Processing Allocations in PeopleSoft Project Costing

This chapter provides an overview of allocations in PeopleSoft Project Costing, and discusses how to:

Allocate costs from project-to-project.
Allocate costs to projects from PeopleSoft General Ledger.

Note. The information found here is a supplement to the information found in the PeopleSoft Enterprise Application Fundamentals 9.0 PeopleBook.

Understanding Allocations in PeopleSoft Project Costing

There are two basic types of allocations that can be performed in PeopleSoft Project Costing by the Allocations process (FS_ALLC):

Project-to-project allocations.
PeopleSoft General Ledger to Project Costing allocations.

Project-to-project allocations occur entirely within PeopleSoft Project Costing. During project-to-project allocations, quantities and amounts are distributed from one or more projects to one or more projects. For example, the Housing Development project collects the storage costs for equipment used in its child projects—foundation, framing, and roofing. Storage costs are allocated to these target (child) projects using a prorata basis of material cost. The project-to-project allocation allocates dollars from one project to other projects without involving the general ledger.

You can allocate within business units (intraunit), or among business units (interunit)—such as project-to-project allocations between project business units.

In General Ledger-to-Project Costing allocations, amounts are moved from general ledger accounts and allocated to one or more projects. For example, a quality inspection team charges their labor to the general expense account posted in the general ledger. The team inspected all of the projects within Housing Development—foundation, framing, and roofing. The General Ledger-to-Project Costing allocation prorates labor expense dollars from the general expense account to the projects receiving the quality inspection.

Allocating Costs from Project-to-Project

This section provides an example of a project-to-project allocation step and discusses how to:

Define the allocation type.
Define the allocation pool.
Define the allocation basis.
Define the allocation target.
Define the allocation batch records.
Define the amount fields.
Run the project-to-project allocation example.

Example of Project-to-Project Allocation Step

PeopleSoft provides sample data that contains a project-to-project allocation step called PC_TO_PC that has a setID of SHARE. This allocation step is an example of periodically allocating costs to activities based on the total costs that are incurred for each of the activities. In this example, the BUILDING project collects storage costs that are associated with a child project COMPLEX and its activities EXCAVATION, FOUNDATION, and STRUCTURAL.

Note. This section discusses the field values that are required to set up the example PC_TO_PC allocation step. A detailed discussion of the Define Allocation Step component (ALLOCATIONS) is in the PeopleSoft Enterprise Application Fundamentals 9.0 PeopleBook.

See Processing Allocations.

Project Activity Costs Accumulation and Allocation

The total storage cost collected in the current period by project BUILDING for its child project COMPLEX is 1,000,000 USD. This is a sum of all storage cost transactions associated with project BUILDING in business unit US003. This pool amount is to be distributed to the child project COMPLEX and its three activities. This table shows the total costs currently incurred by each of the activities within project COMPLEX:

Activity	Cost Incurred
EXCAVATION	200,000 USD (25% of total)
FOUNDATION	200,000 USD (25% of total)
STRUCTURAL	400,000 USD (50% of total)

When you run the PC_TO_PC allocation example, the system distributes the 1,000,000 USD pool amount among the three activities of project COMPLEX with the same ratio that currently exists between them, as illustrated in this table:

Activity	New Distribution Rows Based on Allocations
EXCAVATION	250,000 USD (25% of 1,000,000 USD)
FOUNDATION	250,000 USD (25% of 1,000,000 USD)
STRUCTURAL	500,000 USD (50% of 1,000,000 USD)

This diagram illustrates the process of allocating activity costs using the PC_TO_PC allocation step:

