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.