Asset Cost Allocation Methods in the Project Costs to Fixed Assets Process

A capital project creates fixed assets, and project tasks are geared towards creating them. Each task has costs, and it’s critical to accurately collect and allocate project costs to tasks, each of which is typically associated with multiple project assets.

Here's a graphic that illustrates the list of tasks that make up the project costs to fixed assets process.

As the graphic above illustrates, the process of loading project costs to interfacing them into Fixed Assets involves the following key tasks:

1. Import Project Costs and Cost Adjustments
2. Process Project Costs
3. 1. Validate Project Costs
   2. Account for Project Costs
4. Generate Asset Lines
   1. Use Asset Line Grouping Methods to Group Project Costs

   2. Use Asset Cost Allocation Methods to Allocate Grouped Costs to Project Assets

5. Run the Transfer Assets to Oracle Fusion Assets Process
6. Uptake Source Lines (in FA)
   1. Run the Mass Additions Process
   2. Run Accounting to Transfer CIP costs to Assets
7. Run the Update Assets Information from Oracle Fusion Assets (Tie-back) Process

Asset cost allocation methods help project managers and project accountants decide how they want to allocate project costs to specific or common assets that the project aims to create.