You can choose to hold the burden cost components as a separate expenditure item on the same project. The expenditure items storing the burden cost components are identified with a different expenditure type that is classified by the expenditure type class Burden Transaction.
The example in the following table illustrates burden cost as a separate, summarized expenditure item on the same project.
| Item | Transaction | Raw Cost | Burden Cost | Burdened Cost |
|---|---|---|---|---|
| 1 | Project A, Task 1.1, Labor, August 29, Amy Marlin | 100.00 | 0.00 | 100.00 |
| 2 | Project A, Task 1.1, Labor, August 29, Don Gray | 200.00 | 0.00 | 200.00 |
| 3 | Project A, Task 1.1, Computer Rental, August 29, Data Systems | 500.00 | 0.00 | 500.00 |
| 4 | Project A, Task 1.1, Fringe, September 1, Consulting East | 0.00 | 120.00 | 120.00 |
| 5 | Project A, Task 1.1, Overhead, September 1, Consulting East | 0.00 | 300.00 | 300.00 |
| 6 | Project A, Task 1.1, General and Administrative, September 1, Consulting East | 0.00 | 180.00 | 180.00 |
| Totals | 800.00 | 600.00 | 1400.00 |
Note: The expenditure items that incur the raw cost have a burdened cost equal to the raw cost, because the burden cost of those transactions are included in the burden transactions. The burden transactions have a raw cost of zero and a summarized burden cost from the incurred raw costs.
Oracle Projects creates the burden transactions by summarizing the burden cost components by project, lowest task, expenditure organization, expenditure classification, supplier, PA period, and burden cost code.
If you use this method of storing burden costs, you must assign an expenditure type to each burden cost code. You may also want to define an expenditure type for each burden cost code to use for reporting and budgeting purposes. The Create and Distribute Burden Transactions process summarizes the burden costs for all costed, burdened items. If you are processing new items for a task that already has burden transactions, Oracle Projects will create new burden transactions. The existing burden transactions are not updated. Each new transaction will be assigned the system date when the process is run.
For transactions imported from external systems via transaction import, such as supplier invoices imported from Payables, burden costs on separate items are created only after running the Create and Distribute Burden Transactions process.
Note: If you use the Actual labor costing method to distribute payroll costs as labor costs, then you can define a payroll pay element as a burden cost type. When you process payroll actuals, separate transactions are created for payroll costs defined as burden costs. For more information, see Process Payroll Actuals, Oracle Projects Fundamentals guide and Distributing Labor Costs, Oracle Project Costing User Guide
The expenditure item date of the new summary burden transactions matches the latest expenditure item date of the expenditures being burdened.
The following table shows examples of expenditure item dates for burden transactions.
| PA Period of Burdened Expenditures | Latest Expenditure Item Date of Source Expenditures | Length of PA Period | Expenditure Cycle Start Day | Expenditure Item Date of Burden Transactions |
|---|---|---|---|---|
| Monday, 10/19 through Sunday, 10/25 | Sunday, 10/25 | 1 Week | Monday | Sunday, 10/25 |
| Monday, 10/12 through Sunday, 10/25 | Sunday, 10/18 | 2 weeks | Monday | Sunday, 10/18 |
| Thursday, 10/1 through Saturday, 10/31 | Saturday, 10/24 | 1 month | Monday | Saturday, 10/24 |
See also: Creating and Interfacing the Accounting for Burden Costs by Burden Cost Component.