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Results of Adjustment Processing

After you run the appropriate processes to recalculate the adjusted expenditure items, you can review the results of the adjustments.

Cost Adjustments

When an item marked for re-costing is processed, a cost adjustment results if one or more of the following attributes is different from the original value:

When the Distribute Costs program encounters an item requiring a cost adjustment, the program updates the expenditure item with the new raw and burden cost rates and amounts, and creates new cost distribution lines. The program creates a reversing and a new cost distribution line, which records the audit trail of cost adjustments.

The example below shows the cost distribution lines for an expenditure item that was re-costed due to a cost rate change a month after the original line was costed. Line 2 and 3 are new lines resulting from the cost adjustment. Line 2 reverses the same amount and account as Line 1. Line 3 uses the new cost multiplier and account based on current AutoAccounting rules.


You can review these distribution lines in the Cost Distribution Lines window (choose Item Details > Cost Distribution Lines in the Expenditure Items window).

Corrections to Approved Items, Transfers, and Splits

When processing a reversing item which resulted from a correction of an approved expenditure item, a transfer, or a split, the Distribute Costs program uses the same cost rate used by the original item to ensure that the cost nets to zero for the original and reversing item. The reversing item is charged to an account based on the current AutoAccounting rules.

The new positive item resulting from a correction of an approved expenditure item, a transfer, or a split are processed just as a new expenditure item is processed; no special adjustment processing is performed on these items.

Interfacing Adjustments to Oracle General Ledger and Oracle Payables

The Interface process will send Lines 2 and 3 in the previous table to Oracle General Ledger or Oracle Payables to reflect the cost adjustment originating in Oracle Projects.

The cost adjustment lines are posted to the earliest open or future GL period. See also: Date Processing in Oracle Projects.

Note: Lines 2 and 3 are posted to a new GL period of February 1994 since the original GL period of January 1994 was closed when the cost adjustment occurred.

Revenue Adjustments

When an item marked for recalculation of revenue is processed, revenue adjustments are created.

When the Generate Draft Revenue program encounters a item requiring a revenue adjustment, the program updates the expenditure item with the new revenue amount, and creates new revenue distribution lines. The program creates a reversing and new revenue distribution lines, which records the audit trail of revenue adjustments.

The example below shows the revenue distribution lines for an expenditure item with a revenue adjustment due to a change in a bill rate a month after the original revenue was posted. Line 2 and 3 are new lines resulting from the revenue adjustment. Line 2 reverses the same amount and account as Line 1. Line 3 has the new revenue amount based on the new bill rate/markup and the account based on current AutoAccounting rules.


Each revenue distribution line is grouped into a draft revenue. A draft revenue may credit another draft revenue. Line 2 above is grouped into Draft Revenue 2, which credits Draft Revenue 1, in which Line 1 is grouped. Line 3 is included on a new draft revenue 3.

You can review these distribution lines in the Revenue Distribution Lines window in the Revenue Review window.

Transfers, Splits, and Corrections to Approved Items

When processing a reversing item which resulted from a correction of an approved expenditure item, a transfer, or a split, the Generate Draft Revenue program reverses the revenue of the original item to ensure that the revenue nets to zero for the original and reversing item. The reversing item is charged to a revenue account based on the original distribution line.

The new positive item resulting from a correction of an approved expenditure item, a transfer, or a split are processed just as a new expenditure item is processed; no special adjustment processing is performed on these items.

Interfacing Adjustments to Oracle General Ledger

The Interface Revenue to General Ledger process will send Lines 2 and 3 to Oracle General Ledger to reflect the revenue adjustment originating in Oracle Projects.

The revenue adjustment lines are posted to the earliest open or future GL period. See also: Date Processing in Oracle Projects.

Note: Lines 2 and 3 are posted to a new GL period of February 1994 since the original GL period of January 1994 was closed when the revenue adjustment occurred.

Invoice Adjustments

If an item's bill amount changes before it has been billed on a released invoice, the item is billed with the latest bill amount. If an item's bill amount changes after it has been invoiced, a crediting invoice and new invoice are automatically created.

The Generate Draft Invoice program compares the bill amount on the item's revenue distribution lines to determine if the item needs to be adjusted. When program encounters a item requiring a invoice adjustment, it creates a crediting invoice and a new invoice.

The example below shows the invoices created for the same item listed above for the revenue adjustments example. Assume the project's invoices only bill the one item and that the item was originally billed on Invoice 1 in January. Invoices 2 and 3 are new invoices resulting from the invoice adjustment.


You can review these invoices in the Invoice Summary window in the Invoice Review window.

Transfers, Splits, and Corrections to Approved Items

When processing a reversing item which resulted from a correction of an approved expenditure item, a transfer, or a split, the Generate Draft Invoice program credits the invoice on which the original item was billed.

The new positive item resulting from a correction of an approved expenditure item, a transfer, or a split are processed just as a new expenditure item is processed; no special adjustment processing is performed on these items.

Interfacing Adjustments to Oracle Receivables

The Interface Invoices to Receivables process will send Invoices 2 and 3 to Oracle Receivables.

The invoices are posted to the open or future GL period in which the invoice date falls in Oracle Receivables.

Note: Lines 2 and 3 are posted to a new GL period of February 1994 since the original GL period of January 1994 was closed when the invoice adjustment occurred.

Refer to the following essay regarding how a credit memo is interfaced to Oracle Receivables, if the outstanding balance is less than the credit memo amount.

See Also

Integrating with Oracle Receivables

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