Overview of Reviewing and Adjusting Project Costs

Perform adjustments to your processed project costs and commitments after reviewing them in Oracle Fusion Project Costing.

Use project cost adjustments to maintain the integrity and accuracy of project financial data throughout the project lifecycle. By allowing corrective actions on project costs after initial processing, adjustments support compliance, enable accurate reporting, and ensure project financial statements reflect business realities.

Project costs that are successfully imported into Project Costing are referred to as processed costs. Costs that are submitted for approval or rejected are referred to as unprocessed project costs.

You can review and adjust cost transactions both before and after importing them to Oracle Fusion Project Costing.

What You Can Do

Use project cost adjustments to review and update cost transactions and commitments to ensure that they reflect accurate project financial information.

You can:

Review cost transactions before they are imported into Project Costing
Adjust cost transactions after they are processed in Project Costing
Modify commitments as part of your project cost review activities

You can also use adjustments to:

Correct errors in project cost transactions (for example, costs charged to the wrong project or task)
Update financial attributes such as billable, capitalizable, or work type
Recalculate cost amounts after updates to cost rate schedules or burden structures
Control how costs are processed for billing, capitalization, or revenue recognition

When to Review and Adjust Project Costs

Review and adjust project costs during different stages of cost processing:

Before import

Review and update cost transactions prior to importing them into Project Costing
After import

Adjust processed project costs and commitments to correct or update financial information

You typically perform adjustments when:

Costs are assigned to an incorrect project or task
Financial classifications need to be updated (for example, billable or capitalizable status)
Cost amounts must be recalculated due to rate or schedule changes
Costs must be held from invoicing or revenue recognition pending review
Costs need to be split, transferred, or reallocated across projects or tasks

Examples include:

Transferring a cost to the correct project or task
Setting a cost as capitalizable after review
Changing a cost from nonbillable to billable
Recalculating cost amounts after rate updates

Mass Adjustments

The Mass Adjustment utility enables you to process adjustments across a large volume of project cost transactions using criteria-based selection.

While the Manage Project Costs page displays a limited number of results per search, mass adjustment enables you to adjust a larger set of project costs in a single operation by specifying selection criteria such as project, task, expenditure type, or date range.

Use mass adjustment when you need to apply the same adjustment logic across multiple project costs, such as reallocating costs, updating billing attributes, or reclassifying transactions. This approach improves efficiency and ensures consistency across large datasets.

Key Considerations

Different adjustment types serve different purposes. Select the appropriate adjustment type based on the intended outcome.
Some adjustments update existing transactions, while others create new transactions through reversal and recreation.
By default, adjustments that enter the approval workflow are automatically approved.
Use the ApproveAdjustment task in the BPM Worklist tool to configure adjustment approval rules.