Project Management

Get Involved. Join the Conversation.


    Hiten Makwana
    Labor Cost Distribution functionality in Oracle Cloud
    Topic posted October 26, 2018 by Hiten MakwanaBronze Medal: 1,250+ Points, tagged Grants Management, Project Costing, Project Management, Public Sector 
    264 Views, 10 Comments
    Labor Cost Distribution functionality in Oracle Cloud
    What is Oracle's plan/roadmap to cater to Public Sector clients on this major functionality gap

    In Public Sector, all clients are mandated to use 'Actual Labor Costing'. This requires distribution of actual salary amount to various projects and grants on the basis of a predetermined % or based on % time spent on projects.

    Let's use this thread to share our knowledge on Oracle's plan/roadmap and solution alternatives/work arounds.

    We have a very robust custom solution for this requirement, but want to be aware of other alternatives too.




    • Durga Prasad Mohapatro

      Hi Hiten,

      We are also waiting for the same.

      Is it feasible for you to share pointers for the workaround that you are using?



      • Hiten Makwana

        Deloitte has built custom extension and used at multiple clients to do labor cost allocation based on % of time spent on various project. This solution is independent of systems involved (PeopleSoft, Kronos, ADP, etc.).

        Based on our experience the major focus area while designing solution are following;

        1. Missing time and labor cost allocation for those

        2. Time reclassifications and corresponding effect

        3. Fringe and true-ups

        4. Leave Accruals and true-ups

        5. Leveraging maximum placeholders from HCM modules instead of customizing too much

        Send me a direct message if you are running in specific questions and I will be happy to guide.

        • Durga Prasad Mohapatro

          Thanks, Hiten. Will connect with you.

        • Federico Samyn Dowie

          Hi Hiten, 

          Could you please share more details about Deloitte's custom extension for allocating labor cost to different projects?

          We are currently relying on time card entries to do this but we are looking to move away from this approach. At the moment we are discussing alternatives to allow our Research Funding team to allocate labor costs for external funded projects (Grants) by percentage of time spent as opposed to hours worked (one of our current time card approach limitations). 



          • Hiten Makwana

            Hi Fede - Please send me a direct message so that I can help you with more specifics. We have solutions for both the possibilities (by % or by time) that you cited in post.

        • Amit Mishra

          Hi Hiten,

          Not that I have a specific need as of now but as a PPM enthusiast wanted to know whether the custom extension leverages the inbuilt project cost allocation engine or derives the hourly rate based on person's salary, fringe, leave accrual amount etc. and then multiplies it with the hours submitted on the respective project to come up with project costs?


          • Hiten Makwana

            Hi Amit -

            It cannot leverage delivered project cost allocation engine, as it has limitations around allocating to 'Sponsored' and 'Non-Sponsored' projects as part of same allocation run.

            Other possibility that you described seems closer to standard costing which is delivered functionality using Oracle time card and Projects integration.

            The labor cost distribution (LCD) allocation for actual costing needs to be generic in order to cater to different sources for input of salary and time e.g. Non-Oracle HCM vs Oracle Core HR. Also, some clients prefer to do it based on % instead of getting to the level of actual hours and rates.

    • John Kostecki


      Labor Distribution functionality is on our roadmap but not planned for a specific release.

    • Ryan Waller

      Is this a duplicate of the following:



      • Hiten Makwana

        Hi Ryan - 

        I looked at that Idea. That is requesting for an automation (integration) for populating standard labor cost rates from HCM to PPM Rate Schedule. 

        However, this thread is more around how do we achieve "Actual" costing (not standard costing). Even if we have rate populated from HCM automatically, that will still have standard costing and there will still be difference between Actual payroll cost and standard cost. I do support that idea, it can really be useful.

        As John confirmed, Labor Distribution functionality is on road map of Oracle. It is not yet confirmed when it will be released.