You specify a name and a description of an asset, or pool of assets, to define a non-labor resource. For example, you can define a non-labor resource with a name such as Earth Mover to represent one earth mover your business owns. You can also define a non-labor resource with a name such as PC to represent multiple personal computers your business owns.
Every usage item you charge to a project must specify the non-labor resource utilized and the non-labor resource organization that owns the resource.
When defining your non-labor resources, you can choose only expenditure types with the Usage expenditure type class.
You can use the non-labor resource organization in your AutoAccounting rules for usage cost and revenue.
Define organizations.
Define expenditure types. See: Expenditure Types.
You can define non-labor resources.
In the Non-Labor Resources window enter a name, description, effective date(s), and a usage expenditure type for each non-labor resource your organization owns.
For each non-labor resource you define, enter the organization(s) to which the resource is assigned in the Organizations region. Enter the effective dates during which the resource is owned by each organization.
The organizations you enter can include any organization from your organization hierarchy, regardless of whether the organization has the Expenditure Organization classification, and regardless of the start and end dates for the organization.
If you want to override the cost rate of the expenditure type by the resource and organization combination, choose Cost Rates and enter the cost rate for the operating unit in question , and the effective date(s) in the Cost Rates Overrides window.
Save your work.
Attention: A non-labor resource may be a piece of equipment whose capacity is consumed, such as a training room, or equipment whose physical output is consumed, such as a copier. You can plan and report for non-labor resources as equipment whose capacity is consumed by enabling the equipment resource class.
Fremont Corporation's implementation team assigns computers, surveying equipment, and vehicles to the appropriate groups.
The Other Assets expenditure type is assigned to all divisions. This non-labor resource provides a bucket non-labor resource to capture miscellaneous items.
The following table shows Fremont's non-labor resources.
| Resource Name | Description | Expenditure Type | Organizations |
|---|---|---|---|
| PC | PC on the HQ Network | Computer Services | Information Services, Data Systems, Finance, Risk Analysis |
| HQ1 Sequent | Headquarters Accounting Sequent | Computer Services | Information Services |
| Vax 9000 | Data Systems Vax | Computer Services | Data Systems |
| Sparc | Engineering, Services Sun SparcStation | Computer Services | Fremont Engineering, Fremont Services |
| Survey | Standard surveying equipment | Field Equipment | Fremont Engineering |
| Van | Heavy Duty Van | Vehicle | Fremont Construction, West, Midwest, East, South, International |
| Minivan | Site Visit Minivan | Vehicle | Fremont Construction, West, Midwest, East, South, International |
| Pickup Truck | Heavy Duty Pickup | Vehicle | West, Midwest, East |
| Other Assets | Other Assets | Other Assets | Administration, Fremont Construction, Fremont Engineering, Fremont Services |
This section describes non-labor cost rates.
An expenditure type cost rate is a currency amount that Oracle Projects multiplies by the expenditure type unit to calculate cost.
You define a cost rate in the Expenditure Types window by selecting an expenditure type and entering a cost rate for it. You can select only a non-labor expenditure type that requires a cost rate. You cannot define a cost rate for a non-labor expenditure type that does not require a cost rate. Instead, you must disable the expenditure type and create a new one that requires a cost rate and has a unique name.
Note: In a multi-organization environment, expenditure types are set up once and are shared across all operating units. However, the cost rates for expenditure types are specific to each operating unit. Each operating unit must have cost rates set up for expenditure types in which expenditures are expected to be incurred.
Define Expenditure Types. See: Expenditure Types.
You define costs rates when you define expenditure types. See: Expenditure Types.
Fremont Corporation defines cost rates for the expenditure types shown in the following table:
| Expenditure Type | Unit | Cost Rate |
|---|---|---|
| Personal Auto Use | Miles | 0.25 |
| Computer Services | Hours | 7.00 |
| Vehicle | Days | 25.00 |
| Field Equipment | Hours | 24.00 |
When you defined non-labor resources, you assigned each asset an expenditure type with the Usages expenditure type class. The cost rates you define for each expenditure type consequently apply to all non-labor resources classified with that expenditure type.
You can define a usage cost rate override for any non-labor resource. Usage cost rate overrides are defined by the non-labor resource and organization. The cost rate override applies only to a specific non-labor resource owned by that organization; if there are multiple non-labor resources with that expenditure type or multiple owning organizations of the same resource, they retain the existing expenditure type cost rate you define.
For example, if you want to override the expenditure type cost rate of personal computers, you define a usage cost rate override for personal computers. All other non-labor resources that share the same expenditure type as the personal computers retain the existing expenditure type cost rate.
Note: In a multi-organization environment, non-labor resources are set up once and are shared across all operating units. For each of the non-labor resources that an operating unit may put in service, you must set up a cost rate for the associated expenditure type. If you wish to have a non-labor resource with different cost rates in different operating units, you can define operating unit-specific usage cost rate overrides for organizations in the business group associated with an operating unit.
To define a cost cost rate for non-labor resources and an owning organization:
You define usage cost rate overrides in the Non-Labor Resources window when you define Non-Labor Resources. See: Non-Labor Resources.
Fremont Corporation's implementation team overrides the expenditure type cost rate for PCs owned by the Data Systems group. The Computer Services expenditure type cost rate is $7.00 per hour. Fremont changes the rate to $3.00 per hour.
Non-Labor Resource:
Non-Labor Resource: PC
Expenditure Type: Computer Services
Organization: Data Systems
Usage Cost Rate Overrides:
Rate Override: 3.00