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Oracle Projects uses the Labor Revenue Account function to calculate revenue you earn for labor items. The resulting labor revenue is generally awarded to either a project-managing organization, or an employee's owning organization; this labor revenue does not include borrowed and lent labor revenue.
The Labor Revenue Borrowed Account and Labor Revenue Lent Account functions allow you to record revenue in both a project-managing organization and in an employee's owning organization (when these two organizations are different).
The organization to which you award revenue (using the Labor Revenue Account function) becomes the lending organization; Oracle Projects uses the Labor Revenue Lent Account transactions to debit a revenue account of the lending organization.
The organization to which you do not award revenue (using the Labor Revenue Account function) becomes the borrowing organization; Oracle Projects uses the Labor Revenue Borrowed Account transactions to credit a revenue account of the borrowing organization.
When you run the PRC: Generate Draft Revenue process, Oracle Projects compares the project-managing organization and the employee's owning organization to determine whether to use the Labor Revenue Borrowed Account and Labor Revenue Lent Account functions when it calculates labor revenue you earn. Oracle Projects creates borrowed and lent revenue distribution lines for projects having a distribution of WORK only, since revenue created for COST projects are created as events, and borrowed and lent revenue is based on expenditure items.
If the project-managing organization is the same as the employee's owning organization, Oracle Projects uses only the Labor Revenue Account function to credit a revenue account; the Labor Revenue Borrowed Account and Labor Revenue Lent Account functions are not necessary.
If the project-managing organization is not the same as the employee's owning organization, Oracle Projects first ensures that you have enabled the Labor Revenue Borrowed Account and Labor Revenue Lent Account functions, and then uses them to create revenue credit and debit entries for borrowed and lent labor revenue. The borrowed and lent entries are in addition to the labor revenue credits Oracle Projects creates using the Labor Revenue Account transactions. If you do not want to record borrowed and lent labor revenue entries, do not implement the Labor Revenue Borrowed Account and Labor Revenue Lent Account functions.
The Labor Revenue Borrowed Account and Labor Revenue Lent Account functions are distinct from the Labor Revenue Account function to allow you to separate borrowed and lent labor revenue into as many different accounts as you separate labor revenue.
You can set the PA: Borrowed Lent Percentage Amount profile option if you want to create percentage amounts of borrowed and lent revenue during revenue calculation. If you do not specify a percentage amount when you implement borrowed and lent functions, Oracle Projects uses a value of 100 percent when calculating revenue amounts.
| Fremont Corporation always awards labor revenue to the employee's owning organization even if the employee worked on a project owned by a different organization. |
| However, Fremont also awards the project-managing organization with labor revenue earned on behalf of one of its projects. Fremont uses the Labor Revenue Borrowed Account and Labor Revenue Lent Account functions to record labor revenue in both organizations. |
| The net result of the borrowed entry and the lent entry is zero across all organizations. However, the entries allow both the employee's owning organization and the project-managing organization to report labor revenue earned. |
| Fremont uses revenue credited to the project-managing organization for reporting purposes only. |
| Oracle Projects uses the Borrowed and Lent functions only in cases where the employee's owning organization is different from the project-managing organization. AutoAccounting uses the Labor Revenue Borrowed Account transactions to credit a revenue account of the project-managing organization, and uses the Labor Revenue Lent Account transactions to debit a revenue account of the employee's owning organization. (Each company and cost center at Fremont has a separate borrowed and lent account for private revenue and another account for public revenue.) |
The Labor Revenue Account function consists of the following transactions:
| Fremont awards labor revenue to the employee's owning organization, and, when applicable, awards labor revenue to the project-managing organization using borrowed and lent revenue accounts. | |||||
| Fremont enables the Private Labor Revenue and Public Labor Revenue transactions to distinguish revenue earned between private and public projects. | |||||
| Fremont Corporation uses two accounts to record labor revenue: | |||||
| · | Private Professional Fee Revenue (4100) | ||||
| · | Public Professional Fee Revenue (4101) | ||||
| To implement the Labor Revenue Account function, Fremont defines two rules: | |||||
| · | One rule to determine the revenue account for private labor revenue | ||||
| · | One rule to determine the revenue account for public labor revenue | ||||
