Expenditure Types

An expenditure type is a classification of cost that you assign to each expenditure item that you enter in Oracle Projects. Create expenditure types for processing requirements, such as calculating raw costs, to classify costs, and to plan, budget, forecast, and report on projects.

Following are examples of other ways that you can use expenditure types:

Assign an expenditure type to each burden cost code when capturing burden costs on separate, summarized expenditure items. The assigned expenditure type becomes the expenditure type for that type of burden cost.
Specify default expenditure types for each resource class for different project units. The application uses the default expenditure type for planning purposes. For example, when determining the raw and burdened cost rates for a planning resource, if the resource format doesn't contain an expenditure type or nonlabor resource, then the application uses the default expenditure type for the resource class of the resource to determine the rates.
Labor cost multipliers are used to calculate costs for overtime expenditure items. Associate a labor cost multiplier to an expenditure type with the Overtime expenditure type class. The costing process multiplies the standard labor cost rate by the multiplier and the hours to calculate the cost for overtime expenditure items.
Assign an expenditure type with the Usages expenditure type class to each nonlabor resource to define nonlabor resources that are used to record usage transactions.

Expenditure types contain the following attributes.

Expenditure and revenue categories
Unit of measure
Rate required
Proceeds of sale
Expenditure type classes
Assigned sets
Tax classification codes

If you create and save an expenditure type, you can't subsequently update the following attributes for the expenditure type.

Expenditure and revenue categories
Unit of measure
Rate required option

Instead, you must enter an end date for the expenditure type and create a new one. The end date for an expenditure type has no effect on existing transactions. Oracle Fusion Projects uses the old expenditure type to report on and process existing transactions.

Expenditure and Revenue Category

Expenditure categories group expenditure types for costing. Revenue categories group expenditure types for revenue and billing.

Unit of Measure

The expenditure type unit of measure is used as the default value on costing or planning transactions.

For inventory transactions, the primary unit of measure is from the inventory item, and not from the expenditure type on the transaction.

You must use Hours as the unit of measure for labor expenditure types.

Rate Required Option

Enable the Rate Required option for an expenditure type that requires a cost rate.

Note: For supplier invoice expenditure types, if you specify that a rate is required, Oracle Fusion Projects requires you to enter a quantity in Oracle Fusion Payables for invoice distributions using that expenditure type. When you interface the invoice distribution to Oracle Fusion Projects, the application copies the quantity and amount to the expenditure item and calculates the rate. If you define a supplier invoice expenditure type with the Rate Required option disabled, then the quantity of the expenditure item is set to the amount you enter in Oracle Fusion Payables.

Proceeds of Sale Option

Enable the Proceeds of Sale option for expenditure types that are used to track the proceeds of sale for a capital project.

Expenditure Type Classes

Expenditure type classes specify how an expenditure item is processed. For example, if you assign the Straight Time expenditure type class to an expenditure type, Oracle Fusion Projects uses labor cost schedules to calculate the cost of an expenditure item with that expenditure type and expenditure type class.

You can assign multiple expenditure type classes to an expenditure type. For example, an expenditure with the expenditure type Materials can have the expenditure type class Supplier Invoice if it originated in Oracle Fusion Payables, and the expenditure type class Inventory if it originated in Oracle Fusion Inventory. This lets you use a single expenditure type to classify as many costs as you need. You can use the same expenditure type for expenditures with different origins, and therefore different accounting, that should otherwise be grouped together for costing, budgeting, or summarization purposes.

Assigned Sets

You must assign at least one project transaction type set to each expenditure type. You can add and delete set assignments for an expenditure type at any time, except that you can't delete the last set assignment for an expenditure type.

Tax Classification Codes

You can optionally select a default tax classification code to use for customer invoice lines for an expenditure type and business unit.