Allocating Project Asset Costs to Projects and Tasks

When you work on a project and need to set up project asset costs allocation methods for projects and tasks, you must perform at least the following tasks:

Typical Capital Project-Related Tasks

No.	Task	Description	Importance
1	Create a capital project.	This is a financial project that has capitalization enabled. This means that the project template that you choose for the project must have capitalization enabled as well.	Only when financial projects are enabled for capitalization can you associate assets with tasks, and project costs with assets associated with these tasks. If the asset costs allocation method that the project inherits from the project template isn’t the one that you want to use, you can update it using the Manage Financial Project Settings > Capital tab.
2	Create project assets.	Project assets are unique to a project’s goals, and are defined at the project level.	Only when these assets are created, can they be variously assigned to projects or project tasks. This will help in project costs allocation when the team starts executing project tasks.
3	Create project plan.	The project plan lists out all the tasks in the work breakdown structure of the project.	Project managers can allocate project costs to assets associated with tasks. When there are multiple project assets associated with a specific task, or if the task is collecting common costs, the asset cost allocation method will be used to determine what prorated amount a project asset will receive.
4	Assign project assets to the project or its task(s).	Project assets are assigned at either the project or task level.	Project managers can allocate project costs to assets associated with tasks. When there are multiple project assets associated with a specific task, or if the task is collecting common costs, the asset cost allocation method will be used to determine what prorated amount a project asset will receive.
5	Create and collect project costs.	Projects accumulate costs from numerous applications as work on tasks progresses. Project managers can also create costs at the project level.	Project costs are the raw materials for asset lines. These costs must be properly accounted before asset lines can get grouped and generated. The project asset cost allocation method determines how these project costs, after they are grouped, get assigned to the appropriate project assets.
6	Generate asset lines.	Generate asset lines to pick accounted project cost transactions, group them into asset lines, and assign them to project assets. The Generate Asset Lines process also allocates common costs for tasks that are defined to collect common costs.	Project transactions get transferred into Oracle Assets as asset lines. The asset cost allocation methods determine which project asset(s) the project asset lines are assigned to. Only project asset lines that have been assigned to a project asset can be transferred into Oracle Assets. The Include Common Tasks option must be marked as Yes for the common costs to get allocated.
7	Transfer asset lines to Oracle Fixed Assets.	Project asset lines get transferred into Oracle Assets.	This is a significant milestone that marks the completion of the project-to-assets lifecycle.