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Accounting for Expense Report Costs

Expense Report Cost Account Function

When you run the PRC: Distribute Expense Reports Costs process, Oracle Projects calculates and distributes costs originating from expense reports, and uses the Expense Report Cost Account transactions to determine which expense account to debit for expense report costs.

The Expense Report Cost Account function consists of the following transactions:

All Expenses

Capital, All

Capital, Private, Capital

Capital, Private, Non-Capital,

Capital, Public, Capital

Capital, Public, Non-Capital

Contract, All

Indirect Private Expenses

Indirect Public Expenses

Indirect, All

Private, Billable Expenses

Private, Non-Billable Expenses

Public, Billable Expenses

Public, Non-Billable Expenses

Fremont posts expense report costs to the project-managing organization's cost center, and relies upon expenditure type to determine which account to debit.
Although the Expense Report Cost Account function consists of transactions that distinguish between public and private; and between billable and non-billable expenses, Fremont does not differentiate between any of these characteristics in its chart of accounts. Therefore, rather than enabling the six very specific transactions, Fremont's accounting department enables just the general All Expenses transaction.
Fremont Corporation uses three accounts to record expense report costs:
·	Travel & Lodging Expense (5200)
·	Meals Expense (5201)
·	Miscellaneous Expense (5202)
To implement the Expense Report Cost Account function, Fremont defines a lookup set to map expenditure types to each of its three expense accounts. Fremont uses the lookup set to define a rule to supply an account code for the Account segment of its Accounting Flexfield.
Fremont uses existing rules to supply values for the Company and Cost Center segments of its Accounting Flexfield.
Define a Lookup Set:
*Name*		Exp Type to Expense Account
*Description*		Map the expenditure type for expense report items to the appropriate expense account
Segment Value Lookups
*Intermediate Value (Expenditure Type)*			*Segment Value (Account Code)*
Air Travel			5200
Automobile Rental			5200

Personal Auto Use			5200
Meals			5201
Entertainment			5202
Other Expenses			5202
Define a Rule to Determine Account Segment Value:
*Name*			Expense Report Cost
*Description*			Determine expense report cost account based on the expenditure type
*Intermediate Value Source*			Parameter
*Parameter Name*			Expenditure Type
*Segment Value Source*			Segment Value Lookup Set
*Lookup Set*			Exp Type to Expense Account
Enable The All Expenses Transaction and Assign Rules:
*Function Name:*			Expense Report Cost Account
*Transaction Name:*			All Expenses
Segment Rule Pairings
*Number*		*Segment Name*		*Rule Name*
0		Company		Project Company
1		Cost Center		Project Cost Center
2		Account		Expense Report Cost

Expense Report Liability Account Function

When you run the PRC: Interface Expense Reports to Payables process, Oracle Projects interfaces expense report costs to the Oracle Payables Invoice Import feature, and uses a transaction to credit an accounts payable liability account.

The Expense Report Liability Account function consists of the following transaction:

AP Liability Account

The Expense Report Liability Account function is very similar to the Labor Cost Clearing Account function. Instead of determining a payroll clearing liability account, the Expense Report Liability Account function determines an accounts payable liability account.

Fremont Corporation uses one account to record accounts payable to employees:

· Accounts Payable, Employee (2400)

To implement the Expense Report Liability Account function, Fremont defines a rule to supply an account code for the Account segment of its Accounting Flexfield. This rule always supplies account 2400, the only accounts payable liability account in Fremont's chart of accounts.

Fremont uses existing rules to supply values for the Company and Cost Center segments of its Accounting Flexfield.

Define a Rule to Determine Account Segment Value:

Name AP Employee Liability

Description Determine the accounts payable liability account

Intermediate Value Source Constant

Constant 2400

Segment Value Source Intermediate Value

Enable the AP Liability Account Transaction and Assign Rules:

Function Name: Expense Report Liability Account

Transaction Name: AP Liability Account

Segment Rule Pairings

Number Segment Name Rule Name

0 Company Employee Company

1 Cost Center Division Cost Center

2 Account AP Employee Liability

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Fremont Corporation uses one account to record accounts payable to employees:
·	Accounts Payable, Employee (2400)
To implement the Expense Report Liability Account function, Fremont defines a rule to supply an account code for the Account segment of its Accounting Flexfield. This rule always supplies account 2400, the only accounts payable liability account in Fremont's chart of accounts.
Fremont uses existing rules to supply values for the Company and Cost Center segments of its Accounting Flexfield.
Define a Rule to Determine Account Segment Value:
*Name*			AP Employee Liability
*Description*			Determine the accounts payable liability account
*Intermediate Value Source*			Constant
*Constant*			2400
*Segment Value Source*			Intermediate Value
Enable the AP Liability Account Transaction and Assign Rules:
*Function Name:*			Expense Report Liability Account
*Transaction Name:*			AP Liability Account
Segment Rule Pairings
*Number*		*Segment Name*		*Rule Name*
0		Company		Employee Company
1		Cost Center		Division Cost Center
2		Account		AP Employee Liability