Cost Processing

Objectives
– Describe the costing flow in Oracle Grants
Accounting
– Explain the costing and funds check process
– Explain what is occurring during cost processing

Agenda
– Costing Overview
– Costing and Funds check
– Creating Accounting

Overview of Costing
Generate cost accounting events
Import
Transactions
Oracle Grants
Accounting
Enter and Approve
Expenditures
Distribute and funds
check costs
Derive default
accounting
Oracle Subledger Accounting
(see next page)

Overview of Costing
Oracle
Subledger
Accounting
Oracle General Ledger
(see next page)
Subledger
Accounting Events
Create accounting for accounting
events
Transfer final accounting to Oracle
General Ledger
Subledger Journal
Entries

Overview of Costing
Oracle
General
Ledger General Ledger
Interface Tables
Import journal entries
General Ledger
Journal Entries
Post journal entries

Costing Concepts
• The following concepts are associated with
costing:
– Raw cost
– Burden cost
– Total burdened cost
Raw Cost + Burden Cost = Total Burdened Cost

Determining Costs
Labor Costs
Hours x Cost Rate = Raw Cost
Non-Labor Costs
Raw Cost = Quantity x Rate
– When unit of measure is
other than Currency
Raw Cost = Quantity
– When unit of measure is
Currency
For example, the type of expenditure
and the unit of measure affects how
Oracle Grants Accounting calculates
raw cost.

Burden Cost Calculations
Raw Cost + Burden Cost = Total Burdened Cost
Raw Cost x Burden Multiplier = Burden Cost
Quantity x Cost Rate = Raw Cost
Also known as
Direct Cost + Indirect Cost = Total Cost

AutoAccounting
Distribution processing determines the
debit account for expenditure items
Cost Distribution Line
Fund Appro-
priation
Funding
Source
Dept Org Program Object Project
Dr 1001 6001 2000 2110 1001 6636 53300 000000
Cr 1001 6001 2000 2110 1001 6636 00000 000000

Funds Check and Reservation
Expenditures =
$40
Reservation = $40
Oracle
General Ledger

Agenda
– Costing Overview
– Costing and Funds check
– Creating Accounting

Costing and Funds Check Programs
Budget = $100
Expenditures =
$40
Funds available =
Budget –
(Expenditures +
Encumbrances)
Funds check verifies available funds against a budget before
processing a transaction

GMS: Costing and Funds Check on
Straight Time Labor
GMS: Costing and
Funds Check on Straight
Time Labor

GMS: Costing and Funds Check on
Expense Report Adjustments
GMS: Costing and
Funds Check on
Expense Reports

GMS: Costing and Funds Check on
Usages and Miscellaneous Costs
GMS: Costing and
Funds Check on
Usages & Misc. costs
Misc.Costs and
Usages

GMS: Distribute Supplier Cost
Adjustments and Funds Check
GMS: Distribute Supplier
Cost Adjustments
and Funds Check
Invoice Wrong project
Correction
PRC: Create and
Distribute Burden
Transactions

GMS: Encumbrance Funds Check
GMS: Encumbrance
Funds Check
Encumbrance transactions
from Oracle Labor Distribution

Viewing Funds Check Results
Funds Check Success or
Failure Reports
Find Budget
Funds Check
Details
Example of the methods in which you can view funds check results

Funds Check Failures
Budgetary Control Settings
Purchasing and Payables
funds control
Clearing Budgetary
Control Packets
Examples of how you can troubleshoot
funds check failures

Agenda
– Costing Overview
– Costing and Funds check
– Creating Accounting

Costing Flow: Create Accounting
Example: Costing flow for uncosted and unaccounted
labor expenditures
GMS: Costing and Funds Check for Straight Time
Labor
PRC: Generate Cost Accounting Events
PRC: Create Accounting
PRC: Transfer Journal Entries to GL
(optional)
Journal Import
(Oracle General Ledger)
Enter and approve expenditures Import transactions

Integration with Oracle Subledger
Accounting
Generate accounting
events and create
accounting
Transfer journal
entries to GL
Oracle Grants Accounting uses setup for Oracle Subledger
Accounting that is predefined in Oracle Projects that enables Oracle
Subledger Accounting to accept the default accounting information
from Oracle Grants Accounting without change.
Oracle Subledger
Accounting
Oracle General
Ledger
Oracle Grants
Accounting

Generating Cost Accounting Events
Process Categories for Costs
– Burden Cost
– Labor Cost
– Miscellaneous Cost
– Supplier Cost
– Usage Cost
When you submit the concurrent program PRC: Generate Cost
Accounting Events, you can specify a process category, or leave the
parameter blank to process all costs.

AutoAccounting: Generate
Accounting Events
The generate cost accounting events program uses
AutoAccounting to determine the default credit account
for cost distribution lines.
Cost Distribution Line
Fund Appro-
priation
Funding
Source
Dept Org Program Object Project
Dr 1001 6001 2000 2110 1001 6636 53300 000000
Cr 1001 6001 2000 2110 1001 6636 00000 000000

Creating and Transferring
Accounting
Subledger
Accounting Events
Create accounting for accounting events
Transfer final accounting to Oracle General Ledger
Subledger Journal
Entries
Generate cost accounting events
You run programs in Oracle Grants Accounting to create
accounting in Oracle Subledger Accounting and to transfer the
final accounting to Oracle General Ledger.

Oracle General Ledger Journal Import
General Ledger
Interface Tables
Import journal entries
General Ledger
Journal Entries
Post journal entries
Transfer final accounting to Oracle General Ledger
After you transfer accounting to Oracle General Ledger,
you import and post the journal entries.

Streamline Processes
Run the program GMS: Submit Interface Streamline Process to
submit programs to perform these functions sequentially
Perform costing and funds check
PRC: Generate Cost Accounting Events
PRC: Create Accounting
PRC: Transfer Journal Entries to GL

Summary
– Describe the costing flow in Oracle Grants
Accounting
– Explain the costing and funds check process
– Explain what is occurring during cost processing