Capture Purchase Order Costs in Projects

Create a purchase order with project inventory as the destination to capture the cost of the inventory item and send it to Oracle Project Costing, so that a project accountant can have an accurate view of the project's actual costs.

Here are the steps you need to perform:

1. Run the Update Project Performance Data process to review the committed costs for requisitions on the Manage Committed Costs page.

2. Import the approved purchase orders into Oracle Project Costing using the Import Costs process with the transaction source set as Purchase Receipt after the item is shipped and the transaction is accounted and costed in Oracle Cost Management.

3. After importing the transactions, you can view them on the Manage Project Costs page when you filter by Document = Purchase Receipt and Transaction Source = Oracle Cost Management.

4. Then, add the Purchase Order, Distribution Line, Supplier, and Receipt Number references as columns via the View menu on the Manage Project Costs page to identify the transaction source.

5. You can view these references on the Manage Unprocessed Costs page.

6. You can search by Purchase Order or Receipt Number on the Manage Cost Distribution page.

Project accountants and project managers can open the expenditure item to view the complete transactions details, including the source document. Adjust one or more expenditure items using the Actions menu on the Manage Projects page. Adjustments you perform in Oracle Project Costing won't be reflected in the source supply chain transaction.

Optionally, you can perform intercompany, burden and cost allocation business functions on expenditures items incurred from supply chain activities. You can also view and adjust these transactions in the Manage Cost Distributions task, and resolve any cost exception using the Manage Unprocessed Costs task.

Considerations for Capturing Purchase Order Costs in Projects

• The expenditure item date of the purchase order is the shipment date.

• You can't perform reverse type of adjustments for purchase orders.

• Project Costing receives the cost of the item as defined in Cost Management.

• Project Costing doesn't support budgetary control for inventory destination type of purchase orders. Inventory destination type purchase orders are subjected to ledger control budgets and not to project control budgets.

• Project Costing supports budgetary control for expense destination type of purchase orders.

• Project Costing doesn't support billing by material item and service item.

• You can't delete a project task that has a purchase order.

• You can't move or copy existing tasks or directly create subtasks under a task that has a purchase order.