized amounts are grouped by period, billing or capitalization status, and resource assignments that reside on
the distributions. Cost distribution lines are also the source for accounting events and can be used to reconcile with
general ledger balances.

How can I view source transaction details for a transaction?

On the Manage Project Costs page, view source transaction details for a selected transaction from the Actions menu.

Alternatively, navigate to the Expenditure Item page by clicking the transaction number link. You can view the source
transaction details by clicking the invoice number link in the Supplier Invoice Details section.

How can I perform a mass adjustment?

In the Manage Project Costs page, select the transactions that you want to update and click Create Mass Adjustment.

In the Create Mass Adjustment page, select the adjustment type, provide justification, select the project or task to
transfer to, or work type to change to depending on the adjustment type selected, and submit the adjustment.

Can I cancel an expenditure item adjustment if funds are already

reserved on a control budget?
No. You must fix the error by performing another adjustment that transfers the transaction back to its original source.

Can I monitor and troubleshoot project cost adjustment and

project expenditure batch approval workflows?
Project application administrators can use the Transaction Console to monitor workflow tasks and resolve any
exceptions for the Project Cost Adjustment Approval and Project Expenditure Batch Approval workflows.

Project application administrators can review and prioritize workflow exceptions and either resubmit tasks after making
a correction to the underlying rules, or withdraw the tasks in progress. The Transaction Console also provides details
associated with workflows, such as approval history and comments, as well as diagnostic logs to assist with debugging.

Project application administrators can also use the Approval Rules page on the Transaction Console to quickly launch
BPM Worklist to modify approval workflow rules as appropriate.

For more information on working with the Transaction Console, see the Workflow Transaction Console section in the
Implementing Common Features for Financials and Project Portfolio Management guide.

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Can I create parallel participants for a Project Cost Adjustment

Approval workflow?
Yes. Use the ApproveAdjustment workflow in BPM Worklist to configure approval rules for the project cost adjustment
approval workflow and route the workflow to multiple approvers in parallel.

You can also update the number of stages and participants (sequential and parallel) in the workflow. For parallel
approvals, you can also determine an outcome based on the voting percentage of parallel participants (within a stage or
across stages).

For detailed information on using BPM Worklist to update approval workflows, see Workflow Approvals and
Notifications in the Implementing Common Applications guide.

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6 Project Rate Schedules

Overview of Project Rate Schedules

Specify project rates and schedules for your planning, costing, and billing requirements in Oracle Fusion Project
Costing.

You can specify schedule types such as job, person, nonlabor, and resource class for your rate schedules in Oracle
Fusion Project Costing.

Rate Schedule Types

Schedule types determine usage for rates within rate schedules. You specify a schedule type for rate schedules created
for costing, billing, or planning purposes in Project Financial Management applications.

The schedule types are:

• Job
• Person
• Nonlabor
• Resource class
• Project role

Job
Job rate schedules contain rates used to calculate amounts for the following types of labor transactions:

• Costing
• Billing (invoice and revenue)
• Planning
• Budgeting
• Forecasting
• Transfer price

If you're using planning rates for financial or project planning, you can select a specific job rate schedule when
configuring rate settings at the plan type or project level. Job rate schedules are used if rates can't be derived from the
person labor rate schedule.

When creating a job schedule type, you must select a job set from Oracle Fusion Human Capital Management. The job
set is the source of jobs in your rate schedule. Assign rates or markup percentages to jobs in the rate schedule.

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Person
Person rate schedules maintain rates by named worker and are used to calculate the cost or price of project labor
transactions. Person rate schedules have applications in project costing, billing, and planning activities. You can define
rates for workers with active, terminated, future, or no assignments.

When you define a person rate schedule, the name of the person is mandatory, but you can optionally include a
worker's job and organization from any one of their HR assignments. The list of values for person name is dependent on
the From Date of the rate schedule line. In addition to person name, if a person's job is selected then the organization
defaults from the same HR assignment from which the job was picked (although the default organization can be
removed if required).

In summary, within a person rate schedule you can maintain rates at the following levels:

• Person
• Person and job
• Person, job, and organization

For example, if a rate schedule entry exists for Person A, where only the person’s name has been entered, and another
rate schedule entry exists where both the person’s name and job have been entered, the latter will take precedence.
Highest precedence is for the rate schedule entry having values for person, job, and organization.

Costing: When a rate schedule is created for project costing purposes, the schedule contains raw cost rates that you
can use to calculate the raw cost amount of a project labor transaction. For example, a person cost rate schedule may
contain a rate of $100 for Person A. If person A enters a timecard for 8 hours, the calculated raw cost for that timecard
would be $800.

Billing: When a rate schedule is created for project billing purposes, the schedule contains either a bill rate or a markup
for each worker. You can use person rate schedules to calculate the revenue or invoice amounts for rate-based revenue
or bill plans, or the transfer price of resources for intercompany billing. For example, a bill rate schedule may contain
a rate of $150 for Person A. The bill amount for Person A’s timecard is calculated as 8 hours x $150 bill rate = $1200
(therefore giving a $400 margin). Alternatively, markup can be used to apply a fixed amount on top of the cost. For
example, a person bill rate schedule may contain a markup of $25 for Person A. The bill amount is therefore calculated
as $100 cost + $25 markup = $125.

Planning: Financial project plans, budgets and forecasts can be configured to either use rate schedules specific to
planning, or to use the same rate schedules as actual cost and billing transactions. In either scenario person rate
schedules may be used.

Nonlabor
Nonlabor rate schedules contain rates or markup percentages that calculate cost, bill, revenue, plan, budget, forecast, or
transfer price amounts for nonlabor resources.

Enter a rate or markup percentage for expenditure types with the Rate Required option enabled. Otherwise, assign
it only a markup percentage. Assign rates to nonlabor resources and optionally define rates for nonlabor resource
organizations.

If you're using planning rates for financial or project planning, you can select a specific nonlabor rate schedule when
configuring rate settings at the plan type or project level.

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Resource Class
Resource class schedules contain the planning rates or markup percentages for a resource class or a combination
of resource class and organization. You optionally assign a resource class schedule to a project plan or financial plan
(budgets and forecasts) at the plan type level or version level. The resource class rate schedule determines rates for the
associated resources if the rates can't be derived elsewhere.

Enter a rate or markup percentage for each resource class in the rate schedule. Optionally, assign the rate or markup
percentage to a specific organization for a resource class.

Project Role
Use project role rate schedule to define bill rate or cost rate for a project role. You can assign them to project plan type or
financial plan type.

Related Topics
• How Labor Cost Rates Are Calculated
• Considerations for Selecting Rate Schedules for Project and Financial Planning
• How Invoice and Revenue Rates Are Determined
• Job Mapping

Import Project Rate Schedules Process

Use the Import Project Rate Schedules process to import project rate schedules from third-party applications, create
new project rate schedules, or update existing project rate schedules.

You can use the Project Rate Schedules Interface macro-enabled Excel workbook template to prepare data for loading
and importing, and ensure that your data conforms to the structure and format of the target application database
tables. The workbook contains the following worksheets:

• Instructions and CSV Generation: Table-specific instructions, guidelines, formatted spreadsheets, and
recommendations for preparing the data file for upload.
• Rate Schedules: Project rate schedule details such as schedule name, schedule type, currency, and so on.
• Person Rates: Labor rate details such as person name, rate, markup percentage, and so on.
• Job Rates: Job rate details such as the job code, cost or billing rate, and so on.
• Nonlabor Rates: Nonlabor rate details such as expenditure type, rate, markup percentage, and so on.
• Resource Class Rates: Resource class rate details such as resource class, unit of measure, rate, and so on.
• Cost Rate Overrides: Cost rate overrides details such as person, job, expenditure type, rate, and so on.
• Bill Rate Overrides: Bill and revenue rate overrides details such as contract, plan type, person, job, expenditure
type, rate, and so on.
After you prepare the data in the Project Rate Schedules Interface Excel template, click the Generate CSV File button
in the template to create the CSV files in a ZIP file format to load data to the interface tables. Optionally, you can bypass
the Excel template and manually create the CSV files.

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On the Scheduled Processes page, submit the Load Interface File for Import process followed by the Import Project Rate
Schedules process to transfer data to the application database tables. After the import process is complete all records
are purged from the open interface tables.

Import Project Rate Schedules Process: Parameters

Rate Schedule

Name of the project rate schedule that's imported from the interface tables into the application. If you don't specify a
value, then all the rate schedules that exist in the interface tables are imported.

Report Success Details

Option to display or hide the successfully imported rate schedules, person rates, job rates, nonlabor rates, and resource
class rates in the Import Project Rate Schedules Report. The default value is No.

Output Reports
The Import Project Rate Schedules process generates an Import Project Rate Schedules report in PDF format. In case
the Import Project Rate Schedules process result in errors, the application also generates an additional output file
named Import Project Rate Schedules [Link].

The Import Project Rate Schedules report (PDF format) displays the processing errors, warnings, and exceptions
encountered during the import process. The report can optionally display all the rate schedules and rates that were
successfully imported. Review the PDF report for the rate schedules and fix the issues in your data. Reload the updated
data to the interface tables and resubmit the Import Project Rate Schedules process.

The Import Project Rate Schedules Rejections sheet contains only the records that failed due to an error and includes
a detailed message for each failed row. You can use the Import Project Rate Schedules Rejections sheet to correct the
errors and generate the CSV files again. Repeat the error correction steps and resubmit the process until all rows are
imported successfully.

Related Topics
• Overview of External Data Integration Services for Importing Data

FAQs for Project Rate Schedules

How can I bill a nonlabor expenditure item at cost?
Enter a zero percent markup for the expenditure type on the nonlabor rate schedule.

How can I define bill rates for inventory items?

You can enter cost markups in the nonlabor rate schedule instead of rates for expenditure types that are related to
inventory items.

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Alternatively, if you enter a bill rate for an expenditure type that relates to inventory items, then the base unit of measure
for inventory transactions reported under the expenditure type must be the same as the unit of measure for the
expenditure type. If the base unit of measure for an inventory transaction differs from the unit of measure for the
expenditure type, the Generate Revenue process reports an error and doesn't process the transaction.

Where does the transaction currency for nonlabor expenditures

come from?
The transaction currency of a nonlabor transaction comes from one of two possible sources.

If the nonlabor expenditure type uses a rate and quantity, then the transaction currency of the expenditure is the same
as the transaction currency in the nonlabor rate schedule.

If the unit of measure of the nonlabor expenditure type is currency, then the transaction currency equals the ledger
currency.

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7 Accounting for Project Transactions

Overview of Accounting for Project Transactions

Perform accounting for your project costs and commitments using Oracle Fusion Project Costing.

You can review and validate accounting entries based on the settings for your accounting and project accounting
periods.

How Accounting Burden Costs are Processed

Burdening enables you to review the raw cost, burden cost, and burdened cost of each transaction. You control burden
accounting options by project type. Create accounting for burden costs in Oracle Fusion Project Costing even when raw
costs are accounted in a third-party application.

Settings That Affect Accounting of Burden Costs

When you define the project type, you specify the burden cost accounting options:

• Create burden cost accounting journal entries: Burden cost entries create an entry for the burden amount. If
burden cost is created on the same expenditure item, then this is the burden cost amount that was calculated. If
burden cost is created on a separate line, burden amount is zero on the source transaction because the raw and
burdened costs are the same.
• Create burdened cost accounting journal entries: Burdened cost entries create entries for the burdened
amount. If burdened cost is created on same expenditure item, then an additional entry is created for the
burdened cost amount. If burdened cost is created as a separate expenditure item, it creates an entry for each
source transaction for the same amount as the raw cost. It creates another entry for the burden expenditure
items for the burdened cost.

How Accounting Is Performed

Based on the burden cost accounting options, the application performs accounting of burden costs as shown in the
following examples.

Note: The Create Accounting process for requisitions and POs creates a single journal header for both raw and
burden costs during encumbrance accounting.

Accounting for Burden Costs by Burden Cost Code

Accounting by burden cost code is applicable only when you choose to create separate expenditure items for
each burden cost code. You can account for individual burden cost codes to track each in Oracle Fusion Subledger

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Accounting and Oracle Fusion General Ledger. The following table lists the accounting entries for a labor transaction
that has fringe, overhead, and general and administrative burden costs.

Transactions Accounting Transactions Debit Credit

Labor Cost Labor Expense 300 0

Labor Cost Payroll Clearing 0 300

Summarized Burden Cost Project Fringe Expense 250 0

Summarized Burden Cost Fringe Absorption or Recovery 0 250

Summarized Burden Cost Project Overhead Expense 300 0

Summarized Burden Cost Overhead Absorption or Recovery 0 300

Summarized Burden Cost Project General and Administrative 150 0

Expense

Summarized Burden Cost General and Administrative 0 150

Absorption or Recovery

Accounting for Burden Costs

Accounting by burden cost is applicable only when you choose to include burden cost on the same expenditure item as
the raw cost. The following table lists the accounting entries for a labor transaction and burden cost amount of 700.

Transactions Accounting Transactions Debit Credit

Labor Cost Labor Expense 300 0

Labor Cost Payroll Clearing 0 300

Labor Cost Work-in-Progress Project Cost 700 0

Labor Cost Labor Burden Work-in-Progress 0 700

Transfer

Encumbrance Accounting for Burden Costs

The burden and burdened costs get actual accounted when you perform encumbrance accounting on burden costs.
The offsetting reversals for the reserved for encumbrance and PO obligation entries are recorded based on the

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liquidation amount of the PO obligation. The following table lists the accounting entries for an overhead transaction
with a burden cost amount of 16.

Transactions Accounting Transactions Debit Credit

Overhead Actual Burdened Cost 66 0

Overhead Actual Burden Cost 16 0

Overhead Actual Burdened Cost Clearing 0 66

Overhead Actual Burden Cost Clearing 0 16

Overhead Encumbrance Reserve for Encumbrance 16 0

Overhead Encumbrance PO Obligation 0 16

Note: For separate line burdening you must run the Generate Burden Costs process and then perform accounting to
create the encumbrance accounting entries for burden costs.

Accounting for Burdened Cost

You can account for the burdened cost of the items, without distinguishing the amounts by burden cost components.
Use this approach to track the burdened cost in a cost asset or cost work-in-progress account. This method is
sometimes referred to as project inventory. You can track the work-in-progress cost when you:

• Capitalize burdened cost.

• Track the burdened cost as work-in-progress cost on contract projects and later calculate a cost accrual when
you generate the revenue.

The following table lists the burdened cost accounting entries for a labor transaction that has fringe, overhead, and
general and administrative costs. The burdened cost amount is 1,000.

Transactions Accounting Transactions Debit Credit

Labor Cost Labor Expense 300 0

Labor Cost Payroll Clearing 0 300

Labor Cost Burdened Cost 1000 0

Labor Cost Burdened Cost Clearing 0 1000

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Accounting for Burden and Burdened Costs

You can also account for the burden and burdened cost of the items. The following table provides an example of burden
costs and burdened costs accounting.

Transactions Accounting Transactions Debit Credit

Labor Cost Labor Expense 300 0

Labor Cost Labor Clearing 0 300

Labor Cost Burden Expense 700 0

Labor Cost Burden Clearing 0 700

Labor Cost Burdened Cost 1000 0

Labor Cost Burdened Cost Clearing 0 1000

You can store burden cost on project transactions without an accounting impact by not selecting either of the
accounting options in project type.

Note: If you're capitalizing burdened costs, then you must also account the burdened costs.

You must set up account derivation rules so that they derive the same account number for both the debit and the credit.
The accounts are derived by subledger accounting. After creating accounting, they're transferred to the general ledger.

Related Topics
• How Burden Costs Are Calculated
• Project Costing Accounts for Budgetary Control

Options to Maintain Accounting Periods and Project

Accounting Periods
Accounting periods are used to assign periods and dates to project transactions. Accounting periods are maintained
by ledger and use the same calendar as the general ledger periods. Project accounting periods are used for project
planning, costing, billing, budgeting, forecasting, and performance reporting.

Project accounting periods are maintained by business unit and typically don't use the same calendar as the accounting
and general ledger periods.

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Use the Configure Project Accounting Business Function task to specify whether to maintain the same accounting and
project accounting periods, or define project accounting periods that have a different frequency than the accounting
periods.

Maintain Same Accounting and Project Accounting Periods

When you maintain same accounting and project accounting periods, calendar periods aren't copied to Project Financial
Management applications and period information is maintained in one physical location. Use Oracle General Ledger to
maintain accounting period statuses and run the processes to open and close accounting periods.

Define Project Accounting Periods Different from Accounting Periods

If you want to report project information more frequently than the accounting periods allow, you can define project
accounting periods that are different from the accounting periods. Use Project Financial Management applications to
maintain project accounting period statuses and run the processes to open and close project accounting periods.

Example
Let's take a look at an example using the following image.

Here's the table that defines accounting period. Each month is a period with a specific number. For example, January is
a period with period number one and December has a period number 12. This numbering pattern repeats every year.

Accounting Period Period Number

Oct-11 10

Sep-11 9

Aug-11 8

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Accounting Period Period Number

Jul-11 7

Jun-11 6

May-11 5

Apr-11 4

Mar-11 3

Feb-11 2

Jan-11 1

Dec-10 12

Nov-10 11

Oct-10 10

Here's the table that defines project accounting period. Each week is a period with a specific number. For example, Jan-
W1 is a period with period number one and Aug-W4 has a period number 34 as its the 34th week in the calendar. This
numbering pattern repeats every year. Using this project accounting periods you can report for project information on a
weekly basis.

Project Accounting Period Period Number

Oct-W4-11 42

Oct-W3-11 41

Oct-W2-11 40

Oct-W1-11 39

Sept-W4-11 38

Sept-W3-11 37

Sept-W2-11 36

Sept-W1-11 35

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Project Accounting Period Period Number

Aug-W4-11 34

Aug-W3-11 33

Augt-W2-11 32

Aug-W1-11 31

Related Topics
• How can I set up project accounting periods that are different from accounting periods?
• How can I set up common accounting and project accounting periods?

Project Costs and Revenue Accounting Entries

Project accountants and billing specialists can use the View Accounting window to review accounting errors and entries
created for cost and revenue transactions and take corrective actions. They don't need to navigate to the integrating
applications to view the accounting entries of the imported transactions.

View the accounting entries and errors associated with a transaction for the following:

• Cost distributions
• Cross-charge distributions
• Revenue distributions
• Revenue accounting transactions
The following table describes the various regions where the accounting entries are displayed in the View Accounting
window.

Region Name Description

Source Accounting Displays accounting entries created by other Oracle Fusion Applications such as Oracle Fusion
Payables, Oracle Fusion Receipt Accounting, and Oracle Fusion Cost Management.

Imported Accounting Displays account combinations and amounts for accounted transactions created in and imported from
third-party applications.

Project Accounting Displays accounting entries created by Projects Financial Management applications.

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Settings that control the creation of journal entries are displayed in the View Accounting window to help you
understand why certain journal entries were created or not created. The settings are as follows:
• Transaction source document import and accounting options.
• Project type options for creating burden and burdened cost journal entries.
In Oracle Fusion Project Costing, accounting entries are created for each cost distribution and cross-charge distribution.
If a transaction has multiple cost distributions, then separate accounting entries are created for each distribution. You
can view accounting entries for all distributions associated with a transaction on the Manage Project Costs page, while
for a single cost or cross-charge distribution on the Expenditure Item page. In Oracle Fusion Project Billing, you can view
the accounting entries for revenue on the Edit Events and Manage Revenue Distribution pages. You can also view the
accounting entries for accounting transactions on the Manage Accounting Transactions page.

Related Topics
• Considerations when Creating Accounting for Transactions

Considerations when Creating Accounting for

Transactions
Create accounting entries for project transactions either for selected transactions or for a batch of transactions by
running the Create Accounting process. If the accounting is not correct, you can modify the transaction attributes used
to derive the accounts or modify the accounting rules.

Creating Accounting for Selected Transactions

You can create accounting entries for individual cost, cross-charge, revenue, and billing offset reclassification
transactions. For cost or cross-charge transactions, search and select the transactions in the Manage Project Costs
page and then create accounting in draft mode or directly create accounting in final mode and post the accounting
entries to the ledger. You can also create the accounting for individual cost or cross-charge distributions from the
Expenditure Item Details page. For revenue transactions, accounting is at the distribution level. You can search and
select the revenue transactions and then create accounting entries from the following pages.

• Edit Events
• Manage Revenue Distributions
• Edit Revenue Distributions

You can similarly search and select billing offset reclassification transactions and create accounting entries from the
Manage Accounting Transactions page.

Creating Accounting for a Batch of Transactions

To create accounting entries for all transactions or for transactions assigned to a specific processing category, you can
run the Create Accounting process anytime from the following pages.

• Costs: Tasks pane in Project Costs work area

• Revenue: Tasks pane in Contract Revenue work area

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The Create Accounting Process report tracks the details of impacted transactions. Review and correct the errors and
then run the Create Accounting process to create accounting entries and then post them to the general ledger.

Related Topics
• How Accounting Periods and Project Accounting Period Closing are Validated

Accounting Class Usages in Projects

An accounting class usage is a group of accounting classes that provides a systematic way to identify the characteristics
of a particular journal entry line or to retrieve a specific account for a transaction.

In Project Financial Management, for example, a single journal entry may contain journal entry lines for raw cost, raw
cost clearing, burden cost, burden cost clearing, burdened cost, or burdened cost clearing. To determine the journal line
that represents burden cost, the burden cost accounting class usage retrieves the account within the journal entry to
which the burden cost was posted.

Project Financial Management uses accounting class usages to retrieve accounts for asset generation, borrowed and
lent processing, and cost adjustments. These processes assume that only one journal entry line or account will be
returned for each accounting class usage. If you modify the accounting class usages, ensure that each usage returns
only one account for a given journal entry. This can be done by associating only one project accounting class to an
accounting class usage.

For an event class, if you modify or add journal line rules for a specific cost, ensure that the accounting classes are
unique across the journal line rules.

Related Topics

How Accounting Periods and Project Accounting Period

Closing are Validated
When you change the project accounting period and accounting period to Close Pending or Close status, you generate
the Period Close report. The application validates the transactions in the period and tracks the warnings and errors.

Review the errors, fix the issues, and then change the accounting period and project accounting period status to Close
or Close Pending status. After closing the accounting periods and project accounting periods, you can open new
periods for transaction processing. For warning exceptions, the period status is set to Close or Close Pending status.

How Period Closing Validation Works

When you set an accounting period or project accounting period to Closed or Close Pending, the application generates
the Period Close report. The report provides summary information and details of transactions that completed
successfully, with warnings, and with errors. If errors were encountered, review the stated corrective actions, fix the
issues, and then close the periods.

The following table describes the validation rules for transactions and the validation result for the respective period
statuses.

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Validation Rule Close Pending a Project Close a Project Close Pending an Close an Accounting
Accounting Period Accounting Period Accounting Period Period

Accounted transactions (for Validated with a warning Validated with a warning Validated with a warning Fails validation with an
example, supplier invoices, error
receipts, miscellaneous
inventory transactions)
entered in an integrating
Oracle Fusion application
in the same period that
are not yet transferred and
imported to Oracle Fusion
Project Costing.

Unaccounted transactions Validated with a warning Validated with a warning Validated with a warning Validated with a warning
(for example, supplier
invoices, costed receipts,
miscellaneous inventory
transactions) entered in an
integrating Oracle Fusion
application aren't yet
transferred and imported
to Oracle Fusion Project
Costing.

Net-zero receipts are

ignored for validation.

Accounting events Validated with a warning Validated with a warning Validated with a warning Fails validation with an
generated in Project error
Financial Management
applications for both new
and adjusted transactions
that are not finally
accounted or swept to
the next open or future-
enterable period.

Rejected cost adjustments Validated with a warning Validated with a warning Validated with a warning Validated with a warning
that are not processed.

Pending burden Validated with a warning Validated with a warning Validated with a warning Validated with a warning
summarization items that
are not yet processed.

