Oracle Projects allows you to generate or enter detail labor transactions charged to your projects. This enables you to monitor the labor work that is performed and recognize project labor costs in your financial plans and workplans. Oracle Projects costs the items by computing the labor costs for your project and determining the GL accounts to charge.
This section discusses the costing process using labor costing as an example and covers the following:
Distributing Labor Costs when Costing Method is Standard
Using Rate Sources
Using Total Time Costing
Business Rules applicable with Total Time Costing
Using Different Currencies
Business Rules applicable with Standard Costing Method
Distribute Labor Costs process
Selecting Expenditure Items for Costing
Processing Straight Time
Calculating Straight Time Costs
Running AutoAccounting
Creating Cost Distribution Lines
Creating Overtime
Tracking Overtime
Processing Overtime
Calculating Overtime Cost
Distributing Labor Costs when Costing Method is Actual
Business Rules applicable with the Actual Costing Method
Process Payroll Actuals program
Using Third Party Payroll Actuals
Using Enable Accrual option when Costing Method is Actual
Allocating Actual Payroll Amounts
Business Rules applicable for Allocating Actual Payroll Amounts
Creating Transactions
Generating Labor Output Reports
Calculating and Reporting Utilization
Examples of Accounting Entries
How labor costs are generated or distributed depends on the costing method that you defined in the labor costing rule associated to the operating unit of the expenditure organization, expenditure organization, or employee. Depending on the method, you can calculate labor costs when timecards are reported or after you import costed payroll amounts. To distribute labor costs based on hours, you must import or interface timecards or generate a pre-approved timecard batch to generate expenditure items that include hours.
Note: You can only import and process timecards for an employee's primary HR assignment. If you are using the Actual costing method, then only payroll actuals associated with the primary assignment are distributed.
The labor cost calculation process requires the following:
You must define an applicable labor costing rule that can be applied to the timecards submitted by project employees. You can define the rule for an operating unit, organization, or employee.
If you have set the labor costing rule to use the Standard method, then you must run the Distribute Labor Costs program to process timecards and calculate project labor costs. The rate source you selected in the labor costing rule and the attributes entered on the timecard or associated with the task or employee's primary assignment determines the rate that the application uses to calculate labor costs for each timecard line. You can also prorate the effective labor rate using uncompensated overtime hours by enabling the Total Time Costing option on the applicable labor costing rule.
If you have set the labor costing rule to use the Actual method, then you must run the Process Payroll Actuals program to interface actual amounts from Oracle Payroll or a third party source and distribute the payroll amounts to imported/interfaced time cards or to create related transactions for miscellaneous or burden costs. The Process Payroll Actuals program uses the rules you define for each pay element to determine how to distribute payroll amounts. The program also processes the burden cost calculations for actual transactions when burden cost is on the same line.
If you have set the labor costing rule to use the Actual method and selected the Enable Accrual check box, then you run the Generate Labor Accruals program to create labor cost accrual transactions using imported/interfaced time cards when the payroll actuals are not yet available for the same period. The calculations performed by the program are the same as for the standard costing method, including the rules for rate determination and total time costing. The application reverses the accrual transactions when you run Process Payroll Actuals program to process the payroll actuals for the same employee and payroll period. If you have not selected the Enable Accrual check box on the labor costing rule, then you cannot generate accruals.