Project Manufacturing Costing Transactions (Oracle Applications Help)

Project Manufacturing Costing Transactions

In Oracle Project Manufacturing, you can have organizations which concurrently manufacture for projects and non-project customer orders. For proper management control purposes, item costs and charges for non-project orders are maintained and tracked distinctly separate from projects. Standard cost organizations have one item cost.

Project Cost Groups

Using Project Manufacturing, you can have many projects active at any one time. You can also have items in common (non-project) inventory at the same time. Using project cost groups, an item may have a different cost in different projects as well as a cost in common inventory, all within the same organization. Item costs can apply to a single project if each project belongs to a distinct cost group or apply to a group of projects assigned to the same cost group. Items in common inventory belong to the organization's default cost group. Items in the organization's default cost group are costed separately from items in projects.

Intransit Shipping

When internal order intransit shipments and internal requisition intransit receipts are performed, items are transferred using the cost from the sending cost group, not the organization's default cost group.

Transfer to Projects

The Project Cost Collector transfers the costs to the Transaction Import Interface table in Oracle Projects, for import into Oracle Projects when material transactions:

Cross a project boundary (i.e. from project to non-project, from non-project to project, and between two different projects)

Cross the task boundary of the same project

See: Project Cost Collector

For transactions within the same project, if no specific task is entered, it is assumed to be a transaction within the same task, and hence transfer to Projects is not required.

Upon transfer by the Project Cost Collector, Projects either:

Increments project cost when material is moved into a project-related entity from a non-project-related entity (e.g. locator, work order, etc.)
Decrements project cost when material is moved out of a project-related entity into a non-project-related entity
Decrements the From project and task and increments the To project and task when a transaction moves material between two projects or tasks

The following table summarizes some important transactions, whether they are or are not transferred to Oracle Projects, their respective debits and credits, and the cost used in the transaction:

Unless otherwise stated, the cost specified for the debit side of the transaction applies also to the credit side.

Note: MOH stands for material overhead. For information on material overhead charges, see Material Overhead Application.

The following tables present Purchasing, Inventory, or Order Management Project Referenced Transactions.

Note: The following accounts are the default accounts for Project Manufacturing Costing. If Subledger Accounting (SLA) is enabled and SLA rules are customized, then the default accounts are not used.

Purchase Order Receipt to Receiving Inspection

Account and Cost	Debit	Credit	Transfer to Projects
Receiving Inspection at PO Cost	XX	-	No
Inventory A/P Accrual	-	XX

Delivery From Receiving Inspection To Inventory

Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Material at PO Cost	XX	-	Yes
Receiving Inspection	-	XX

Purchase Order Receipt To Inventory

Account and Cost	Debit	Credit	Transfer to Projects
Receiving Inspection at PO Cost	XX	-	Yes
Inventory A/P Accrual	-	XX
Cost Group Material at PO Cost	XX	-
Receiving Inspection	-	XX

Sales Order Shipments

Account and Cost	Debit	Credit	Transfer to Projects
Deferred Cost of Goods Sold at Current Cost (in Cost Group)	XX	-	No
Cost Group Valuation	-	XX

Miscellaneous Transactions

Receipt into Project Locator
Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Valuation at Current (in Project Cost Group) or User-specified Cost	XX	-	Yes
User-specified account	-	XX

Receipt from Project Locator
Account and Cost	Debit	Credit	Transfer to Projects
User Specified account at Current (in Project Cost Group) or User-specified Cost	XX	-	Yes
Cost Group Valuation	-	XX

Project Transfer: Expense to Expense Subinventory, from or to same or different Project

No entries

Project Transfer: Different Project or Task, Asset to Asset Locator

Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Valuation (in Receiving Project) at Current Average Cost (in Cost Group of Sending Project)	XX	-	Yes
Cost Group Valuation or Expense (in Sending Project)	-	XX

Project Transfer: Different Project or Task, Asset to Expense Subinventory or vice versa

Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Valuation or Expense (in Receiving Project) at Current Cost in Cost Group (of Sending Project)	XX	-	Yes
Cost Group Valuation (in Sending Project)	-	XX

