Oracle Projects- Labor Costing Rules

Costing methods determine how labor costs are calculated.

The available options are:

Actual Costing and Standard Costing

Actual Costing:  Actual Costing method is used when you use payroll amounts from a payroll batch and distribute them to projects as actual labor costs. When you select this method, you can use time cards as the basis to distribute the payroll costs as project labor costs or generate miscellaneous labor costs.

Standard Costing:  Standard Costing method is used when standard cost rates available either in Oracle Projects or Oracle HR. When you select this method, Oracle Projects multiplies the appropriate rates by the hours reported on a timecard to calculate project labor costs.

This is the default method.

Labor Costing  Method	Enable Accrual	Enable Planning
Actual Costing	Yes	Yes
Actual Costing	No	No
Actual Costing	No	Yes
Standard Costing	No	Yes

If Accrual accounting is enabled, then Oracle Projects accrues labor costs based on reported hours from timecards and the rate source selected in the labor costing rule.

If Accrual Accounting is not enabled and Planning is enabled for Actual Costing method, you can select a rate source in the labor costing rule. The default value is No.

If you select Standard Costing as the costing method or Actual Costing and Enable Accrual, then you cannot select Yes to enable planning. The rates used for calculating standard costs will be used for planning by default