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Using burdening, you can perform internal costing, revenue accrual, and billing for any type of burdened costs that your company applies to raw costs. Oracle Projects calculates costs using the following formulas. (The formulas for cost also apply to revenue and billing amounts.)

Total Burdened Cost = Raw Cost + Burden Cost

Burden Cost = Raw Cost X Multiplier

You use the multiplier to derive the total amount of the burden cost. For example, you may burden the raw cost of labor using a multiplier of thirty percent to derive the fringe component, and in turn, the total burdened cost of labor is computed as follows:

Labor (raw cost)	1,000
+ Fringe @ 30% (burden cost)	300
Total Burdened Cost	1,300

On a project for which costs are burdened, you can create some transactions that are burdened and others that are not burdened. You define which projects should be burdened by setting the Burden Cost indicator for each project type in the Project Types window. When you specify that a project type is burdened, you must then specify the burden schedule to be used. The burden schedule stores the rates and indicates which transactions are burdened, based on cost bases defined in the burden structure. You specify which expenditure types are included in each cost base.

With burdening, you can use an unlimited number of burden cost codes, easily revise burden schedules, and retroactively adjust multipliers. You can define different multipliers for costing, revenue accrual, and billing.