Project Manufacturing Costing Transactions (Oracle Cost Management)


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Project Manufacturing Costing Transactions

When you use Oracle Project Manufacturing, you are able to have organizations which concurrently manufacture for projects and non-project customer orders. However for proper management control purposes, item costs and charges for non-project orders are maintained and tracked distinctly separate from projects.

Cost Groups

Using Project Manufacturing, you can have many projects active at any one time. You can also have items in common (non-project) subinventory. Using cost groups, an item may have a different cost in different projects as well as a unique cost in common inventory, all within the same organization. Item costs can apply to a single project if each project belongs to a distinct cost group, or apply to a group of projects if all projects in the group are assigned to the same cost group. Items in common inventory belong to a system defined cost group and are normally costed distinctly separate from items in projects.

Project Notification

Oracle Project is notified when material transactions cross a project boundary (i.e. from project to non-project, from non-project to project, and between two different projects) or cross the task boundary of the same project. For transactions within the same project, if no specific task is entered, it is assumed to be a transaction within the same task, and hence notification to Projects is not required.

Upon notification, Projects either:

Increments project cost when material is moved into a project-related entity from a non-project-related entity (e.g. locator, work order, etc.).

Decrements project cost when material is moved out of a project-related entity into a non-project-related entity

Decrements the From project and task and increments the To project and task when a transaction moves material between two projects or tasks.

The following table summarizes some important transactions, whether they do and do not notify Oracle Projects, their respective debits and credits, and the cost used in the transaction:

Unless otherwise stated, the cost specified for the debit side of the transaction applies also to the credit side.

Note: MOH stands for material overhead. For information on material overhead charges, see Material Overhead Application.

Note: For Interorganization Transfers, the accounting entries for the Receiving Organization are shaded for clarity.

Purchasing, Inventory, or Order Entry Project Referenced Transaction Transaction Information Notify Projects

Account and Cost Debit Credit

Purchase Order Receipt to Receiving Inspection

Receiving Inspection @ PO Cost XX No

      Inventory A/P Accrual XX

Delivery From Receiving Inspection To Inventory


Cost Group Material @ PO Cost XX Yes

      Receiving Inspection XX

Purchase Order Receipt To Inventory

Receiving Inspection @ PO Cost XX Yes

      Inventory A/P Accrual XX

Cost Group Material @ PO Cost XX

      Receiving Inspection XX

Sales Order Shipments

Cost of Goods Sold @ Current Average Cost (in Cost Group) XX No

      Cost Group Valuation XX

RMA Receipt

      Into Expense Subinventory No Entries N/A

      Into Project Asset Locator Cost Group Valuation @ Current Average Cost XX No

      Cost of Goods Sold XX

RMA Returns

      From Project Locator Cost Group Valuation @ Current Average Cost (in Cost Group) XX No

      Cost Group Valuation XX

Miscellaneous Transactions

      Receipt into Project Locator Cost Group Valuation @ Current Average (in Project Cost Group) or User-specified Cost XX Yes

      User-specified account XX

      Issue from Project Locator User Specified account @ Current Average (in Project Cost Group) or User-specified Cost XX Yes

      Cost Group Valuation XX

Interorganization Transfer

      Direct Transfer: Expense to Expense No entries

      Direct Transfer: Standard Org. to Project excluding Expense to Expense Cost Group Material @ Standard (in Sending Org.) + Freight and Transfer Charges XX Yes

      Interorg. Payable XX

Interorg. Receivable @ Standard + Freight and Transfer Charges XX

      Subinventory Valuation XX

      Freight Credit XX

      Transfer Credit XX

      Direct Transfer: Average to Project, or vice versa, excluding Expense to Expense Cost Group Material @ Current Average Cost (in Sending Org.) XX Yes

      Interorg. Payable XX

Interorg. Receivable @ Current Average Cost (in Sending Org.) + Freight and Transfer Charges XX

      Organization Valuation XX

      Freight Credit XX

      Transfer Credit XX

      Direct Transfer: Project to Standard excluding Expense to Expense Subinventory Valuation @ Standard XX Yes

      Purchase Price Variance (in Receiving Organization) @ Difference Between Cost in Sending and Receiving Org. XX XX

      Interorg. Payable @ Current Average Cost (in Sending Org. Cost Group) XX

Interorg. Receivable @ Current Average Cost in Cost Group in Sending Org. XX

      Cost Group Valuation (Sender) XX

      Interorg Transfer via Intransit: Receipt from Intransit (Standard Org.) into Project Org (FOB Receipt) Cost Group Material (in Receiving Org.)@ Standard Cost (in Receiving Org.) XX Yes

