Project Management

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Topic

    kent steckbeck
    Reclassing an Expenditure type
    Topic posted August 12, 2019 by kent steckbeckBlue Ribbon: 750+ Points, tagged Payables, Project Costing, Project Planning & Scheduling 
    42 Views, 5 Comments
    Title:
    Reclassing an Expenditure type
    Summary:
    I'm trying to reclass or add to an expenditure type without affecting the GL.
    Content:

    How to add or reclass costs coded or miscoded to an expenditure type without affecting the G/L or having to invoice through Accounts Payable.

    Version:
    Oracle Cloud R13 19B

    Comment

     

    • Madhav Jupalli

      You can define a separate transaction source and document that is accounted in source application in Manage Project Transaction Sources and use it to upload these costs you want to reclass. These costs won't send any accounting to GL as they are considered accounted in source application.

    • Julie Bullock

      Just curious as to why you wouldn't want the GL to be affected.  If you don't adjust the original transactions either at the source, or within PPM you are going to lose functionality like the ability to drill down from GL as an example.  You will lose the audit trail....the original transaction has in effect been reversed in PPM but the source and the GL will not be tied to the original transaction.

    • kent steckbeck

      Perhaps I should supply more detail...

      Project Module: Adjusting project cost that was invoiced to the incorrect project# or incorrect expenditure type.

       

      Scenario #1

      If an invoice was entered through A/P and mistakenly coded to the wrong project #.  The invoice was coded to expenditure type 3000 (Architect-Design) in Project #1005 (Crenshaw Gardens) but should have been coded to project #1006 (Crenshaw Villas).  For budgeting and reporting, we need to align the cost to the correct budget.

      • If invoice is unpaid, we simply cancel the invoice in A/P and reenter the correct invoice.
      • If invoice is paid, we have to enter a new invoice in A/P as a zero sum invoice and create two distribution lines.  The first one reversing the errored coding and the second line would be the corrected coding.

       

      Scenario #2

      If an invoice was entered through A/P and mistakenly coded to expenditure type 3000 (Architect-Design) in Project #1005 (Crenshaw Gardens), but should have been coded to expenditure type 4055 (civil engineering ) in Project #1005 (Crenshaw Gardens).  For budgeting and reporting, we need to align the cost to the correct budget.

      • If invoice is unpaid, we simply cancel the invoice in A/P and reenter the correct invoice.
      • If invoice is paid, we have to enter a new invoice in A/P as a zero sum invoice and create two distribution lines.  The first one reversing the errored coding and the second line would be the corrected coding.

       

      Scenario #3

      If a vendor issues a refund related to a project cost, we deposit the refund through the misc. cash in the A/R module or simply as an external transaction in the Cash Module.  However, this does not relieve the cost in the project module. 

      • If an invoice is refunded, we have to enter a credit memo in A/P so that the refund posts all the way through to the project and expenditure type in the Project module, then we have to book a manual entry to debit cash and credit trade payable. 

      In either of these scenarios, is it possible to correct the error in the Project module or do we have to correct it in the A/P module?

       

    • Paul Fernandez

      Hi Kent, 

       

      In all of the above scenarios, can't you just interface those corrections (like any other invoices) to Projects after posting to GL?

      That will make the necessary corrections in the invoices and posting to GL would post the costs to the correct accounts and interfacing to Projects will

      post the expenditures to the correct projects etc. Isn't that what you would want ultimately? Or you have any other requirements?

      --Paul

       

    • Madhav Jupalli

      Hi Kent,

      Even though you can make these corrections in Projects module, I think you are better off making these corrections in AP as the process is simple and you can reconcile easily and your AP users doesn’t have to manually prepare misc costs spreadsheets to upload these adjustments. I think you can change your current process and make it easy for AP users.

      For scenario 1&2 you can use the same approach i.e adjust the invoice. You can duplicate the line which you want to change project attributes and cancel the original line. You can do this even for paid invoices, but you need to make sure allow adjustments to paid invoices is turned on the AP system options. Then you can let these adjustments flow to projects and generate any additional accounting for burdening etc (if you are using) and post to GL.

      For scenario 3, you can create AP credit memo and perhaps override the liability account to match credit account you used on Misc AR cash receipt. This way you can avoid the additional reclass entry.

       

      Thanks,

      Madhav.