| Fremont uses one rule in the Private Labor Revenue transaction and one rule in the Public Labor Revenue transaction. | |||||
| Fremont uses existing rules to supply values for the Company and Cost Center segments of its Accounting Flexfield for both transactions. | |||||
| Define a Rule to Determine Account Segment Value: | |||||
| Name | Private Fee Revenue | ||||
| Description | Private Professional Fee Revenue | ||||
| Intermediate Value Source | Constant | ||||
| Constant | 4100 | ||||
| Segment Value Source | Intermediate Value | ||||
| Define a Rule to Determine Account Segment Value: | |||||
| Name | Public Fee Revenue | ||||
| Description | Public Professional Fee Revenue | ||||
| Intermediate Value Source | Constant | ||||
| Constant | 4101 | ||||
| Segment Value Source | Intermediate Value | ||||
| Enable the Private Labor Revenue Transaction and Assign Rules: | |||||
| Function Name: | Labor Revenue Account | ||||
| Transaction Name: | Private Labor Revenue | ||||
| Segment Rule Pairings | |||||
| Number | Segment Name | Rule Name | |||
| 0 | Company | Employee Company | |||
| 1 | Cost Center | Employee Cost Center | |||
| 2 | Account | Private Fee Revenue | |||
| Enable the Public Labor Revenue Transaction and Assign Rules: | |||||
| Function Name: | Labor Revenue Account | ||||
| Transaction Name: | Public Labor Revenue | ||||
| Segment Rule Pairings | |||||
| Number | Segment Name | Rule Name | |||
| 0 | Company | Employee Company | |||
| 1 | Cost Center | Employee Cost Center | |||
| 2 | Account | Public Fee Revenue | |||
The Labor Revenue Borrowed Account function consists of the following transactions:
| Fremont Corporation uses two accounts to record borrowed and lent labor revenue: | |||||
| · | Private Borrowed and Lent (4102) | ||||
| · | Public Borrowed and Lent (4103) | ||||
| Fremont enables both the Private Labor Borrowed and Public Labor Borrowed transactions to distinguish revenue totals between private and public projects. | |||||
| To implement the Labor Revenue Borrowed Account function, Fremont defines two rules: | |||||
| · | One rule to determine the borrowed and lent account for private labor revenue | ||||
| · | One rule to determine the borrowed and lent account for public labor revenue | ||||
| Fremont uses one rule in the Private Labor Borrowed transaction and one rule in the Public Labor Borrowed Account transaction. | |||||
| Fremont uses existing rules to supply values for the Company and Cost Center segments of its Accounting Flexfield for both transactions. | |||||
| Define a Rule to Determine Account Segment Value: | |||||
| Name | Private Borrowed and Lent | ||||
| Description | Private revenue borrowed and lent | ||||
| Intermediate Value Source | Constant | ||||
| Constant | 4102 | ||||
| Segment Value Source | Intermediate Value | ||||
| Define a Rule to Determine Account Segment Value: | |||||
| Name | Public Borrowed and Lent | ||||
| Description | Public revenue borrowed and lent | ||||
| Intermediate Value Source | Constant | ||||
| Constant | 4103 | ||||
| Segment Value Source | Intermediate Value | ||||
| Enable the Private Labor Borrowed Transaction and Assign Rules: | |||||
| Function Name: | Labor Revenue Borrowed Account | ||||
| Transaction Name: | Private Labor Borrowed | ||||
| Segment Rule Pairings | |||||
| Number | Segment Name | Rule Name | |||
| 0 | Company | Project Company | |||
| 1 | Cost Center | Project Cost Center | |||
| 2 | Account | Private Borrowed and Lent | |||
| Enable the Public Labor Borrowed Account Transaction and Assign Rules: | |||||
| Function Name: | Labor Revenue Borrowed Account | ||||
| Transaction Name: | Public Labor Borrowed | ||||
| Segment Rule Pairings | |||||
| Number | Segment Name | Rule Name | |||
| 0 | Company | Project Company | |||
| 1 | Cost Center | Project Cost Center | |||
| 2 | Account | Public Borrowed and Lent | |||
The Labor Revenue Lent Account function consists of the following transactions:
| Fremont Corporation implements the Labor Revenue Lent Account function using the rules it defined for the Labor Revenue Borrowed Account function. | |||||
| Fremont enables both the Private Labor Lent and Public Labor Lent Account transactions to distinguish revenue totals between private and public projects. | |||||
| See: Labor Revenue Borrowed Account Function for a discussion of Fremont's policies for lent employee time. | |||||
| Enable the Private Labor Lent Transaction and Assign Rules: | |||||
| Function Name: | Labor Revenue Lent Account | ||||
| Transaction Name: | Private Labor Lent | ||||
| Segment Rule Pairings | |||||
| Number | Segment Name | Rule Name | |||
| 0 | Company | Employee Company | |||
| 1 | Cost Center | Employee Cost Center | |||
| 2 | Account | Private Borrowed and Lent | |||
| Enable the Public Labor Lent Transaction and Assign Rules: | |||||
| Function Name: | Labor Revenue Lent Account | ||||
| Transaction Name: | Public Labor Lent | ||||
| Segment Rule Pairings | |||||
| Number | Segment Name | Rule Name | |||
| 0 | Company | Employee Company | |||
| 1 | Cost Center | Employee Cost Center | |||
| 2 | Account | Public Borrowed and Lent | |||
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