      Interorg. Payable XX

Interorg. Receivable @ Standard Cost XX

      Intransit Inventory XX

      Interorg Transfer via Intransit: Receipt from Intransit (Project Org) into Project Org. (FOB Receipt) Cost Group Material (in Receiving Org.) @ Current Average Cost (in Sending Org Cost Group) XX Yes

      Interorg. Payable XX

Interorg. Receivable @ Current Average Cost (in Sending Org. Cost Group) XX

      Intransit Inventory XX

      Interorg Transfer via Intransit: Receipt from Intransit (Project Org) into Project Org. (FOB Shipment) Cost Group Material @ Current Average Cost (in Common Cost Group in Receiving Org.) XX Yes

      Intransit Payable XX

      Interorg Transfer via Intransit: Receipt from Intransit into Project Org. (FOB Receipt) Cost Group Valuation or Expense @ Current Average Cost (in Sending Org.) XX Yes

      Intransit Inventory XX

      Interorg Transfer via Intransit: Shipment to Intransit (Project Org.) from Standard Org (FOB Shipment) Intransit Material @ Standard Cost (in Sending Org.) XX Yes

      Interorg. Payables XX

Interorg. Receivable XX

      Subinventory Valuation XX

      Interorg Transfer via Intransit: Shipment to Intransit (Project Org.) from Project Org (FOB Shipment) Intransit Inventory @ Current Average Cost (in Project Cost Group in Sending Org.) XX Yes

      Interorg. Payables XX

Interorg. Receivable XX

      Cost Group Valuation XX

Subinventory Transfer

      Expense to Expense Subinventory, from or to same or different Project No entries N/A

      Different Project or Task, Asset to Asset Locator Cost Group Valuation (in Receiving Project) @ Current Average Cost (in Cost Group in Sending Project) XX Yes

      Cost Group Valuation or Expense (in Sending Project) XX

      Different Project or Task, Asset to Expense Subinventory or vice versa Cost Group Valuation or Expense (in Receiving Project) @ Current Average Cost in Cost Group (in Sending Project) XX Yes

      Cost Group Valuation (in Sending Project) XX

      Project to Non-project, Asset to Asset Subinventory Organization Valuation @ Current Average Cost (in Project Cost Group) XX Yes

      Cost Group Valuation (in Sending Project) XX

      Non-project to Project, Asset to Asset Locator Cost Group Valuation (in Sending Project) @ Current Average Cost in Common Cost Group XX Yes

      Organization Valuation XX

Cycle Count and Physical Inventory

      Count < On hand Inventory Adjustment @ Current Average Cost (in Cost Group) XX Yes

      Cost Group Valuation XX

      Count > On hand Cost Group Valuation @ Current Average Cost (in Cost Group) XX Yes

      Inventory Adjustment XX

Average Cost Update

Cost Group Valuation @ User-defined Cost Increase/Decrease XX Yes

      Inventory Adjustment XX

Table 1 - 18. (Page 5 of 5)

Purchasing, Inventory, or Order Entry Project Referenced Transaction		Transaction Information
Account and Cost	Debit	Credit

Purchase Order Receipt to Receiving Inspection
		Receiving Inspection @ PO Cost	XX	No
Inventory A/P Accrual		XX

Delivery From Receiving Inspection To Inventory
		Cost Group Material @ PO Cost	XX	Yes
Receiving Inspection		XX

Purchase Order Receipt To Inventory
		Receiving Inspection @ PO Cost	XX	Yes
Inventory A/P Accrual		XX
Cost Group Material @ PO Cost	XX
Receiving Inspection		XX

Sales Order Shipments
		Cost of Goods Sold @ Current Average Cost (in Cost Group)	XX	No
Cost Group Valuation		XX

RMA Receipt
Into Expense Subinventory		No Entries		N/A
Into Project Asset Locator		Cost Group Valuation @ Current Average Cost	XX	No
Cost of Goods Sold		XX

RMA Returns
From Project Locator		Cost Group Valuation @ Current Average Cost (in Cost Group)	XX	No
Cost Group Valuation		XX

Miscellaneous Transactions
Receipt into Project Locator		Cost Group Valuation @ Current Average (in Project Cost Group) or User-specified Cost	XX	Yes
User-specified account		XX
Issue from Project Locator		User Specified account @ Current Average (in Project Cost Group) or User-specified Cost	XX	Yes
Cost Group Valuation		XX