Allocating activity costs by using the PC_TO_PC allocation step

Pages Used to Allocate Costs from Project-to-Project

Page Name	Object Name	Navigation	Usage
Define Allocation Step - Type	ALLOC_CALC_OPTN	Allocations, Define and Perform Allocations, Define Allocation Step, Type	Define the allocation type and any special arithmetic operations that you want to perform by using the pool and basis. Select a transaction code for use in interunit and intraunit allocations.
Define Allocation Step - Pool	ALLOC_POOL	Allocations, Define and Perform Allocations, Define Allocation Step, Pool	Define the allocation pool record, selection criteria, and selection method.
Define Allocation Step - Basis	ALLOC_BASIS	Allocations, Define and Perform Allocations, Define Allocation Step, Basis	Specify how and in what proportion the pool amounts are distributed to the various targets.
Define Allocation Step - Target	ALLOC_TARGET	Allocations, Define and Perform Allocations, Define Allocation Step, Target	Define the destination for the allocation or target record and target field values.
Define Allocation Step - Offset	ALLOC_OFFSET	Allocations, Define and Perform Allocations, Define Allocation Step, Offset	Define the offset entry that balances the target.
Define Allocation Step - Output Options	ALLOC_OUT_JRL_OPTN	Allocations, Define and Perform Allocations, Define Allocation Step, Output Options	Define journal output options if the target or offset record is Journal Records. Define table output options if the target or offset record is Any Table.
Define Allocation Step - Round Options	ALLOC_ROUND_OPTN	Allocations, Define and Perform Allocations, Define Allocation Step, Round Options	Define the method for rounding the allocation amount and distributing odd cents for the Spread Evenly, Allocate of Fixed Basis, and Prorata with Record Basis allocation types.
Define Allocation Step - Batch Records	ALLOC_RECNAME	Allocations, Define and Perform Allocations, Define Allocation Step, Batch Records	Specify the batch temporary tables that the Allocations process uses.
Define Allocation Step - Amount Fields	ALLOC_AMOUNT	Allocations, Define and Perform Allocations, Define Allocation Step, Amount Fields	Define the amount field mapping between the pool, basis, target, and offset records.
Allocation Request	ALLOC_REQUEST	Allocations, Define and Perform Allocations, Request Allocation, Allocation Request	Specify parameters and run the Allocations process.

Defining the Allocation Type

Access the Define Allocation Step - Type page.

The allocation type defines how the pool amount is distributed to the target.

Allocation Type

To allocate the pool amount to the three activities using a ratio based on their current costs, the PC_TO_PC allocation step uses an allocation type of Prorata with Record Basis. This allocation type requires a basis definition, because it divides the pool amount among the targets based on amounts stored in the basis record.

Defining the Allocation Pool

Access the Define Allocation Step - Pool page.

The allocation pool defines the amount to be allocated.

Pool Record Type	Use Any Table as the record type for PeopleSoft Project Costing.
Table	For the PC_TO_PC allocation step, the system uses the accumulated source transactions for project BUILDING with analysis type ACT (actual cost) within the current fiscal period to distribute to the activities. Fiscal year and accounting period information must be available when the time span is the current period; therefore, the table that the system uses to retrieve the pool amount must contain the Fiscal Year field (FISCAL_YEAR) and Accounting Period field (ACCOUNTING_PERIOD). The PC_TO_PC allocation step uses the Project Resources Calendar table (PROJ_RES_CAL_VW) to retrieve the pool amount. The Project Resources Calendar table is a view of the Project Transaction table (PROJ_RESOURCE) table joined with the CALENDAR table. Click the View All link for the Pool Fields scroll area to see that the pool amount that is allocated to the activities, in this example, is based on the BUILDING project for the ACT analysis type.
Zero Pool Amount Option	Select Next Pool tells the system to skip a zero amount pool record and select the next pool record to process.
Time Span	The PC_TO_PC allocation step uses PER (current period transactions), indicating that the system only retrieves transactions that are in the current accounting period to calculate the pool amount.

Add another row to the Pool Fields grid, enter field name Project, and enter the project ID BUILDING that contains the activity costs that you are accumulating.

Pool Fields

Field Name	The first row identifies Analysis Type as a field that the PC_TO_PC allocation step uses to identify the pool. The second row identifies Project to further narrow the pool.
Value	Typically, the ACT analysis type is used as the analysis type for the pool record because it represents all actual costs that are accumulated in the Project Transaction table for the specified project activity. In the second row, BUILDING identifies the project that accumulates the transactions that you want to allocate.

Defining the Allocation Basis

Access the Define Allocation Step - Basis page.

The basis defines how the pool is allocated across the target.

Table and Time Span

The PC_TO_PC allocation step uses the Project Resources Calendar table as the basis table, since the system uses only transactions within the current period (time span of PER) to determine the percentage allocation for each activity.

Basis Fields

To allocate the pool amount to the three activities using a ratio based on their current costs, the PC_TO_PC sample allocation step has a type of Prorata with Record Basis, which requires a basis definition. The system uses basis rows to determine how to split the pool amount among the target rows.

Field Name and Value

Three rows appear in the Basis Fields grid, specifying that the system retrieves transactions for project COMPLEX and activities EXCAVATION, FOUNDATION, and STRUCTURAL, with an analysis type of ACT. The system calculates the current costs for each activity. Since the target project and activity are defined by the basis, the pool amount is split among the three activities of the project in the same proportion as their respective current cost.

Click the View All link for the Basis Fields scroll area to see that the basis of the allocation is the accumulated costs prior to the current allocation that is recorded in the BUILDING project for the ACT analysis type in the EXCAVATION, FOUNDATION, and STRUCTURAL activities.

Defining the Allocation Target

Access the Define Allocation Step - Target page.

