Your company has two separate expenditure types to capture straight time and overtime labor
transactions across all projects. When running cost distribution for labor transactions, the straight
time labor must be charged to a labor expense account and overtime labor costs to an overhead
expense account. How would you set up two different expense accounts?
A.
Set up the account at theExpendituretype definition.
B.
Define an AutoAccounting rule to derive account based on expenditure and attach it the
AutoAccounting function “Labor Cost Account.”
C.
Define an AutoAccounting rule to derive account based on expenditure and attach it the
AutoAccounting function “Labor Cost Clearing Account.”
D.
Set up the account at the Expenditure type usage definition.
E.
Set up the account at the Labor costing rule definition.
Explanation:
Implement AutoAccounting to charge appropriate expense accounts
When you implement AutoAccounting, you can charge straight time costs to a labor expense
account and overtime costs to an overhead or overtime expense account.
To charge straight time and overtime to different accounts, you define an AutoAccounting rule
based on expenditure type, expenditure category, service type, compensation rule, or labor cost
multiplier.
Note:
*Labor Cost Account Function
When you run the PRC: Distribute Labor Costs process, Oracle Projects calculates labor cost
amounts based upon employee labor cost rates and compensation rules. After calculating labor
costs, Oracle Projects uses the Labor Cost Account transactions to debit an expense account for
raw labor costs.
*You need to define at least one overtime expenditure type. You use the Expenditure Types
window to define overtime expenditure types classified by the Overtime expenditure type class.