Set Up Project Overrides for Cost Adjustments

In the Joint Venture System Options, a joint venture application administrator sets up the following project overrides to help ensure cost adjustments imported into Project Costing are processed and reported accurately:

• Expenditure type
• Burdening expenditure type

These overrides are applied to cost adjustments to classify them as adjustments that offset (subtract) the stakeholder shares from the original cost. They give project accountants the ability to budget and forecast on net costs, gross costs, or both. It also enables them to correctly calculate the capitalizable amount.

Also, the overrides help ensure cost adjustments aren’t identified for other Project Costing processes. For example, the burdening expenditure type override prevents burdening-related cost adjustments from being burdened again.

When Joint Venture Management creates cost adjustments for raw costs and burdening costs, it checks the accounting class associated with the transaction’s expenditure type to decide which override to apply:

• If the accounting class is a burdening class, Joint Venture Management applies the burdening expenditure type override.
• If the accounting class is not a burdening class, Joint Venture Management applies the expenditure type override.

You can also set an optional task override to associate cost adjustments from Oracle Joint Venture Management with a specific task in Project Costing.

When configured, the overrides replace the original values in all cost adjustments sent from Joint Venture Management to Oracle Project Costing. If a transaction doesn’t include a value for expenditure type, burdening expenditure type, or task, the corresponding override is not applied.

Project overrides apply to all joint ventures. You can’t set up overrides to apply to a particular joint venture.