1. Using Project Costing
  2. How External Commitment Transactions are Processed

How External Commitment Transactions are Processed

After validating and importing data for external commitments, process the transactions to determine additional values such as period information, capitalizable and billable status, and amounts in various currencies such as transaction, ledger, and project currencies. Thereafter, commitment transactions are ready for summarization.

Settings That Affect Processing of External Commitment Transactions

Settings for the following affect processing of external commitment transactions:

  • Organization

  • Transaction source, document, and document entry

  • Project and task: Currency conversion attributes at the project level determine how transaction currency amount is converted to project currency amount. The billable status and work type of the task determine if the commitment transaction is billable. Task-level burden schedule assignment is used for calculating the burden amounts.

  • Expenditure type: The required rate setting determines if a unit price is required to calculate the commitment amount.

  • Burden structure and schedules: These determine how commitment transaction is burdened.

  • Currency conversion attributes for project, provider, and receiver business units: These determine how amounts in transaction currency are converted to project, provider, and receiver ledger currencies.

How External Commitment Transactions Are Processed

You can process external commitment transactions in the following ways:.

  • Manage Committed Costs page: Select transactions for processing based on the expenditure business unit, commitment source type (external in this case), processing status, transaction source, document, document entry, or project and task. From the search results, select a transaction and process it. Even though a single transaction is selected, all transactions in the search results belonging to the same commitment source type (external in this case) and processing status as that of the selected transaction will be processed.

  • Import Commitments page: Select transactions for processing based on the expenditure business unit, commitment source type, and process mode. The process mode setting determines whether to process all transactions or only the transactions in a particular status.

Oracle Fusion Project Costing performs the following tasks when processing external commitment transactions:

  1. Determines capitalizable and billable nature of the commitment transactions.

  2. Allocates overhead costs to the commitment transactions.

  3. Determines project and subledger accounting periods.

  4. Converts transaction amounts to project currency and project ledger currency.