About Creating and Sending Cost Adjustments to Oracle Project Costing

In Project Costing, project accountants track and capture the total project costs from transactions in Oracle Fusion Cloud Financials. For joint ventures, managing partners use Oracle Joint Venture Management to split and distribute these costs based on stakeholder ownership percentages, generating invoices or journal entries for cost recovery.

Integrating Project Costing with Joint Venture Management enables you to create and import cost adjustments from joint venture distributions that originate from project transactions. Once imported into Project Costing, cost adjustments appear as negative amounts, reducing the gross project cost and helping to ensure accurate capitalization.

The following illustration shows how transaction amounts are captured separately in both applications, and then brought together in Project Costing to realize the accurate capitalized costs for a project.

In the preceding example, notice that the managing partner’s $700 share of the costs aren’t passed to Project Costing as cost adjustments. In Joint Venture Management, distributions are created for the managing partner’s internal stakeholder as well as for the other internal stakeholders in the joint venture, but cost adjustments aren’t created for them in Project Costing.