Cross-charge or revenue or Validated with a warning Validated with a warning Validated with a warning Fails validation with an
billing offset reclassification error
distribution lines that
are not transferred to
subledger accounting.

Billable transactions with Validated with a warning Validated with a warning Validated with a warning Validated with a warning
a revenue classification of
rate-based or as-incurred
or as-invoiced, that are
invoiced but for which
revenue was not generated.

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Validation Rule Close Pending a Project Close a Project Close Pending an Close an Accounting
Accounting Period Accounting Period Accounting Period Period

Revenue events whose Validated with a warning Validated with a warning Validated with a warning Validated with a warning
completion date has passed
but for which revenue was
not generated.

Accrual transactions that Validated with a warning Validated with a warning Validated with a warning Fails validation with an
must either be finally error
accounted or swept to the
next period.

The corresponding Oracle Validated with a warning Validated with a warning Validated with a warning Validated with a warning
Fusion Payables accounting
period is not yet closed.

Unaccounted transactions Validated with a warning Validated with a warning Validated with a warning Fails validation with an
that are not swept to the error
next period.

Related Topics
• What happens if I close an accounting or project accounting period permanently?
• Sweeping Transaction Accounting Events

Sweeping Transaction Accounting Events

All eligible transactions must be accounted in final mode before closing the period.

At the end of a period, you review accounting exceptions and then run the Sweep Transaction Accounting Events
process to sweep the unprocessed accounting events into the next Open or Future-Enterable period so that you
complete the period close. All the accounting events that aren't finally accounted are moved into the next Open or
Future-Enterable period.

Run the Sweep Transaction Accounting Events process either for transactions within a business unit or for transactions
across business units but assigned to the same ledger. Specify the accounting period that's in Open or Close Pending
status to move the accounting events. Using the source parameter, you can choose to sweep cost accounting events,
revenue accounting events, or both. You can preview the transactions that will be swept to the next Open or Future-
Enterable period by running the process in the Review mode, or you can move the accounting events directly by
running the process in the Update mode.

As a result of this processing, the accounting and project accounting dates are updated directly on the cost and revenue
distributions. Adjustment transactions and new distributions aren't created. If the transaction is summarized, the
transaction amount is reversed in the current period and summarized in the next Open or Future-Enterable period.

Related Topics
• How Accounting Periods and Project Accounting Period Closing are Validated

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Account Rules
Account rules are used to determine the accounts for subledger journal entry lines. In addition, you can specify the
conditions under which these rules apply. Using these capabilities, you can develop complex rules for defining accounts
under different circumstances to meet your specific requirements.

You can define account rules for an account, segment, or value set.

Account Rules by Account

Define account rules by account to determine the entire account combination. For example, an account rule defined by
account can be used to determine the complete supplier liability account in Oracle Fusion Payables.

Account Rules by Segment

Define segment rules to derive a specific segment of the general ledger account. For example, a particular segment like
the company segment can be determined from the distribution account.

Another segment can be determined with the use of a constant value. Creating the account one segment at a time
offers greater flexibility, but also requires more setup.

Use both segment based and account based rules to derive a single account. Segment-specific rules are used, where
they're defined, and take the remaining values from an account-based rule. For example, you can use an account rule
which is for all segments and also separately use a rule which is for one particular segment. Segment-specific rules take
precedence over the all segments account based rule.

Combine account rules with segment rules. In this case, the segment value is derived from the segment rule to override
the corresponding segment of the account. If the segment rule has conditions associated with the priorities and none
are met, no override occurs and the segment value is derived from the account rule.

Note:
• If the returned account is end dated with a date that's the same or before the subledger journal entry
accounting date, and an alternate account is defined in the general ledger, the alternate account is used. The
original account is stored on the journal line for audit purposes
• If the alternate account is invalid, the Create Accounting process creates the journal in the invalid status. An
error message is displayed to indicate the GL account is invalid.
• If the derived account or the alternate account is invalid and the Create Accounting process is submitted with
the process event parameter set to Invalid Account, the invalid account is replaced with the suspense account
defined in the ledger option for the ledger.

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Account Rules by Value Sets

In the absence of a chart of accounts, you may define account rules based upon value sets. This enables you to share
the same rule between more than one chart of accounts if the segments in these charts of accounts share the same
value set.

Sharing Account Rules across Applications

You may share account rules across applications in the following ways.

• Assign an account rule from the same or a different application to a journal line rule in the subledger journal
entry rule set. For example, to derive an expense account for journal line rule Expense, assign the Projects Cost
Account rule owned to the Payables journal line rule Expense.
• Create an account rule based on an account rule from another application and assign it to a journal line rule.
For example, you may create an account rule Invoice Expense Account referencing Project Cost Account
assigned in the Priorities region. You may attach the Invoice Expense Account rule to the journal line rule
Expense in the journal entry rule set.

Note:
• To share an account rule across applications, all sources used by the account rule must be available for the
event class.
• If the sources are available, an account rule is assigned to a journal line rule in the journal entry rule set.
Verification occurs to confirm that all sources used by the account rule are available for the journal line rule
accounting event class. Journal line rules are only available if the sources are shared; such as reference objects.

Account Rules and Mapping Sets

Mapping sets can be used to associate a specific output value for an account or segment. You can use mapping sets in
account rules to build the account.

Account Rules Conditions

In the account rules you may specify conditions for each rule detail line. Priorities determine the order in which account
rule conditions are examined. When the condition is met, the rule associated with that priority is used. Depending on
which of the defined conditions is met, a different account rule detail is employed to create the account.

The Create Accounting process evaluates conditions based on the priority of the rule detail. When the condition is met,
the rule detail is applied.

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Note: Constant values that are used in any Conditions region must not contain the following characters:
• "
• ,
• &

• |
• (
• )
• '
For example, in the condition "Project Type" = ABC (123), the constant value following the equal sign, ABC (123),
contains restricted characters ( ) that enclose 123 and is invalid.

Related Topics
• Examples of Creating Condition
• How You Define Account Rules

Verify Accounting Sources for Projects

Accounting sources represent transaction and reference information from source systems, and help you automate
accounting calculations for your transactions in Oracle Cloud. You can flexibly create as many accounting sources in the
application as required.

Before you create a new accounting source, however, you must perform the following tasks to check that you aren't
creating a duplicate accounting source.

1. In the Setup and Maintenance work area, update the scope of your search to Project Financial Management
and use the Manage Subledger Application Transaction Objects task.
2. Select the Event Class that contains the object with the accounting source.
3. Click View Source Assignments.
4. Search for the accounting source to verify if it exists. You can also use the Source Details icon associated with
the accounting source to view additional information.

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Post Subledger Transactions to the General Ledger

Post subledger journals to the general ledger when you create accounting, or run the Post Subledger Journal Entries
process to transfer and post at a later time.

To post to General Ledger:

• Make sure that the Enable Posting from Subledger option is enabled so that you can automatically post
subledger journals to GL.
Note: If the Enable Posting from Subledger option is disabled, you can't post the subledger journal to GL
but you can transfer the subledger journal to GL.

• Alternatively, you must have the privilege to execute this task.

With the required privileges and settings, you can select the Account and Post to Ledger option to create and post
journal entries to the general ledger, during the online Create Accounting process.
• If you don't have the post to GL (GL_POST_JOURNAL_PRIV) privilege, select Account in Final to create journal
entries and transfer to General Ledger.
• You can view the output of the Post Subledger Journal Entries process for the summary of the transfer process.
You can manually run the Create Accounting process to create accounting for a batch of transactions. Set the following
parameters to create journal entries and post to the general ledger.
• Accounting Mode is set to Final.
• Transfer to General Ledger is set to Yes.
• Post in General Ledger is set to Yes.
◦ If you don't have the post to GL (GL_POST_JOURNAL_PRIV) privilege or posting from the Enable Posting
from Subledger option is disabled, the Post in General Ledger parameter isn't available.

Transfer Manual Subledger Journal to General Ledger By Preparer

You can transfer manual subledger journal entries to the general ledger immediately while creating subledger journals
using the UI or a spreadsheet. You may also choose to create the manual subledger journal entries in Final status and
use the Post Subledger Journal Entries process to transfer the manual subledger journal entries to the general ledger
later. Manual journal entries created by different users are split into separate general ledger journal batches. This
facilitates routing the journal batches to different approvers or reviewers based on the preparer. You can also choose to
transfer all subledger journals or exclude manual journal entries while submitting the Post Subledger Journal Entries
process.

Here are the changes applied after enabling this feature:

• When you create subledger journals using a spreadsheet with Completion Status as 'Final and Transfer' or 'Final
and Post,' eligible manual subledger journals created by the same user will only be transferred to the general
ledger. Manual subledger journals created by other users will not be transferred.
• In the Journal Batch field, you can optionally enter any text as a prefix to the General Ledger journal batch.
• You can select one of the following options from Journal Entries to Transfer while submitting the Post
Subledger Journal Entries ESS Parameter:

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◦ All - Transfer all subledger journals.

◦ All except Manual Journals - Exclude manual subledger journals from transferring to the general ledger.
◦ Manual Journals created by me - Only transfer manual subledger journals created by the current user.

Tips and Considerations

• You can also create manual subledger journal entries using the Create Subledger Journal page and group them
into one GL batch by posting them using the Post Subledger Journal Entries process. When you select the
option Manual Journals created by me, in the Journal Entries to Transfer parameter, all manual adjustments
entered through UI or spreadsheet are grouped into one GL batch.
• To group all non-transferred accounting hub transactions into one GL batch, you can account the transactions
in Final status and then submit the Post Subledger Journal Entries ESS program with Journal Entries to Transfer
set to All except Manual Journals. This option will not transfer manual subledger journal entries to GL. It will not
select eligible journals by the preparer.
• If a Journal Batch is not specified in the spreadsheet or you're using an old template, a system-generated
batch name will be assigned to the GL journal batch. The maximum length for a Journal Batch should be 50
characters or less.

Directly Transfer Subledger Entries to General Ledger

You can transfer subledger accounting entries directly to General Ledger without running the Post Subledger Journal
Entries and Journal Import processes.

Create Accounting generates subledger accounting entries, which are summarized and transferred to the General
Ledger through the Post Subledger Journal Entries process and its subsequent Journal Import process.

When you submit the Create Accounting process with the Transfer to General Ledger parameter set to Yes, the
Create Accounting sub-process summarizes and transfers the subledger accounting entries to General Ledger
without launching the Post Subledger Journal Entries and Journal Import processes. If you submit the standalone
Post Subledger Journal Entries process, the subledger accounting entries are transferred to General Ledger without
launching the Journal Import process.

This feature also includes the following changes:

• When a subledger accounting entry points to an invalid account but an alternate account is specified, the
system automatically switches to the alternate account for General Ledger journal creation.
• In cases where validation errors occur while creating General Ledger journal batches from subledger accounting
entries, only the valid entries are moved to the General Ledger, excluding any invalid entries.
• Validation errors encountered during the subledger accounting entries' transfer to the General Ledger can be
examined on the Manage Accounting Errors page.

These enhancements lead to quicker processing times for accounting and journal postings, optimizing the utilization of
system resources.

Steps to Enable

Here are the steps to enable this feature for all Subledger and Accounting Hub applications:

1. Navigate to Setup and Maintenance.

2. Select the Setup Offering: Fusion Accounting Hub.

3. Click on the Functional Area: Accounting Transformation.

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4. Click on the Setup Task: Manage Subledger Accounting Lookups.

5. Search the Lookup Type: ORA_XLA_PROMOTIONAL_OPTIONS.

6. Define the following Lookup Code under the above Lookup Type –

• Lookup Code: XLA_PROMO_31776850_ON

• Reference Data Set: Common Set
• Enabled: <Checked>
• Meaning: Skip Post Subledger Journal Entries and Journal Import

7. Save the changes.

Considerations

This feature does not apply under any of the following conditions:

• When accounting entries are directly submitted online from the Transaction pages.
• During the submission of the Multiperiod Accounting process, which doesn’t skip the Post Subledger Journal
Entries process but does skip the Journal Import process.

For subledger accounting transfers outside of Fusion General Ledger, such as EBS General Ledger and PeopleSoft
General Ledger.

Related Topics
• Disable Posting Subledger Transactions to the General Ledger
• Resolve Issues with Transferring Journal Entries to General Ledger

Accounting Project Costs Externally

You can integrate Oracle Fusion Project Costing with external financial applications, such as Oracle E-Business Suite or
third-party applications. Export project cost transactions and interface them to an external application where they can
be accounted.

The following table describes the processes used to export project cost transactions.

Process Name Process Description

Extract Cost Distributions for External Extracts cost distributions to be accounted in an external application and updates the export status of
Accounting such cost distributions.

Extract Cross-Charge Distributions for Extracts cross-charge distributions to be accounted in an external application and updates the export
External Accounting status of such cross-charge distributions.

The distribution lines are exported into a CSV file that can be imported into the external application and used to create
accounting.

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Using Project Costing Accounting for Project Transactions

Tip: You can report on these exported transactions in Oracle Transactional Business Intelligence and reconcile them
with the external application. Use the Export Status attribute available in the Project Costing - Actual Cost Real Time
subject area to filter transactions that have been extracted.

Parameters
Business Unit

Business unit that owns the project transaction. This is a mandatory parameter.

Period

Period for which you want to export the transactions. This is a mandatory parameter.

Transactions Selected for Extraction

Available options are previously extracted transactions, new transactions that have not been extracted, and all
transactions. This is a mandatory parameter which ensures that transactions are exported only once.

Expenditure Type Class

Category of transactions, such as supplier invoice, inventory, or miscellaneous.

Cost Distribution Line Type

Available options are original transactions, adjustment transactions, and all transactions. This is a mandatory
parameter. For example, if you have already accounted the original transactions and want to account only adjustments
made in Oracle Fusion Project Costing, then select the option Adjustment Cost Distribution Lines.

Project Costing Accounts for Budgetary Control

The following accounts are available in Oracle Fusion Project Costing.

• Raw Cost Account

• Burden Cost Account
• Burdened Cost Account
• Budget Account
The following table describes the rules for deriving budget accounts.

Document Same Line Burdening Separate Line Burdening

Purchase Requisitions Raw cost uses the raw cost account provided on Raw cost uses the budget account provided on
the requisition. the requisition.

The raw cost account is copied to the burden The raw cost account is copied to the burden
cost account. cost account.

Purchase Orders Raw cost uses the raw cost account provided on Raw cost uses the budget account provided on
the PO. the PO.

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Document Same Line Burdening Separate Line Burdening

The raw cost account is copied to the burden The raw cost account is copied to the burden
cost account. cost account.

Account Payables Raw cost uses the raw cost account provided on Raw cost uses the budget account provided on
the payables invoice. the payables invoice.

The raw cost account is copied to the burden The raw cost account is copied to the burden
cost account. cost account.

Receipt Accounting Raw cost uses the raw cost account provided on Raw cost uses the budget account provided on
the receipt. the receipt.

The raw cost account is copied to the burden The raw cost account is copied to the burden
cost account. cost account.

Project Expenditures(including cost Raw cost uses the raw cost account derived by Raw cost uses the budget account derived by
adjustments) the transaction account builder. the transaction account builder.

The raw cost account is copied to the burden The raw cost account is copied to the burden
cost account. cost account.

The application invokes the transaction account

builder to derive accounts for all externally
accounted and unaccounted transactions,
except for Oracle Payables transactions. For
Payables transactions, the budget account
that's used by Payables is copied over for
processing the corresponding expenditure cost.

For separate line burdening, you must use the burden cost account that's derived by the application.

Related Topics
• Set Up Default Budget Account

FAQs for Accounting for Project Transactions

Can I modify accounting details of a third-party application
transaction?
Yes. You can modify provider ledger currency conversion attributes such as currency conversion rate type, rate date,
rate, and the rounding limit of accounted third-party application transactions. You can modify other accounting
attributes only if the transaction isn't validated.

Related Topics
• Can I edit unprocessed transactions?

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What happens if I close an accounting or project accounting

period permanently?
You can't enter any transactions in the period you have closed and you can adjust transactions in subsequent periods.

What accounting options should I set for liquidation of purchase

order burden encumbrance obligations?
You must first enable budgetary control by using the Manage Budgetary Control or Manage Encumbrance Accounting
task from the Setup and Maintenance work area.

To liquidate the burden encumbrance associated with purchase order obligations during accounting of project
expenditures, you must enable one of the following options in the Burden Cost Accounting Options section on the Edit
Project Type page for the project type to which your project belongs.

• Create burden cost accounting journal entries

• Create burdened cost accounting journal entries

Why does a zero amount line exist in my encumbrance journal?

A burden rate was dropped from the new burden schedule during a burden schedule change. If needed, select not to
display this zero amount line in the journal.

Why don't my supplier invoice entries reserved for encumbrance

have offsetting credit and debit amounts?
Subledger accounting records are reserved for encumbrance entries at the transaction level. However, the View
Accounting window displays entries at the distribution level only. Since the transaction-level reserved for encumbrance
entries aren't displayed, the credit and debit amounts don't balance out.

What happens if receipt accounting transactions have tax

burdens?
For receipt accounting transactions, item burden cost and burden tax cost are liquidated together for the PO obligation
encumbrance instead of being liquidated individually.

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8 Project Cost Allocations

Overview of Allocating Project Costs

Allocate various types of costs to projects and tasks using Oracle Fusion Project Costing.

You can set up allocation rules, create basis and offset methods for these rules, and prorate amounts using these
methods.

How Project Cost Allocations are Processed

Allocations are processed to distribute various types of costs to distinct sets of target projects and tasks. You identify
the amounts to allocate and then define targets, projects and tasks to which you want to allocate the source amounts.

Optionally, you offset the allocations with reversing transactions. Oracle Fusion Project Costing gathers source amounts
into a source pool and then allocates to the targets using the basis method that you specify in the allocation rule. When
the allocation is released, expenditure items are created and processed.

Here's a flowchart that shows how project cost allocations are processed.

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Settings That Affect Project Cost Allocation Processing

You create a set of allocation rules to allocate various types of costs to distinct sets of target projects and tasks.
Allocation transactions are generated based on the settings in the allocation rules such as:

• Allocation or offset transaction attributes

• Source amounts to allocate
• Target projects and tasks to allocate source amounts
• Allocation method
• Offset method to reverse and balance allocation transactions
• Basis method

Each allocation rule is associated with a business unit. Source projects and ledger accounts of an allocation must be
from the same business unit as the one that is assigned to the allocation rule. During processing, based on the target
selection, if the project cross-charge is enabled, costs can be allocated costs to projects across business units. However,
offset transactions are charged to projects owned by the same business unit that owns the allocation rule.

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How Project Cost Allocations Are Processed

When the allocation rule is prepared to generate allocations, costs are collected against the source. For project sources,
the actual cost transactions are summarized and for ledger sources, journal entries are posted for the source ledger
accounts. If a prorate basis method is used, then ensure that either actual cost or budget amounts are summarized for
the target projects, depending on the prorate logic. The allocation is generated either once in an accounting period or
incrementally in the accounting period.

The resulting allocation transactions are draft allocations in draft success or draft failure statuses, which are displayed
in the Manage Allocations page. The application tracks the source amount, currently and previously allocated amounts
so that the user can review if the source amount is allocated appropriately. Based on the type of basis method the
allocation rule uses, the application provides the basis percentage and effective percentage. The allocation generation
errors are tracked and displayed as exceptions. You can review the issues and fix them as required. If the allocation
rule uses an incremental allocation method, then the missing amounts are tracked and you can determine differences
from the previous allocation. For example, if a target project that received an allocation transaction during the previous
allocation is now closed, then that the amount previously allocated to that project appears as a missing amount. If the
draft allocations are as per your expectation, the allocation and offset transactions can get released, which results in the
creation of expenditure items. The draft successful transactions can fail during the release of an allocation. For example
the released transaction may violate a transaction control. You can fix the errors and then release the allocation.

The draft failure allocations are processed only after reviewing and fixing the issues. For example, you can edit the
associated allocation rule or ensure that the actual amounts are summarized for source projects. After fixing the errors,
delete the draft allocation and generate the allocation again.

Related Topics
• What's the difference between allocation and burdening?
• AllocationSource Pool Amount: How It's Calculated

Considerations for Allocation Methods

When you define an allocation rule, you specify the allocation method which determines how generated amounts are
allocated to projects and tasks. Full and incremental allocations distribute all the amounts accumulated during the
generation period. The two types of allocation methods are:

• Full Allocation
• Incremental Allocation

Full Allocation
The full allocation method always distributes the entire source pool amount to target projects and tasks and generates
allocation transactions for the entire amount each time in a period. This method is suitable to process an allocation rule
only once within the same accounting or project accounting period.

If you generate allocation transactions using a full allocation rule twice for the same period, then the complete source
pool amount is allocated twice to target projects and tasks in the same period. If this is done inadvertently, then you can
reverse the duplicate allocation.

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Example: Allocation of Source Amount Using Full Allocation Method

The example in the following table explains how the source amounts are allocated using the full allocation method.

Allocation Number Source Pool Amount Total Allocated Amount to Previous Allocated Current Allocated Amount
Targets Amount to Targets to Targets

1 1050.00 1050.00 0.00 1050.00

Incremental Allocation
Incremental allocations create expenditure items based on the difference between the transactions processed in the
previous and current allocation generation. This method is suitable if you want to use the allocation rule to generate
allocations several times in a single period. The application keeps track of the results of previous incremental allocation
generations. Therefore, you can process an incremental allocation multiple times within the same period creating
additional transactions to incrementally increase or decrease the amount allocated to each target project and task
based on changes to the available source pool amount and basis logic from the previous incremental generation. You
can review and delete draft allocations until you're satisfied with the results.

For incremental allocations, the application calculates the amounts allocated in the previous allocation generation.

Example: Allocation of Source Amount Using Incremental Allocation

Method
The following example explains how the source amounts are allocated using the incremental allocation methods: The
amount type used in this allocation rule is period-to-date and allocation is generated for the June 2010 period. The
example in the following table explains how costs are allocated incrementally to target projects and tasks throughout
this period.

Allocation Number Source Pool Amount Total Allocated Amount to Previous Allocated Current Allocated Amount
Targets Amount to Targets to Targets

1 1000.00 1000.00 0 1000.00

2 1100.00 1100.00 1000.00 100.00

3 1050.00 1050.00 1100.00 - 50.00

At the end of the period, the total amount allocated to targets is 1050.00. This is made up of sets of incremental
allocation transactions. Incremental transactions can be positive or negative, based on changes to the source pool,
eligible targets, and basis calculations.

Related Topics
• Considerations for Allocations Basis Methods
• How Project Cost Allocations are Processed
• Examples for Calculating Prorate Amounts using Allocation Basis Method

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Considerations for Allocations Basis Methods

When you define an allocation rule, you specify a basis method. The basis method determines how the amounts in the
source pool are divided among the target lines. Each target line identifies projects and tasks.

The following is a list of the basis methods used in allocations:

• Spread Evenly
• Target Percentage and Spread Evenly
• Prorate
• Target Percentage and Prorate
Here's a graphic that explains the various basis methods used in allocations.

Note: Oracle Projects doesn't support the client extension basis method.

Spread Evenly
The allocation rule divides the source pool amount equally among all the chargeable target tasks included in the rule.
This is the most simple and direct basis method.

Target Percentage and Spread Evenly

Specify the percentage of the source pool that must be allocated to each target line. The total specified target
percentage must always equal 100 percent. The allocation rule calculates the amount to allocate to the target line, and
then spreads the results evenly among the chargeable tasks.

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Prorate
Allocation generation uses the attributes defined in the allocation rule to derive the rate at which the source pool
amount is apportioned among the target projects and tasks. For this basis method, the allocation rule uses the basis
attributes to apportion the source amount among all the tasks defined by the rule. The Prorate basis method provides
precise control over how the rule distributes the source pool.

Target Percentage and Prorate

The allocation rule first uses the target percentage to calculate the amount to allocate to the line, and then apportions
the results among all the tasks. The Target Percentage and Prorate basis method provides precise control over how the
rule distributes the source pool.

