The Spread Evenly Asset Cost Allocation Method
The Spread Evenly method is an asset cost allocation method used to allocate common and indirect costs to assets.
The Spread Evenly asset cost allocation method considers the number of project assets that will receive project costs and equally shares the costs with those assets.
For guidance on how to specify the asset cost allocation method for a project, see the Specifying Asset Cost Allocation Methods While Setting up a Project section in the Asset Cost Allocation Methods topic.
The use case for using the Spread Evenly method would be when customers have very similar assets and have determined that common costs can be equally allocated to each of those assets. A grocery store may have 500 of the same display cases constructed and distributed to their stores. The costs are for all 500 display cases and should be equally divided for each asset.
Say a project manager needs the following assets for a project:
| Asset | Asset Cost Allocation Method | Actual Units | Prorate % |
|---|---|---|---|
| Clay Tennis Court 1 | Actual Units | 1 | 25% |
| Clay Tennis Court 2 | Actual Units | 1 | 25% |
| Clay Tennis Court 3 | Actual Units | 1 | 25% |
| Clay Tennis Court 4 | Actual Units | 1 | 25% |
| Totals | 4 | 100.00% |
This is the easiest and most straight forward of the asset cost allocation methods. There are four assets for this one task. Therefore, each asset will receive 1/4th (or 25%) of all of the costs.
To illustrate further, the four assets, Clay Tennis Court 1, 2, 3, and 4 will each share (or 25% each) in the project costs each.
Spread Evenly: Create Project Assets
When the project manager wants to include these assets into a project, they create the project and use the Capital tab of the Manage Financial Project Settings page to list these assets out. The asset cost allocation method used is Actual Units.
It’s also important to note that all four of these assets are assigned at the project level. This means that when a new common project expenditure item is added to the project, the cost will be assigned to these assets using the prorated percentage we saw calculated in the table above.
Each of these four assets must be as-built, and the project manager also specifies the Actual Units of each asset that the project needs.
Spread Evenly: Assign Project Assets to the Project or its Tasks
For each project or task, the project manager captures the following details, among others:
- Project Task Name / Number: The name of the project or task.
- Project Asset Names: The names of the project assets that must be associated with the project or task.
Spread Evenly: Create and Collect Project Costs
Now that the assets are associated with the project, the project manager can start importing costs and allocate them to these assets.Say the project manager imports and adds a cost of $1000 to the project. To view the imported cost:
- The project manager navigates to Projects > Costs > Side Panel > Manage Project Costs and searches for the imported costs by project.
- From the search results, they click the Transaction Number associated with the imported cost. The Project Cost Transaction page appears.
- They click the Costing tab to view cost details.
- The project manager selects the Line Number associated with the cost and clicks View Accounting to view details associated with the imported cost.
Spread Evenly: Generate Asset Lines
The project manager now runs the Assets > Panel Drawer > Generate Asset Lines process.
Spread Evenly: Review Asset Lines
Once the process completes, the project manager reviews the project asset lines generated (Projects > Assets > Manage Capital Projects > Search > Actions > Manage Asset Lines) to check whether the imported project cost has been distributed as expected. They see that four asset lines are generated for the imported project cost, and the values in the Split Percentage column is as specified in the Prorated Percentage column in the table above.
Note that the calculated amount of the asset lines is exactly as expected.
| Asset | Split Percentage | Project Expenditure | Allocated Amount |
|---|---|---|---|
| Clay Tennis Court 1 | 25.00% | $10.000.00 | $2,500.00 |
| Clay Tennis Court 2 | 25.00% | $10,000.00 | $2,500.00 |
| Clay Tennis Court 3 | 25.00% | $10,000.00 | $2,500.00 |
| Clay Tennis Court 4 | 25.00% | $10,000.00 | $2,500.00 |
| Totals | 100.00% | $10,000.00 |
Spread Evenly: Transfer Assets to Oracle Assets
Once the project manager is ready to transfer these asset lines to Oracle Assets, they use the Projects > Assets > Side Panel Drawer > Transfer Assets to Oracle Fusion Assets process to transfer these asset lines to Oracle Assets.
The project asset definition has no value that can determine how project costs must be allocated.