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Expenditure Types – Oracle Projects Considerations Part 6

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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

Examples

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Now that we’ve discussed the elements that make up an Expenditure Type, let’s look at some examples:

Expenditure TypeUnit NameUnit Description (a) Expenditure Category(b) Revenue Category(c) Expenditure Type Class
AdministrativeHoursAdministrativelaborNon-Bill laborStraight Time
ClericalHoursClericallaborNon-Bill laborStraight Time
Customer LaborHoursBillable Labor HourslaborBillable laborStraight Time
Customer HotelDollarsBillable HotelTravelBillable TravelExpense Reports
Customer SuppliesDollarsBillable SuppliesSuppliesBillable SuppliesSupplier Invoice

Consider This

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”.

Thank you for reading! Please contact us today to assist you with any Oracle Project needs.

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Wallace Bartlett, Sr. Solutions Architect

Wallace has been working with Oracle applications for nearly 20 years implementing domestic and international projects in roles from consultant to Director/Solution Architect. He has participated in implementation/upgrade, project oversight, pre-sales, and large complex process improvement efforts. Experience includes project and managerial accounting operations, financial planning & budgeting, payables and billing. His Oracle experience includes Project Accounting suite, Financials and process improvement within numerous industries. The list includes Professional Services, Manufacturing, Mining, Financial Services and Business Services, Communications and Media, and Automotive.

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