Interorganization Transfer
Direct Transfer: Expense to Expense		No entries
Direct Transfer: Standard Org. to Project excluding Expense to Expense		Cost Group Material @ Standard (in Sending Org.) + Freight and Transfer Charges	XX	Yes
Interorg. Payable		XX
Interorg. Receivable @ Standard + Freight and Transfer Charges	XX
Subinventory Valuation		XX
Freight Credit		XX
Transfer Credit		XX
Direct Transfer: Average to Project, or vice versa, excluding Expense to Expense		Cost Group Material @ Current Average Cost (in Sending Org.)	XX	Yes
Interorg. Payable		XX
Interorg. Receivable @ Current Average Cost (in Sending Org.) + Freight and Transfer Charges	XX
Organization Valuation		XX
Freight Credit		XX
Transfer Credit		XX
Direct Transfer: Project to Standard excluding Expense to Expense		Subinventory Valuation @ Standard	XX	Yes
Purchase Price Variance (in Receiving Organization) @ Difference Between Cost in Sending and Receiving Org.	XX	XX
Interorg. Payable @ Current Average Cost (in Sending Org. Cost Group)		XX
Interorg. Receivable @ Current Average Cost in Cost Group in Sending Org.	XX
Cost Group Valuation (Sender)		XX
Interorg Transfer via Intransit: Receipt from Intransit (Standard Org.) into Project Org (FOB Receipt)		Cost Group Material (in Receiving Org.)@ Standard Cost (in Receiving Org.)	XX	Yes
Interorg. Payable		XX
Interorg. Receivable @ Standard Cost	XX
Intransit Inventory		XX
Interorg Transfer via Intransit: Receipt from Intransit (Project Org) into Project Org. (FOB Receipt)		Cost Group Material (in Receiving Org.) @ Current Average Cost (in Sending Org Cost Group)	XX	Yes
Interorg. Payable		XX
Interorg. Receivable @ Current Average Cost (in Sending Org. Cost Group)	XX
Intransit Inventory		XX
Interorg Transfer via Intransit: Receipt from Intransit (Project Org) into Project Org. (FOB Shipment)		Cost Group Material @ Current Average Cost (in Common Cost Group in Receiving Org.)	XX	Yes
Intransit Payable		XX
Interorg Transfer via Intransit: Receipt from Intransit into Project Org. (FOB Receipt)		Cost Group Valuation or Expense @ Current Average Cost (in Sending Org.)	XX	Yes
Intransit Inventory		XX
Interorg Transfer via Intransit: Shipment to Intransit (Project Org.) from Standard Org (FOB Shipment)		Intransit Material @ Standard Cost (in Sending Org.)	XX	Yes
Interorg. Payables		XX
Interorg. Receivable	XX
Subinventory Valuation		XX
Interorg Transfer via Intransit: Shipment to Intransit (Project Org.) from Project Org (FOB Shipment)		Intransit Inventory @ Current Average Cost (in Project Cost Group in Sending Org.)	XX	Yes
Interorg. Payables		XX
Interorg. Receivable	XX
Cost Group Valuation		XX

Subinventory Transfer
Expense to Expense Subinventory, from or to same or different Project		No entries		N/A
Different Project or Task, Asset to Asset Locator		Cost Group Valuation (in Receiving Project) @ Current Average Cost (in Cost Group in Sending Project)	XX	Yes
Cost Group Valuation or Expense (in Sending Project)		XX
Different Project or Task, Asset to Expense Subinventory or vice versa		Cost Group Valuation or Expense (in Receiving Project) @ Current Average Cost in Cost Group (in Sending Project)	XX	Yes
Cost Group Valuation (in Sending Project)		XX
Project to Non-project, Asset to Asset Subinventory		Organization Valuation @ Current Average Cost (in Project Cost Group)	XX	Yes
Cost Group Valuation (in Sending Project)		XX
Non-project to Project, Asset to Asset Locator		Cost Group Valuation (in Sending Project) @ Current Average Cost in Common Cost Group	XX	Yes
Organization Valuation		XX

Cycle Count and Physical Inventory
Count < On hand		Inventory Adjustment @ Current Average Cost (in Cost Group)	XX	Yes
Cost Group Valuation		XX
Count > On hand		Cost Group Valuation @ Current Average Cost (in Cost Group)	XX	Yes
Inventory Adjustment		XX

