15

Allocations and AutoAllocations

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Objectives

After completing this lesson, you should be able to do the

following:
Explain the terminology associated with allocations
Define and process allocation rules
Explain the use of AutoAllocations in Oracle Project Costing

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Agenda

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Allocation Rules
Process Allocations
AutoAllocations
Process AutoAllocations

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Overview of Allocations

Basis Method

Target
A

Source

Offset
Allocate costs to target projects
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Target
B

Allocation Terminology
Allocation Terminology
Allocation
Allocation Rule
AutoAllocation Set
Basis Method
Full Allocation
GL Allocation Batch
Incremental Allocation
Offsets
Source Pool
Target
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Difference between Allocation and Burdening

Existing
Amounts
(Source)
Allocation

Targets

Raw Cost x Burden Multiplier = Burden Cost

Multiplier = a set percentage

Burden
Use allocations to distribute actual costs to projects.
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Allocation Rules Implementation Steps

Step

Required?

Setup Level

Define allocation rules

Yes

Operating Unit

Implement client extensions for allocations No

Allocation Rules Implementation Steps

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Site

Allocation Rules
Basis method
Allocation method
Allocation period type
Targets selection
Allocation Rule

Allocation transaction
attributes
Target

Components of an
allocation rule

Source
Offset
Prorate

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Basis Method

Source

Basis Method
Targets

Select a basis method to determine how to allocate

amounts to targets.

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Basis Method - Spread Evenly

Target Project

Target Task

Allocation Amount (Total

= 1,000.00)

P1

200.00

P1

200.00

P1

200.00

P2

200.00

P2

200.00

Formula for Spread Evenly:

Allocation Amount = Source Pool Amount /
Number of Tasks in All Target Projects
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Basis Method - Target Percent and Spread Evenly

Target

Target

Target Percent

Project

Task

= 1,000.00)

P1

300.00

P1

P1

300.00

P2

50.00

P2

90%

10%

Allocation Amount (Total

300.00

50.00

Formula for Target Percentage and Spread Evenly:

Allocation Amount = Source Pool Amount X Target Line Percentage /
Number of Tasks in All Target Projects for the Target Line

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Basis Method - Prorate

Target

Target

Labor Hours

Allocation Amount (Total

Project

Task

P1

40

100.00

P1

60

150.00

P1

200

500.00

P2

80

200.00

P2

20

50.00

= 1,000.00)

Formula for Basis Method - Prorate:

Allocation Amount = Task Labor Hours / All Target Labor Hours

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Basis Method - Target Percentage and Prorate

Target

Target

Target

Labor

Allocation Amount

Project

Task

Percent

Hours

(Total = 1,000.00)

P1

100

150.00

P1

200

300.00

P1

300

450.00

P2

0.00

P2

50

100.00

90%

10%

Formula for Basis Method - Prorate:

Allocation Amount = (Source Pool Amount X Target Line Percentage) X
(Target Task Labor hours / All Target Project Labor Hours for the Target
Line)
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Allocation Rule Definition

Incremental Allocation Method
Creates expenditure items based on
difference between previous and current run

Run
Periods

Select either Full or

Incremental for the
Allocation Method.

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JUN

JUL

AUG

Full Allocation Method

Distributes all amounts
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Source Definition

Oracle General
Ledger
Summarized
Project Costs

Posted GL
Balances

Fixed Amount

Potential Sources
Define the source for the costs to allocate.

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Target Definition

Services-East projects

For example, allocate to all projects owned by

the same project owning organization.
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Offset Definition
Offset Methods
None
Source Project and Task
Source Project and Task,
Use Client Extension

Source

Offset
Transactions

Use Client Extension for

Project and Task
Specific Project and Task

You can define offsets to balance the allocation transactions.

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Prorated Basis Method Definition

Project 1
Task A = 25 Hrs
Task B = 50 Hrs

Project 2

Basis Method:
Prorate

Task Y = 15 Hrs
Task Z = 0 Hrs

Example: Actual
Labor Hours
Targets

Define a basis for proration-based rules.

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Copy Allocation Rules

Copy

Services-East Monthly Rent

Allocation Rule

Services-West Monthly Rent

Allocation Rule

Copy

Services-North Monthly Rent

Allocation Rule

Copy an allocation rule to define related rules.

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Deleting or Modifying Allocation Rules

Delete Allocation
Rule?

You cannot delete an allocation rule

with an existing run.

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Client Extensions for Allocations

Allocation Client Extensions

Allocation Source Extension
Allocation Target Extension
Allocation Offset Tasks Extension
Allocation Offset Projects and Tasks Extension
Allocation Basis Extension
Allocation Descriptive Flexfields Extension
Allocation Dependencies Extension
Optionally, implement client extensions for allocations.

