Calculating Costs
This section briefly describes how Oracle Projects calculates costs for expenditures. For more detailed information about the costing process, refer to the labor costing example in this chapter. See: Distributing Labor Costs.
Each transaction has two cost amounts when processed, raw and burdened. Oracle Projects calculates these amounts for each detail transaction when you distribute costs using any of the following processes:
- Distribute Expense Report Costs
- Distribute Usage and Miscellaneous Costs
- Distribute Supplier Invoice Adjustment Costs
The raw cost is the actual cost of the work performed, and the burden cost is the indirect cost of work performed. The burden costs are created to apply overhead costs to projects to provide an accurate total cost figure. The burdened cost is the total cost of the expenditure, the sum of raw cost and burden cost. Oracle Projects calculates the burden cost using the raw cost and a burden multiplier.
