Burden Costing Implementation Steps:-
What is burdening?
Burdening is Oracle Project's overhead
cost calculation system. Burdening allows overhead cost to be marked up on raw
expenditure item cost based on a rate system. Total Burdened Cost is calculated
as follows:
Raw Cost = Quantity * Raw cost rate
Burden Cost = Raw Cost * burden cost
multiplier
Total Burdened Cost =
Raw Cost + Burden Cost
Steps
to Implement Burden Costing
1/ Define Cost Bases and Cost Base Types (Required)
2/ Define Burden Cost Codes (Required)
3/ Define Burden Structures (Required)
4/ Set the profile option PA: Default Burden Schedule Type (Required)
5/ Define Burden Schedules (Required)
6/ Implement Burden Costing Extension (Optional)
7/ Set the profile option PA: Report Separate Burden Transactions with
Source Resources (Required)
8/ Set the profile option PA: Create Incremental
Transactions for Cost Adjustments Resulting from a Burden Schedule
Recompilation (Optional)
Default Hierarchy of Burden Schedules(Summary)
1/ Project Type
2/ Project
3/ Task
Precedence
2 overrides 1
3 overrides 2
Default Hierarchy of Burden Schedules(Detail)
Example
Project Type = Burdened
Task Burden Schedule Override Exists?=No
As you can notice in the above window there exists no Task Burden Schedule Override
Project Burden Schedule Override Exists?=No
As you can notice in the above window there exists no Project Burden Schedule Override
Task Burden Schedule = Yes
Expenditure Type Exists in the Structure of the Scheduled Revision?=Yes
Query the above expenditure Schedule and note down the Structure
Query the above structure and ensure that your expenditure item type exists as shown below:-
As you can see the Expenditure Type 22 Motor Pool Trucks exist in the above burden structure.
When you create an expenditure batch using the above expenditure type then the burden schedule LABOR ONLY will be applied.
If the Raw Cost =100 then the Burden Cost will be =100*.5=50
Total Burdened Cost=100+50=150
An Example can be noticed in the below screen:-
References:-
Oracle Documentation
Default Hierarchy of Burden Schedules(Detail)
Example
Project Type = Burdened
Task Burden Schedule Override Exists?=No
As you can notice in the above window there exists no Task Burden Schedule Override
Project Burden Schedule Override Exists?=No
As you can notice in the above window there exists no Project Burden Schedule Override
Task Burden Schedule = Yes
Expenditure Type Exists in the Structure of the Scheduled Revision?=Yes
Query the above expenditure Schedule and note down the Structure
Query the above structure and ensure that your expenditure item type exists as shown below:-
As you can see the Expenditure Type 22 Motor Pool Trucks exist in the above burden structure.
When you create an expenditure batch using the above expenditure type then the burden schedule LABOR ONLY will be applied.
If the Raw Cost =100 then the Burden Cost will be =100*.5=50
Total Burdened Cost=100+50=150
An Example can be noticed in the below screen:-
References:-
Oracle Documentation
1 comment:
Very well explained , systematic approach. Thank-you !
Post a Comment