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Quiz
The allocations feature in Oracle Projects can be used to
distribute amounts between and within projects and tasks, or
to projects in other organizational units.
a. True
b. False

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Quiz
___ uses existing amounts to generate expenditure items
while ___ uses a set percentage to increase the total cost
amount of expenditure items.
a. Burdening, allocation
b. Allocation, burdening
c. AutoAllocation, burdening
d. Burdening, AutoAllocation

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Quiz
Which of the following is not a component of an allocation
rule?
a. Basis method
b. Target selection
c. Prorate
d. Expenditure item

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Quiz
Which of the following basis methods would you use to divide
the source pool amount equally among all the chargeable
target tasks included in a rule?
a. Spread Evenly
b. Target Percent and Spread Evenly
c. Prorate
d. Target Percent and Prorate

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Agenda

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Allocation Rules
Process Allocations
AutoAllocations
Process AutoAllocations

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Allocating Costs
Define
allocation rule

Create draft
allocation run

Modify the
allocation rule

Delete draft
allocation run

Review the draft

allocation run

No

Run
OK?
Yes

Reverse the draft

allocation run (if
necessary)
Cost allocation flow

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Release draft
allocation run

Creating Allocation Runs

Submit the program PRC: Generate Allocations Transactions

Specify Parameters:
Rule Name

Period Name

Expenditure Item Date

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Allocation Run Statuses

Submit Allocation Run
Allocation run
status flow

Status:
In Process

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Status:

Status:

Draft Success

Draft Failure

Release Allocation Run

Delete Allocation Run

Status:

Status:

Release Success

Release Failure

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Deleting Allocation Runs

PRC: Delete
Allocation Runs
Review the draft
allocation run.

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If not correct,
then delete the
allocation run.

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Revise the rule

and create a new
draft allocation.

Releasing Allocation Runs

PRC: Release Allocations

Transactions

Release

Allocates
transactions to
targets

Release the allocation run to create transactions for the target

and offset projects.

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Reversing Allocation Runs

Successfully
released
allocation run

Reversing
expenditure
batch
Reverse
Reversing
offset batch

If necessary, you can reverse an allocation run with the status

Release Success.

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Quiz
Which of the following parameters would you specify while
submitting the concurrent program PRC: Generate Allocation
Transactions?
a. Rule Name
b. Period Name
c. Basis Method
d. Expenditure Item Date

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Agenda

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Allocation Rules
Process Allocations
AutoAllocations
Process AutoAllocations

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Overview of AutoAllocations
Oracle Project Costing
Responsibility
Create AutoAllocation sets
with both project allocation
rules and GL allocation
batches
Oracle General Ledger
Responsibility
Create AutoAllocation sets
with only GL allocation
batches
Use AutoAllocations to combine processing for
project allocation rules and GL allocation batches.

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Overview of AutoAllocations
Rule or Batch

Set Type

Programs Submitted

Project Allocation

Step Down

PRC: Generate Allocations

Transactions
PRC: Release Allocation Transactions
PRC: Distribute Miscellaneous Costs
and Usages
PRC: Update Project Summary
Amounts

Parallel

PRC: Generate Allocations

Transactions
PRC: Release Allocation Transactions
(with Auto Release)

Programs submitted by set type for project

allocation rules
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Overview of AutoAllocations

Rule or Batch

Set Type

Mass Allocation
Mass Budget
Mass
Encumbrances
Recurring Journal

Step Down Run MassAllocations

Recurring Journal Entry
Budget Formulas
Posting
Parallel

Programs Submitted

Run MassAllocations
Recurring Journal Entry
Budget Formulas

Programs submitted by set type for mass

allocation, mass budget, mass encumbrances, and
recurring journal allocation batches

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AutoAllocation Rules Implementation Steps

Step

Required?

Setup Level

Define AutoAllocation sets

Yes

Operating Unit

Implement Workflow for AutoAllocations

Yes

Site

Implement AutoAllocation extensions

No

Site

AutoAllocations Implementation Steps

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AutoAllocation Set Definition

Specify step-down
or parallel

Define
AutoAllocation
sets

Identify default
contact

Define the
AutoAllocation
steps
Components of an AutoAllocation set

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Implementing Workflow and Client Extensions for

AutoAllocations
Example:
Generate allocation transactions
Require approval
Release transactions
Use workflow to
automate the
execution of stepdown allocations
sets.

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Distribute costs
Update project summary amounts

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Quiz
You must implement workflow for AutoAllocations to implement
AutoAllocation rules.
a. True
b. False

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Agenda

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Allocation Rules
Process Allocations
AutoAllocations
Process AutoAllocations

Copyright 2010, Oracle. All rights reserved.

Submitting an AutoAllocation Set

ADMINISTRATIVE AUTOALLOCATION SET

Enter and post

recurring GL
journal

Allocate posted GL
balance to all projects
with a particular project
owning organization

Example AutoAllocation

To run the entire series of allocations, you must

run the Workflow Background Process for the GL
AutoAllocation item type.

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Viewing the Status of AutoAllocation Sets

View allocation
statuses

Steps

Allocation
workbench

Step detail

View AutoAllocation status

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Monitor
workflow

Summary

In this lesson, you should have learned how to:

Describe the purpose of allocation rules
Create allocation rules and generate draft allocation runs
Define AutoAllocations rules in Oracle Project Costing

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