Related Topics
• Considerations for Allocation Offset Methods
• Considerations for Allocation Methods
• How Project Cost Allocations are Processed
• Examples for Calculating Prorate Amounts using Allocation Basis Method
• What happens if the total basis amount in an allocation is zero?

Considerations for Allocation Offset Methods

You can use offsets to balance the allocation transactions with the source or other projects. When you define an
allocation rule, you select the offset method to determine how offset transactions are created.

After specifying the offset method, you must specify transaction attributes: expenditure organization, expenditure type
class, and expenditure type. The attributes don't have to match those used for the allocation transactions.

Note: All offset projects and tasks must be open and chargeable, and in the same business unit that owns the
allocation rule. The allocation rule can have an offset method although it may not have source projects.

The allocation rule creates the offset transactions for the offset projects and tasks when you generate the allocation.
Offset transactions offset the total amount allocated to target projects, although the total number of offset transactions
doesn't usually equal the total number of allocation transactions. For example, with an offset method of Specific Project
and Task, if the rule allocates 10,000.00 USD from the allocation sources to 1000 target projects and tasks, then the
result is 1000 allocation transactions for a total of 10,000.00 USD and one offset transaction to the specified project and
task for a negative amount of 10,000.00 USD.

You can select one of the following offset methods in an allocation rule:
• Source Project and Task
• Specific Project and Task

Source Project and Task

Use this offset method in the allocation rule to create reversing transactions for the specified source projects and tasks
in the allocation rule.

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If the allocation rule uses ledger sources or a fixed amount source, then the allocation rule can't use Source Project and
Task offset method because a source project doesn't exist in such cases. Only project sources use this offset method.

Specific Project and Task

Use this offset method to create reversing transactions in one project and one of its tasks per the specified project and
task in the offset method. You can use this method with any one of the sources or a combination of project, ledger, or
fixed amount source.

Related Topics
• Considerations for Allocations Basis Methods
• Considerations for Allocation Methods
• How Project Cost Allocations are Processed
• When do I reverse an allocation?

Allocation Statuses
An allocation is processed through various tasks such as generating, releasing, deleting, and reversing allocation
transactions. While the processing is based on the status of allocations, the processes also indicate the progress and
possible status of the allocation and the tasks you can perform.

You can perform the following processes on allocations:

• Generate Allocations
• Delete Allocations
• Release Allocation Transactions
• Reverse Allocation Transactions

Generate Allocations
You can generate allocations if all existing allocations for the allocation rule are in Release Success or Reversal Success
statuses. There is no allocation status for first-time processing.

The following table describes the possible statuses and the tasks you can perform after generating allocations.

Resulting Statuses Description Tasks You Can Perform

Draft Success The allocation is generated successfully without Release Allocation

any errors. Warnings may exist and are listed as
exceptions. Delete Allocation

Draft Failure The allocation has errors. You must review and Delete Allocation
fix the errors, delete the allocation, and then
generate the allocation again. For example,
you can update the allocation rule, summarize
costs for the project, or perform other actions
to correct the errors before you generate the
allocation again.

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Resulting Statuses Description Tasks You Can Perform

Delete Allocations
You can delete an allocation if it is in Draft Success, Draft Failure, or Release Failure status. The following table describes
the possible statuses and the tasks you can perform after deleting an allocation.

Resulting Statuses Description Tasks You Can Perform

Deletion in Progress The allocation is being deleted. After the Delete Allocation
allocation is deleted, you cannot search for the
allocation because it does not exist.

You can resolve the issues that resulted in deletion of the draft allocation and generate the allocation again.

Release Allocation Transactions

You can release an allocation if it is in Draft Success or Release Failure status. The following table describes the possible
statuses and the tasks you can perform after releasing an allocation.

Resulting Statuses Description Tasks You Can Perform

Release in Progress The allocation is being released. None

Release Success The allocation is completely processed. The Reverse Allocation

process creates and processes expenditure
items for the allocation and offset transactions,
if any. You can review the resulting expenditure
items in the Manage Expenditure Items page.
This is the final status for most allocations
unless there is a need for reversal at a later
stage.

Release Failure The allocation is not released because of Release Allocation

errors encountered during processing. Even
if one transaction fails processing, then no Delete Allocation
expenditure items are created. You can review
and fix errors for each allocation and offset
transaction and then release the allocation
again. For example, an allocation transaction is
rejected because of a project-level transaction
control.

Reverse Allocation Transactions

You can reverse an allocation if it is in Release Success or Reversal Failure status. The terminal status for an allocation is
Reversal Success and it does not require any further processing. The following table describes the possible statuses and
the tasks you can perform after reversing an allocation.

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Resulting Statuses Description Tasks You Can Perform

Reversal in Progress The allocation is being reversed. None

Reversal Success Reversal is fully processed. The process creates None

reversing expenditure items for each of the
original allocation and offset expenditure items.

Reversal Failure Allocation is not reversed because of Reverse Allocation

exceptions. If even one transaction is rejected,
then no reversing transactions are created. Cancel Failed Reversal
You can review and fix errors and reverse the
allocation again. Or you can cancel the failed
reversal.

Canceling a failed allocation reversal changes the allocation status to Release Success and deletes errors.

AllocationSource Pool Amount: How It's Calculated

You can create the allocation source pool from a fixed amount, open projects including resources within a project, and
ledger account balances. Unless you define each source project and task individually, the results can change each time
you process the allocation.

Settings That Affect Source Pool Amount

The allocation sources must be defined because the allocation generation uses the source pool amount for allocating
the costs. The project sources, ledger source, a fixed source amount, and other aspects of the sources determine the
calculation of the allocation source pool amount.

If you don't specify a particular project and task combination on a source line, then the rule derives source amounts
from all eligible projects and tasks based on the source line criteria.

How Source Pool Amount Is Calculated

The allocation source pool amount is derived based on what's specified in the sources. Some of the aspects that
determine the calculation of source pool amount are:

• Allocation pool percentage

• Fixed source amount
• Amount class
• Project sources
• Amount type
• Resource details
• Ledger sources

The allocation rule accumulates the amounts for the source pool during a specific period of time. The end date of that
time period is based on the amount class. The amount class is the period or periods during which the amounts are

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accumulated. The start date is determined by both the allocation period type and amount class. The allocation period
type options such as accounting period or project accounting period determine amount class options. The amount
class determines the eligible source amounts. For example, if the period specified at generation is August 2010 and the
source amount class is Period-to-Date, then only those amounts posted to August 2010 ledger sources or summarized
actual amounts for the ledger period August 2010 project sources are eligible.

The allocation pool percentage specifies the percentage of the total eligible source pool amount to allocate to target
projects and tasks.

At least one source is defined to derive the source pool amount. Depending on the allocation source, costs are collected
against that source. For project sources the actual cost transactions are summarized. For ledger account sources, the
journal entries are posted.

All source projects and tasks must be open and in the same business unit that owns the allocation rule.

For project sources, the source amount type determines the types of costs that are eligible to be included into the
source pool. For example, include only raw costs or burdened costs.

The project source amount can be derived even from a subset of resources by specifying the resource breakdown
structure and its resources. For example, you can derive project source amounts only from the actual labor costs. For
resource, enter the resource or resource group and the percent you want to include. To exclude a specific resource, you
must select the Exclude option on the appropriate line.

You can optionally limit the resources that are used to determine the source amounts from project sources. If you don't
limit the resources, the rule uses all of the resources in the specified project in the source pool amount. If you specify an
allocation pool percentage, then the allocation rule multiplies the percentage specified in the Allocation Pool Percentage
to the percentage specified against the resource.

For allocations which use ledger sources, the allocation generation considers the posted amounts for a ledger account
when calculating source pool amounts. You can't use the ledger summary accounts for the source amount. You can
specify the percentage of account balance that you want to include for ledger sources. To subtract the amount in the
ledger account from the source amount you use the Subtract option.

The application calculates the source pool amount based on the following formula:

fixed source amount + project sources amount + ledger source amount * source pool percentage = source pool amount

Related Topics
• How Project Cost Allocations are Processed

Examples for Calculating Prorate Amounts using

Allocation Basis Method
The following example illustrates how allocation generation calculates the basis percentages and prorate amounts using
the basis methods:

• Prorate
• Target Percentage and Prorate

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The two prorate basis methods provide precise control over how the rule distributes the source pool. The rule uses the
basis attributes defined in the allocation rule to derive the rate at which the source pool amount is apportioned among
the target projects and tasks

Prorate Basis Method

The Information Technology department captures its costs such as labor, supplies, and expenses in a shared service IT
project. These costs are then allocated to projects that benefit from IT services based on the total labor hours charged
to each project.

( target task basis amount / total basis amount ) * source pool amount = allocation amount

Using the Prorate basis method, for a source of $1000.00, consider the following target details:

( target task basis amount / total basis amount ) * 100 = basis percentage

The basis percentage for each target task is equal to the target task basis amount divided by the total basis amount,
multiplied by 100. For example, in the following table, for task 1 on project ABC the application determines the allocation
amount by multiplying the basis percentage for each target task by the source pool amount.

Project Task Labor Hours Basis Percentage Allocation Amount

ABC 1 10 10 100.00

ABC 2 20 20 200.00

DEF 1 30 30 300.00

DEF 2 0 0 0.00

GHI 1 40 40 400.00

For the Prorate basis method, the allocation rule prorates the amount specified by the source pool to the targets based
on the basis attributes in the allocation rule.

Target Percentage and Prorate Basis Method

In this example, a subset of projects utilizes the IT services. The allocation rule is configured to allocate a fixed
percentage of the source amount to each project and then it spreads across tasks based on the total actual labor hours
charged to each task.

( target task basis amount / total target line basis amount ) * ( source pool amount * target line percentage ) = allocation
amount

Using Target Percentage and Prorate basis method, for a source of $1000.00 allocated to the target line, consider the
following details:

( target task basis amount / total target line basis amount ) * 100 = basis percentage

Basis percentage for each target task is equal to the target task basis amount divided by the total basis amount the
target line from the allocation rule, multiplied by 100. For example, in the following tables, for task 1 on project ABC the

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application determines the allocation amount by multiplying the basis percentage for each target task by the source
pool amount for the target line.

Line Number Project Target Percentage Allocation Source Pool Amount

1 ABC 50 500.00

2 DEF 25 250.00

3 GHI 25 250.00

Target Line Project Task Basis Amount Basis Percentage Allocation Effective
Reference Labor Hours Amount Percentage

1 ABC 1 10 33.3 166.67 16.67

1 ABC 2 20 66.7 333.33 33.33

2 DEF 1 30 100 250.00 25

2 DEF 2 0 0 0.00 0

3 GHI 1 40 100 250.00 25

For the Target Percentage and Prorate basis method, the rule first uses the target percentage to calculate the amount
to allocate to the line, and then apportions the results among all the tasks for that line. In the application, an effective
percentage column is also available when reviewing the basis details for an allocation. The effective percentage
represents the following:

• percentage of the total source pool amount that the target task receives
• consolidated percentage of the target percentage and basis percentage calculations.

Note: For simplicity, in these examples, each target line in the allocation rule specifies a project. In reality, the target
line can be defined more broadly. For example, a target line could specify a project-owning organization of Services
East, so the eligible targets would be all projects owned by Services East.

Related Topics
• Considerations for Allocations Basis Methods
• Considerations for Allocation Methods
• How Project Cost Allocations are Processed
• What happens if the total basis amount in an allocation is zero?

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Considerations for Expenditure Type Class of Allocation

Transactions
When defining an allocation rule, you must specify the expenditure type class for the allocation transaction attributes.
Choosing the expenditure type class determines how the allocated amount is created as costs on the expenditure item.

Miscellaneous Transactions
The miscellaneous transaction expenditure type class is used to allocate the source amount as raw cost on the
expenditure item.

Burden Transactions
The burden transactions expenditure type class is used to allocate the source amount as the burden cost for the
expenditure item, while expenditure item quantity and raw cost remain zero.

Related Topics
• Considerations for Allocation Methods
• Considerations for Allocations Basis Methods
• How Project Cost Allocations are Processed

Define Allocation Rules to Allocate Labor Costs from a

Shared Services Project
This example demonstrates how to set up allocation rules to allocate labor costs from a shared services project.

A central contract administration group supports billable projects in the company. Costs that the contract administration
group incurs such as labor, expenses, and supplies are charged to a shared services contract administration project.
Weekly, the costs are incrementally allocated to all billable projects in the organization. A major project is excluded from
the allocation because due to the project's complexity, the project has its own contract administration team and does
not use the central contract administration group. Therefore it is explicitly excluded in the targets. Costs are allocated
incrementally throughout the year and prorated based on the total actual burdened cost charged.

You are implementing allocation rules for the organization. You want to allocate 100 percent of costs collected in the
shared contract services project to all eligible tasks once a week. The costs are spread to all projects for the organization
based on the total actual labor hours charged to each project, as more time is worked on the project. The following table
summarizes key decisions for this scenario:

Decisions to Consider In this Example

How to allocate the costs? Allocate to all time and materials projects within the San Diego organization.

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Decisions to Consider In this Example

When to allocate costs? Allocate labor costs incrementally on a weekly basis.

What costs to allocate? Allocate 100 percent of the costs collected in the shared contract services project.

You define the allocation rule in this scenario to distribute labor cost amounts from shared services project. This
allocation rule defines the following:
• Source of the amounts to allocate
• Target projects and tasks to receive the allocation
• Method to generate offset transactions, if required
• Method to divide the source amount among the target projects and tasks
• Attributes for the allocation and offset transactions, including the expenditure type, expenditure organization,
and expenditure type class for the resulting expenditure items

Defining the Allocation Rule

1. On the Project Costs work area, click Manage Allocation Rules in the Tasks pane.
2. Click Create to open the Create Allocation Rule page.
3. Complete the general details to define the allocation rule for the following key fields as shown in the table.

Field Value

Business Unit InVision Services

Name Shared Contract Services Allocation

Description Rule to allocate shared contract service costs

Allocation Method Incremental

Allocation Period Type Accounting Period

Targets Selection Within business unit

Basis Method Prorate

Expenditure Organization San Diego

Expenditure Type Class Miscellaneous Transactions

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Field Value

Expenditure Type Contract Services Allocation

Defining Allocation Sources

1. Click Sources and complete the key fields as shown in the table.

Field Value

Allocation Pool Percentage 100

Fixed Source Amount 0

Amount Class Fiscal year-to-date

Amount Type Burdened Cost

Project Organization San Diego

Project Contract Shared Service Center

Defining Allocation Targets

1. Click Targets and complete the key fields as shown in the table.

Field Value

Line Number 1

Project Organization San Diego

Project Type Time and Materials

Exclude Leave unchecked

Line Number 2

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Field Value

Project Organization San Diego

Project Vision Software Install

Exclude Select the check box.

Defining Allocation Offsets

1. Click Offsets and complete the key fields as shown in the table.

Field Value

Offset Method Source project and task

Expenditure Organization San Diego

Expenditure Type Class Miscellaneous Transactions

Expenditure Type Service Offset

Defining Allocation Basis Details

1. Click Basis and complete the key fields as shown in the table.

Field Value

Basis Category Actual Amounts

Amount Type Total Billable Burdened Costs

Amount Class Fiscal year-to-date

Relative Period 0

2. Click Save and Close.

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Related Topics
• Considerations for Allocation Offset Methods
• Considerations for Allocation Methods
• Considerations for Allocations Basis Methods
• Define Allocation Rules to Allocate Rent Costs from General Ledger

Define Allocation Rules to Allocate Rent Costs from

General Ledger
This example demonstrates how to set up allocation rules to allocate rent costs.

Your enterprise has an organization that rents building space, and the finance department wants to allocate rental cost
to the projects owned by the organization. The project managers can then use the allocation to bill costs to customers.
The Payables department charges rent to a different general ledger account for each organization by cost center. You
implement the allocation rule for the organization. Allocate 100 percent of the rental cost collected in the general ledger
to all eligible tasks for San Diego organization projects once a month. You can prorate the allocation based on the
previous month's total raw cost for each task. Project Vision Software Install is performed completely at the customer
location and should not be allocated any rent costs. This project must be excluded from receiving rent allocation.

You are implementing allocation rules for the organization. You want to allocate 100 percent of the rental cost collected
in the general ledger account for the organization to all eligible tasks once a month. You also want to prorate the
allocation based on the previous month's total raw cost for each task. The following table summarizes key decisions for
this scenario:

Decisions to Consider In this Example

How to allocate the costs? Allocate to all eligible tasks and prorate the allocation by the total actual raw cost accrued for each task
during the prior accounting period.

When to allocate costs? Allocate rental costs once each accounting period.

What costs to allocate? Allocate 100 percent of rental costs collected in the accounting period for the cost center.

You define the allocation rule in this scenario to distribute amounts between and within projects and tasks in a business
unit. This allocation rule defines the following:

• Source of the amounts to allocate

• Target projects and tasks to receive the allocation
• Method to generate offset transactions, if required
• Method to divide the source amount among the target projects and tasks
• Attributes for the allocation and offset transactions, including the expenditure type, expenditure organization,
and expenditure type class for the resulting expenditure items

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Defining the Allocation Rule

1. On the Project Costs work area, click Manage Allocation Rules in the Tasks pane.
2. Click Create to open the Create Allocation Rule page.
3. Complete the general details to define the allocation rule for the following key fields as shown in the table.

Field Value

Business Unit InVision Services

Name San Diego Rent Allocation

Description Rule to allocate San Diego rental costs to projects

Allocation Method Full

Allocation Period Type Accounting Period

Targets Selection Within business unit

Basis Method Prorate

Expenditure Organization San Diego

Expenditure Type Class Miscellaneous Transaction

Expenditure Type Rent Allocation

Defining Allocation Sources

1. Click Sources and then Ledger Sources and complete the key fields as shown in the table.

Field Value

Allocation Pool Percentage 100

Source Amount Class Period-to-date

Ledger Sources Account 01-420-7580-000

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Field Value

Percentage 100

Subtract Leave unchecked

Defining Allocation Targets

1. Click Targets and complete the key fields as shown in the table.

Field Value

Line Number 1

Project Organization San Diego

Line Number 2

Project Vision Software Install

Exclude Select the check box.

Defining Allocation Offsets

1. Click Offsets and complete the key fields as shown in the table.

Field Value

Offset Method Specific project and task

Project Allocation Offset Project

Task 1.0

Expenditure Organization San Diego

Expenditure Type Class Miscellaneous Transaction

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Field Value

Expenditure Type Rent Allocation

Defining Allocation Basis Details

1. Click Basis and complete the key fields as shown in the table.

Field Value

Basis Category Actual Amounts

Amount Type Total Raw Cost

Amount Class Period-to-date

Relative Period -1

2. Click Save and Close.

Related Topics
• Considerations for Allocation Methods
• Considerations for Allocations Basis Methods
• Considerations for Allocation Offset Methods
• Define Allocation Rules to Allocate Labor Costs from a Shared Services Project

FAQs for Project Cost Allocations

How can I search for allocations by period effectively?
Select Business Unit and then select Period to search for allocations across allocation rules or for a specific allocation
rule. Selecting a period finds allocations for a single period only.

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When does the target project have duplicate transactions?

When the allocation rule is set to the full allocation method and if you process allocations more than once during a
period, another set of transactions are created in your target project.

If this is done by mistake, you can reverse this set of allocation transactions for the period.

Can I allocate the source amount to projects and tasks that belong
to a different business unit?
Yes, if the projects are enabled for cross-charge processing and when the target selection in allocation rule is across
business units.

Allocation transactions are owned by the business unit to which the allocation rule belongs. However, you can't allocate
the source amount to projects in other business units that are enabled for capitalization.

What happens if the total basis amount in an allocation is zero?

The allocation either results in an error or spreads the amount evenly to all the eligible target projects or tasks based on
the Allocation Method for Zero-Basis Amounts profile option settings during implementation.

What happens to the allocation transactions if I release the

allocation?
Expenditure items are created for each allocation and offset transaction.

You can verify how the amounts are allocated. The entire allocation fails even if one exception is found during the
import and process of cost transactions. You must fix the errors and then reprocess the allocation.

What's a missing amount for an allocation?

Missing amounts are listed only on subsequent allocation generation when the allocation uses an incremental method.

For example, if a project was closed from the previous allocation generation, then the amount that was previously
allocated to the project is listed under the Missing Amounts tab, though the project does not receive any further
allocation transactions. The application tracks the missing amounts so that the source, target, or offset amounts are
accurate. Example reasons for missing source amounts are: task is closed because the task is complete or the task is
excluded from the source line.

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Why can't I generate allocations for this allocation rule?

You cannot generate allocations for an allocation rule if the allocation rule already has draft allocations. This includes
allocations with the following statuses:

• Draft Success
• Draft Failure
• Release Failure
• Deletion in Progress
• Release in Progress

When do I reverse an allocation?

If an allocation must be changed after releasing the draft successful allocation, you can reverse the allocation. For
example, if all expected actual costs were not posted to the source ledger account for the accounting period, then you
can reverse the successfully released allocation.

The following figure illustrates the allocation reversal process.

If the reversal fails you can either fix the errors and reverse the allocation again or cancel the failed reversal. If you
cancel the failed reversal, the allocation changes to Release Success status.

You cannot reverse an allocation if any of the target or offset projects can't accept new transactions, for example, new
transactions aren't accepted if a project is closed.

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What's the difference between allocation and burdening?

Both allocation and burdening are related to expenditure item costs. Allocation uses actual amounts from sources such
as project sources, ledger sources, and fixed amount source to provide the source pool amount. Allocation generation
apportions these source pool amount to target projects and tasks.

Burdening uses a set of estimated burden multipliers to increase the total cost amount of expenditure items. This fixed
percentage is an estimate of the indirect or burden costs associated with the raw costs for each expenditure item.

Allocations and burdening aren't mutually exclusive; you can use both. Whether your company uses allocations,
burdening, or both in a particular situation depends on how your company works and how you have implemented
Oracle Fusion Project Costing.

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9 Capital Asset Costs

Overview of Capital Asset Costs

Track capital project costs, such as asset and retirement costs, using Oracle Fusion Project Costing. You can also create
asset cost allocation methods and specify capitalization options for your projects.

What's the difference between project assets and Oracle Assets assets?
Oracle Assets assets represent actual assets in an organization. These are assets that get reported in the Fixed Assets
section of the organization's balance sheet. Oracle Assets enables you to manage these assets and depreciate them
over time.

Note: These assets will also include accumulated depreciation, which will allow you to determine the net book value
of all your assets.

For example, there may be a line item on the balance sheet named Buildings. This would be a grouped listing of the cost
of all buildings owned by your company. So, your company might report, say, $200,000,000 worth of buildings; Oracle
Assets provides costing details for these, say, 175 buildings, which make up that summary cost.

It is important to note that not all assets that are listed in Oracle Assets are associated with projects. There are many
assets that are directly purchased for the use of the organization, or acquired when an organization buys out another.
Oracle Assets helps you manage all your assets, regardless of whether they were created using Oracle Projects or
purchased directly from other applications, such as Oracle Payables.

A project asset, on the other hand, is a placeholder for accumulating all project costs that went into creating an asset.
Now, when the project is completed, and all asset costs have been captured, the project asset records all the costs that
went into creating it. Oracle Assets doesn't need that kind of detail; it just wants to know how much an asset cost in the
end. Even after the project is over, you can enhance the asset and assign costs to it.

Projects creates accounting for construction-in-progress (CIP) assets, and Oracle Assets moves the CIP cost into a final
asset account.

Why do you need Oracle Projects to create assets?

You need Oracle Projects to create assets only when you can't buy the asset outright and need to construct / assemble
the asset from scratch. Oracle Projects helps you capture the costs that went into creating the asset, so these can be
reviewed / audited whenever required. Oracle Assets doesn't capture that level of detail and is only concerned about the
final cost of an asset. For example, Oracle Time and Labor doesn't send any data directly to Oracle Assets. Oracle Time
and Labor sends time cards to Oracle Projects, which then groups them together and allocates them to assets.

Capital Projects Processing

Capital projects are used to manage capital asset costs and retirement costs. You can create capital assets to
accumulate costs for fixed assets that are being built, installed, or acquired.

