You must enter raw cost or burdened cost for cost budgets and revenue amounts for revenue budgets when you enter budget amounts for budgets that have budgetary control enabled. Additional consideration is required when your budget entry method uses a resource list and when burdening is enabled for your project.
When you enable a budget for budgetary control, you must enter raw cost or burdened cost amounts for cost budgets or revenue amounts for revenue budgets. If you enter only quantities, the baseline process fails because it does not use quantity for budgetary control purposes. The baseline process uses only amounts from the Burdened Cost and Revenue amount types.
For example, if you enter revenue budget amounts only for the Hours and Currency amount types, the baseline process fails. You must enter amounts for the Revenue amount type.
If burdening is enabled for a project, then all funds checks are performed using the transaction burdened cost. Oracle Projects provides the following methods of accounting for burden costs:
Same Expenditure Item
Separate Expenditure Item
When you account for burden cost on the same expenditure item as raw costs, the funds check process calculates the burden cost amounts for a transaction and adds them to the raw cost amount. The process then maps the burdened transaction amount to a budget line and performs the necessary funds checks.
When you use the Same Expenditure Item method of accounting for burden costs, enter budget amounts for the burdened transaction costs.
When you account for burden costs as separate expenditure items, the funds check process calculates the burden cost amounts for each burden cost component and separately maps each burden amount and the raw cost amount to a budget line. Individual funds checks are performed for each component. If any component fails the funds check, then the entire transaction is rejected.
When you use the Separate Expenditure Item method of accounting for burden costs and you are not using a resource list for budget entry, enter budget amounts for the burdened transaction costs. The burden costs and the raw cost are mapped to budget lines using the same mapping rules and are therefore mapped to the same line.
When you use this burden accounting method and you are budgeting using a resource list, the burden costs are not mapped using the resource for the raw cost. You must ensure that each burden cost component maps to a budget line with the desired budgetary control setting. To do this, define your burden cost components as resources on your resource list and then use these resources to enter budget amounts for burden costs. This allows you to enter a budgetary control setting for each burden cost component and a control setting for budget lines defined for raw costs. If you do not want to impose budgetary control on burden cost amounts, you can assign a control setting of None for all budget lines for burden component resources.
An alternative to defining resources on your resource list for burden cost components is to use the Unclassified budget entry category to budget for burden cost amounts. If a budget line cannot be found for the burden cost components and an Unclassified budget line exists, then the funds check process maps the burden costs to the Unclassified line.