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36 Project Costing Configuration: FAQs for Define Capital Projects

This chapter contains the following:

What's a standard unit cost method?

Standard unit cost method is one of the asset cost allocation methods that is used to allocate common and indirect costs to different assets. For example, you can allocate amounts such as salaries, administrative overhead, and equipment charges across several assets.

A standard unit cost is defined for an asset book and asset category combination. When you use this method, Oracle Fusion Projects multiplies the standard unit cost times the actual units based on the asset book and asset category of each asset and it determines the proration basis for allocating costs. Optionally, you can override the asset cost allocation method when defining capital events.

Can I distinguish cost of removal and proceeds of sale amounts when processing retirement costs?

Yes. When capturing retirement costs in a capital project, enter proceeds of sale amounts using expenditure types specifically created for that purpose. Oracle Fusion Projects automatically classifies amounts for all other expenditure types associated with the retirement cost task as cost of removal.