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Additionally, you can create retirement adjustment assets to collect cost of removal and proceeds of sale amounts
associated with assets that are being retired, removed, abandoned or otherwise deposed.

After you create assets for a project, you can assign assets either at the project level or task level. You can explicitly
assign an asset to a level or collect costs common to all assets at the grouping level. Classify transactions either as
construction-in-progress costs or retirement work-in-progress costs. Optionally, classify tasks as noncapitalizable to
capture and expense these costs. Capturing both capitalizable and noncapitalizable costs provides you with the total
cost of your project.

Calculate simple or compound interest on either the total construction-in-progress amount or the open construction-
in-progress amount. Place the asset in service when it is ready to use. Generate asset lines from the construction-in-
progress costs and then transfer the asset lines to Oracle Fusion Assets. If a project has more than one capital asset,
then place each asset in service when it is completed. If the event processing method is periodic or manual, then you
can create events to group costs and assets.

The assets are grouped based on their actual in-service date, while the costs are grouped based on its transaction date.
Summary asset lines are generated by grouping the transactions based on the asset line grouping method. Review the
summary asset lines and transfer them to Oracle Fusion Assets. To create actual assets, post them in the asset book,
and then update them with the asset period details from Oracle Fusion Assets.

Note: After capitalizing the asset and when the asset is in the period of addition in Oracle Fusion Assets, if you have
erroneously placed the assets in service or incorrect asset costs are transferred, then you can reverse the asset.

Working with Retirement Adjustment Assets

• You can retire an asset when you are ready to take it out of service.
• Capture the cost of removal and proceeds of sale from the retiring asset and then send them to Oracle Assets.
Post them as adjustments to the accumulated depreciation account of the target asset that corresponds to the
retiring asset. Keep in mind that the target asset is the group asset that was created in Oracle Assets.
• For more information on target assets (called group assets in Oracle Assets), see Group Assets in the Using
Assets guide. Also, see Adjust Retirements for Group Assets in the Using Assets guide.

Related Topics
• Can I delete an asset or asset assignment from the Create and Assign Assets ADFdi workbook?
• Can I update an asset assignment in the Create and Assign Assets ADFdi workbook?
• Can I assign an asset to multiple tasks in the Create and Assign Assets ADFdi workbook?
• Can I update the asset or project name in the Create and Assign Assets ADFdi workbook?

What are asset lines, and why do I need them?

Asset lines are a consolidated grouping of project costs that are allocated to project assets. This allocation ensures that
the project costs incurred while creating an asset are assigned appropriately.

How these asset lines are grouped is defined by the asset line grouping method, and allocation of these asset lines to
project assets is defined by the asset cost allocation method.

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For example, when you work on a project, you typically secure materials and talent for the project in bulk; but when you
finally want to allocate these costs to the actual assets that make up your project’s deliverables, it becomes important to
associate a certain percentage of the bulk costs to each specific asset. Project asset lines help you do that.

Ideally, all project asset lines get automatically assigned to project assets based on the asset cost allocation method.
However, if you want to assign asset lines to assets manually, choose the None asset cost allocation method. This
simply means that the Generate Asset Lines process will create asset lines, but will not attempt to allocate them to
project assets. You will then need to manually assign these project asset lines to assets using the Projects > Assets UI
or perform this task in bulk using the Unassigned Asset Lines FBDI or the REST API for Asset Lines. For larger volumes,
you can build integrated Excel workbooks that utilize REST APIs using Visual Builder Add in for Excel (VBAFE).

Generating Asset Lines

This topic offers a high-level description of the tasks associated with asset line generation and illustrates the process
using an example.

For an introduction to asset lines, see What are asset lines, and why do I need them?

Asset line generation involves two interconnected tasks:

1. Project Costs Grouping: Enables you to group project costs.

2. Asset Costs Allocation: Enables you to allocate grouped asset costs to project assets.
In simple terms, there can be thousands, if not millions, of project costs that need to be summarized to make them
more manageable. Once these costs have been grouped together, we can allocate them to the designated project
assets, which should share in the allocation of these costs.

Asset Line Generation: Example

For example, the boundary line tapes of a clay tennis court are made of vinyl and must be physically nailed into the clay.
Typically, there are 1500 nails that are used to line one tennis court. Tennis court engineers obviously spend numerous
hours to drive in all of these nails, and if a tennis club has 8 clay courts, they will require 12,000 nails to line all eight
courts. So, let's say there is one person assigned per tennis court who lays out the tape, and there are two people per
tennis court, who must drive the nails in. Completing the taping of each tennis court takes five hours.

Let's say these are the relevant costs associated with laying a boundary tape around one clay tennis court:

• Cost of the vinyl tape: $1,000 per court

• Cost of the tennis court nails: $500 per court
• Labor costs for Tape Layer: $100 per hour. Two hours required per court for a cost of $200 per court.
• Labor cost for Nail Gun Applicator: $50 per hour. Three hours required per court for a cost of $150 per court.
• Hourly rental cost for the nail gun: $50 per hour. Three hours are required for the nail gun rental for a cost of
$150 per court.

Here are the costs associated with lining one tennis court:

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Costs for Lining One Tennis Court

Item Rate Time Cost per Court Time Required for Cost for Eight Courts
Eight Courts

Vinyl Tape $1,000 per court NA $1,000 NA $8,000

Tennis Court Nails $500 per court NA $500 NA $4,000

Labor, Tape Layer $100 per hour 2 hours $200 16 hours $1,600

Labor, Nail Gun $50 per hour 3 hours $150 24 hour $1,200
Applicator

Nail Gun Rental (1 per $50 per hour 3 hours $150 24 hours $1,200
Court)

Totals $2,000 $16,000

To generate asset lines for this project, we first need to first group project costs that belong together by one or more
specific rules of our choosing. Let's say we choose to group material and labor costs separately. We now have two heads
of project costs instead of five:

• Material Costs: The materials required to apply the lines to a clay tennis court is the vinyl tape, tennis court
nails, and the use of the special nail gun. The average expected material cost is $1,650 per clay tennis court or
$13,800 to lay out and install the tape in eight courts.
• Labor Costs: The labor required to install these lines can be organized into two parts: Two hours for the Tape
Layer, and three hours for the Nail Gun Applicator. The average expected labor cost is $350 per clay tennis
court, or $2,800 to lay out and install the tape in eight courts.

We now need to allocate these costs to project assets. Since we know that the costs of material and labor for laying
out each clay court is the same, we use the Spread Evenly asset cost allocation method. This means that each project
cost shall be allocated evenly to each clay court. To learn more about this asset cost allocation method, see Asset Cost
Allocation Methods.

Upon reviewing the process for preparing these eight tennis courts, the process is identical in terms of materials and
labor required. The costs can be charged directly to a designated task defined for the respective tennis court, or the
costs could collectively be captured and then allocated evenly to each of the eight tennis courts. This allocation could
also apply to incidental costs that are not directly associated with any one of the tennis courts, such the tennis court
supervisor overseeing installation on all eight tennis courts. This could also include the cost of trucks and lifts, which are
rented and used for the entire project.

Now, say the labor costs come to $2,800, the vinyl tape and tennis court nails come to $12,000, and the rental for the
nail guns comes to $1,200. This gives us a total project cost of $16,000. Because we chose the Spread Evenly asset cost
allocation method, the cost allocated to each clay court shall be $16,000 / 8 courts or $2,000 per court.

Here's a table listing out the final set of grouped and allocated costs, which constitutes your asset lines:

Final Set of Grouped and Allocated Costs

Associated Project Asset Asset Line Description Asset Line Value

Clay Court 1 Material costs for Clay Court 1 $1650

Clay Court 1 Labor costs for Clay Court 1 $350

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Associated Project Asset Asset Line Description Asset Line Value

Clay Court 2 Material costs for Clay Court 2 $1650

Clay Court 2 Labor costs for Clay Court 2 $350

Clay Court 3 Material costs for Clay Court 3 $1650

Clay Court 3 Labor costs for Clay Court 3 $350

Clay Court 4 Material costs for Clay Court 4 $1650

Clay Court 4 Labor costs for Clay Court 4 $350

Clay Court 5 Material costs for Clay Court 5 $1650

Clay Court 5 Labor costs for Clay Court 5 $350

Clay Court 6 Material costs for Clay Court 6 $1650

Clay Court 6 Labor costs for Clay Court 6 $350

Clay Court 7 Material costs for Clay Court 7 $1650

Clay Court 7 Labor costs for Clay Court 7 $350

Clay Court 8 Material costs for Clay Court 8 $1650

Clay Court 8 Labor costs for Clay Court 8 $350

Total $16,000

The grouped project costs are now distributed and allocated to the appropriate project asset. These 16 lines of allocated
cost are your 16 asset lines which, once they're transferred into Oracle Assets, will be associated with each tennis court
separately.

Related Topics
• Overview of Capital Asset Costs
• What are asset lines, and why do I need them?

Asset Cost Allocation Methods in the Project Costs to

Fixed Assets Process
A capital project creates fixed assets, and project tasks are geared towards creating them. Each task has costs, and it’s
critical to accurately collect and allocate project costs to tasks, each of which is typically associated with multiple project
assets.

Here's a graphic that illustrates the list of tasks that make up the project costs to fixed assets process.

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As the graphic above illustrates, the process of loading project costs to interfacing them into Fixed Assets involves the
following key tasks:
1. Import Project Costs and Cost Adjustments
2. Process Project Costs
3. a. Validate Project Costs
b. Account for Project Costs
4. Generate Asset Lines
a. Use Asset Line Grouping Methods to Group Project Costs
b. Use Asset Cost Allocation Methods to Allocate Grouped Costs to Project Assets
5. Run the Transfer Assets to Oracle Fusion Assets Process
6. Uptake Source Lines (in FA)
a. Run the Mass Additions Process
b. Run Accounting to Transfer CIP costs to Assets
7. Run the Update Assets Information from Oracle Fusion Assets (Tie-back) Process
Asset cost allocation methods help project managers and project accountants decide how they want to allocate project
costs to specific or common assets that the project aims to create.

Project Cost Collection Methods and Their Implications

for Asset Cost Allocation
Project costs are always collected at the bottom task level. Tasks in a project, therefore, serve two purposes:
• Tasks help structure the work associated with a project for easier execution and management.
• Tasks help capture associated costs from multiple applications, such as Procurement and Labor Distribution.
You can assign assets to tasks in different ways, and each of these methods has implications for how costs are assigned
to these assets.

Note: You can't assign the same project asset at the project and task levels.

Here's a table listing out the project cost collection methods available in Oracle Projects, and their implications for asset
cost allocation.

Project Cost Collection Methods Available in Oracle Projects

Asset-Task Assignment Method Description Implications for Asset Cost Allocation

Project Assets Assigned at the Project Level Project assets are all assigned at the project An asset cost allocation method will be used to
level. determine how to allocate project asset costs
charged to this project.

Tasks will be used for cost collection purposes

only.

Single Project Asset Assigned to Each Task Some tasks will be designated specifically for No asset cost allocation method is needed
one project asset. Costs charged to this task will to allocate project costs to the only asset
be allocated only to that project asset. associated with the project task.

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Asset-Task Assignment Method Description Implications for Asset Cost Allocation

All costs associated with that task will

automatically be allocated with that asset.

Multiple Project Assets Assigned to the Same Some tasks will have multiple project assets An asset cost allocation method will be used to
Task assigned to them. For this use case, these determine how to allocate project asset costs
project assets share the project costs charged charged to this task.
to this task.

Common Asset Costs Assigned to All Tasks Common costs are often necessary for the These common costs can’t be associated with
Within the summary task (See note below) successful creation of numerous project assets, any specific asset.
and the costs need to somehow be shared.

Examples of common costs: Permits and

architectural fees, wiring, and plumbing.

Related Topics
• At what task level can I assign project assets?

Considerations for Asset Assignment to Projects or Tasks

While assigning assets to projects or tasks, you must keep in mind the following considerations.

• Project assets can be assigned at the project level, but costs must be collected at the task level. For example,
if you create only one asset, or a couple of extremely similar assets, such as two identical buildings, you would
typically define them at the project level. While you may list your assets at the project level, you must capture
costs at the task level, which would offer you insight into the amount of money you spent building, say, a
specific floor.
• Project assets can be assigned at the task level. For example, a hospital building may have numerous assets
created, and when you have numerous assets, the project task structure will enable you to capture project costs
that are specific to each asset, which you can then assign to them.
• Multiple project assets can be assigned at the same level (project or task). For example, you can build four
identical tennis courts in a tennis club, and all four assets would be assigned to the same Build Tennis Courts
task.
• Project assets can be assigned to multiple tasks within the project. For example, the construction of a
restaurant kitchen may have tasks for storage and cabinetry as well as for flooring and cooking essentials like
stoves, ovens, and the cold storage. The kitchen asset would be assigned to each of these tasks.
• When assigning project assets at the task level, you can either assign assets to the top or bottom level tasks,
but you can’t do both. Project assets also can’t be assigned to a middle level task. See At what task level can I
assign project assets?
• You can also collect and allocate common costs to project assets.
Common costs are costs that can’t easily be assigned to any one project asset. Generic costs, such as permit
charges and architectural fees, are good examples of these. If you create tasks to capture such costs, you can’t

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assign project assets to them. While grouping common costs to create asset lines, you must use the Common
Costs cost grouping level type in the Edit Task Details screen.

How to decide where to assign project assets?

Assets can be assigned to tasks in different ways, and each of these methods has implications for how costs are
assigned to these assets.

Here's a table listing out the implications of choosing each asset-task assignment method.

Implications of Choosing Each Asset-Task Assignment Method

Asset-Task Assignment Method Description Additional Details

Project Assets Assigned at the Project Level Project assets are all assigned at the project An asset cost allocation method will be used to
level. determine how to allocate project asset costs
charged to this project.

Tasks will be used for cost collection purposes

only.

Project assets cannot be assigned at any task if

they are assigned at the project level.

Single Project Asset Assigned to Each Task Some tasks will be designated specifically for The asset cost allocation method is not needed
one project asset. Costs charged to this task will to allocate project costs to the only asset
be allocated only to that project asset. associated with the project task.

All costs associated with that task will

automatically be allocated to that asset.

Project assets cannot be assigned at the project

level if they are assigned at the task level.

Multiple Project Assets Assigned to the Same Some tasks will have multiple project assets An asset cost allocation method will be used to
Task assigned to them. For this use case, these determine how to allocate project asset costs
project assets share the project costs charged charged to this task.
to this task.
Project assets cannot be assigned at the project
level if they are assigned at the task level.

Common Asset Costs Assigned to All Tasks Common costs are often necessary for the These common costs can’t be associated with
Within the summary task successful creation of numerous project assets, any specific asset.
and the costs need to somehow be shared.

Examples of common costs: Permits and

architectural fees, wiring, and plumbing.

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Scenarios for Asset Cost Allocation Methods

There are two distinct scenarios where asset cost allocation methods may be applied: when a project has multiple
project assets and when a project has common costs that must be allocated across project assets.

Multiple Project Assets

When there is more than one project asset assigned at one specific project or task, asset cost allocation methods help
determine how project costs must be assigned to each of the assets.

For example, consider a task that involves the creation of multiple clay tennis courts. From experience, (and from the
project schedule) we know that these courts will be constructed simultaneously. The materials and labor incurred will be
shared amongst the clay tennis courts being constructed.

Project managers and project accountants can choose from five options to specify how they want to allocate these
costs:

• Actual Units
• Current Costs
• Estimated Cost
• None
• Standard Unit Cost
• Spread Evenly.

If they choose None as the asset cost allocation method, project costs would be generated in a single asset line, and
there would be no assignment to any of the four assets listed.

Common Cost Project or Task

If the project manager chooses this method, costs collected will be shared amongst all project assets.

For example, if two tasks in your project are associated with two very different grass tennis courts, both of these tasks
will incur very specific charges. In addition to these, there will be some common costs, such as costs associated with
topsoil, grass seed, and tennis court line paint, which would be shared by both courts. These common costs would be
collected in a separate task (such as Common Grass Tennis Courts Construction Costs), and would then be shared with
those assets within the same summary task.

Customers have the same five options to allocate these costs:

• Actual Units
• Current Costs
• Estimated Cost
• None
• Standard Unit Cost
• Spread Evenly

If they choose None as the asset cost allocation method, project costs would be generated in a single asset line, and
there would be no assignment to any of the four assets listed. Keep in mind that common costs are typically shared over
a large number of assets.

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Note:
• Projects or tasks that are defined as common costs will never have project assets listed. What you can do is
either assign all common costs directly to the project, or you can create a task that is meant specifically for
collecting common costs.
• Customers typically wait for significant milestones—or the conclusion of the project—to allocate common costs
to eligible project assets.
• You can update the asset cost allocation method associated with a project at any time. You may decide that one
of the other asset cost allocation methods may be more suitable at a particular stage of the project’s lifecycle.
Keep in mind, however, that any update to allocation methods will only impact the allocation of new project
asset lines, not previously generated asset lines that have already been transferred into Oracle Assets.

Allocating Project Asset Costs to Projects and Tasks

When you work on a project and need to set up project asset costs allocation methods for projects and tasks, you must
perform at least the following tasks:

Typical Capital Project-Related Tasks

No. Task Description Importance

1 Create a capital project. This is a financial project that has Only when financial projects are
capitalization enabled. This means enabled for capitalization can you
that the project template that you associate assets with tasks, and
choose for the project must have project costs with assets associated
capitalization enabled as well. with these tasks.

If the asset costs allocation method

that the project inherits from the
project template isn’t the one that
you want to use, you can update
it using the Manage Financial
Project Settings > Capital tab.

2 Create project assets. Project assets are unique to a Only when these assets are
project’s goals, and are defined at created, can they be variously
the project level. assigned to projects or project
tasks. This will help in project costs
allocation when the team starts
executing project tasks.

3 Create project plan. The project plan lists out all the Project managers can allocate
tasks in the work breakdown project costs to assets associated
structure of the project. with tasks. When there are multiple
project assets associated with

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No. Task Description Importance

a specific task, or if the task is

collecting common costs, the asset
cost allocation method will be
used to determine what prorated
amount a project asset will receive.

4 Assign project assets to the project Project assets are assigned at Project managers can allocate
or its task(s). either the project or task level. project costs to assets associated
with tasks. When there are multiple
project assets associated with
a specific task, or if the task is
collecting common costs, the asset
cost allocation method will be
used to determine what prorated
amount a project asset will receive.

5 Create and collect project costs. Projects accumulate costs from Project costs are the raw materials
numerous applications as work on for asset lines. These costs must
tasks progresses. Project managers be properly accounted before
can also create costs at the project asset lines can get grouped and
level. generated. The project asset cost
allocation method determines
how these project costs, after they
are grouped, get assigned to the
appropriate project assets.

6 Generate asset lines. Generate asset lines to pick Project transactions get transferred
accounted project cost into Oracle Assets as asset lines.
transactions, group them into asset The asset cost allocation methods
lines, and assign them to project determine which project asset(s)
assets. The Generate Asset Lines the project asset lines are assigned
process also allocates common to. Only project asset lines that
costs for tasks that are defined to have been assigned to a project
collect common costs. asset can be transferred into Oracle
Assets. The Include Common Tasks
option must be marked as Yes for
the common costs to get allocated.

7 Transfer asset lines to Oracle Fixed Project asset lines get transferred This is a significant milestone
Assets. into Oracle Assets. that marks the completion of the
project-to-assets lifecycle.

Asset Cost Allocation Methods Available in Oracle

Projects
Here's a table that offers a summary of asset cost allocation methods available in Oracle Projects:

Asset Cost Allocation Methods Available in Oracle Projects

Asset Cost Allocation Method Description Typical Use Case

Actual Units The Actual Units asset cost allocation method is Use this allocation method when your assets
based on the actual number of units defined for are almost identical in nature, and the primary
a project. difference is in the number of items for each

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Asset Cost Allocation Method Description Typical Use Case

asset. The cost allocation would then be driven

by the number of asset items. It would be
logical for one asset that has a quantity of 2 to
be allocated twice the cost of an asset (with the
same price) with the quantity of 1.

Current Costs The Current Costs asset cost allocation method Use this allocation method when you are
is based on the current construction in progress looking to allocate common costs to project
(CIP) costs charged, and asset accounting lines assets based on the current costs of the
are created for each individual asset within a existing assets.
project or task.
This would commonly be done at the
conclusion of a capital project.

Estimated Costs The Estimated Cost asset cost allocation The use case for using Estimated Cost would be
method is based on the estimated or budgeted when customers can very closely estimate the
cost of the project assets. final cost of their project asset. A project asset
in which an estimated cost of $2 million would
be allocated twice the common cost of a project
asset with estimated cost of $1 million.

None None is an asset cost allocation method that The use case for using None would be when
will NOT allocate common and indirect costs to the other five asset cost allocation methods do
project assets. NOT meet the needs for assigning the project
costs to the project assets. The customer will
have to assign these unassigned asset lines
manually through the Project Assets UI, or in
larger volumes using FBDI.

Keep in mind, if there is just one project asset

assigned to a task, project asset lines will
automatically be assigned to that project asset,
regardless of the asset cost allocation method
used.

Standard Unit Cost A standard unit cost is defined for an asset The use case for Standard Unit Cost is when
book and asset category combination. When customers would like to use a standard defined
you use this method, Oracle Fusion Projects cost when determining the project cost
multiplies the standard unit cost times the allocations.
actual units based on the asset book and asset
category of each asset, and it determines the
proration basis for allocating costs.

Spread Evenly The Spread Evenly method is an asset cost The use case for using Spread Evenly would
allocation method used to allocate common be when customers have very similar assets
and indirect costs to assets. and have determined that common costs can
be equally allocated to each of those assets.
The Spread Evenly asset cost allocation method A grocery store may have 500 of the same
considers the number of project assets that will display cases constructed and distributed to
receive project costs and equally shares the their stores. The costs are for all 500 display
costs with those assets. cases and should be equally divided for each
asset.

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Note:
• Projects or tasks that are defined as common costs will never have project assets listed. What you can do is
either assign all common costs directly to the project, or you can create a task that is meant specifically for
collecting common costs.
• When there is one project asset assigned to a specific task, project costs associated with that task are
automatically assigned to that one asset. The asset cost allocation method is not used to allocate project costs
here.
• Customers typically wait for significant milestones—or the conclusion of the project—to allocate common costs
to eligible project assets.
• You can update the asset cost allocation method associated with a project at any time. You may decide that one
of the other asset cost allocation methods may be more suitable at a particular stage of the project’s lifecycle.
Keep in mind, however, that any update to allocation methods will only impact the allocation of new project
asset lines, and not to previously generated asset lines that have already been transferred into Oracle Assets.

The Actual Units Asset Cost Allocation Method

The Actual Units asset cost allocation method is based on the actual number of units defined for a project.

Use this allocation method when your assets are almost identical in nature, and the primary difference is in the number
of items for each asset. The cost allocation would then be driven by the number of asset items. It would be logical for
one asset that has a quantity of 2 to be allocated twice the cost of an asset (with the same price) with the quantity of 1.

Actual Units is a required field during project asset definition.

For example, let’s say a building needs the following heating, venting, and air-conditioning (HVAC) units:

• One for the first floor

• Two for the second floor
• Three for the third floor, and
• Four for the fourth floor
In all, there are four assets listed here, with a total quantity of 10 (1+2+3+4). The project manager decides to allocate
asset costs by actual units in this context.

For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation
Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.

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Actual Units: Create Project Assets

The project manager creates the four assets and adds the quantity numbers as appropriate. Here's a table describing
the listing of the four project assets tracking the ten HVAC Units.

Actual Units: Project Asset Details

Asset Asset Cost Allocation Method Actual Units Prorate %

HVAC Units for Floor 1 Actual Units 1 10%

HVAC Units for Floor 2 Actual Units 2 20%

HVAC Units for Floor 3 Actual Units 3 30%

HVAC Units for Floor 4 Actual Units 4 40%

Totals 10 100.00%

Actual Units: Assign Project Assets to the Project or its Tasks

Because these assets were defined and assigned at the project level, there are no task-level assignments.

