FAQs About Sending Cost Adjustments to Project Costing

How do you prevent transactions related to capitalization of fixed assets from being distributed to partners?

When using the Construction work in progress (CWIP/CIP/WIP) account to record capital expenditure for assets that are work in progress, only the transactions related to incurred costs should be identified for joint venture processing and distributed to partners. Transactions that correspond to the capitalization of an asset should not be distributed to partners.

Instead of using the original WIP account for transactions related to the capitalization of assets, Oracle recommends that you use a WIP Contra Clearing account. Then in the joint venture setup, you need to make sure that this clearing account is not included in the accounts identified as distributable for the joint venture.

If you can’t use a WIP Contra Clearing account, then after these types of transactions are identified in Joint Venture Management, you must manually set the status of the transactions to “Not distributable.”

How do I correct issues with creating cost adjustments from joint venture distributions?

When you run the Create Project Costing Adjustments process, check the log file for any errors. Correct any issues and then rerun the process. In the Distributions work area, when processed successfully, the Project Costing Status of distributions changes from “Available to process" to “Project Costing in progress.”

How do I correct issues with importing cost adjustments into Project Costing?

If you find issues with the Import Costs process, check the error report. Any records that the process fails to import into Project Costing are displayed in the Manage Unprocessed Costs work area. In the work area, you can address errors by updating fields and so forth, and then reprocess records through the import process.

How do I recover cost adjustments not sent to Project Costing?

It’s possible for the Import Costs process to complete successfully, but not import cost adjustments into Project Costing when there’s an issue with the account. When this occurs, the process moves records from staging to a Cost Import spreadsheet. Review the records in the spreadsheet and then use the same Cost Import process to import the records from the spreadsheet into Project Costing. This issue indicates a problem with the setup of the offset to receivables in the Joint Venture Management implementation with Oracle Fusion Cloud Financials. See Verify Setup of Partner Accounts for Proper Processing of Cost Adjustments for more information.