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Oracle grants accounting 5
- 2. Objectives – Explain the terminology used in burden costing – Define burden-related setup – Process burden costs and related accounting
- 3. Agenda – Overview of Burdening – Implement Burdening – Accounting for Cost Adjustments Resulting from Burden Schedule Revisions – Concurrent Programs
- 4. Overview of Burdening Raw Cost + Burden Cost = Total Burdened Cost Raw Cost x Burden Multiplier = Burden Cost Quantity x Cost Rate = Raw Cost
- 5. Costing Terminology Raw Cost + Burden Cost = Burdened Cost Direct Cost + Indirect Cost = Total Cost or Raw Cost = Direct Cost Burden Cost = Indirect Cost Burdened Cost = Total Cost
- 6. Burden Costing Terminology Burden Costing Terminology Burden Cost Code Burden Costs Burden Multiplier Burden Schedule Burden Structure Burdened Cost Cost Base Raw Costs
- 7. Burden Cost Limit Airfare = $200 Allowed Cost Schedule Limit = $100 Indirect Cost Rate Schedule Multiplier = .10 Amount Billed = $210 Example of the burden cost limit
- 8. Storing Burden Cost Calculations Expenditure Item Expenditure Type Raw Cost Burdened Cost Original Clerical 140.00 140.00 Burden Transaction Fringe 0.00 20.00 Example: burden cost on a separate expenditure item
- 9. Accounting for Burden Costs Oracle Grants Accounting Oracle General Ledger Accounting for burden cost components Oracle Subledger Accounting Generate accounting events and create accounting Transfer journal entries to GL
- 10. Project Types and Burdening Project Type, Costing Tab: – Whether to burden? – Default burden schedule – Allow schedule overrides? – How to store burden costs? – Total burdened cost accounting? Each project is assigned a project type.
- 11. Agenda – Overview of Burdening – Implement Burdening – Accounting for Cost Adjustments Resulting from Burden Schedule Revisions – Concurrent Programs
- 12. Burden Costing Implementation Steps Steps for Implementing Burden Costing Required or Optional Define cost bases and cost base types Required Define burden cost codes Required Define burden structures Required Set the profile option PA: Default Burden Schedule Type (must be set to NO) Required Define burden schedules Required Implement burden costing extension Optional Set the profile option PA: Create Incremental Transactions for Cost Adjustments Resulting from a Burden Schedule Recompilation Required Burden Costing Implementation Steps
- 13. Cost Bases and Cost Base Types Cost Base: Labor Cost Base Type: Burden Cost For example, you can use the cost base Labor to group labor costs on a burden structure.
- 14. Burden Cost Codes Cost Code: Fringe Expenditure Type: Fringe Benefits For example, a cost code of Fringe can represent health benefit costs associated with an employee's raw labor cost.
- 15. Burden Structures Components of a Burden Structure G & A Overhead Fringe MaterialLabor Handling Expense – Professional – Clerical – Sales – Supplies – Construction Materials – Travel – Meals – Airfare Burden Cost Codes Cost Bases Expenditure Types G & A G & A
- 16. Burden Structures Cost Code Precedence Multiplier Amounts Raw Cost 100.00 Fringe 1 .10 10.00 Overhead 1 .10 10.00 G & A 1 .10 10.00 Burdened Cost 130.00 Example 1: Additive Note: Multiplier is assigned on the Burden Schedule.
- 17. Burden Structures Example 2: Precedence Note: Multiplier is assigned on the Burden Schedule. Cost Code Precedence Multiplier Amounts Raw Cost 100.00 Fringe 10 .10 10.00 Overhead 20 .10 11.00 G & A 30 .10 12.10 Burdened Cost 133.00
- 18. Burden Schedule Types and Burden Schedules Actual Versions FY 2007 Q1 Q2 Q3 Q4 Provisional Versions (example) Q1 Q2 Q3 Q4 Firm Versions (example)
- 19. Assigning Burden Multipliers HQ Overhead = .9 Fringe = .5 East West Overhead = .8 New York Fringe = .6 Bangor Fringe = .3 San Jose Example: Burden Multiplier Hierarchy
- 20. Defining Burden Schedules Burden Structure Burdening Hierarchy Schedule Type Version Date Range Multipliers Define Schedule Compile
- 21. Assigning Burden Schedules Project Type Project Task Default hierarchy Optionally, override default schedules for projects and tasks.
- 22. Burden Costing Extension Process expenditure items Calculate raw cost Total burdened cost Calculate burden cost Call Burden Costing Extension Assign burden schedule
- 23. Agenda – Overview of Burdening – Implement Burdening – Accounting for Cost Adjustments Resulting from Burden Schedule Revisions – Concurrent Programs
- 24. Accounting for Cost Adjustments Resulting from Burden Schedule Revisions Correct burden multipliers Oracle Grants Accounting marks affected transactions for reprocessing. Compile When a burden schedule change affects existing transactions, the affected transactions are marked for reprocessing.
- 25. Agenda – Overview of Burdening – Implement Burdening – Accounting for Cost Adjustments Resulting from Burden Schedule Revisions – Concurrent Programs
- 26. Concurrent Programs: Account for Summarized Burden Cost Components • Concurrent processes in Oracle Grants Accounting you must run to account for burden costs as separate, summarized burden transactions: – PRC: Create and Distribute Burden Transactions – PRC: Generate Cost Accounting Events • Process Category = Burden Cost – PRC: Create Accounting • Process Category = Burden Cost
- 27. Maintenance Concurrent Programs • Concurrent programs in Oracle Grants Accounting you run to maintain burden schedules: – PRC: Add New Organization Compiled Burden Multipliers – PRC: Compile All Burden Schedule Revisions
- 28. Summary – Explain the terminology used in burden costing – Define burden-related setup – Process burden costs and related accounting