Example of Creating Cost Adjustments for Oracle Project Costing

Before importing cost adjustments from Joint Venture Management to Project Costing, a project accountant imports project costs from transactions in subledger accounting. The following image shows the Manage Project Costs page in Project Costing, which has three transactions imported for the Operations-West expenditure organization.

This image shows the Manage Project Costs page with three records.

Next, a joint venture accountant runs the Joint Venture Management processes to:

Identify transactions for the joint venture.
Create distributions that contain each partner’s share of the cost in the transactions.

At this point, project-related distributions have a Project Costing status of Awaiting Accounting.
Create Receivables invoices from joint venture distributions, and then run the processes to post the invoices to Oracle General Ledger and reference the posted invoices from distributions. After these processes complete, in the Joint Venture Distributions work area, the Project Costing status of project-related distributions changes from Awaiting Accounting to Available to process.

Note: You can set up all processes mentioned in this example to run on a schedule.

The joint venture accountant then runs the process to create cost adjustments for project-related distributions with a Project Costing Status of Available to Process. The following example shows the Joint Venture Distributions page with 4 distributions in the Available to Process status that the process will create cost adjustments for:

This image shows the Joint Venture Distributions page with four records in the Available to process status.

The project accountant then imports the cost adjustments into Project Costing and reviews the original (gross) costs, cost adjustments from Joint Venture Management, and the net cost.

The following image shows an example of costs in Project Costing, with positive amounts for the original costs, negative amounts for the cost adjustment, with the resulting net cost of $500. The net cost represents the capitalized amount.

This image shows original cost transactions and cost adjustments in Project Costing and the calculated net amount.

After cost adjustments are imported into Project Costing, the joint venture accountant runs a separate process to update the Project Costing status of the processed project-related distributions to Process Complete.