Actual Units: Create and Collect Project Costs

Now that the assets are associated with the project, the project manager can start importing costs and allocate them to
these assets.

Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:

1. The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for the
imported costs by project.
2. From the search results, the project manager clicks the Transaction Number associated with the imported
cost. The Project Cost Transaction page appears.
3. The project manager clicks the Costing tab to view cost details.
4. The project manager then selects the Line Number associated with the cost and clicks View Accounting to
view details associated with the imported cost.

Actual Units: Generate Asset Lines

The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.

Actual Units: Review Project Asset Lines

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that four asset lines are generated for the imported project cost, and the values
in the Split Percentage column is as specified in the Prorated Percentage column in the table above.

Here's a table listing out the prorated amounts allocated to each asset in this example.

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Actual Units: Prorated Allocated Amounts

Asset Split Percentage Project Expenditure Allocated Amount

HVAC Units for Floor 1 10.00% $1.000.00 $100.00

HVAC Units for Floor 2 20.00% $1,000.00 $200.00

HVAC Units for Floor 3 30.00% $1,000.00 $300.00

HVAC Units for Floor 4 40.00% $1,000.00 $400.00

Totals 100.00% $1,000.00

Actual Units: Transfer Assets to Oracle Assets

Once the project manager is ready to transfer these asset lines to Oracle Assets, they use the Projects > Assets > Side
Panel Drawer > Transfer Assets to Oracle Fusion Assets process to transfer these asset lines to Oracle Assets.

The Current Cost Asset Cost Allocation Method

Use the Current Cost method when the actual costs of project assets vary greatly.

The Current Cost asset cost allocation method is based on the current construction in progress (CIP) costs charged, and
asset accounting lines created for each individual asset within an asset collection area (project or task).

Project managers can change their asset cost allocation method whenever required. For example, you can always
choose to change your asset cost allocation method from Spread Evenly to Current Cost. One use of the Current Cost
method is to calculate the basis for determining proration percentages across assets.

To explain this scenario, let’s say that one project has one task for each of the three buildings being constructed.
However, there are some very generic costs that are incurred that are not directly associated with any one of the three
buildings. Therefore, the customer creates one task to collect just these costs, which are called Common Costs. By
definition, it is not possible to assign any asset to a common cost task. At the conclusion of the project, there are some
very common costs. When Current Costs (not to be confused with common costs) is the asset cost allocation method,
we will use the total current CIP charges for each building to determine how to allocate the common costs collected in
the task. Therefore, a project asset in which $2 million has been capitalized would be allocated twice the common costs
allocated to an asset with a capitalization of $1 million.

Note: This is the only asset cost allocation method where asset lines MUST be generated at least once to get the
basis for determining how to allocate asset lines to project assets. The others do NOT require the Generate Asset
Lines process to be run for proration percentages to be calculated.

The current cost is the total asset cost that was calculated by the Generate Asset Lines process.

For example, let’s say that this project is defined with the asset cost allocation method of Current Cost, which is
reflected as the total asset cost for the four clay tennis courts:

• The Current Cost / (Total Asset Cost) for Clay Tennis Court 1 is $1,000.
• The Current Cost for Clay Tennis Court 2 is $4,000.
• The Current Cost for Clay Tennis Court 3 is $5,000.

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• The Current Cost for Clay Tennis Court 4 is $10,000.

In all, there are four assets listed here, with a total current cost of $20,000 (1,000 + 4,000 + 5,000 + 10,000). The project
manager decides that it would be most effective to allocate asset costs by the current cost in this context. Thus, asset
costs would be allocated to these assets based on the proration of the current costs.

For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation
Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.

Current Cost: Create Project Assets

The project manager creates the four assets and adds the quantity numbers as appropriate:

The current cost for a project asset is calculated by generating accounting and generating asset lines for the capital
project. In this scenario, the total asset cost of $4,000.00 represents the current cost used for the proration of common
project costs to the Clay Tennis Court 2 asset.

Here's a table depicting the listing of the four project assets tracking the four clay tennis courts, 1 through 4.

Current Costs: List of Project Assets

Asset Asset Cost Allocation Method Current Cost CIP Amount Prorated Percentage

Clay Tennis Court 1 Current Cost 1,000.00 5%

Clay Tennis Court 2 Current Cost 4,000.00 20%

Clay Tennis Court 3 Current Cost 5,000.00 25%

Clay Tennis Court 4 Current Cost 10,000.00 50%

Totals 20,000.00 100.00%

Current Cost: Assign Project Assets to the Project or its Tasks

When using the Current Cost asset cost allocation method, you typically assign one asset to each task, and you create a
task dedicated to collecting common costs.

Current Cost: Create and Collect Project Costs

Now that the assets are associated with the project, the project manager can start importing costs and allocate them to
these assets.

Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:

1. The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for the
imported costs by project.
2. From the search results, the project manager clicks the Transaction Number associated with the imported
cost. The Project Cost Transaction page appears.
3. They now click the Costing tab to view cost details.
4. The project manager selects the Line Number associated with the cost and clicks View Accounting to view
details associated with the imported cost.

Current Cost: Generate Asset Lines

The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.

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Current Cost: Review Project Asset Lines

Note that when $1,000 is charged to this project and task combination, the calculated amount of the asset lines is
exactly as expected.

Here's a table listing out the prorated amounts allocated to each asset in this example.

Current Costs: Project Asset Details

Asset Split Percentage Project Expenditure Allocated Amount

Clay Tennis Court 1 5.00% $1.000.00 $50.00

Clay Tennis Court 2 20.00% $1,000.00 $200.00

Clay Tennis Court 3 25.00% $1,000.00 $250.00

Clay Tennis Court 4 50.00% $1,000.00 $500.00

Totals 100.00% $1,000.00

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that eight asset lines are generated in all. Four asset lines are generated for the
imported project cost, and the values in the Split Percentage column is as specified in the Prorated Percentage column
in the table above. Since there was just the one asset per task, the project costs were allocated automatically to their
specified tasks.

The last four asset lines represent the allocation of the common costs ($1,000) captured in Task 1.1.5 and allocated to the
four clay tennis courts.

Current Cost: Transfer Assets to Oracle Assets

The project manager now runs the Transfer Assets to Oracle Assets process to send the generated asset lines to
Oracle Assets.

The Estimated Cost Asset Cost Allocation Method

The Estimated Cost asset cost allocation method is based on the estimated or budgeted cost of the project assets.

Use the Estimated Cost asset cost allocation method when you can very closely estimate the final cost of your project
asset. A project asset with an estimated cost of $2 million would be allocated twice the common cost of a project asset
with an estimated cost of $1 million.

For example, let’s say that this project is defined with the asset cost allocation method of Estimated Cost, which is
reflected as the total asset cost for the four clay tennis courts:

• The estimated cost for Clay Tennis Court 1 is $30,000.

• The estimated cost for Clay Tennis Court 2 is $40,000.
• The estimated cost for Clay Tennis Court 3 is $60,000.
• The estimated cost for Clay Tennis Court 4 is $70,000.

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For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation
Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.

Estimated Cost: Create Project Assets

The estimated cost for a project asset is its budgeted or expected cost. In our example above, the estimated cost of Clay
Tennis Court 1 is $60,000.

Say a project manager needs the following assets for a project:

Estimated Cost: Project Asset Details

Asset Asset Cost Allocation Estimated Units Estimated Cost Prorate %

Method

Tennis Court 1 Estimated Costs 1 30,000.00 15%

Tennis Court 2 Estimated Costs 1 40,000.00 20%

Tennis Court 3 Estimated Costs 1 60,000.00 30%

Tennis Court 4 Estimated Costs 1 70,000.00 35%

Totals 4 200,000.00 100.00%

Notice how the only difference between the four assets is the estimated cost. This is used to determine the calculated
prorate percentage that will be used when allocating common costs to project assets.

Estimated Cost: Assign Project Assets to the Project or its Tasks

It’s also important to note that all four of these assets are assigned at the project level. This means that when a new
common project expenditure item is added to the project, the cost will be assigned to these assets using the prorated
percentage we saw calculated in the table above.

Each of these four assets must be as-built, and the project manager also specifies the actual units of each asset that the
project needs.

For each asset, the project manager captures the following details, among others:

• Asset Name: The name of the asset.

• Estimated Units: The number of units of that asset required for the project

The project manager can also add project assets to a project using Oracle Assets. To do so, they must:

1. Navigate to Oracle Assets > Side Panel > Manage Capital Projects.
2. Search for the project.
3. Select the project and then click Actions > Manage Capital Assets.

Estimated Cost: Create and Collect Project Costs

Now that the assets are associated with the project, the project manager can start importing costs and allocate them to
these assets.

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Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:

1. The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for the
imported costs by project.
2. From the search results, they click the Transaction Number associated with the imported cost. The Project
Cost Transaction page appears.
3. They click the Costing tab to view cost details.
4. The project manager selects the Line Number associated with the cost and clicks View Accounting to view
details associated with the imported cost.

Estimated Cost: Generate Asset Lines

The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.

Estimated Cost: Review Asset Lines

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that four asset lines are generated for the imported project cost, and the values
in the Split Percentage column is as specified in the Prorated Percentage column in the table above.

Note that the calculated amount of the asset lines is exactly as expected.

Estimated Cost: Prorated Allocated Amounts

Asset Split Percentage Project Expenditure Allocated Amount

Clay Tennis Court 1 15.00% $1.000.00 $150.00

Clay Tennis Court 2 20.00% $1,000.00 $200.00

Clay Tennis Court 3 30.00% $1,000.00 $300.00

Clay Tennis Court 4 35.00% $1,000.00 $350.00

Totals 100.00% $1,000.00

Estimated Cost: Transfer Assets to Oracle Assets

Once the project manager is ready to transfer these asset lines to Oracle Assets, they use the Projects > Assets > Side
Panel Drawer > Transfer Assets to Oracle Fusion Assets process to transfer these asset lines to Oracle Assets.

The None Asset Cost Allocation Method

None is an asset cost allocation method that will NOT allocate common and indirect costs to project assets.

Say a project manager needs the following assets for a project:

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None: Project Asset Details

Asset Asset Cost Allocation Method Actual Units Prorate %

Clay Tennis Court 1 Actual Units 1 TBD%

Clay Tennis Court 2 Actual Units 1 TBD%

Clay Tennis Court 3 Actual Units 1 TBD%

Clay Tennis Court 4 Actual Units 1 TBD%

Totals 4 100.00%

There are four assets associated with this task. Therefore, each asset is eligible to receive all or a portion of the project
costs.

For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation
Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.

None: Create Project Assets

When the project manager wants to include these assets into a project, they create the project and use the Capital tab
of the Manage Financial Project Settings page to list these assets out. The asset cost allocation method chosen must be
Actual Units.

It’s also important to note that all four of these assets are assigned at the project level. This means that when a new
common project expenditure item is added to the project, the cost will be assigned to these assets using the prorated
percentage we saw calculated in the table above.

The project manager similarly adds details associated with the other assets.

The project manager can also add project assets to a project using Oracle Assets. To do so, they must:

1. Navigate to Oracle Assets > Side Panel > Manage Capital Projects.
2. Search for the project.
3. Select the project and then click Actions > Manage Capital Assets.

None: Assign Project Assets to the Project or its Tasks

For each asset assignment, the project manager captures the following details, among others:

• Project Task Name / Number: The name or number of the project or task.
• Project Asset Names: Names of assets that must be assigned to the project or task.

None: Create and Collect Project Costs

When None is the asset cost allocation method, asset line will be generated but NOT assigned to any project assets.

The use case for using None would be when the other five asset cost allocation methods do NOT meet the needs for
assigning the project costs to the project assets. The customer will have to assign these unassigned asset lines manually
through the Project Assets UI, or in larger volumes with FBDI or the VBAFE (REST) tools.

Unassigned asset lines typically occur when more than one asset is assigned to an asset assignment level, such as the
project or one of its task. Customers have the option to determine the best way to allocate project costs to these project
assets.

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Now that the assets are associated with the project, the project manager can start importing costs and allocate them to
these assets.

Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:

1. The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for the
imported costs by project.
2. From the search results, they click the Transaction Number associated with the imported cost. The Project
Cost Transaction page appears.
3. They click the Costing tab to view cost details.
4. The project manager selects the Line Number associated with the cost and clicks View Accounting to view
details associated with the imported cost.

None: Generate Asset Lines

The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.

None: Review Asset Lines

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that four asset lines are generated for the imported project cost, and the values
in the Split Percentage column is as specified in the Prorated Percentage column in the table above.

Note that the allocated amount of the asset lines is exactly as expected. An additional asset line was created for assets
without assignments. Note that there are four possible project assets that could receive or share in the project costs if
the customer decides to split the asset line.

None: Allocated Amounts

Asset Split Percentage Project Expenditure Allocated Amount

Clay Tennis Court 1 TBD% $4,000.00 TBD

Clay Tennis Court 2 TBD% $4,000.00 TBD

Clay Tennis Court 3 TBD% $4,000.00 TBD

Clay Tennis Court 4 TBD% $4,000.00 TBD

Totals 100.00% $4,000.00

None: Transfer Assets to Oracle Assets

Once the project manager is ready to transfer these asset lines to Oracle Assets, they run the Projects > Assets > Side
Panel Drawer > Transfer Assets to Oracle Fusion Assets process to transfer these asset lines to Oracle Assets.

The Standard Unit Cost Asset Cost Allocation Method

A standard unit cost is defined for an asset book and asset category combination.

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When you use this method, Oracle Projects multiplies the standard unit cost times the actual units based on the asset
book and asset category of each asset, and it determines the proration basis for allocating costs. For more information
on the standard unit cost method, see What's a standard unit cost method?

The use case for Standard Unit Cost is when customers would like to use a standard defined cost when determining
project cost allocations.

For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation
Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.

To manage standard unit cost, the project manager navigates to the Projects > Assets > Side Panel Drawer > Manage
Standard Unit Cost page to define the cost per unit by Asset Book and Asset Category combination.

Say a project manager needs the following assets for a project:

Standard Unit Cost: Project Asset Details

Asset Asset Book Asset Category Qty Asset Cost Cost Per Unit Total Cost Prorate %
Allocation
Method

Tennis Rolling Operations VO Standard 2 Standard Unit 22,000.00 44,000.00 57.895%

Machine 1 Corporate Book Cost

Tennis Rolling Operations VO Luxury 1 Standard Unit 32,000.00 32,000.00 42.105%

Machine 2 Corporate Book Cost

54,000.00 76,000.00 100.00%

Notice how the asset category associated with each asset is different, and how the number of assets required is also
different for each asset. The costs per unit is different as well, and the overall percentage of cost associated.

Standard Unit Cost: Create Project Assets

For each asset, the project manager captures the following details, among others:

• Asset Name: The name of the asset.

• Book: The name of the asset book associated with the asset.
• Asset Category: The name of the asset category associated with the asset.
• Actual Units: The number of units of that asset required for the project.

The Total Asset Cost field is a read-only rendition of the costs associated with two units of the asset that the project
manager selected.

The project manager similarly adds details associated with the second asset.

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that two asset lines are generated for the imported project cost, and the values
in the Split Percentage column is as specified in the Prorated Percentage column in the table above.

Standard Unit Cost: Assign Project Assets to the Project or its Tasks
Because these assets were defined and assigned at the project level, there are no task-level assignments.

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Standard Unit Cost: Create and Collect Project Costs

Now that assets are associated with the project, the project manager can start importing costs and allocate them to the
assets associated with the project.

Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:

1. The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for
imported costs by project.
2. From the search results, they click the Transaction Number associated with the imported cost. The Project
Cost Transaction page appears. They click the Costing tab to view cost details.
3. The project manager selects the Line Number associated with the cost and clicks View Accounting to view
details associated with the imported cost.

Standard Unit Cost: Generate Asset Lines

The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.

Standard Unit Cost: Review Asset Lines

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that two asset lines are generated for the imported project cost, and the values
in the Split Percentage column is as specified in the Prorated Percentage column in the table above.

Note that the calculated amount of the asset lines is exactly as expected.

Standard Unit Cost: Prorated Allocated Amounts

Asset Split Percentage Project Expenditure Allocated Amount

Tennis Rolling Machine 1 57.895% $1.000.00 $578.95

Tennis Rolling Machine 2 42.105% $1,000.00 $421.05

Totals 100.00% $1,000.00

Standard Unit Cost: Transfer Assets to Oracle Assets

Once the project manager is ready to transfer these asset lines to Oracle Assets, they use the Projects > Assets > Side
Panel Drawer > Transfer Assets to Oracle Fusion Assets process to transfer these asset lines to Oracle Assets.

The Spread Evenly Asset Cost Allocation Method

The Spread Evenly method is an asset cost allocation method used to allocate common and indirect costs to assets.

The Spread Evenly asset cost allocation method considers the number of project assets that will receive project costs
and equally shares the costs with those assets.

For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation
Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.

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The use case for using the Spread Evenly method would be when customers have very similar assets and have
determined that common costs can be equally allocated to each of those assets. A grocery store may have 500 of the
same display cases constructed and distributed to their stores. The costs are for all 500 display cases and should be
equally divided for each asset.

Say a project manager needs the following assets for a project:

Spread Evenly: Project Asset Details

Asset Asset Cost Allocation Method Actual Units Prorate %

Clay Tennis Court 1 Actual Units 1 25%

Clay Tennis Court 2 Actual Units 1 25%

Clay Tennis Court 3 Actual Units 1 25%

Clay Tennis Court 4 Actual Units 1 25%

Totals 4 100.00%

This is the easiest and most straight forward of the asset cost allocation methods. There are four assets for this one
task. Therefore, each asset will receive 1/4th (or 25%) of all of the costs.

To illustrate further, the four assets, Clay Tennis Court 1, 2, 3, and 4 will each share (or 25% each) in the project costs
each.

Spread Evenly: Create Project Assets

When the project manager wants to include these assets into a project, they create the project and use the Capital tab
of the Manage Financial Project Settings page to list these assets out. The asset cost allocation method used is Actual
Units.

It’s also important to note that all four of these assets are assigned at the project level. This means that when a new
common project expenditure item is added to the project, the cost will be assigned to these assets using the prorated
percentage we saw calculated in the table above.

Each of these four assets must be as-built, and the project manager also specifies the Actual Units of each asset that
the project needs.

Spread Evenly: Assign Project Assets to the Project or its Tasks

For each project or task, the project manager captures the following details, among others:

• Project Task Name / Number: The name of the project or task.

• Project Asset Names: The names of the project assets that must be associated with the project or task.

Spread Evenly: Create and Collect Project Costs

Now that the assets are associated with the project, the project manager can start importing costs and allocate them to
these assets.
Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:

1. The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for the
imported costs by project.

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2. From the search results, they click the Transaction Number associated with the imported cost. The Project
Cost Transaction page appears.
3. They click the Costing tab to view cost details.
4. The project manager selects the Line Number associated with the cost and clicks View Accounting to view
details associated with the imported cost.

Spread Evenly: Generate Asset Lines

The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.

Spread Evenly: Review Asset Lines

Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets >
Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has
been distributed as expected. They see that four asset lines are generated for the imported project cost, and the values
in the Split Percentage column is as specified in the Prorated Percentage column in the table above.

Note that the calculated amount of the asset lines is exactly as expected.

Spread Evenly: Prorated Allocated Amounts

Asset Split Percentage Project Expenditure Allocated Amount

Clay Tennis Court 1 25.00% $10.000.00 $2,500.00

Clay Tennis Court 2 25.00% $10,000.00 $2,500.00

Clay Tennis Court 3 25.00% $10,000.00 $2,500.00

Clay Tennis Court 4 25.00% $10,000.00 $2,500.00

Totals 100.00% $10,000.00

Spread Evenly: Transfer Assets to Oracle Assets

Once the project manager is ready to transfer these asset lines to Oracle Assets, they use the Projects > Assets > Side
Panel Drawer > Transfer Assets to Oracle Fusion Assets process to transfer these asset lines to Oracle Assets.

The project asset definition has no value that can determine how project costs must be allocated.

Capitalization Options for Project Types

You can assign assets to a project by associating it with a project type that's enabled for capitalization. Enable
capitalization for a project type using the Manage Project Types task.

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The following graphic illustrates the capitalization options for project types.

Specify the following information when setting up capitalization options for project types.

• Construction in Progress (CIP) Options

• Supplier Invoices Export Options
• Capitalized Interest Options

Construction in Progress Options

You specify the following Construction in Progress options when setting up capitalization options for project types.

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Cost Type
Indicate whether to capitalize costs at the burdened or raw cost amount for projects associated with this project type.

Complete Asset Definition

Enable this option to require a complete asset definition in Oracle Fusion Project Portfolio Management before sending
costs to Oracle Fusion Assets. If you select this option, you don't need to enter information for the imported asset lines
in Oracle Fusion Assets. The Transfer Assets to Oracle Fusion Assets process places asset lines with complete definitions
directly into the post queue in Oracle Fusion Assets.

Asset Line Grouping Method

Specify one of the following methods to summarize asset lines.

• All, which is the highest level of summarization

• Expenditure Category
• Expenditure Category Nonlabor Resource
• Expenditure Type
• Expenditure Type Nonlabor Resource
• Expenditure Organization
• Expenditure Item

Asset Cost Allocation Method

Select one of the following predefined allocation methods to automatically distribute indirect and common costs across
multiple assets, or select no allocation method.

• Actual Units
• Current Cost
• Estimated Cost
• Standard Unit Cost
• Spread Evenly

Event Processing Method

Specify a capital event processing method to control how assets and costs are grouped over time. You can select either
periodic or manual events, or no events.

Supplier Invoices Options

You specify the following Supplier Invoices options when setting up capitalization options for project types.

Grouping Supplier Invoices

You can use the grouping options to do one of the following:

• Enable this option to consolidate the expenditure items on a supplier invoice into one asset line according to
the asset line grouping method.

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• Disable this option to send the lines to Oracle Assets based on the supplier invoice export option

Exporting Supplier Invoices

If you choose not to group supplier invoices, then select one of the following supplier invoice export options.

• As New Additions: Sends each expenditure item on a supplier invoice line to Oracle Fusion Assets as a separate
addition line with a status of New.
• As Merged Additions: Sends each supplier invoice line to Oracle Fusion Assets as a separate addition line with
the status of Merged.

Previously capitalized assets are transferred as new additions to Oracle Fusion Assets.

• If the asset was assigned an asset number in Project Costing, then you must remove or change the asset
number in Oracle Fusion Assets before you can post the new addition.
• After the addition lines are sent to Oracle Fusion Assets, you can split, merge, or split the lines manually in
Oracle Fusion Assets.

Capitalized Interest Options

Use this field to specify a default interest rate schedule for capitalized interest.

You can select the Allow Override option to allow an override of the default capitalized interest rate schedule for
individual projects.

How Project Costing Source Lines Are Imported

You can collect construction-in-process (CIP) costs for capital assets you're building in Oracle Project Costing.

When you finish building your CIP asset:

• Capitalize the associated costs as asset lines in Project Costing
• Send the asset lines to Oracle Assets as mass addition lines.

Note: If you use Project Costing to build CIP assets, you don't need to create CIP assets in Assets. For costs that
originate in Oracle Payables, you should send CIP costs to Project Costing, and capitalized costs to Assets.

Settings That Affect the Import Process

Asset lines sent from Project Costing to Assets must meet these specific conditions:

• The actual date in service must fall in the current or a prior Assets accounting period.
• The CIP costs for summarized asset lines must be interfaced to Oracle General Ledger.
• The CIP costs for supplier invoice adjustments must be interfaced to Payables.
• A CIP asset must be associated with the asset line.

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How Project Lines Are Imported

In Project Costing, run the Transfer Assets to Oracle Fusion Assets process to send asset lines to Assets. This process:

• Creates a mass addition line for each asset line in Project Costing.
• Merges all mass additions for one asset into a single parent mass addition line. The merged children have a
status of Merged.

