An expenditure type is a classification of cost that you assign to each expenditure item you enter in Oracle Projects and is made up of the following elements:
An expenditure category (used to group expenditure types for costing)
A revenue category (used to group expenditure types for revenue and billing)
A unit of measure
One or more expenditure type classes
You also specify whether an expenditure type requires a cost rate.
For supplier invoice expenditure types, if you specify that a rate is required, Oracle Projects requires you to enter a quantity in Oracle Payables for invoice distributions using that expenditure type. When you interface the invoice distribution to Oracle Projects, Oracle Projects copies the quantity and amount to the expenditure item and calculates the rate. If you define a supplier invoice expenditure type with the Rate Required option disabled, then the quantity of the expenditure item is set to the amount you enter in Oracle Payables.
You can assign multiple expenditure type classes to an expenditure type. For example, an expenditure with the expenditure type Materials can have the expenditure type class Supplier Invoice if it originated in Oracle Payables, and the expenditure type class Inventory if it originated in Oracle Inventory. This example is illustrated below:
| Expenditure Type | Module Where Expenditure Originated | Expenditure Type Class |
|---|---|---|
| Materials | Oracle Payables | Supplier Invoice |
| Materials | Oracle Inventory | Inventory |
This feature allows you to use a single expenditure type to classify as many different costs as you require. You can use the same expenditure type for expenditures that have different origins (and therefore different accounting), but which should otherwise be grouped together for costing, budgeting, or summarization purposes.
This section describes the steps for defining expenditure types.
Define expenditure categories.
Define revenue categories.
Define units.
Navigate to the Expenditure Types window.
Name: Enter a unique name for the expenditure type.
Expenditure Category and Revenue Category: Enter the expenditure category and revenue category you want to associate with this expenditure type.
Unit of Measure: Enter the unit of measure you want Oracle Projects to use when calculating the cost for this expenditure type. You must enter Hours for labor expenditure types.
Rate Required: If this expenditure type requires a cost rate, check the Rate Required check box, then choose Cost Rate to navigate to the Expenditure Cost Rates window and enter a cost rate and its effective date(s). The rates can be defined by operating unit.
If this expenditure type does not require a cost rate, do not check the Rate Required check box.
Note: If you create a non-labor expenditure type without checking the Rate Required check box, you cannot subsequently require and enter a cost rate for that expenditure type. Instead, you must disable the expenditure type and create a new one that requires a cost rate and has a unique name. If you check the Rate Required check box when you create a non-labor expenditure type, you can change the cost rate at any time.
Tax Classification Code: Optionally, click Tax Classification Code and select the tax classification code for customer invoice lines for this expenditure type and operating unit. Oracle Projects uses this code as the default tax classification code based on the Application Tax Options hierarchy that you define in Oracle E-Business Tax for Oracle Projects and the specified operating unit. For more information on setting up taxes and the hierarchy of tax options for an application and operating unit, see the Oracle E-Business Tax User Guide.
Description and Dates: In the Description, Dates region, enter a description for the expenditure type. You can optionally enter effective dates for the expenditure type.
Expenditure Type Classes: In the Expenditure Type Class region, enter the expenditure type class or classes you want Oracle Projects to associate with this expenditure type, to determine how to process the expenditure item.
Save your work.
Attention: If you create and save an expenditure type, you cannot subsequently update the following attributes for the expenditure type:
Name
Expenditure Category
Revenue Category
Unit of Measure
Rate Required check box
Instead, you must enter an end date for the expenditure type and create a new one that has a unique name. When you enter an end date for an expenditure type, the end date has no effect on existing transactions. Oracle Projects uses the old expenditure type to report on and process existing transactions. You cannot use the old expenditure type for new transactions that have an expenditure item date after the end date.
Fremont defines cost rates for the expenditure types Computer Services, Vehicle, Personal Auto Use, and Field Equipment because these expenditure types use non-labor expenditure type classes and use units other than currency. For these expenditure types, Fremont enables the Rate Required option.
Fremont Corporation's implementation team defines the expenditure types shown in the following table.
| Expenditure Type Name | Unit | Description | Expenditure Category | Revenue Category | Expenditure Type Class |
|---|---|---|---|---|---|
| Administrative | Hours | Administrative labor hours | Labor | Labor | Straight Time |
| Clerical | Hours | Clerical labor hours | Labor | Labor | Straight Time |
| Other Labor | Hours | Other labor hours | Labor | Labor | Straight Time |
| Overtime | Hours | Overtime labor hours | Labor | Labor | Overtime |
| Professional | Hours | Professional labor hours | Labor | Labor | Straight Time |
| Air Travel | Currency | Air travel expenses | Travel | Other | Expense Reports |
| Automobile Rental | Currency | Auto rental expenses | Travel | Other | Expense Reports |
| Entertainment | Currency | Entertainment expenses | Other Expenses | Other | Expense Reports |
| Meals | Currency | Meal expenses | Travel | Other | Expense Reports |
| Other Expenses | Currency | Other expenses | Other Expenses | Other | Expense Reports |
| Personal Auto Use | Miles | Personal auto mileage | Travel | Other | Expense Reports |
| Computer Services | Hours | Use of corporate computers | In-House Recoverables | Other | Usages |
| Field Equipment | Hours | Use of company equipment | In-House Recoverables | Other | Usages |
| Other Asset | Currency | Use of other company asset | In-House Recoverables | Other | Usages |
| Vehicle | Days | Use of corporate vehicle | In-House Recoverables | Other | Usages |
| Construction | Currency | Outside construction work | Outside Services | Other | Supplier Invoices |
| Consulting | Currency | Outside consultants | Outside Services | Other | Supplier Invoices |
| Other Invoice | Currency | Other outside work | Other Expenses | Other | Supplier Invoices |
| Supplies | Currency | Supplies | Other Expenses | Other | Supplier Invoices |
| Misc Travel Expenses | Currency | Misc travel expenses | Travel | Other | Expense Reports |
| Lodging | Currency | Lodging expenses | Travel | Other | Expense Reports |
| Material | Currency | Materials | Material | Other | Supplier Invoices |