How Project Cost Adjustments are Processed

Project cost adjustments include expenditure item modifications that are required after you import project transactions into Oracle Fusion Project Costing.

For example, a project cost adjustment is needed if a transaction is incorrectly charged to a project or task. You can correct the transaction by performing an expenditure item adjustment of transferring the costs to a different project or task or changing cost or burden rates for the expenditure item. Oracle Fusion Project Costing adjusts the expenditure items and performs the related cost processing. You can review expenditure items and then perform various costing and billing adjustments.

Settings That Affect Project Cost Adjustments

The document entry option to allow adjustments determines if adjustments can be performed on the expenditure items created for that document entry.

How Adjustments Are Processed

Perform adjustments to recalculate cost or cross-charge amounts, recalculate currency conversions, change the billing status, or split the quantity and transfer the expenditure items to another project or task. You can perform one or more adjustments on one or multiple expenditure items. However, you can only perform one type of adjustment at a time, regardless of the number of expenditure items that will be impacted. Depending on your privileges, you either submit the adjustment for approval or approve adjustments and submit them for processing.

The application processes the expenditure items for the adjustment along with cost processing. The expenditure items go through the basic validation. Then, depending on the adjustment type, the expenditure items are run through the Import and Process Cost Transactions process.

The application rolls back the processing automatically for process validation errors such as those for pricing, accounting, period derivation, and for transaction control violations. For split and transfer expenditure item adjustments, if transferring of any one of the expenditure item fails, then the application doesn't create new expenditure items or the associated cost distributions. The original expenditure item is set to rejected status and the error details are provided in the adjustment history of the expenditure item. For other adjustments such as billable status changes or raw cost and burden cost recalculation, the application rolls back the creation of the reversing and new cost distributions and updates the original expenditure item as rejected. You can't cancel an adjustment performed on an expenditure item for which funds are already reserved against a control budget.

The application tracks adjustment history for the expenditure item, including details such as the person submitting the adjustment and the submission date. It also records whether the adjustment comes from costing, invoice, or revenue. Review the errors and then either cancel or reprocess the adjustment.

You can review the cost distributions for a specific period, and compare and reconcile the cost amounts to amounts in other applications.