In Assets:

• The parent mass addition is placed in the Post queue if the asset was completely defined in Project Costing and
it's ready for posting.
• The parent mass addition is placed in the New queue if the asset definition isn't complete.

In this case you must enter additional information for the mass addition and then update the queue status to
Post.

Note: You don't need to change the queue status for lines with a status of Merged.

Automatically Derive Depreciation Expense Account for

Assets
You can generate depreciation expense account for the Construction In Progress assets in Project Financial
Management through the use of Transaction Account Builder.

You can default the Depreciation Expense account when creating capital projects using attributes such as the Project
Owning Organization and Asset Category. Using this feature, you can minimize reconciliation issues and avoid any
errors that occur while selecting the depreciation expense account manually, which will lead to eventual incorrect asset
lines generation.

How to Automatically Derive Depreciation of Expense Accounts for Assets

You can now generate depreciation expense account for the Construction In Progress assets in Project Financial
Management through the use of Transaction Account Builder. Here are the steps to enable this feature.

1. Identify or create the account rules needed.

2. Create a new transaction account definition. Duplicate the predefined transaction account definition PPM
Default Account Generation Definition.
3. Attach the desired account rules to the transaction account definition
4. Click Save to save the desired account rules to the transaction account definition.
5. Click Activate to activate your transaction account definition
6. Update the subledger accounting options for projects with the new transaction account definition.

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Related Topics
• Account Rules
• Transaction Account Builder
• Set Up Default Budget Account

Import Assets
Use the Project Asset and Assignment Interface FBDI spreadsheet template to prepare asset and asset assignment data
before loading and importing them into the application.

This spreadsheet contains the following worksheets:

• Instructions and CSV Generation: Contains table-specific instructions, guidelines, sample data, and
recommendations for preparing the data file for upload.
• Project Assets: Enables you to import project asset details, such as project name, project number, project asset
type, asset name, asset number, and so on.

You can also use this spreadsheet to create project assets and associate them with existing Fixed Asset (FA)
assets. Once you establish this relationship, you can capture and capitalize additional project asset costs tagged
to the FA asset, and interface them into Fixed Assets.
• Project Asset Assignments: Enables you to import project asset assignment details, such as project name, task
name, task number, asset name, asset number, asset assignment level, and so on.
For more information about the Project Asset and Assignment Interface FBDI spreadsheet template, see the File-Based
Data Import for Project Portfolio Management guide.

After you prepare the data in the Project Asset and Assignment Interface workbook, click the Generate CSV File button
in the template to create the CSV files as a ZIP file.

You must now load the zipped data to destination interface tables using the Scheduled Processes page. There are two
processes that you must run to perform this task:

• Load Interface File for Import: Loads the interface files and prepares them for import.
• Import Assets and Assignments: Imports the asset and assignment data from the interface files loaded in the
previous step.
You must navigate to the Tools > Scheduled Processes page to perform tasks that follow.

Load Interface File for Import

1. In the Scheduled Processes page, click Schedule New Process.
2. Enter Load Interface File for Import as the Name of the process and click OK.
3. Under Process Details, enter Import Asset and Assignments Process as the Import Process and upload or
select the zipped CSV files containing the assets and asset assignments that you want to import.
4. Click Submit. The application now loads asset and asset assignment data from the CSV files, and you can see
the progress of your import until it succeeds.

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Import Assets and Assignments

1. In the Scheduled Processes page, click Schedule New Process.
2. Enter Import Asset and Asset Lines as the Name of the process and click OK.
3. Under Process Details, you can optionally specify the following parameters. Leaving these values blank will
import assets and asset assignments for all projects contained in the CSV worksheet.

◦ Batch Name: User-entered name for a grouping of assets and asset assignments in the interface table.
◦ From Project Number: The first project number in the range of projects whose assets and asset
assignments you want to import.
◦ To Project Number: The first project number in the range of projects whose assets and asset assignments
you want to import.
◦ Generate Report: Select Summary to generate only a summary of the statistics, or Detail to generate
a report that contains all the errors generated during import, and offers suggestions on how to fix the
errors.
4. Click Submit. The application now imports asset and asset assignment data from the loaded import files, and
you can see the progress of your import until it succeeds.

Import Assets Report

The Import Assets Report contains the output of the Import Assets process. The report includes a detailed message
for each row that is successfully imported and for rows with errors that were not imported. The report displays the
processing errors, warnings, and exceptions encountered during the import process.

Review the processing errors, warnings, and exceptions for the projects and fix the issues in your data. Once you have
updated your transaction data, click the Generate CSV File button again to create the updated ZIP files. Reload the
updated data to the interface tables and resubmit the Import Projects process.

Related Topics
• Overview of External Data Integration Services for Importing Data
• Import Project and Task Transaction Controls
• Import Project Tasks

Import Unassigned Asset Lines

Update the asset name on unassigned asset lines in the Assets work area by using the Asset Line Assignment workbook
template and running a few scheduled processes. The Excel template uploads the newly assigned asset lines to the
project assignment interface table.

This spreadsheet contains the following worksheets:

• Instructions and CSV Generation: Contains table-specific instructions, guidelines, sample data, and
recommendations for preparing the data file for upload.
• Asset Line Assignments: Enables you to import project asset line assignment details, such as asset name, asset
ID, transfer status code, and so on. You can also mark asset lines as transferred and update the FA period name.

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This capability enables you to extract and group asset lines as required without losing the ability to reconcile
Projects assets to FA assets.
For more information about the Import Unassigned Asset Lines Excel workbook template, see the File-Based Data
Import for Project Portfolio Management guide.

After you prepare the data in the Asset Line Assignment Interface workbook, click the Generate CSV File button in the
template to create the CSV files as a ZIP file.

You must now load the zipped data to destination interface tables using the Scheduled Processes page. There are two
processes that you must run to perform this task:

• Load Interface File for Import: Loads the interface files and prepares them for import.
• Import Unassigned Asset Lines: Imports the asset lines data from the interface files loaded in the previous step.
You must navigate to the Tools > Scheduled Processes page to perform the tasks that follow.

Load Interface File for Import

1. In the Scheduled Processes page, click Schedule New Process.
2. Enter Load Interface File for Import as the Name of the process and click OK.
3. Under Process Details, enter Import Asset and Assignments Process as the Import Process and upload or
select the zipped CSV files containing the asset lines that you want to import.
4. Click Submit. The application now loads the asset line data from the CSV files, and you can see the progress of
your import until it succeeds.

Import Unassigned Asset Lines

1. In the Scheduled Processes page, click Schedule New Process.
2. Enter Import Unassigned Asset Lines as the Name of the process and click OK.
3. Under Process Details, enter the From Line Number and To Line Number to specify the asset lines that you
want to import.
4. Click Submit. The application now imports asset line data from the loaded import files, and you can see the
progress of your import until it succeeds.

Output Report
After the Import Unassigned Asset Lines process is complete, the Generate Reports process automatically runs, and if
there are errors, creates the Import Unassigned Asset Lines Report. This report offers a summary of the transactions
that failed, and associated errors from the import process. Review the processing errors, warnings, and exceptions
listed and fix the issues in your data. Once you have updated your transaction data, click the Generate CSV File button
again to create the updated ZIP files. Reload the updated data to the interface tables and resubmit the Import Projects
process.

Related Topics
• Overview of External Data Integration Services for Importing Data

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Verify Accounting Sources for Projects

Accounting sources represent transaction and reference information from source systems, and help you automate
accounting calculations for your transactions in Oracle Cloud. You can flexibly create as many accounting sources in the
application as required.

Before you create a new accounting source, however, you must perform the following tasks to check that you aren't
creating a duplicate accounting source.
1. In the Setup and Maintenance work area, update the scope of your search to Project Financial Management
and use the Manage Subledger Application Transaction Objects task.
2. Select the Event Class that contains the object with the accounting source.
3. Click View Source Assignments.
4. Search for the accounting source to verify if it exists. You can also use the Source Details icon associated with
the accounting source to view additional information.

Can I delete a project asset that has been transferred into

Oracle Assets?
You can't delete a project asset once it's transferred into Oracle Assets. You can, however, reverse the costs associated
with the capitalized asset.

When you reverse a capitalized asset in Oracle Projects, Projects creates reversing (negative) asset lines to offset the
asset lines previously interfaced to Oracle Assets. The asset remains in Oracle Assets with a value of zero. Projects does
not delete the asset from Oracle Assets. You can use functionality within Oracle Assets to retire the asset if you do not
plan to recapitalize the reversed asset.

You typically need to reverse a capitalized asset when:

• The project asset was placed in service in error.
• The project asset sent faulty asset costs to Oracle Assets. For example, the project asset sent incorrect:
◦ Actual asset in-service date
◦ Asset book name
◦ Asset category
◦ Depreciation expense account

You can reverse the capitalization of the asset in Projects, and send the reversing asset lines to Oracle Assets as an
adjustment. However, you can do so only if the asset lines were transferred into Oracle Assets using the Transfer Assets
to Oracle Fusion Assets process, and the Post Mass Additions process ran successfully on those source asset lines in
Oracle Assets.

Reversing a Capitalized Asset within Project Costing

To reverse the capitalization of an asset:
1. Navigate to Projects > Assets > Manage Capital Projects.

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2. Find the project associated with the asset and select Actions > Manage Capital Assets.
3. Choose the asset whose capitalization you want to reverse. Ensure that you do not have amortized adjustments
created for the asset.

Note: You can specify whether you want to amortize adjustments to a project asset when you define or
update it. For details, see How can I amortize adjustments to capital assets?

4. Either right-click or go to Actions and select Reverse Capitalized Asset.

A warning message appears, informing you that there are assets that share transaction costs with the selected
asset, and that all assets are included for reversal in addition to the selected asset.
5. You can now either choose to include all the assets or only the selected asset for reversal. If you don't want to
mark any of the other assets for reversal, click Cancel.
6. Projects automatically enables the Reverse check box for the asset whose capitalization you want to reverse.
Verify the number of assets selected at the top.
If you reversed the wrong asset, or you want to unreverse an asset before you run the Generate Asset Lines
process, choose the asset and navigate to Actions > Reverse Capitalized Asset to deselect the asset for
reversal.
7. Save your changes.
8. Run the Generate Asset Lines process to remove the actual date in service from the asset and create reversing
entries that you can send to Oracle Assets.

How can I resolve project asset lines that are identified as

assets without assignments?
You must determine what is missing in your project asset setup.
• Are your project assets correctly assigned?
• Do all your project assets have the project asset type of As-built? Project assets with the asset type of
Estimated are not eligible to receive project costs.
• Is your project defined with a capital event? If yes, ensure that your project assets are associated with the
appropriate capital event. Also, ensure that the desired project costs are associated with that capital event as
well.
• Is the task to which the projects are assigned capitalizable? You can verify this in the Task > Details > Setup
section.
Verify the following while using these six asset cost allocation methods:
• Actual Units: All project assets must be defined using actual units.
• Current Costs: There must be existing project costs that have already been capitalized into Oracle Assets. This
is a common choice when you are collecting and allocating common costs. If there are no existing CIP costs
for these assets, it is impossible to allocate the costs of the project asset line to the project asset, as there is no
basis to determine the allocation percentage.
• Estimated Cost: Are your eligible project assets defined with an estimated cost? This is not a required field and
can easily be missed.
• None: When there is more than one eligible project asset available for project cost allocation and the Method
is None, the asset lines will by default come back as assets without assignments. For this use case, you may
choose to manually assign these asset lines to eligible project assets using either the Projects > Assets

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> Manage Capital Projects > Select Project > Actions > Manage Asset Lines page or using the Import
Unassigned Asset Lines FBDI sheet if you need to import numerous asset lines.
• Standard Unit Cost: Was standard unit cost defined for the Asset Book and Asset Category combination using
the Projects > Assets > Manage Standard Unit Cost page?
• Spread Evenly: The only way an error could happen here is if one of the errors above occurred.

Why did my adjustment asset lines not get transferred

into Oracle Assets?
Adjustment asset lines, by definition, are created and applied from an originating project asset line.

Project asset lines are called asset source lines in Oracle Assets. These source lines must be successfully posted in
Oracle Assets by running the Post Mass Additions process.

After the Post Mass Additions process runs successfully, Oracle Projects must run the Update Assets Information
from Oracle Fusion Assets process to establish the relationship with all newly created Oracle Assets assets with the
originating Projects assets. This relationship–or connection–enables adjustment project asset lines to be assigned to the
original asset lines in Projects.

If the connection between the Oracle Assets asset and Projects asset isn't made, it's not possible to create adjustments
to Oracle Assets assets because Projects will not have corresponding asset records to which they can allocate these
adjustments.

Why am I unable to assign capitalizable costs associated

with a project task to an asset?
You're typically unable to assign capitalizable costs associated with a project task to an asset when there are no project
assets assigned to that project task.

Ensure that there are project assets assigned to the tasks to which you plan to charge project costs. These assets must
have the project asset type of As-built.

It's also a good idea to check whether the task to which the assets are assigned is capitalizable. You can do so in the
Manage Financial Project Plan page associated with the project. Select the task and click Actions > Manage Tasks >
Edit Task Details > Setup to check whether the Capitalizable check box is selected.

Why does my asset cost appear as zero in Oracle Assets?

The cost of an asset transferred from Projects will display as zero if the value of the Actual In-Service Date defined in
Projects is not open in Oracle Assets.

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You will need to enter an actual in-service date in Projects that's on or before the open period defined in Oracle Assets.
You may be able to update the asset with a pro-rate convention that would accommodate the actual in-service date.

Please keep in mind that you must follow the Generally Accepted Accounting Principles (GAAP) defined within your
organization.

At what task level can I assign project assets?

You can assign project assets at either the top or bottom task level in a project. You can't assign assets to any mid-level
tasks.

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What are top, bottom, and mid-level tasks?

Consider the following project plan:

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Task 1.1 in this screenshot contains five child tasks. Four of these tasks are associated with clay tennis courts, while the
fifth task, 1.1.5 Clay Tennis Courts Common Costs, is dedicated only to collecting common costs associated with the four
clay tennis courts in the Task 1.1 summary task. For example, common costs associated with clay tennis courts could be
clay, stones, tennis nets, and so on.

Similarly, Task 4.0 in the screenshot is dedicated only to collecting common costs associated with the creation of the
tennis club itself. For example, you could have common costs associated with electrical and plumbing, permits, land
costs, architectural design costs, and so on. Just to clarify, common costs for the clay required for the four tennis courts
would NOT be captured here; these would be captured in Task 1.1.5. All common costs collected in 4.0 will be allocated to
project assets and 1.0, 2.0, and 3.0 summary tasks, because these costs must be borne by each of these assets.

Why are some of my transferred assets appearing in

error in the Transfer Assets to Oracle Fusion Assets
Execution Report?
This typically happens when the Queue Status in Fixed Assets is marked as Deleted before transferring the assets.

To resolve this issue:

1. Navigate to Fixed Assets > Prepare Source Lines.
2. Search for the asset source lines that failed.
3. Ensure that the Queue Status is not Delete.
4. Retest the issue.
5. Migrate the solution as appropriate to other environments.

FAQs for Capital Asset Costs

Where can I view the summarized costs of a capital project?
You can view the summarized cost details of a capital project in the Review Performance Overview page.

View project and task summary amounts such as capitalizable cost, noncapitalizable cost, expenses, budgeted cost,
capitalizable cost percentage to total cost by task, by resource, or by period in a table or graph. You can also drill down
from the summary amounts to the transaction-level details.

Why is amortization information not transferred to Oracle Fusion

Assets?
Amortization information isn't included when you first transfer an asset or if the asset is in a period of addition in Oracle
Fusion Assets.

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How are common costs allocated?

Costs captured under common cost tasks are allocated among assets based on the asset cost allocation method that is
associated at the project level.

However, you can override the asset cost allocation method at the capital event level, if the project is enabled for capital
event processing.

The way common costs are allocated differs based on the common cost task structure.

If the common cost task is a top task, then costs captured under that task are allocated among assets, which are defined
for the project and placed in service.

If the common cost task is the lowest task, then costs captured under that task are allocated among assets, which
are assigned at the top task or lowest task in the same task hierarchy. If no asset is assigned for the task, then the
application generates asset lines but leaves them as unassigned asset lines. You must assign the unassigned asset lines
and then transfer the asset.

Can I designate cost of removal and proceeds of sale amounts

when processing retirement costs?
Yes. When capturing retirement costs in a capital project, enter proceeds of sale amounts using expenditure types
specifically created for that purpose. Oracle Fusion Project Costing automatically classifies amounts for all other
expenditure types associated with the retirement cost task as cost of removal.

What's the difference between creating manual and periodic

capital events?
Capital events are created to control the transfer of capital project assets and costs to Oracle Fusion Assets. You use
capital events to group assets and costs on a project before you generate asset lines for capitalization and retirement
cost processing.

In periodic capital event processing, the application automatically groups assets and costs based on the asset in-service
date and expenditure item date, respectively.

In manual capital event processing, you must select costs and assets and create the grouping.

The following table lists the differences between periodic capital events and manual capital events.

Periodic Capital Events Manual Capital Events

Costs and assets are grouped periodically You usually group the costs and assets at the required time within project duration.
throughout the duration of the project.

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Periodic Capital Events Manual Capital Events

Suitable for blanket projects that capture Suitable for phased projects where assets are placed in service after each phase is completed.
costs for repetitive work.

Note: If you do not need either periodic or manual capital event methods, you can define the capital event processing
method as None, where assets are placed in service only at the project completion. Grouping levels defined for the
project is valid for the life of the project.

Grouped costs are automatically allocated to assets based on the asset cost allocation method associated to the project
for both periodic and manual capital event processing. You can override it at the capital event level.

Can I update the asset or project name in the Create and Assign
Assets ADFdi workbook?
Yes, however, if you change the asset to a name that doesn't already exist, it is created as a new asset.

Related Topics
• Can I assign an asset to multiple tasks in the Create and Assign Assets ADFdi workbook?
• Can I update an asset assignment in the Create and Assign Assets ADFdi workbook?
• Can I delete an asset or asset assignment from the Create and Assign Assets ADFdi workbook?

Can I assign an asset to multiple tasks in the Create and Assign

Assets ADFdi workbook?
Yes, you can assign an asset to multiple tasks both in the Create and Assign Assets ADFdi workbook and in the Assets
work area.

Related Topics
• Can I update the asset or project name in the Create and Assign Assets ADFdi workbook?
• Can I update an asset assignment in the Create and Assign Assets ADFdi workbook?
• Can I delete an asset or asset assignment from the Create and Assign Assets ADFdi workbook?

Can I delete an asset or asset assignment from the Create and

Assign Assets ADFdi workbook?
No, however, you can delete an asset or asset assignment from the Assets work area.

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Related Topics
• Can I update an asset assignment in the Create and Assign Assets ADFdi workbook?
• Can I assign an asset to multiple tasks in the Create and Assign Assets ADFdi workbook?
• Can I update the asset or project name in the Create and Assign Assets ADFdi workbook?

Can I update an asset assignment in the Create and Assign Assets

ADFdi workbook?
No, however, you can update an asset assignment from the Assets work area.

Related Topics
• Can I assign an asset to multiple tasks in the Create and Assign Assets ADFdi workbook?
• Can I update the asset or project name in the Create and Assign Assets ADFdi workbook?
• Can I delete an asset or asset assignment from the Create and Assign Assets ADFdi workbook?

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10 Labor Distribution

Overview of Labor Distribution

Labor Distribution enables labor distribution administrators to provide for a rule-based distribution of payroll costs to
project, award, or general ledger accounts.

The core component of Labor Distribution is the labor schedule. Labor schedules specify a time period and set of
distribution rules that determine how a person’s labor cost must be distributed to a project, award, and / or general
ledger account combination. Labor schedules enable you to import payroll information from any source system and
distribute it efficiently.

This independent and efficient, percentage-based distribution of high-volume labor costs reduces the effort on
individual project resources and administrators.

Labor schedules can be applied to both sponsored and non-sponsored projects.

The Labor Distribution Process

Here's a graphic that offers a high-level view of the Labor Distribution process.

As illustrated in the graphic above, Labor distribution comprises the following five high-level tasks:

1. Manage Labor Schedules: Create labor schedules to specify project and nonproject based rules that must be
used when distributing a person's payroll costs. See Labor Schedules for more information.
2. Execute Payroll: Execute payroll to determine the actual wages that must be paid to employees and
contractors.
3. Import and Distribute Payroll: Run the Import Payroll Costs process. This process imports payroll costs,
validates them, and uses the configured labor schedules to process the transactions and create project cost
distributions.
4. Manage Labor Costs: Review and resolve exceptions to these distributions using the Manage Labor Costs
page, ensuring that all payroll costs get distributed as expected.
5. Report: View and report on labor schedules and costs using Oracle Transactional Business Intelligence (OTBI).

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Roles Associated with Labor Distribution

Here are the list of tasks you can perform using the roles associated by default with Labor Distribution.

Labor Distribution Administrator Labor Distribution Accountant

• Manage labor schedules. • Manage the imported and distributed costs in the Manage Labor Costs page in the Labor
Distribution work area.
• Duplicate an existing labor schedule
version. • Import payroll costs from any payroll system and distribute the costs based on the defined labor
schedules.
• View and analyze real-time
information on labor schedules • Evaluate errors and perform root cause analysis to determine the resolution.
using Projects - Labor Schedules
Analysis Real Time and labor costs • View and analyze real-time information on labor schedules using Projects - Labor Schedules
using Projects - Labor Distribution Analysis Real Time and labor costs using Projects - Labor Distribution Cost Analysis Real Time in
Cost Analysis Real Time in Oracle Oracle Transactional Business Intelligence (OTBI).
Transactional Business Intelligence Tip: For larger volume of errors, fix the root cause and run the Import Payroll Costs process with
(OTBI). identified parameters.

Labor Schedules
Use labor schedules to specify project and nonproject based rules that must be used when distributing a person's
payroll costs. Labor distribution administrators use person assignments and pay elements to create labor schedules in
the Labor Distribution work area.

Labor Schedule Components

Labor schedules contain three components:

• Labor Schedule Header: Defines the labor schedule type.

• Labor Schedule Version: The applicable version of the labor schedule.
• Labor Schedule Version Distribution Rules: Rules that determine how the application should distribute costs
associated with a labor schedule version.

Labor Schedule Header: Considerations

Labor schedule headers define the highest level of a labor schedule and relate to the labor schedule type by ensuring
that the required attributes are properly defined. You can use these attributes to evaluate payroll costs and determine
the applicable version and rules that must be used to distribute the cost.

You can remove the ability to create and maintain the element level labor schedule. See Remove Element Level Labor
Schedule Maintenance Privilege for more information.

Labor Schedule Version: Considerations

• Each labor schedule version has a start and end date, and is active only for that period. One labor schedule
header can have multiple labor schedule versions, but only one labor schedule version of a specific labor
schedule type can be active at any given point in time.

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For example, you can activate a pay element labor schedule and an assignment labor schedule for a person
during a specific period, but you can't have two assignment labor schedules active for a person during the
same period.
• Once you set the status of a labor schedule version to Active or Inactive, you can't change its start and end
dates until you change its status back to New. You can, however, directly change the status of inactive versions
to Active, as long as it doesn't overlap dates with another active labor schedule.

Labor Schedule Version Distribution Rules: Considerations

• One labor schedule version can have multiple distribution rules, and the sum of all distribution rules in a labor
schedule must be greater than 0 and less than or equal to 100%, but not greater.
• If the sum of all distribution rules is less than 100%, then the Import Payroll Costs process generates a
differential cost to distribute the remaining payroll cost.

Labor Schedule Types

Labor schedules are of three types:

• Person Assignment: Distributes payroll costs based on the associated person assignment..
• Pay Element: Distributes payroll costs using the payroll element associated with the payroll cost, regardless of
the person's assignment. This type is also defined per business unit and derives the business unit from the
persons assignment on the payroll cost.
• Person Assignment Pay Element: Distributes payroll costs using a combination of a person's assignment and
the pay element on the payroll cost record. This distribution allows for specifying rules for a person assignment
and pay element that may be needed to meet detailed business requirements.

