Accounting Entries in Project Accounting: Each expenditure items accounting transactions are held as cost distribution lines.

Cost distribution lines are debit amounts. During the Generate Draft Invoices process, the account that is credited with the invoice amount is either the unbilled receivables (UBR) account or the unearned revenue (UER) account, depending on whether you accrue revenue before or after you generate invoices. Expenditure Type: Labor Oracle Projects creates these transactions when labor is distributed. Dr. Labor Cost A/C Cr. Labor Cost Clearing A/C Expenditure Type: Expense Report Oracle Projects creates these transactions when labor is distributed. Dr. Expense Report Cost A/C Cr. Expense Report Liability A/C Expenditure Type: Usages Oracle Projects creates these transactions when labor is distributed. Dr. Usage Costs A/C Cr. Usage Costs Clearing A/C Accounting Transactions for Invoices Create Event for draft invoice and run only PRC: Generate Invoice for single Project. Accounting Transactions for Revenue/Invoice The following examples illustrate how Oracle Projects accounts for revenue/invoice transactions. Revenue Once revenue is created, Oracle Projects runs Auto Accounting to determine the appropriate general ledger accounts. Auto Accounting selects all of the Auto Accounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate account. Any items or events that fail in Auto Accounting are marked accordingly, and the associated draft revenue is marked with a generation error. Invoice When invoices are interfaced to Oracle Receivables, Oracle Projects runs Auto Accounting to determine the appropriate general ledger accounts. Invoice Oracle Projects creates this entry when the Interface Invoices to Oracle Receivables process is run. Dr. Receivables A/C 200.00 Cr. Unbilled Receivables and/or Unearned Revenue A/C 200.00 Collections

Oracle Receivables creates this entry. Dr. Cash A/C Cr. Receivables

200.00 A/C

200.00

Examples of Revenue and Invoice Accounting Transactions Example 1: Accrue prior to billing Revenue Dr. Unbilled Receivables 200.00 Cr. Revenue 200.00 Invoice Dr. Receivables 200.00 Cr. Unbilled Receivables 200.00 Example 2: Invoice prior to accrual (Only Bill Amount has been created or run first PRC: Generate draft invoice) Invoice Dr. Receivables 200.00 Cr. Unearned Revenue 200.00 Revenue Dr. Unearned Revenue 200.00 Cr. Revenue 200.00 Example 3: Accrue prior to invoicing and invoice partial amount of work: Revenue Dr. Unbilled Receivables 200.00 Cr. Revenue 200.00 Invoice Dr. Receivables Cr. Unbilled Receivables

100.00 100.00

Example 4: Prebill and accrue more than prebill Invoice Dr. Receivables 200.00 Cr. Unearned Revenue 200.00 Invoice Dr. Unearned Revenue Dr. Unbilled Receivables Cr. Revenue

A/C A/C A/C

200.00 100.00 300.00