Example: End-to-End Processing of Project Costs Through Oracle Joint Venture Management to Oracle Project Costing

This example shows how project costs are processed through Joint Venture Management to create cost adjustments that are imported into Project Costing.

1. Import Project Costs in Project Costing

A project accountant imports project cost transactions from subledger accounting into Project Costing. In this example, three transactions for the Operations-West expenditure organization appear on the Manage Project Costs page, as shown in the following image.

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

2. Identify and Distribute Joint Venture Transactions

A joint venture accountant runs the Joint Venture Management processes to identify and distribute transactions according to each stakeholder’s ownership percentage.

3. Create Receivables Invoices and Complete the Accounting

The joint venture accountant creates Receivables invoices from the distributions and completes the accounting. To complete the accounting, the accountant runs the processes to post the invoices to General Ledger and update the distributions with references to the invoices.

4. Create Cost Adjustments from Distributions

The joint venture accountant runs the process to generate cost adjustments for project-related distributions.

The following example shows 4 distributions in the Joint Venture Distributions work area that the process will create cost adjustments for. Notice that the Project Costing Status for these distributions is Available to Process.

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

5. Import Cost Adjustments into Project Costing

The project accountant imports these cost adjustments into Project Costing and reviews:

Original (gross) costs
Cost adjustments from Joint Venture Management
Net costs (the capitalized amount)

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

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

Update Project Costing Status

After the cost adjustments are imported, the joint venture accountant runs a process to update the Project Costing status of the distributions to Process Complete.