This chapter describes how you can allocate costs to projects and tasks.
This chapter covers the following topics:
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.
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
Allocation uses existing project amounts to generate expenditure items, which you can then assign to specified projects.
Burdening estimates overhead by increasing expenditure item amounts by a set percentage.
Allocations and burdening are not mutually exclusive. Whether your company uses allocations, burdening, or both in a particular situation depends on how your company works and how you have implemented Oracle Projects.
Related Topics
Creating allocation transactions involves several stages. Each of these stages is described in the pages listed below:
Define one or more allocation rules. See: Defining Allocation Rules.
Create a draft allocation run by selecting a rule and generating allocation transactions. See: Allocating Costs.
Use the Review Allocation Runs window to review the results of the draft allocation run. Delete the run if it is unsatisfactory, then correct the rule and rerun the allocation. See: Viewing Allocation Runs.
Release the draft run. See: Releasing Allocation Runs.
You can also reverse released runs. See: Reversing Allocation Runs.
Related Topics
Viewing Allocation Transactions
Allocation rules define how allocation transactions are to be generated, including:
The source of the amounts you are allocating
The targets-the projects and tasks to which you want to allocate amounts
How much of the source pool you want to allocate, and if you want to include a fixed amount, GL balance, or client extension (or any combination of these)
The time period during which the rule is valid
You can create as many rules as you want, and use them in as many allocation runs as you want.
You can leave the original expenditure amounts in the source project, or offset the amounts with reversing transactions. In most cases, the reversing transactions decrease the project balance by the amount of the allocation.
Note: When you define sources, if you exclude a resource, then Oracle Projects excludes the entire amount for that resource regardless of the specified percentage. See: Defining the Sources, Oracle Projects Implementation Guide.
Each allocation rule belongs to an operating unit and cannot be shared with other operating units.
Allocation rule source projects must be from the same operating unit unless cross charge is enabled. If cross-charge is enabled, you can allocate to target projects that are in different operating units from the source project operating unit. Offset projects must always be in the same operating unit as source projects. See: Implementation Options in Oracle Projects: Cross Charge: Allow Cross Charges to All Operating Units Within Legal Entity, Oracle Projects Implementation Guide.
Related Topics
Full and Incremental Allocations
Defining Allocation Rules, Oracle Projects Implementation Guide
Once you have created a rule for allocating costs, you can use the rule in an allocation run. Processing the rule generates allocation transactions and (if specified) offset transactions in a draft, a trial allocation run that you can review and evaluate. If the draft allocation fails or does not produce the results you expect, you can delete the draft, change the rule parameters, and then create another draft. When you are satisfied with the draft run and its status is Draft Success, you can release the allocation run.
Any source projects that you include in an allocation must not be closed. Any target or offset project that you include in an allocation run must have a status that allows the creation of transactions (as defined by your implementation team).
You can create, review, and delete draft runs until you are satisfied with the results. However, you cannot create a draft if another draft exists for the same rule.
Although you can run the Generate Allocations Transactions process at any time, it is a good practice to prepare for the allocation run by distributing costs and running all interfaces and summarization processes. Doing so ensures that the allocation run includes all relevant amounts.
Important: If you use an allocation rule that is set up for full allocation more than once in a run period, you will generate duplicate transactions in your target projects. If this happens, you can reverse the run. See: Reversing Allocation Runs and see: Full and Incremental Allocations.
Excluded lines take precedence over included lines, and the allocation rule processes lower line numbers first. For more information about precedence, see: Defining the Targets, Oracle Projects Implementation Guide.
The run status shows the progress and state of the allocation run. The following table describes the possible statuses for an allocation run. For information on the actions you can take for each status, see: Viewing Allocation Runs.
Note: You may have to wait for the system to change the status.
| Status | Description |
|---|---|
| In Process | The process is not yet complete. |
| Draft Success | The process has created draft transactions which are ready for release. Note: The system will not create the transactions in the target and (if specified) offset projects and tasks until you release the draft. |
| Draft Failure | The process encountered problems and could not create draft transactions. |
| Release Success | The system has written the transactions to the target and (if specified) offset projects and tasks. |
| Release Failure | The system has not written the transactions, perhaps because projects or tasks included in the draft run were deleted or closed after the process created the draft. Delete the run, fix the problem, and then run the rule again. |
The PRC: Generate Allocations Transactions process produces the Allocation Run Report. For more information on this process, see: Generate Allocations Transactions, Oracle Projects Fundamentals.
Navigate to the Submit a New Request window.
Submit a request for the PRC: Generate Allocations Transactions process.
