Asset Cost Allocation Methods
Asset cost allocation methods determine how indirect or common costs incurred on a project are allocated to multiple assets.
You can specify an asset cost allocation method to enable Oracle Fusion Project Costing to automatically allocate unassigned asset lines and common costs across multiple assets. Unassigned asset lines typically occur when the asset cost allocation method chosen isn't sufficient to describe how project costs must be allocated to project assets.
Projects and project templates inherit a default asset cost allocation method from the associated project type. You can override the default at the project level. If you use capital events to allocate costs, then you can also override the asset cost allocation method at the event level.
Also, see the Asset Cost Allocation Methods Available in Oracle Projects section in the Allocating Project Asset Costs to Projects and Tasks topic in the Using Project Costing guide.
Specifying Asset Cost Allocation Methods While Setting up a Project Type
- You must be a project application administrator to perform this task.
- You can perform this task only on project types that are enabled for capitalization.
To specify asset cost allocation methods in project types, navigate to Setup and Maintenance > Search > Manage Project Types > Search Project Type > Edit Project Type > Capitalization Options and select the required option from the Asset Cost Allocation Method drop-down list.
You can’t create projects if you do not have project types defined. Also, you must select the Enable capitalization option in the Edit Project Type page if you intend to enable the Capitalization Options section.
- Cost Type
- Asset Cost Allocation Method
- Event Processing Method
- Require a complete asset definition
You can, however, update the asset cost allocation method that you want to use when you create a project template or project using the project type.
Specifying Asset Cost Allocation Methods While Setting up a Project Template
- You must be a project application administrator to perform this task.
- You can perform this task only on project types that are enabled for capitalization.
To set up a project template, navigate to Setup and Maintenance > Search > Manage Project Templates > Search Project Templates > Edit Project Template. If the value in the Project Type field isn’t editable, it means that the project template has already been used in projects, and the project type details can no longer be edited. You can, however, update the asset cost allocation method specified for the project template if the project template hasn’t already been used in a project.
To update the project template’s asset cost allocation method:
- Expand the Setup Options > Financial section in the Edit Project Template page and click Capitalization Options.
- In the Capitalization Option section that appears, click Edit to view the Edit Capitalization Options screen.
- Select the required option from the Asset Cost Allocation Method drop-down list.
- Click Save and Close.
Specifying Asset Cost Allocation Methods While Setting up a Project
When you create a project, you must associate it with a project template. As we saw in the previous section, the project administrator can specify default capitalization options for project templates. However, project managers have the ability to update the asset cost allocation method that they want to use in their project.
If you create a project by copying an existing project, the new project assumes the project template of the source project. You can update the asset cost allocation method associated with the newly copied project as well. To do so, navigate to Projects > Project Financial Management > Search and select project > Panel drawer > Manage Financial Project Settings > Capital > Edit. Select the required option from the Asset Cost Allocation Method drop-down list.