The allocation creates new rows in the Project Transaction table. You must specify field values for which you want specific values from the allocation process. You must also specify the field value source, such as pool, basis, fixed value, or sequence number.

Table

The PC_TO_PC allocation step uses the Project Transaction table as the target record.

Note. If you use the Project Transaction table as the target, you must also manually run any project-related processes on the allocation rows.

You can select the Project Transaction Interface table (INTFC_PROJ_RES) as the target for the system to insert the allocation rows. Then run the Transaction Loader Application Engine process (PC_INTFEDIT) to load the allocation rows into the Project Transaction table. By using the Project Transaction Interface table with Transaction Loader Application Engine process, rather than loading the allocation rows directly in to the Project Transaction table, you ensure that other project-related processes, such as assigning resources to projects, refreshing summary tables, or running the Pricing Application Engine process (PC_PRICING), are run on the rows before they are inserted into the Project Transaction table.

If you use Commitment Control, in order for budget checking to take place for the allocated rows, the transaction rows must pass through the Project Transaction Interface table. If the target rows are written directly to the Project Transaction table, no budget checking takes place in PeopleSoft Project Costing for the target transaction rows.

See Loading Transaction Data.

Specify Field Values

In the Specify Field Values grid, define the fields for which you want specific values and define the source (pool, basis, specific value, sequence number, and so forth) from where the values originate. Include keys fields and other fields that are mandatory for processing.

To distinguish new allocation rows from the original cost rows, enter field name Analysis Type, with a source of Value, and a value/mask that is a different analysis type than the original cost rows. To summarize transactions across dates, enter field name Transaction Date with a source of Req Date (request date). To summarize rows by individual date, enter field name Transaction Date with a source of Pool.

Important! To ensure uniqueness in the resulting table, specify the Transaction ID field (RESOURCE_ID) as a target field, and select Seq Num (sequence number) as the source.

Each new row that the Allocations process adds to the target table contains values only for the fields that you list in the Target page. The values are based on the source location specified in the Source column.

The fields listed in the Target page not only specify the fields to copy to the new allocation rows in the target record, but also they implicitly specify the level at which you want to summarize allocation rows. If you specify fields to be populated from the basis or pool, the Allocations process summarizes the rows based on unique values of these fields. If you want the Allocations process to ignore a particular field and summarize all rows regardless of the field’s value, you can either not specify the field in the Target page, or specify the field with a constant value. There are most likely many more fields in the target record than you will list in the Target page. The fields that are not listed in the Target page will not contain data in the new rows that the Allocations process creates.

An offset is not necessary in this example because the table output option is Replace Existing Amounts.

Defining Allocation Batch Records

Access the Define Allocation Step - Batch Records page.

Batch records are temporary work records that store the calculations and log files for the Allocations process.

PeopleSoft delivers these temporary work records for use in both PeopleSoft General Ledger and PeopleSoft Project Costing allocations:

Temporary Work Record	Record Name
Calculation Log Record	PC_CALC_ALLOC
Pool	ALC_PC_P_TAO
Basis	ALC_PC_B_TAO
Basis Summary	ALC_PC_BS_TAO
Target Detail Offset Detail	ALC_PC_T_TAO
Target Summary Offset Summary	ALC_PC_TS_TAO
Target Balance	ALC_PC_TB_TAO
Calculation Log	ALC_CLOG_TAO

Defining the Amount Fields

Access the Define Allocation Step - Amount Fields page.

Amount fields define the fields that store pool, basis, target, and, if applicable, offset amounts. Use this page to define how to distribute the amounts from the fields in the pool record to the fields in the target and offset records.

Allocation Amount Fields

Specify the appropriate amount fields for both the foreign currency and base currency amounts. If you use the Project Resources Calendar table and Project Transaction table as the pool, basis, or target table, select Foreign Amount (FOREIGN_AMOUNT) for the Amount fields and Projects Business Unit Amount (RESOURCE_AMOUNT) for the Base Amount fields.

Running the Project-to-Project Allocation Example

Access the Allocation Request page.

Use this page to run the sample PC_TO_PC allocation group that contains the PC_TO_PC allocation step. The system allocates the pool amount to the target record, based on the criteria in the basis fields.

Allocating Costs from General Ledger

You can use the Allocations process to distribute revenue, expense, and statistical quantities from accounts in PeopleSoft General Ledger to one or more projects in PeopleSoft Project Costing. In these situations, the allocation pool is derived from a ledger instead of from a PeopleSoft Project Costing table. Follow similar steps to set up allocations from general ledger accounts as you do to set up project-to-project allocations.

The PeopleSoft Enterprise Application Fundamentals 9.0 PeopleBook provides a more detailed overview of allocation components, and discusses how to set up, copy, rename, and delete allocation steps, produce allocation reports, and recover allocation errors.