Project Transfer: Project to Non-project, Asset to Asset Subinventory

Account and Cost	Debit	Credit	Transfer to Projects
Organization Valuation at Current Cost (in Project Cost Group)	XX	-	Yes
Cost Group Valuation (in Sending Project)	-	XX

Project Transfer: Non-project to Project, Asset to Asset Locator

Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Valuation (in Sending Project) at Current Cost in default Cost Group	XX	-	Yes
Organization Valuation	-	XX

Cycle Count and Physical Inventory: Count < On hand

Account and Cost	Debit	Credit	Transfer to Projects
Inventory Adjustment at Current Cost in Cost Group	XX	-	No
Cost Group Valuation	-	XX

Cycle Count and Physical Inventory: Count > On hand

Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Valuation at Current Cost in Cost Group	XX	-	No
Inventory Adjustment	-	XX

Cost Update

Account and Cost	Debit	Credit	Transfer to Projects
Cost Group Valuation at User-Defined Cost Increase/Decrease	XX	-	No
Inventory Adjustment	-	XX

Project Referenced Manufacturing Transaction

Component Issue and Return Transaction: Issue Project Expense Job from Project Expense Locator

Account and Cost	Debit	Credit	Notify Projects
No entries	-	-	No

Component Issue and Return Transaction: Issue (other than Expense to Expense) to Project Job from Project Locator; same Project or Task

Account and Cost	Debit	Credit	Notify Projects
WIP Inventory at Current Cost (in Project Cost Group)	XX	-	No
Cost Group Valuation or Expense	-	XX

Component Issue and Return Transaction: Issue (other than Expense to Expense) to Project Job from Project Locator; same Project different Task

Account and Cost	Debit	Credit	Notify Projects
WIP Inventory at Current Cost (in Project Cost Group)	XX	-	Yes
Cost Group Valuation or Expense	-	XX

Component Issue and Return Transaction: Issue (other than Expense to Expense) to Project Job from Common Subinventory

Account and Cost	Debit	Credit	Notify Projects
Cost Group Valuation at Cost	XX	-	Yes
Organization Valuation	-	XX
WIP Inventory at Current Cost (in Project Cost Group)	XX	-
Cost Group Valuation	-	XX

Resource Charges: Charge Labor Resource to Project Job

Account and Cost	Debit	Credit	Notify Projects
WIP Resource at Actual Employee Rate or User-Defined Cost	XX	-	Yes
Resource Absorption	-	XX

Resource Charges: Charge Non-labor Resource to Job

Account and Cost	Debit	Credit	Notify Projects
WIP Resource at User-Defined Cost	XX	-	Yes
Resource Absorption	-	XX

Overhead Charges

Account and Cost	Debit	Credit	Notify Projects
WIP Overhead Valuation at User-Defined Cost or Rate	XX	-	Yes
Overhead Absorption	-	XX

Outside Processing Charges

Account and Cost	Debit	Credit	Notify Projects
WIP Outside Processing at Purchase Order Cost	XX	-	Yes
Outside Processing Absorption	-	XX

Note: Notify Projects: Yes

Assembly Scrap Transaction: Scrap

Account and Cost	Debit	Credit	Notify Projects
Scrap at Calculated Scrap Value	XX	-	No
WIP Accounting Class Valuation	-	XX

Assembly Scrap Transaction: Reverse Scrap

Account and Cost	Debit	Credit	Notify Projects
WIP Accounting Class Valuation	XX	-	No
Scrap at Calculated Scrap Value	-	XX

Assembly Completion Transaction: Complete Assemblies from Project Job into Asset Project Locator

Account and Cost	Debit	Credit	Notify Projects
Cost Group Valuation at User-Defined or System Calculated + MOH	XX	-	Yes (for MOH amount only)
WIP Accounting Class Valuation	-	XX
Material Overhead Absorption	-	XX

Job Close Transactions

Account and Cost	Debit	Credit	Notify Projects
WIP Accounting Class Variance	XX	-	No
WIP Accounting Class Valuation	-	XX