The following table shows the parameters you specify for each field in the Parameters window.
| For this field... | Do this... |
|---|---|
| Rule Name | Enter the name of the allocation rule that you want to use in this allocation run. |
| Period Name | Select the period from which the process will accumulate the source amount. |
| Expenditure Item Date | Enter a date for the allocation transactions. The default is the system date. |
Note: If the list of values in the Parameters window of the PRC: Generate Allocations Transactions process does not display an allocation rule that you are looking for, then the rule may not be currently in effect. Allocation rules are available only within a certain time period, as defined by the Effective Dates fields in the Allocation Rule window. For more information, see: Defining Allocation Rules, Oracle Projects Implementation Guide.
(If a rule is in effect on the day you create a draft run for the rule, you can release the draft later, even if the rule is no longer in effect.)
After you create a successful draft run, the process has created the allocation transactions but not yet allocated each transaction to the targets you specified. To allocate the transactions to the targets, you release the run.
Note: You can release a draft run after the effective dates of the rule.
Navigate to the Find Allocations Runs window and enter selection criteria. (To see all existing allocation runs, leave all the fields blank.)
The Review Allocation Runs window opens.
Select the allocation run you want to release (the status must be Draft Success), and then choose Release.
After you release the run, the status changes to Release Success or Release Failure. You may have to wait a short while for the status to change. For more information about the status see: About the Run Status.
Note: You can also use the Requests window to release the run.
You can view various aspects of an allocation run in the Review Allocation Runs window, including the run status.
You can also view allocation transactions by querying by batch name. See: Viewing Allocation Transactions.
Navigate to the Find Allocations Runs window and enter selection criteria. (To see all existing allocation runs, leave all the fields blank.)
The Review Allocation Runs window opens.
Select the allocation run that you want to view and choose an action button. The following table describes the actions that you can perform when you are viewing allocation runs, depending on the run status. Also see: About the Run Status.
| To... | With this status... | Do this... |
|---|---|---|
| Delete an allocation run | Draft Success Draft Failure Release Failure |
Choose Delete, and then confirm the deletion. |
| View the exceptions for a failed allocation run | Draft Failure | Choose Exceptions. You see information about the draft failure in the Draft Exceptions window. (The Allocation Run Report also includes a list of the exceptions. See: Generate Allocations Transactions, Oracle Projects Fundamentals). |
| Reverse an allocation run | Release Success | Choose Reverse. See: Reversing Allocation Runs. |
| Release an allocation run | Draft Success Release Failure |
Choose Release, and then confirm the release. See Releasing Allocation Runs. |
| See missing amounts for the second and subsequent runs of an incremental allocation | Draft Success Draft Failure Release Success Release Failure |
Choose Missing Amounts. To limit the display in the Missing Amounts window, specify the type of amount you want to see, and then choose Find. To see the total missing amounts, choose Totals. See: About Previous Amounts and Missing Amounts in Allocation Runs. |
| See the basis details for an allocation run that used a rule whose basis is prorated | Draft Success Draft Failure Release Success Release Failure |
Choose Basis Details. The Basis Details window displays basis information about the target lines in the allocation run. To see the total basis amounts, choose Totals. |
| See the source detail lines for an allocation run | Draft Success Draft Failure Release Success Release Failure Reversed |
Choose Source Details. The Source Details window displays information about the sources used in the allocation run. To see total pool amounts, choose Totals. |
| See the transactions created by an allocation run | Draft Success Draft Failure Release Success Release Failure Reversed |
Choose Transactions. The Transactions window displays information about the transactions associated with the allocation run. To limit the number of transactions displayed, select a check box and then choose Find. |
Note: When you choose to delete a draft allocation run, Oracle Projects submits the concurrent program PRC: Delete Allocations Transactions. Before submitting the request, Oracle Projects ensures that no other request for the same rule and allocation run combination is in a non-completed status.
You can customize the columns that are visible for several of the windows that are displayed when you select one of the viewing options shown in the table above. For more information on the fields you can choose, refer to the following table:
| Window | Fields you can add using Folder Tools |
|---|---|
| Review Allocation Runs | Many fields, including Draft Request ID, Pool Amount, Transaction Currency, parameters for various aspects of allocation, basis, missing amounts, offsets, and sources, and others. |
| Missing Amounts | Project Amounts Release Request ID Task Name |
| Source Details | Client Extension Project Name Task Name |
| Transactions | Expnd Type Project Name Target Line Num Task Name |
For more information about adding folder fields, see: Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide.
If the pool amount for an allocation run is different from what you anticipate, check for one or more of the following conditions:
If you specify a percentage to allocate from a resource structure (in the Resources window), the rule calculates the pool amount using both the percentage specified in the Allocation Pool % field (Sources window) and the percentage specified in the Resources window.
The amount included in the source pool can change each time you run the allocation. To create a stable source pool, define each project and task individually, either by specifying the source project and tasks in the Project Sources region in the Sources window, or by using a fixed amount as the source.
