Create Purchase Orders for Capital Projects
When you create a purchase order for a capital project in Oracle Purchasing, you can enter a project, task number, and expenditure type for each project-related distribution line. You match this purchase order to an invoice in Oracle Payables, and then send the appropriate lines to Oracle Projects.
You can use the asset category to assign an inventory item's cost on a purchase order to an asset on a capital project in Oracle Projects. You define default asset categories for inventory items in Oracle Purchasing. After you match the purchase order to an invoice, and interface the invoice from Oracle Payables, Oracle Projects assigns the inventory item's cost to an asset on the project that has the same asset category as the inventory item.
If you assign purchase order distribution lines to asset clearing accounts instead of projects, Oracle Payables matches the purchase order to an invoice and sends the lines to Oracle Assets using the Mass Additions interface.
If both a project and an asset clearing account are used in the distribution line, the following occurs:
- If the project is a capital project:
Oracle Payables posts the costs to the asset clearing account and the costs remain there until you place the asset in service in Oracle Projects.
You can send the costs to Oracle Projects after you post the invoice to Oracle General Ledger.
You cannot send costs to Oracle Assets from Oracle Payables when you run Mass Additions.
- If the project is a contract or indirect project:
Oracle Payables posts the costs to the asset clearing account and, if you have sent the costs to Oracle Projects, Oracle Assets interfaces the costs to an asset cost account when you post the transaction from Oracle Assets to Oracle General Ledger.
You can send the costs to Oracle Projects after you post the invoice to Oracle General Ledger.
You can send costs to Oracle Assets from Oracle Payables when you run Mass Additions.
The only way a distribution line can have both a project and an asset clearing account is if the Account Generator process is set up to create the asset clearing account as the account segment, or if you enter it manually.
Charge Supplier Invoice Distribution Lines to Projects
You can charge project-related supplier invoice distribution lines to capital projects in Oracle Payables, and interface the invoice distribution lines to Oracle Projects. You cannot send capital project-related distribution lines to Oracle Assets directly from Oracle Payables. You must collect capital project-related costs in Oracle Projects and send them to Oracle Assets when you want to place the asset in service.
To send non-CIP distribution lines directly to Oracle Assets, use the Mass Additions process. .
You must post all project-related supplier distribution lines to Oracle General Ledger before you can interface them from Oracle Payables to Oracle Projects. Non-CIP project-related invoices must also be sent to Oracle Projects before you can send them to Oracle Assets. Invoices charged to capital projects are posted to CIP accounts in Oracle General Ledger. Invoices charged to contract and indirect projects are usually charged to expense accounts. Your Account Generator setup determines these accounts.
