Cost Adjustments Sent to Oracle Project Costing as "Accounted"

Before you can create cost adjustments from distributions, you must run the processes to create invoices and journal entries from distributions and complete their accounting. As a result, when you run the process to create cost adjustments from distributions, the cost adjustments are sent to Project Costing as “accounted.” This helps to ensure that between the two applications, costs are accounted only once.

Cost adjustments sent to Project Costing from Joint Venture Management include accounting information which consists of the code combination IDs of the partner account and Receivables account, accounted date, accounted amount, and accounted currency. This accounting information corresponds to the Receivables invoices and journal entries that Joint Venture Management generates from distributions. The partner account tracks costs covered by external partners in a joint venture. The Receivables account tracks outstanding payments owed by external partners to the joint venture managing partner.

Note: While the partner account can be categorized under the Revenue Accounting Class in Oracle Fusion Cloud Financials, the account serves as a cost recovery account and shares the same natural account as the CIP (construction in progress) account. The CIP account typically represents the gross costs that are brought into Project Costing through a separate process.