Average Cost Update
		Cost Group Valuation @ User-defined Cost Increase/Decrease	XX	Yes
Inventory Adjustment		XX
Table 1 - 18. (Page 5 of 5)

Project Referenced Manufacturing Transaction Transaction Information Notify Projects

Account and Cost Debit Credit

Component Issue and Return Transactions

      Issue Project Expense Job from Project Expense Locator No Entries XX No

      Issue (other than Expense to Expense) to Project Job from Project Locator, same Project or Task WIP Inventory @ Current Average Cost (in Project Cost Group) XX No

      Cost Group Valuation or Expense XX

      Issue (other than Expense to Expense) to Project Job from Project Locator, same Project different Task WIP Inventory @ Current Average Cost (in Project Cost Group) XX Yes

      Cost Group Valuation or Expense XX

      Issue (other than Expense to Expense) to Project Job from Common Subinventory Cost Group Valuation @ Current Average (in Common Cost Group) XX Yes

      Organization Valuation XX

WIP Inventory @ Current Average (in Project Cost Group) XX

      Cost Group Valuation XX

Resource Charges

      Charge Labor Resource to Project Job WIP Resource @ Actual Employee Rate or User-defined Cost XX Yes

      Resource Absorption XX

      Charge Non-labor Resource to Job WIP Resource @ User-defined Cost XX Yes

      Resource Absorption XX

Overhead Charges

WIP Overhead Valuation @ User-defined Cost or Rate XX Yes

      Overhead Absorption XX

Outside Processing Charges

WIP Outside Processing @ Purchase Order Cost XX Yes

      Outside Processing Absorption XX

Assembly Scrap Transactions

      Scrap Scrap @ Calculated Scrap value XX No

      WIP Accounting Class Valuation XX

      Reverse Scrap WIP Accounting Class Valuation XX No

      Scrap @ Calculated Scrap value XX

Assembly Completion Transactions

      Complete Assemblies from Project Job into Asset Project Locator Cost Group Valuation @ User-defined or System Calculated + MOH XX Yes (for MOH amount only)

      WIP Accounting Class Valuation XX

      Material Overhead Absorption XX

Job Close Transactions

WIP Accounting class variance XX No

      WIP accounting class valuation XX

Table 1 - 19. (Page 3 of 3)

Project Referenced Manufacturing Transaction		Transaction Information
Account and Cost	Debit	Credit

Component Issue and Return Transactions
Issue Project Expense Job from Project Expense Locator		No Entries	XX	No
Issue (other than Expense to Expense) to Project Job from Project Locator, same Project or Task		WIP Inventory @ Current Average Cost (in Project Cost Group)	XX	No
Cost Group Valuation or Expense		XX
Issue (other than Expense to Expense) to Project Job from Project Locator, same Project different Task		WIP Inventory @ Current Average Cost (in Project Cost Group)	XX	Yes
Cost Group Valuation or Expense		XX
Issue (other than Expense to Expense) to Project Job from Common Subinventory		Cost Group Valuation @ Current Average (in Common Cost Group)	XX	Yes
Organization Valuation		XX
WIP Inventory @ Current Average (in Project Cost Group)	XX
Cost Group Valuation		XX

Resource Charges
Charge Labor Resource to Project Job		WIP Resource @ Actual Employee Rate or User-defined Cost	XX	Yes
Resource Absorption		XX
Charge Non-labor Resource to Job		WIP Resource @ User-defined Cost	XX	Yes
Resource Absorption		XX

Overhead Charges
		WIP Overhead Valuation @ User-defined Cost or Rate	XX	Yes
Overhead Absorption		XX

Outside Processing Charges
		WIP Outside Processing @ Purchase Order Cost	XX	Yes
Outside Processing Absorption		XX

Assembly Scrap Transactions
Scrap		Scrap @ Calculated Scrap value	XX	No
WIP Accounting Class Valuation		XX
Reverse Scrap		WIP Accounting Class Valuation	XX	No
Scrap @ Calculated Scrap value		XX

Assembly Completion Transactions
Complete Assemblies from Project Job into Asset Project Locator		Cost Group Valuation @ User-defined or System Calculated + MOH	XX	Yes (for MOH amount only)
WIP Accounting Class Valuation		XX
Material Overhead Absorption		XX

Job Close Transactions
		WIP Accounting class variance	XX	No
WIP accounting class valuation		XX
Table 1 - 19. (Page 3 of 3)

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