Precedence of Payroll Costs Distribution Based on Labor Schedule Type

If all three labor schedule types must be applied to an imported payroll cost, the application processes the payroll costs
via the assignment element labor schedule type first. It then processes the payroll costs via the pay element labor
schedule type, and finally via the person assignment type.

For example, let's say a resource has the following costs:

• A person assignment cost that's borne by the project sponsor

• A tuition reimbursement pay element cost that's borne by the employing company
• A parking charges pay element cost that's borne by some projects and not others, demanding that the pay
element be specified for the persons charging the project through their labor schedules.

Each of these costs gets evaluated against the labor schedules applicable to the resource, and the labor schedules have
a precedence of order. Thus, for each cost, the application first looks for an assignment element labor schedule to which
it can match the cost, then it looks for a pay element labor schedule that can be matched to it, and finally, it looks for a
person assignment labor schedule that can be matched.

For example, the three resource costs listed above would be processed in the following order:

Note: Bold indicates matching.

• A person assignment cost that's borne by the project sponsor

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◦ Assignment Element Labor Schedule

◦ Pay Element Labor Schedule
◦ Assignment Labor Schedule

• A tuition reimbursement pay element cost that's borne by the employing company
◦ Assignment Element Labor Schedule
◦ Pay Element Labor Schedule
◦ Assignment Labor Schedule

• A Parking Charges pay element cost that's borne by some projects and not others, demanding that the pay
element be specified for the persons charging the project through their labor schedules
◦ Assignment Element Labor Schedule
◦ Pay Element Labor Schedule
◦ Assignment Labor Schedule

Labor Schedule Components, Types, and Distribution: Example

Here's an example that illustrates how you can use labor schedule components to create labor schedules, how you can
create labor schedules of various types, and how these will be distributed when run.

Larry Scanlon, an analyst in Vision City Operations, has the following personalized labor schedules:

Labor Schedule Type Labor Schedule Header Labor Schedule Version Distribution Rules

Assignment Larry Scanlon - Analyst Version 1: July 1st 2019 - June 30th P1-T1-A1 (50%)
2020, ACTIVE
GL: 000-001-0400 (50%)

Version 2 : July 1st 2020 - June GL: 000-001-0510 (100%)

30th 2021 : NEW

Assignment Element Larry Scanlon - Analyst - Parking Version 1 : July 1st 2019 - June 30th P2-T1-A1 (50%)
2020 : ACTIVE
GL: 000-001-0510 (50%)

Version 2 : July 1st 2020 - June GL: 000-001-0510 (100%)

30th 2021 : ACTIVE

Hector Campos, a director in Vision City Operations, has the following personalized labor schedules:

Labor Schedule Type Labor Schedule Header Labor Schedule Version Distribution Rules

Assignment Hector Campos - Project Manager Version 1 : July 1st 2019 - June 30th P4-T2-A4 (50%)
2020 : INACTIVE
GL: 000-001-0400 (50%)

Version 2 : July 1st 2019 - June 30th P1-T1-A1 (50%)

2020 : ACTIVE
GL: 000-001-0400 (50%)

Version 3 : July 1st 2020 - June GL: 000-001-0510 (100%)

30th 2021 : ACTIVE

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Labor Schedule Type Labor Schedule Header Labor Schedule Version Distribution Rules

Hector Campos - Director No Version

Additionally, Vision City Operations offers two pay element components to all their employees' salaries, administered
through the following labor schedule:

Labor Schedule Type Labor Schedule Header Labor Schedule Version Distribution Rules

Element Car Allowance - Vision City Version 1 : July 1st 2019 - June 30th GL: 000-410-0000 (100%)
Operations 2020 : ACTIVE

Parking - Vision City Operations Version 1 : July 1st 2019 - June 30th GL: 000-710-0000 (100%)
2020 : ACTIVE

Putting them together, we have the following labor schedules for these two employees:

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Here's a table that describes the distribution of payroll based on the labor schedules illustrated above. TheImport Payroll
Costs process evaluates the cost records matching the attribute combination to labor schedule Versions and distribution
rules that apply.

Header Version Distribution Rules Explanation of Use

Larry Scanlon (Analyst) Version 1 1. Project1-Task1-Award1 (50%) This version is in an ACTIVE status
and will be used in the Import
st
Assignment type Start = July 1 , 2019 2. GL: 000-001-0400 (50%) Payroll Costs process to distribute
applicable payroll costs.
th
End = June 30 , 2020
Payroll costs imported that match
Status = ACTIVE Larry Scanlon and his assignment
of Analyst with pay period start
and end dates between July 1st,
2019 and June 30th, 2020 will be
distributed as defined by the rules.

Larry Scanlon Version 1 1. Project2-Task1-Award1 (50%) This version is in an ACTIVE status

and will be used in the Import
st
(Analyst – Parking) Start = July 1 , 2019 2. GL: 000-001-0510 (50%) Payroll Costs process to distribute
applicable payroll costs with the
th
Assignment / Element type End = June 30 , 2020 matching Pay Element attribute of
“Parking”.
Status = ACTIVE
Payroll costs imported that match
Larry Scanlon, his assignment
of Analyst, and Pay Element of
“Parking” with pay period start
and end dates between July 1st,
2019 and June 30th, 2020 will be
distributed as defined by the rules.

Based on the precedence, this rule

takes precedence for these specific
payroll records.

Larry Scanlon (Analyst) Version 2 1. GL: 000-001-0510 (100%) This version is in a NEW status
and will NOT be used in the Import
st
Assignment type Start = July 1 , 2020 Payroll Costs process to distribute
applicable payroll costs.
th
End = June 30 , 2021
Payroll costs imported that match
Status = NEW Larry Scanlon and his assignment
of Analyst and the pay period start
and end dates are between July 1st,
2020 and June 30th, 2021 will be
rejected.

Larry Scanlon Version 2 1. GL: 000-001-0510 (100%) This version is in an ACTIVE status
and will be used in the Import
st
(Analyst – Parking) Start = July 1 , 2019 Payroll Costs process to distribute
applicable payroll costs with the
th
Assignment / Element type End = June 30 , 2020 matching Pay Element attribute of
“Parking”.
Status = ACTIVE
Payroll costs imported that match
Larry Scanlon, his assignment
of Analyst, and Pay Element of
“Parking” with pay period start

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Header Version Distribution Rules Explanation of Use

and end dates between July 1st,

2020 and June 30th, 2021 will be
distributed as defined by the rules.

Based on the precedence, this

rule takes precedence for these
specific payroll records and other
pay elements will be rejected as
defined in the row above.

Hector Campos (Project Manager) Version 1 1. Project4-Task2-Award4 (50%) This version is in an INACTIVE
status and will NOT be used in
st
Start = July 1 , 2019 2. GL: 000-001-0400 (50%) theImport Payroll Costs process to
distribute applicable payroll costs.
th
End = June 30 , 2020

Status = INACTIVE

Hector Campos (Project Manager) Version 2 1. Project1-Task1-Award1 (50%) This version is in an ACTIVE status
and will be used in the Import
st
Start = July 1 , 2019 2. GL: 000-001-0400 (50%) Payroll Costs process to distribute
applicable payroll costs.
th
End = June 30 , 2020
Payroll costs imported that
Status = ACTIVE match Hector Campos and his
assignment of Project Manager
with pay period start and end dates
between July 1st, 2019 and June
30th, 2020 will be distributed as
defined by the rules.

Hector Campos (Project Manager) Version 3 1. GL: 000-001-0510 (100%) This version is in an ACTIVE status
and will be used in the Import
st
Start = July 1 , 2020 Payroll Costs process to distribute
applicable payroll costs.
th
End = June 30 , 2021
Payroll costs imported that
Status = ACTIVE match Hector Campos and his
assignment of Project Manager
with pay period start and end dates
between July 1st, 2020 and June
30th, 2021 will be distributed as
defined by the rules.

Hector Campos (Director) NONE EXIST There is no Labor Schedule for

this person and assignment to be
used in the Import Payroll Costs
process to distribute applicable
payroll costs.

Payroll costs imported that

match Hector Campos and his
assignment of Project Manager will
be rejected.

Car Allowance (Vision City Version 1 1. GL: 000-410-0000 (100%) The Import Payroll Costs process
Operations) will distribute any payroll costs
st
Start = July 1 , 2019 for assignments in the business

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Header Version Distribution Rules Explanation of Use

unit of Vision City Operations

th
End = June 30 , 2020 that have a pay element of Car
Allowance. This type of labor
Status = INACTIVE schedule is the second order
of precedence, so if any labor
schedules for Car Allowance exist
at a person assignment element
level for the same days, those labor
schedules will take precedence for
the applicable days.

Payroll Costs for Hector Campos

and Larry Scanlon imported that
have Car Allowance as the pay
element with pay period start
and end dates between July 1st,
2019 and June 30th, 2020 will be
distributed as defined by the rules.

Parking (Vision City Operations) Version 1 1. GL: 000-710-0000 (100%) The Import Payroll Costs process
will distribute any payroll costs for
st
Start = July 1 , 2019 assignments in the business unit of
Vision City Operations that have a
th
End = June 30 , 2020 pay element of Parking. This type
of labor schedule is the second
Status = INACTIVE order of precedence, so if any labor
schedules for Parking exist at a
person assignment element level
for the same days, those labor
schedules will take precedence for
the applicable days.

Payroll Costs for Hector Campos

imported that have Parking as the
pay element with pay period start
and end dates between July 1st,
2019 and June 30th, 2020 will be
distributed as defined by these
rules.

Payroll Costs for Larry Scanlon

imported that have Parking as
the pay element with pay period
start and end dates between July
1st, 2019 and June 30th, 2020
will be distributed as defined by
the Assignment Element labor
schedule above for Larry.

Pay Element Labor Schedules

Pay elements represent payroll components, such as bonuses, insurance plans, taxes, and so on, that are applicable at
the business unit level.

When you use these components to create a pay element labor schedule, they affect the payroll costs of every person
with an assignment in the business unit as long as the labor schedule is active.

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You can also combine pay elements with person assignments to create labor schedules that apply to a specific person.
These too are valid for only as long as the labor schedule version is active.

Manage Pay Element Labor Schedules

Click the Create button in the top-right corner of the Manage Labor Schedules page to create a labor [Link] the
Create Labor Schedule side-sheet that appears, click Element to indicate that you want to create a pay element labor
schedule.

To update an existing labor schedule, use the Search field to search by person name or number, email ID, element
name, or labor schedule name. Click the Elements tab to view pay element labor schedules that match your search
string. Click to edit a labor schedule from the search results that appear.

Use the following fields to manage pay element labor schedules:

• Business Unit: The name of the business unit associated with the labor schedule.
• Pay Element: The pay element that you want to use for the labor schedule.
• Schedule Name: The name of the labor schedule. This field is auto-populated using the values you select in the
Business Unit and Pay element fields. You can update this field as appropriate.
• Version Name: The labor schedule version name.
• Start: The start date of the labor schedule.
• End: The end date of the labor schedule.

Use the Edit icon adjacent to the name of the labor schedule to edit its name.

Updating Labor Schedule Versions

When you create a pay element labor schedule, you also add a labor schedule version to the labor schedule.

To update a labor schedule version, click the ellipsis under the Actions column in the row representing the labor
schedule version and select Edit. Use the following fields to update the labor schedule version:

• Version Name: The name of the labor schedule version.

• Start: The start date of the labor schedule version.
• End: The end date of the labor schedule version.

Note: You cannot edit the start and end dates of a labor schedule version if its status is Active. To update
the start and end dates of a labor schedule version, you must first change its status to Inactive. For more
information, see Why am I unable to change the dates on which a labor schedule version is active?

• Status: The status (New, Active, Inactive) of the labor schedule version.
• Comments: Any additional information, if required.

Note: You can also duplicate an existing schedule version and modify the copied version to create a new one.

Managing Distribution Rules

A labor schedule version can have multiple distribution rules. Click any of the distribution rules listed under a labor
schedule version to update it.

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Use the Create Rule button to add a distribution rule to a labor schedule version. The Create Distribution Rule side-
sheet appears.

Use the Project and Nonproject toggle buttons to specify whether you want to associate a distribution rule with a
project or with a general ledger. You cannot change this option once you save the distribution rule.

If you want to associate a distribution rule with a project, you must specify:

1. The Project, Task, Award (if it is a sponsored project), and Funding Source with which you want to associate
the distribution rule.
2. The Expenditure Organization associated with the project, the Expenditure Type of the distribution rule, and
the Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.
If you want to associate a distribution rule with a nonproject general ledger, you must specify:

1. The GL Account that you want to use for the distribution rule.
2. The Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.
Each distribution rule can account for any percentage of the total costs. Put together, however, the distribution
rule percentages in a labor schedule version must be less than or equal to 100.
Click View all applicable schedules to see all the labor schedules that use the selected pay element.

Person Assignment Labor Schedules

Use person assignments to create labor schedules based on a person's engagement with a project. Search for a
person in the Labor Distribution work area and, for every person, create labor schedules for their assignments and pay
elements.

Manage Person Assignment Labor Schedules

Click the Create button in the top-right corner of the Manage Labor Schedules page to create a labor [Link]
the Create Labor Schedule side-sheet that appears, click Assignment to indicate that you want to create a person
assignment labor schedule.

To update an existing labor schedule, use the Search field to search by person name or number, email ID, element
name, or labor schedule name. Click the Assignments tab to view person assignment labor schedules that match your
search string. Click to edit a labor schedule from the search results that appear.

Use the following fields to manage person assignment labor schedules:

• Person: The name of the person for whom you want to create the labor schedule.
• Assignment Number: The assignment with which the person is associated. This is the assignment for which
you are creating the labor schedule.
• Pay Element: Leave this field empty if you are creating a person assignment labor schedule.
• Version Name: The labor schedule version name.
• Start: The start date of the labor schedule.
• End: The end date of the labor schedule.

Use the Edit icon adjacent to the name of the labor schedule to edit its name.

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Updating Labor Schedule Versions

When you create a person assignment labor schedule, you also add a labor schedule version to the labor schedule.

To update a person assignment labor schedule version, click the ellipsis under the Actions column in the row
representing the labor schedule version and select Edit. Use the following fields to update the labor schedule version:

• Version Name: The name of the labor schedule version.

• Start: The start date of the labor schedule version.
• End: The end date of the labor schedule version.

Note: You cannot edit the start and end dates of a labor schedule version if its status is Active. To update
the start and end dates of a labor schedule version, you must first change its status to Inactive. For more
information, see Why am I unable to change the dates on which a labor schedule version is active?

• Status: The status (New, Active, Inactive) of the labor schedule version.
• Comments: Any additional information, if required.

Note: You can also duplicate an existing schedule version and modify the copied version to create a new one.

Managing Distribution Rules

A labor schedule version can have multiple distribution rules. Click any of the distribution rules listed under a labor
schedule version to update it.

Use the Create Rule button to add a distribution rule to a labor schedule version. The Create Distribution Rule side-
sheet appears.

Use the Project and Nonproject toggle buttons to specify whether you want to associate a distribution rule with a
project or with a general ledger. You cannot change this option once you save the distribution rule.

If you want to associate a distribution rule with a project, you must specify:

1. The Project, Task, Award (if it is a sponsored project), and Funding Source with which you want to associate
the distribution rule.
2. The Expenditure Organization associated with the project, the Expenditure Type of the distribution rule, and
the Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.
If you want to associate a distribution rule with a nonproject general ledger, you must specify:

1. The GL Account that you want to use for the distribution rule.
2. The Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.

Each distribution rule can account for any percentage of the total costs. Put together, however, the distribution
rule percentages in a labor schedule version must be less than or equal to 100.
Click View all applicable schedules to see all the labor schedules that use the selected pay element.

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Person Assignment Pay Element Labor Schedules

Use person assignment pay element labor schedules to create distribution rules applicable to a specific person,
assignment, and pay element.

Manage Person Assignment Pay Element Labor Schedules

To create person assignment pay element labor schedules, you create a person assignment labor schedule, and
associate a pay element with it as well. Click the Create button in the top-right corner of the Manage Labor Schedules
page to create a labor schedule. In the Create Labor Schedule side-sheet that appears, click Assignment to indicate that
you want to create a person assignment labor schedule.

To update an existing labor schedule, use the Search field to search by person name or number, email ID, element
name, or labor schedule name. Click the Assignments tab to view person assignment labor schedules that match your
search string. Click to edit a labor schedule from the search results that appear.

Use the following fields to manage person assignment labor schedules:

• Person: The name of the person for whom you want to create the labor schedule.
• Assignment Number: The assignment with which the person is associated. This is the assignment for which
you are creating the labor schedule.
• Pay Element: The pay element that you want to associate with the labor schedule.
• Version Name: The labor schedule version name.
• Start: The start date of the labor schedule.
• End: The end date of the labor schedule.

Note: You cannot edit the start and end dates of a labor schedule version if its status is Active. To update the start
and end dates of a labor schedule version, you must first change its status to Inactive. For more information, see Why
am I unable to change the dates on which a labor schedule version is active?

Use the Edit icon adjacent to the name of the labor schedule to edit its name.

Updating Labor Schedule Versions

When you create a person assignment labor schedule, you also add a labor schedule version to the labor schedule.

To update a person assignment labor schedule version, click the ellipsis under the Actions column in the row
representing the labor schedule version and select Edit. Use the following fields to update the labor schedule version:

• Version Name: The name of the labor schedule version.

• Start: The start date of the labor schedule version.
• End: The end date of the labor schedule version.

Note: You cannot edit the start and end dates of a labor schedule version if its status is Active. To update
the start and end dates of a labor schedule version, you must first change its status to Inactive. For more
information, see Why am I unable to change the dates on which a labor schedule version is active?

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• Status: The status (New, Active, Inactive) of the labor schedule version.
• Comments: Any additional information, if required.

Note: You can also duplicate an existing schedule version and modify the copied version to create a new one.

Managing Distribution Rules

A labor schedule version can have multiple distribution rules. Click any of the distribution rules listed under a labor
schedule version to update it.

Use the Create Rule button to add a distribution rule to a labor schedule version. The Create Distribution Rule side-
sheet appears.

Use the Project and Nonproject toggle buttons to specify whether you want to associate a distribution rule with a
project or with a general ledger. You cannot change this option once you save the distribution rule.

If you want to associate a distribution rule with a project, you must specify:

1. The Project, Task, Award (if it is a sponsored project), and Funding Source with which you want to associate
the distribution rule.
2. The Expenditure Organization associated with the project, the Expenditure Type of the distribution rule, and
the Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.
3. The Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.
If you want to associate a distribution rule with a nonproject general ledger, you must specify:

1. The GL Account that you want to use for the distribution rule.
2. The Percentage of the cost associated with the labor schedule that you want to allocate to the distribution rule.

Each distribution rule can account for any percentage of the total costs. Put together, however, the distribution
rule percentages in a labor schedule version must be less than or equal to 100.
Click View all applicable schedules to see all the labor schedules that use the selected pay element.

Considerations for Managing Labor Schedules

Here are a few considerations that you must keep in mind while working with labor schedules:
• Once a labor schedule version is saved, regardless of type, you can change its status by editing the associated
version. when you enter distribution rules, the application runs validations in the background to ensure that:
◦ Project, task, or award minimum start date is less than the end date of the labor schedule version.
◦ Project, task, or award minimum end date is greater than the start date of the labor schedule version.

• Only one version of a labor schedule type can be active for any given day; however, you can create overlapping
labor schedules of different types. For example, Person Assignment type for July 1, 2020 to June 30, 2021 can
be active at the same time as a Person Assignment Pay Element type for the same or overlapping time period.
• Once you set the status of a labor schedule version to Active, you can't update the start and end dates of the
version, nor can you change its status back to New.
• Once you set the status of a labor schedule version to Inactive, you can't update the start and end dates of the
version, nor can you change its status back to New.

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Labor Schedules can be interfaced from an external system by using the File-Based Data Interface for Labor Schedules.
See Import Assignment Labor Schedules in the File-Based Data Import (FBDI) for Project Management guide.

Examples of Labor Schedules

Let's look at a few examples of labor schedules and see how labor schedule types, labor schedule versions, and
distribution rules work together to help you manage payroll costs of different types. Consider the following labor
schedules created for two employees, Bob Price, who has the role of Analyst, and Hector Campos, who has the roles of
Project Manager and Director.

Here are the person assignment labor schedules created for Bob Price and Hector Campos.

Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

Person Bob Price, Analyst Version 1 July 1 2019 - June Active P1-T1-A1 (50%) Version 1 of the
Assignment 30 2020 Bob Price, Analyst
labor schedule
is active and,
between July 1,
2019 and June
30, 2020, will
be used in the
Import Payroll
Costs process
to distribute
imported payroll
costs that match
Bob Price and his
assignment of
Analyst, as defined
by the distribution
rules.

GL: 000-001-0400
(50%)

Version 2 July 1 2020 - June New GL: 000-001-0510 Version 2 of the

30 2021 (100%) Bob Price, Analyst
labor schedule is
in New status, and
won't be used in
the Import Payroll
Costs process
to distribute
applicable payroll
costs.

Hector Campos, Version 1 July 1 2019 - June Inactive P4-T2-A4 (50%) Version 1 of the
Project Manager 30 2020 Hector Campos,
Project Manager
labor schedule is in
Inactive status and
won't be used in
the Import Payroll
Costs process
to distribute
applicable payroll
costs.

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Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

GL: 000-001-0400
(50%)

Version 2 July 1 2019 - June Active P1-T1-A1 (50%) Version 2 of the

30 2020 Hector Campos,
Project Manager
labor schedule
is active and,
between July 1,
2019 and June
30, 2020, will
be used in the
Import Payroll
Costs process to
distribute imported
payroll costs that
match Hector
Campos and his
assignment of
Project Manager,
as defined by the
distribution rules.

GL: 000-001-0400
(50%)

Version 3 July 1 2020 - June Active GL: 000-001-0510 Version 3 of the

30 2021 (100%) Hector Campos,
Project Manager
labor schedule is
in Active status
and, between
July 1, 2020 and
June 30, 2020,
will be used in
the Import Payroll
Costs process to
distribute imported
payroll costs that
match Hector
Campos and his
assignment of
Project Manager,
as defined by the
distribution rules.

Hector Campos - No Version Not Applicable Not Applicable Not Applicable There's no labor
Director schedule for
this person and
assignment
combination that
can be used in
the Import Payroll
Costs process
to distribute

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Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

applicable payroll
costs.

Here are the pay element labor schedules applicable for Bob Price and Hector Campos.

Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

Pay Element Car Allowance Version 1 July 1 2019 - June Active GL: 000-410-0000 Version 1 of the Car
- Vision City 30 2020 (100%) Allowance - Vision
Operations City Operations
pay element labor
schedule is Active
between July 1,
2019 and June 30,
2020. Therefore,
during that period,
the Import Payroll
Costs process
will distribute any
payroll costs for
Hector Campos
and Bob Price
that have Car
Allowance as the
pay element, as
specified in the
distribution rules.

This type of labor

schedule has the
second order of
precedence. This
means that if any
labor schedules
for Car Allowance
exist at the person
assignment pay
element level
for the same
days, those labor
schedules will take
precedence for the
applicable days.

Parking - Vision Version 1 July 1 2019 - June Active GL: 000-710-0000 Version 1 of the
City Operations 30 2020 (100%) Parking - Vision
City Operations
pay element labor
schedule is Active
between July 1,
2019 and June 30,
2020. Therefore,
during that period,
the Import Payroll
Costs process
will distribute any
payroll costs for

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Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

Hector Campos
and Bob Price that
have Parking as
the pay element,
as specified in the
distribution rules.

This type of labor

schedule is the
second order of
precedence. This
means that if any
labor schedules for
Parking exist at the
person assignment
pay element level
for the same
days, those labor
schedules will take
precedence for the
applicable days.

Here are the person assignment pay element labor schedules created for Bob Price.

Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

Person Bob Price, Analyst, Version 1 July 1 2019 - June Active P1-T1-A1 (50%) Imported payroll
Assignment Pay Parking 30 2020 costs for Bob Price
Element that have Parking
as the pay element
with pay period
start and end dates
between July 1,
2019 and June
30, 2020 will be
distributed as
defined by the
person assignment
pay element labor
schedule for Larry.

GL: 000-001-0510
(50%)

Version 2 July 1 2020 - June Active GL: 000-001-0510 Imported payroll

30 2021 (100%) costs for Bob Price
that have Parking
as the pay element
with pay period
start and end dates
between July 1,
2020 and June
30, 2021 will be
distributed as
defined by Version
2 of the person

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Labor Schedule Labor Schedule Labor Schedule Start and End Labor Schedule Distribution Rules Comments
Type Version Dates Version Status

assignment pay
element labor
schedule for Larry.

Why am I unable to change the dates on which a labor schedule

version is active?
When you edit an active labor schedule version, you cannot update the dates on which it is active because the labor
schedule version is still distributing payroll costs.

Editing labor schedule versions while they are still distributing payroll costs could impact running distribution processes.

Before you can update the dates on which an active labor schedule version is active, you must deactivate the labor
schedule version by changing its Status to Inactive.

You can then edit the deactivated labor schedule version and update its Start and End dates as required. Once you're
satisifed with your updates, you can reactivate the labor schedule version.

Note:

You must ensure that expenditure item dates associated with costs that have already been distributed using this labor
schedule version continue to be between the updated start and end dates.

Managing Labor Schedules

You can create and maintain labor schedules using the Labor Distribution work area, or by using our external data
integration services, such as REST API calls or FBDI sheets.

Creating Labor Schedules

To create a labor schedule, navigate to Projects > Labor Distribution and click Create in the Manage Labor Schedules
page. Use the Create Labor Schedule side panel to create Assignment and Element labor schedules as required.

Select the Costed Only check box to specify that you want to use only those pay elements that are setup in Payroll with
costing instructions, so that you can be sure to see only the ones that can be used for importing labor costs from Oracle
Fusion Payroll.

Note: This option is only applicable to Element and Assignment Element type labor schedules.

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Searching for Labor Schedules

Use the Search field in the Manage Labor Schedules page to search for existing labor schedules. The page organizes
your search results by Assignment and Element tabs.

You can use a combination of words or phrases to fine-tune your search results. Click on a labor schedule to view and
manage its details.

Maintaining Labor Schedules

Use the Create and Maintain page that appears when you first create a labor schedule, or when you click on a labor
schedule in the Manage Labor Schedules page, to manage:

• Labor Schedules: Add or Edit labor schedules.

• Schedule Versions: Manage labor schedule versions associated with a labor schedule.
• Distribution Rules: Manage distribution rules associated with a labor schedule version.

Use the View all applicable schedules button to view all the labor schedules associated with a person assignment or
pay element, for analysis and exporting.

Managing Labor Schedule Versions

A labor schedule can have multiple labor schedule versions, and each of these schedule versions can be in New,
Inactive, or Active status. However, you can only have one active labor schedule version of a given type at any given
time. Therefore, each labor schedule version must have a valid start date, end date, and status.

You can edit active schedule versions, but you can't delete them. You can only delete labor schedule versions that are
in New status. Similarly, you can't edit the start and end dates of an active labor schedule version; you must render
it inactive first. For more information, see Why am I unable to change the dates on which a labor schedule version is
active?

You can also duplicate an existing schedule version and modify the copied version to create a new one.

Managing Distribution Rules

Each labor schedules can have multiple distribution rules. You can add distribution rules to a labor schedule version only
when it's in the New state.

You can create two kinds of distribution rules, project and nonproject distribution rules.

When you create a Project distribution rule, you must specify the Project and Task, the Expenditure Organization and
Expenditure Type, and the Percentage of the person's labor cost that you want to distribute using the distribution rule.
In the context of a sponsored project, you must also provide the award and funding source details.

Note: You must ensure that:

• The project and task you select accepts cross-charges from the business unit of the person's assignment only if
the business unit of the person assignment is not the same as the business unit of the project to which the cost
is going.
• The start and end dates of the project and task you select align with the labor schedule version start and end
dates.

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Considerations for Managing Labor Schedules

• Once a labor schedule version is saved, regardless of type, you can change its status by editing the associated
version. when you enter distribution rules, the application runs validations in the background to ensure that:
◦ Project, task, or award minimum start date is less than the end date of the labor schedule version.
◦ Project, task, or award minimum end date is greater than the start date of the labor schedule version.

• Only one version of a labor schedule type can be active for any given day; however, you can create overlapping
labor schedules of different types. For example, Person Assignment type for July 1, 2020 to June 30, 2021 can
be active at the same time as a Person Assignment Pay Element type for the same or overlapping time period.
• Once you set the status of a labor schedule version to Active, you can't update the start and end dates of the
version, nor can you change its status back to New.
• Once you set the status of a labor schedule version to Inactive, you can't update the start and end dates of the
version, nor can you change its status back to New.

Labor Schedules can be interfaced from an external system by using the File-Based Data Interface for Labor Schedules.
See Import Assignment Labor Schedules in the File-Based Data Import (FBDI) for Project Management guide.

Managing Project Payroll Pay Elements

Use the Manage Project Payroll Pay Elements page to set up pay elements that are costed in–and distributed from–
Payroll. Optionally, provide a start and end date to these pay elements to distribute them within a time frame.

Managing Pay Element Expenditure Type Derivation

The Labor Distribution > Managing Pay Element Expenditure Type Derivation feature enables you to derive project
expenditure types from Payroll pay elements. You can also optionally provide a start and end date to these derivations.

You can optionally set up pay elements that will derive an expenditure type and use it to override the expenditure type
that exists on the labor schedule. For example, you can override the Oracle Payroll pay element Car Allowance to the
expenditure type Vehicles when you import labor schedules associated with a specific person.

Import Payroll Costs

This topic explains how you can import payroll costs and distribute them to sponsored or non-sponsored projects, and
the ledger, using labor schedules.

People (employees and contractors) get paid on Payroll either on a full-time salary or using payroll time sheets that are
sent to Payroll. These time sheets can also be sent to Projects for project progress tracking and reporting purposes.

Labor distribution uses a document type called Labor Distribution that is seeded within the Oracle Fusion Projects
transaction source. Users with the Manage Project Transaction Source privilege can configure these transaction types

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to specify how transaction data emanating from the Labor Distribution document type must be managed once its
imported. For details on how you can configure document types, see Transaction Source Options.

Import Payroll Costs Directly from Oracle Payroll

Use the Import Payroll Costs scheduled process with Oracle Fusion Payroll as the transaction source. See Payroll
Costs Import Parameters, below, for more information.

To view the status of the import process, search for the process in the Scheduled Processes > Overview page.

Note:
• This integration also enables you to run the Import Payroll process for all business units simultaneously.
• The import process only receives those payroll costs from Oracle Fusion Payroll that have person assignment
and person assignment pay element labor schedules that are active for the time periods of the payroll periods
chosen during import.

Import Payroll Costs Using File-Based Data Import

Create labor project and nonproject costs based on the predefined labor schedules for the transactions in the Payroll
Project Costing open interface table using the Import Payroll Costs workbook template.

For more information about the Import Payroll Costs Excel workbook template, see the File-Based Data Import for
Project Portfolio Management guide.

You must have the Labor Distribution Accountant role to complete the interface and import processes.

To import payroll costs using FBDI:

1. Prepare your data in the Import Payroll Costs macro-enabled Excel workbook template.
2. Click Generate CSV File in the template to create a comma-separated values file.
3. Load the payroll transaction values to the interface table. For more information on the interface process, see
the Import Payroll Costs topic in the File Based Data Import for Oracle Project Portfolio Management Cloud
guide.
4. After the interface table is loaded, run the Import Payroll Costs process to import payroll costs from the
interface table and validate and process them to create project cost distributions.
5. Enter import-related details as appropriate. For details on these options, see Payroll Cost Import Parameters,
below.
6. Exceptions for invalid transactions are tracked in the Manage Labor Costs page and in the Import Payroll Costs
Report. Fix the errors and resubmit the process. For more information on this topic, see Manage Labor Costs.

The Import Payroll Costs Report is available to be run independently of the Import Payroll Costs process. This is to be
used in case of an error that causes the interface records to get into an unexpected status. This process will rerun based
on the prior Process ID provided and clean up the interface records if needed.

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Payroll Costs Import Parameters

Parameter Description Applicable when Transaction Applicable when Transaction

Source is Oracle Fusion Payroll? Source is Oracle Fusion Projects?

Business Unit The business unit of the person Yes Yes

and assignment associated to the
payroll cost.

Process Mode • All: Process records in New or Yes Yes

Error status.
• Error: Process records that
failed the import process,
such as failing funds check on
the project being distributed.
• New: Process records that you
haven't attempted to import
yet.

Consolidation Set (Optional) Identifies the consolidation group Yes No

that you want to use for the payroll
run.

Payroll Name (Optional) The Payroll Name that you want to Yes No
use for this process.

Person (Error Mode Only) A person that has records with Yes Yes
errors in the interface table.

Assignment (Error Mode Only) A person assignment combination Yes Yes

that has records with errors in the
interface tables.

Batch Name (Optional) A batch name that exists in the No Yes

interface table. You use this to
import and distribute the costs.

Period Start Date (Optional) Pay period start date (from which) Yes Yes
to process all records in the
interface table that match that
date.

Period End Date (Optional) Pay period end date (up to which) Yes Yes
to process all records in the
interface tablethat match that date.

Pay Element The Pay Element associated with Yes No

the payroll costs that you want to
import.

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Output Reports
After the Import Payroll Costs process completes, the Generate Reports process automatically runs. If errors exist, the
following output reports are created:

• Staging Validation Error Report: Lists a summary of the transactions that failed to move from the staging table
to the interface table due to invalid values.
• Import Payroll Costs Report: Provides details about the transactions that were successfully imported but
contain errors.

Review the Staging Validation Error Report and repeat these steps until you import all the required payroll data
successfully:

1. Review the error message detail in the Staging Validation Error Report and regenerate the CSV file. Or, you can
manually fix the issues in the CSV file.
2. Load the CSV file.
3. Run the Load Interface File for Import process followed by the Import Payroll Costs process.
Review the error details in the Import Payroll Costs report and navigate to the Manage Labor Costs page in the Labor
Distribution Management work area to correct these transactions.

Processing Logic
The Import Payroll Costs process uses the following order of precedence to decide which labor schedule to apply to a
payroll cost:

1. Assignment Element
2. Element
3. Assignment
See the Precedence of Payroll Costs Distribution Based on Labor Schedule Type section in the Labor Schedules topic for
additional guidance.

The pay period defined on the payroll cost must be able to be fully distributed by one or a combination of more than
one labor schedules active within the start and end dates, as well as the project, task, or award start and end dates.
The person's assignment start date or end date are used if needed to calculate a daily rate. For example, if the person
assignment is terminated 5 days into a 10 day pay period, the daily rate will be calculated for 5 days only, and the
processing end date will be the assignment end date.

The payroll cost status depends on the status of all distributions. If any one of the distributions fails, the labor cost will
be in an Error status. This is to ensure that the labor cost is completely distributed before its status is set to Success.

The following attributes are critical in payroll cost processing using labor schedules:

1. Status of Labor Schedule Version

a. New: Will not be used in the Import Payroll Costs process.
b. Active
i. Will be used in the Import Payroll Costs process.
ii. The start date and end date will be compared with the pay period start and end dates of the payroll
cost to see if it covers the entire labor schedule, or if another active labor schedule in combination
covers the entire pay period. This applies to labor schedules types.
c. Inactive
i. Will NOT be used in the Import Payroll Costs process.

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ii. Can be set back to Active at any time.

2. Pay Period Start and End Dates
a. Must be able to be fully distributed based on the start and end dates of one or more labor schedule
versions and of related project, task, or award start and end dates. This applies to all labor schedule
types.
b. The number of working days between the pay period start and end date is used to calculate the daily rate.
Net working days are weekdays only.

Example:
th
Start Date: Monday April 13 , 2020
th
End Date: Friday April 24 , 2020

Net Working Days: 10 days

3. Project, Task, and / or Award Start and End Dates: These are used in conjunction with the start and end dates
of labor schedules to ensure full distribution of cost.

Payroll Cost Expenditure Item Date Calculation

Use the Expenditure Item Date Derivation for Payroll Costs profile option to change the default derivation rule.
Optionally, change the default value of Payroll Process Start Date to Payroll Process End Date. This change derives
the expenditure item date based on the latest date of the labor schedule version end date or the pay period end date
instead of the start of those date-bounded objects.

Here's an example that illustrates how the cost associated with a person can be spread across two labor schedules. In
this instance, the employee, Mary Marshall, is moved from one project to another during the same pay period.

Labor Schedules for Mary Marshall

Labor Schedule Name Start End Rule Percentage

Version 1 January 1, 2019 September 15, 2019 DOD Project 100%

Version 2 September 16, 2019 … NSF Project 100%

Payroll Cost

Pay Period Start Pay Period End Person Amount

September 1, 2019 September 30, 2019 Mary Marshall $1,000

Expenditures

Project Expenditure Item Date Amount Processing Logic

DOD Project September 1, 2019 $476.19 10 Net-working days at daily rate of

$47.62

NSF Project September 16, 2019 $523.81 11 Net-working days at daily rate of
$47.62

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Import Payroll Costs Key Attributes

When you import payroll costs from third-party source, you must provide at least the following details:

• Person and Assignment: These attributes are validated during the import process, and if they're not found, the
payroll record is rejected.
• Pay Element: The pay element specified in the imported data will be validated against the Pay Element object in
the Human Capital Management (HCM) Payroll object of Element.

To create elements, use the Element HCM setup task. Using HCM elements allows for:
◦ The element to be used as a source in Subledger Accounting for creating specific journals, if needed.
◦ Integration with Payroll business flows.

See Payroll Element Setup Instructions for Non-Oracle Payroll Customers in the Implementing Project Financial
Management and Grants Management guide for more information.

Manage Labor Costs

Labor distribution accountants can search and manage labor costs and their distributions using the Manage Labor
Costs page. Labor costs generated from labor distributions are available in the Adjustment Controls work area once
they're successfully distributed.

Use the Manage Labor Costs page to:

• Filter costs that have distributions by using a combination of batch name, status, pay period, project number,
business unit, person name, pay element, or award number.

Note:
◦ You can retrieve all project and nonproject based distributions using a combination of the award
number and person name filters.
◦ You can use the Shift key to select multiple payroll costs from the search results.

• Analyze errors resulting from the Import Payroll Costs process and delete payroll costs that are in a status of
Error, if required.
• View a static analytical graph for a quick reference to the latest 3 pay periods that have errors in distributions,
and the total amount and count of errors.
• Find the root cause of one ore more errors by using the search filters.
• Resolve the root cause and reprocess one or more labor costs using the Process Costs option. You can also
delete payroll cost that are in a status of Error.

Note: When you update and successfully reprocess a payroll cost distribution that contained errors, the
application deletes the original erroneous records, because they're no longer needed.

• Adjust a successfully processed distribution using the Process Costs option if the distribution rules associated
with the payroll costs have changed.

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Page Components
The Manage Labor Costs page comprises the following components:

• Analytic: This is a static graph that reflects the count and amount of total errors as well as the last three pay
periods.
• Search: Use one or more of the listed filter criteria to search for labor costs.
• Labor Costs: Lists details associated with labor costs that meet your search criteria. Select a labor cost to view
details associated with its distribution rules.
• Distribution Rules: Displays attributes associated with each distribution rule associated with a labor cost. Here
are some of the key attributes that appear in this view:
◦ Transaction Number: Use the transaction number associated with a distribution rule record to look up
the expenditure and see the resulting accounting.
◦ Labor Schedule Attributes: Lists all the attributes from the labor schedule version and distribution rule
that created the expenditure.
◦ Differential: Indicates whether the distribution was generated to make up the difference to total 100%.
◦ Line: Identifies the distribution line number. If the distribution line is a differential, this value is listed as -1
to differentiate it from lines that were defined on the labor schedule.

The Labor Distribution Costs Management Matrix

Here's a table that lists the actions you can perform on labor costs in different scenarios across multiple pages.

Labor Cost (Status) Manage Labor Costs page Manage Project Costs page Period Close Exceptions report

Project Cost (Error) • View errors NA NA

• Delete payroll costs in a status
of Error
• Process costs

Non-Project Cost (Error) • View errors NA NA

• Delete payroll costs in status
of Error
• Process costs

Project Cost (Success) • View results • View project cost details View pending transactions until
the Create Accounting process is
• Process costs (reversal and • Perform adjustments* except completed for these project costs
reimport of parent labor cost) for:

◦ Split

◦ Transfer

◦ Split and transfer

◦ Reversal

Non-Project Cost (Success) • View results Not available (Available in the NA

Subledger Accounting work area)
• Process costs (reversal and
reimport of parent labor cost)

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* These adjustments are not allowed in the Manage Project Costs page because the source labor costs could be
redistributed in Labor Distribution, causing the costs to get reversed in different sources. Resolving issues of labor costs
at the source is recommended.

Resolve Errors in Labor Costs

Use the Manage Labor Costs page in the Labor Distribution work area to review and resolve errors associated with
imported and distributed costs. You can evaluate errors and perform root cause analysis to determine the appropriate
resolution. After resolving the cause, select one or more records and process the costs. For larger volume of errors, fix
the root cause and run the Import Payroll Costs process with identified parameters.

Note: If any of the distributions has errors, the labor cost will be in a status of error. This ensures full distribution of
the labor cost.

Adjust Labor Costs

You can adjust labor costs that succeed in distribution. Create new labor schedules as required and select one or more
records and process the costs again, generating reversing entries and new distributions.

Retrieving Data for Analysis

There are two options for retrieving labor distribution data for analysis:

• Use the Labor Distribution subject area in Oracle Transactional Business Intelligence (OTBI).
• Use a Microsoft Excel-based utility to retrieve data.

Creating Labor Distribution Data Analyses Using OTBI

Use the Projects - Labor Distribution Costs Analysis Real Time and the Projects - Labor Schedule Analysis Real
Time subject areas to create detailed analyses of labor schedules.

These analyses enable you to perform detail and summary or trend analysis as well as analytics that can be used to
prevent issues. For example, reporting on projects ending in the next 30, 60, or 90 days that have associated labor
schedules can prevent labor cost errors.

For more information, see the Creating and Administering Analytics and Reports guides and the Using Analytics and
Reports guides (if available) for your products.

Configuring Access to Labor Distribution Analyses

If you plan to use system-generated roles to create custom roles prior to the release of the OTBI subject areas, add the
privileges below to the appropriate custom roles to enable access to these subject areas:

• Role: Labor Distribution Administrator

◦ Additional Privilege: Project Labor Schedules Transaction Analysis Duty
• Role: Labor Distribution Accountant
◦ Additional Privilege: Project Labor Distributions Transaction Analysis Duty

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To enable labor distribution accountants to view person names in OTBI:

1. Navigate to the Assign Security Profiles to Role setup task.

2. Search for the Labor Distribution Accountant role.
3. Click Edit.
4. In the Public Person option, choose View All People to allow users with this role to see person names in OTBI
when looking at labor costs.
Also, review the ERP – Oracle Fusion Cloud Project Management: Labor Distribution Positioning and Feature Update
recording and related files in Cloud Customer Connect.

Retrieving Labor Distribution Data Using the Visual

Builder Plugin
Use Oracle Visual Builder Add-in for Excel to easily view and analyze labor distribution related data using the following
related REST services.

• Labor Schedule Cost Distributions

• Labor Schedule Costs
• Labor Schedule Costs Total Errors
• Person Assignment Labor Schedules
These REST services are defined in more detail in the REST API for Oracle Project Portfolio Management Cloud guide.

Use the Oracle Visual Builder Add-in for Excel tool in addition to the Manage Labor Costs and Manage Labor Schedules
pages to quickly download, review, and analyze larger volumes of data. You can download and learn more about the tool
in the Oracle Visual Builder Add-in for Excel page.

FAQs for Labor Distribution

How can I view non-project labor costs in General Ledger?
If accounting has already been performed on the labor cost, use the cost’s transaction number from the Manage Labor
Costs page to view the journal entry in the Review Journal Entries page in the Manage Project Costs work area.

If the Create Accounting process has not been run, you can view non-project labor costs by choosing the Status of
Unprocessed events.

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Why aren't non-project labor costs picked up when Create

Accounting is run?
This can happen when you create additional accounting event classes after initial ledger setup. Run the Update
Subledger Application Options process to incorporate these event classes in Subledger Accounting.

For more details, see Subledger Accounting Options in the Implementing Subledger Accounting guide.

Why don't Labor Distribution labor costs appear in the Manage

Unprocessed Costs page?
Labor Distribution generated labor costs that error in the distribution process do not display in the Manage
Unprocessed Costs page because the entire originating payroll cost needs to be managed as a whole.

Use the Manage Labor Costs page to view and manage these costs.

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11 Oracle Digital Assistant for Time Entry

Introduction to Oracle Digital Assistant

Oracle Digital Assistant helps you accomplish your tasks using natural conversation through channels such as SMS and
mobile app.

It uses skills, which are individual bots, to interact with you and perform specific types of tasks. Skills contain
conversational elements to identify your inputs and identify the intent. Project application administrators must enable
the required skills before you can use them.

Each skill enables you to perform multiple actions. An action that you can perform using the Oracle Digital Assistant is
known as an intent.

Before You Start

• Ensure that project application administrator has enabled the required skill.
• Ensure that you have the required privileges. The existing functional privileges and business rules in the PPM
Cloud application also secure intents. For example, you must be an employee or contingent worker and have
the Project Time Entry Mobile Duty to enter time.
• Get access to one of the supported channels. Supported channels are SMS and Mobile App.

Considerations for Interacting with Intents

• To identify a specific project, task, or deliverable by name, you must qualify the name with the business object
type. For example, Show me details for project Stark Designs. Adding the word 'project' directly before the
project name, 'Stark' in this case, instructs the digital assistant to look for the project whose name is 'Stark
Designs' or contains 'Stark'.
• If the assistant doesn't find an exact match for a business object, it looks for similar names. For example, 'Mark
task Design as started' can be used to start a task with the name, 'Design Test Plan'.
• If the assistant can't uniquely identify your project, task, or deliverable, then it presents a list to choose from.
For example, if you enter 'Mark task Design as complete' and there are multiple tasks whose names start with
'Design', then the digital assistant will display those task names and prompt you to select one.
• English is the only supported language. However, you can use a translation service to translate requests to
English and responses from English.

Getting Started
To get started, greet the digital assistant or ask for help to find out what you can do. Here are some sample phrases you
can use:

• Hi
• Hello

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• Hey
• What can I do?
• What can you do?
• What can you do for me?

Time Entry Using Oracle Digital Assistant

If the Project Time Entry skill is enabled, team members can use Oracle Digital Assistant for time entry.

Create Time Entry

Create project-based time entries for your chargeable tasks.

Intended user: Team member

Sample phrases you can use:

• Enter project time

• Enter 8 hours for today
• Record 4 hours for project <your project name>

• Add 6 hours to my time card

• Add 3 hours to task <your task name>

Things to consider:

• Use digits and not words when specifying hours. For example, use 2 hours instead of two hours. You can use
4.5 hours to enter 4 hours and 30 minutes.
• Expenditure type is always defaulted from the PPM Cloud application.

Update My Time Entry

Edit the hours for a time entry you just created or when reviewing your time card.

Intended user: Team member

Sample phrases you can use:

• Change my time card hours

• Update my time entry

Then the digital assistant will prompt you to specify task and hours.

Submit My Time Card

Submit your time card to HCM Cloud Time and Labor.

Intended user: Team member

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Sample phrases you can use:

• Submit my time card

• Send my time card for processing

Things to consider: If errors exist when submitting your time card, you should view and resolve those errors in the HCM
Cloud application.

Copy My Time Card

Copy time entries from last week's time card.

Intended user: Team member

Sample phrases you can use:

• Copy time card

• Copy my time card

Things to consider: You can only copy your prior time card.

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