Project managers often need to allocate certain costs (amounts) from one project to another. The allocations feature in Oracle Projects can distribute amounts between and within projects and tasks, or to projects in other organizational units. For example, a manager could distribute across several projects (and tasks) amounts such as salaries, administrative overhead, and equipment charges. Your allocations can be as simple or elaborate as you like.
For cost breakdown planning enabled projects, you must use the client extension hooks to allocate costs.
Note: Oracle Projects performs allocations among and within projects and tasks. MassAllocations in Oracle General Ledger performs allocations among GL accounts. You can use AutoAllocations in either General Ledger or Oracle Projects to run MassAllocations.
You identify the sources-costs or amounts you want to allocate-and then define targets-the projects and tasks to which you want to allocate amounts. If you want, you can offset the allocations with reversing transactions.
The system gathers source amounts into a source pool, and then allocates to the targets at the rate (basis) that you specify.
When you allocate amounts, you create expenditure items whose amounts are derived from one or more of the following:
Existing summarized expenditure items in Oracle Projects
A fixed amount
Amounts in a General Ledger account balance
You can specify exactly how and where you want to allocate selected amounts. For example, you may want to:
Allocate the actual cost of office supplies equitably among various projects
Charge certain projects a larger percentage of costs
Allocate overhead costs, charging them to projects that benefited from the overhead activities
Other Sources
Overview of Cost Breakdown Planning, Oracle Project Planning and Control User Guide