For any run period, the rule creates the allocation pool during the time period defined by the amount class and run period. The amount class is based on the allocation period type (Allocation Rule window) and the amount class (Sources window).
For more information, see: Defining Allocation Rules, Oracle Projects Implementation Guide.
You can view individual the individual transaction (expenditure items) created by the PRC:Generate Allocations Transactions process.
Navigate to the Find Project Expenditure Items or Find Expenditure Items window.
Enter the Project Number and Transaction Source fields. You can also enter other fields to further limit your search.
Choose Find.
Navigate to the Find Expenditure Batches window.
In the Batch field, enter the name of the batch you want to see and then choose Find.
You can reverse any successful allocation run (that is, the status is Release Success). The reversal creates reversing expenditure items. If expenditure items have been transferred or split before reversal, then the rule reverses the transferred or split items. The reversal process creates reversal entries in the allocation history, so that the reversed amounts are considered for the next incremental allocation, if any.
Note: Reversing the allocation run reverses all of the transactions. You cannot reverse individual transactions. You cannot reverse an allocation run if any of the target projects in the run cannot accept new transactions.
Navigate to the Review Allocation Runs window
Select an allocation run that has a status of Release Success, and then choose Reverse.
In the Reverse an Allocation Run window, enter the parameters:
For Reversed Exp Batch, enter a name for the reversing expenditure batch.
For Reversed Offset Exp Batch, enter a name for the reversing offset batch, if any.
Note: This field appears only for rules that specify an offset. In addition, the expenditure type classes of the target and the offset must be different. If the expenditure type classes are same, Oracle Projects uses the name you enter for the reversing expenditure batch for reversing both the target and offset expenditure batches.
Choose OK.
The allocation method is an attribute of every allocation rule and affects how the rule collects and allocates amounts. You choose whether you want a rule to use full or incremental allocation on the Allocation Rule window. For more information, see: Naming the Allocation Rule, Oracle Projects Implementation Guide.
Full allocations distribute all the amounts in the specified projects in the specified amount class. The full allocation method is generally suitable if you want to process an allocation rule only once in a run period.
Important: Plan to run allocation rules that are set up for full allocation only once in a run period. If you generate allocation transactions using a full allocation rule more than once in a run period, you will create duplicate transactions in your target projects. If this happens, you can reverse the duplicates. See: Reversing Allocation Runs.
Incremental allocations create expenditure items based on the difference between the transactions processed in the previous and current run. This method is generally suitable if you want to use the allocation rule in allocation runs several times in a given run period.
Note: Incremental allocations may slow system performance because of the need to calculate the amounts allocated in previous runs.
The system keeps track of the results of previous incremental allocation runs. Therefore, you can run an incremental allocation multiple times within the same run period without creating duplicate transactions for target projects. You can review and delete draft runs until you are satisfied with results.
Both full and incremental allocation distribute all the amounts accumulated during the run period.
Previous amounts and missing amounts occur only during incremental allocation runs, and are significant only for the second and subsequent run in the same run period. Full allocation runs do not have or use previous or missing amounts.
Previous amounts are those amounts that have been allocated in a previous run. For the second and subsequent runs for the same time period, the rule allocates only differences from the previous run or additional expenditures.
Missing amounts occur when a source, target or offset project or task has been closed or has become inactive since the previous allocation run. During subsequent runs, the system tracks the missing amounts, so that the source, target or offset amounts will be accurate. Source amounts may be missing because:
The task is closed, perhaps because the task has been completed
The source line on which a task appears has been excluded (by selecting the Exclude check box for that line on the Sources window)
An attribute, such as the service type or task organization, has changed
To generate allocations more efficiently, you can group allocations rules and then run them in a specified sequence (step-down allocations) or at the same time (parallel allocations).
Related Topics
Setting Up for AutoAllocations, Oracle Projects Implementation Guide
AutoAllocations is an Oracle General Ledger and Oracle Projects feature. In General Ledger, the allocation definition is called a batch. In Projects, the allocation definition is called a rule.
Step-down allocations use the results of each step in subsequent steps of the autoallocation set. Oracle Workflow controls the flow of the autoallocations set.
Parallel allocations carry out the specified rules all at once and do not depend on previous allocation runs.
As shown in the following tables, each rule or batch has a different effect when you run the autoallocation set, depending on the set type. The following table shows the processes submitted by set type for project allocation rules.
| Set Type | Processes Submitted |
|---|---|
| Step Down | Generate Allocations Transactions Release Allocation Transactions Distribute Miscellaneous Costs and Usages Update Project Summary Amounts |
| Parallel | Generate Allocations Transactions Release Allocation Transactions (Note: The system submits this process only if Auto Release is selected on the Allocation Rule window.) |
The following table shows the processes submitted by set type for mass allocation, mass budget, mass encumbrances, and recurring journal allocation batches:
| Set Type | Processes Submitted |
|---|---|
| Step Down | Run MassAllocations Recurring Journal Entry Budget Formulas Posting |
| Parallel | Run MassAllocations Recurring Journal Entry Budget Formulas |
What you can do with AutoAllocations depends on the responsibility you use when you log on to your database:
From the Projects responsibility, you can:
Create autoallocation sets that contain Projects allocation rules. If Oracle Projects is integrated with General Ledger, you can also include GL allocation batches.
