In Part 5 of my blog post series, I discussed Project Billing Methods. In this post, I will focus on Expenditure Types.
What are Expenditure Types?
An expenditure type is a cost classification assigned to each expenditure item you enter in Oracle Projects. They are made up of the following elements:
- An (a) expenditure category (used to group expenditure types for costing)
- A (b) revenue category (used to group expenditure types for revenue and billing)
- A unit of measure
- One or more (c) expenditure type classes (enables the different sources [expense reports, AP, etc] to enter expenditure types)
- Cost rates may be entered if required when configuring
Now that we’ve discussed the elements that make up an Expenditure Type, let’s look at some examples:
|Expenditure Type||Unit Name||Unit Description||(a) Expenditure Category||(b) Revenue Category||(c) Expenditure Type Class|
|Administrative||Hours||Administrative||labor||Non-Bill labor||Straight Time|
|Clerical||Hours||Clerical||labor||Non-Bill labor||Straight Time|
|Customer Labor||Hours||Billable Labor Hours||labor||Billable labor||Straight Time|
|Customer Hotel||Dollars||Billable Hotel||Travel||Billable Travel||Expense Reports|
|Customer Supplies||Dollars||Billable Supplies||Supplies||Billable Supplies||Supplier Invoice|
Organization’s natural accounts have long been mapped to Expenditure Types. This enables users to better understand what they are selecting on expense reports, timecards, etc. The benefit is the capability of multiple expenditure types mapped to a single natural account.
When determining your expenditure types, it is crucial to avoid getting too detailed because this will result in being left with an unmanageable number. If confusing to users as what to select, they should select a best guess. This will result in costly rework time for costing, revenue and invoicing. In other words, “don’t go crazy with the detail”.
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