What's the difference between allocation and burdening?

Both allocation and burdening are related to expenditure item costs. Allocation uses actual amounts from sources such as project sources, ledger sources, and fixed amount source to provide the source pool amount. Allocation generation apportions these source pool amount to target projects and tasks.

Burdening uses a set of estimated burden multipliers to increase the total cost amount of expenditure items. This fixed percentage is an estimate of the indirect or burden costs associated with the raw costs for each expenditure item.

Allocations and burdening aren't mutually exclusive; you can use both. Whether your company uses allocations, burdening, or both in a particular situation depends on how your company works and how you have implemented Oracle Fusion Project Costing.