View autoallocation sets that were created using the Oracle Projects responsibility
From the General Ledger responsibility, you can:
Create autoallocation sets that contain only General Ledger batches
View autoallocation sets that were created using the General Ledger responsibility
For more information about AutoAllocations in Oracle General Ledger, see: AutoAllocations, Oracle General Ledger User Guide.
If you want to allocate amounts from Oracle General Ledger, integrate Oracle General Ledger with Oracle Projects. See: Integrating with Oracle General Ledger, Oracle Projects Fundamentals. (You can use AutoAllocations in a standalone installation of Oracle Projects.)
(Step-down allocations only) AutoAllocations uses Oracle Workflow processes to carry out step-down allocations. Although you can use the workflow without modification, you can customize some processes. See: Step-Down Allocations Workflow, Oracle Projects Implementation Guide.
Set the directory for the debug log written by Oracle Workflow. You set the directory in two places, the PA: Debug Log Directory profile option (see: PA: Debug Log Directory, Oracle Projects Implementation Guide), and the init.ora file.
The procedure below describes how to submit a request from the AutoAllocation Workbench.
Using the Projects responsibility, navigate to the AutoAllocation Workbench window.
In the Allocation Set field, find the set that you want to submit. (You can choose Find, Find All, or one of the Query commands from the View menu.)
The Parameters window opens.
Enter information for this autoallocation set. The fields displayed vary depending on whether the allocation set contains Oracle Projects rules, General Ledger batches, or both.
The following table lists fields for General Ledger batches and describes the information you can enter.
| If the Parameters window displays... | Then do this... |
|---|---|
| Name | Nothing - field is for display only. |
| Period | Select or enter an accounting period for your General Ledger batches. |
| Budget (Optional) | Select or enter a budget. |
| Journal Effective Date | Select a date. Note: You can specify any date if the profile option GL: Allow Non-Business Day Transactions is set to Yes. Otherwise, specify a business date. |
| Calculation Effective Date | Select a date in any open, future (that can be entered), closed, or permanently closed period. The default is the closest business day in the chosen period. |
| Usage | Select Standard Balances or Average Balances |
Note: The system displays the Journal Effective Date, Calculation Effective Date, and Usage fields for General Ledger batches when General Ledger uses an average balance ledger.
The following table lists fields for Oracle Projects rules and describes the information you can enter.
| If the Parameters window displays... | Then do this... |
|---|---|
| GL Period PA Period |
Select a period. If the project rules belong only to the GL period type, enter only the GL Period field. Otherwise, enter both fields. If all project rules belong only to the PA period type, enter only the PA Period field. |
| Expenditure Item Date | Select or enter the expenditure item date for your allocations transactions. |
Choose Submit or Schedule. If you are scheduling the process to run at a later time, select a date and time, and then choose Submit.
If a step down autoallocation set appears to run, but stops before executing all steps and the process does not generate any exceptions, then check for one or both of the following conditions:
The Auto Release setting for the allocation rule, timeout setting, and Oracle Workflow notification parameters may be interacting in a way that stops the autoallocation run.
If Auto Release is deselected on the Allocation Rule window, then Oracle Workflow processes the allocation rule. The workflow timeout attribute (set to a certain number of minutes) executes three times. If the person notified by the workflow does not respond in that amount of time, the step down autoallocation stops at that point in the autoallocation set. See: Processes for the PA Step Down Allocation Workflow, Oracle Projects Implementation Guide; and Timeout Attribute, Oracle Projects Implementation Guide.
The directory used for the debug log written by Oracle Workflow is set incorrectly. Set the utl_file_dir parameter in the init.ora file to the same directory that is specified in the PA: Debug Log Directory profile option (see: PA: Debug Log Directory, Oracle Projects Implementation Guide). If the two do not match, the PA Step Down Allocation workflow will fail (return an exception).
Using the Projects responsibility, navigate to the View AutoAllocation Statuses window.
Select the set you want to view and then choose a Find or Query command from the View menu.
For more information about finding records, see: Using Query Find, Oracle Applications User's Guide.
To see the Allocation Workbench for this set, choose Allocation Workbench. As shown in the following table, you can see more information about a step by selecting the step, and then selecting an option:
| To see more information about... | Choose... |
|---|---|
| A step | Step Detail |
| The workflow process for the step | Monitor Workflow |