How Costs are entered and accounted in PPM

How Costs are entered and accounted in PPM

• PPM offers Costing functionality and is most commonly transacted through Miscellaneous Cost Import (MCI). Central Offices also have access to create costs directly in the system.
• PPM creates its own overhead (burden) transactions.
• PPM creates accounting for costs that are imported from outside Oracle Fusion Payables through Subledger Accounting rules (SLAs). Examples of costs processed this way include:
  • UCPath
  • Recharge Operations
• There are occasions when transactions are created outside of PPM and OFC. In those cases, a transaction is imported into the GL via journal entry. In order to have it represented as an expense in PPM without having it duplicated in the GL, the imported transaction is designated as “costed and accounted” in PPM. That way it does not affect GL accounting. There are very few transactions imported this way. Examples of this include:
  • ISIS transactions
  • EPIC transactions
  • Financial Control entries
• Costs for a project should always be reflected in PPM
• Costs must be incurred during award/project/task dates. In other words, the Expenditure Item Date of the transactions must be within the start and end dates of the task being charged to

• • Expenditure Item (EI) Date: Date a cost was incurred (service or good provided)
  • Project End Date: Date project ends. This is equal to the latest task end date
  • For more information on Dates, see section 2.2.8.
• PPM Costs that are not able to be posted for date issues are considered Unprocessed Costs 
  • These must be corrected to be reprocessed or the cost posted to a different project
• PPM Costs that are not able to be posted for other control issues are considered Unprocessed Costs 
  • These must be corrected to be reprocessed or the cost posted to a different project
  • See section 8 below for more information

• PPM Commitments are a type of cost to represent an obligation to pay, but is not yet a project cost. An example of this is a Purchase Order or subcontracts. More information on Commitments can be found at Commitments in OFC.