Accrual entries represent accounting entries for which provisional amounts are used because actual figures are not available. For example, accruals may represent entries that are passed at period end to book the expenses of the period because an actual bill is not received before period end date. Typically, accruals are reversed at the beginning of immediately following period or when actual figures are available to account for actual figures. Accruals are required in project costing when actual payroll amounts are not yet available and the project manager needs to estimate costs for an expected project, budget, and forecast, to generate customer invoices or to report the performance of existing projects.
The date through which you want to accrue revenue for a project. Oracle Projects picks up expenditure items that have an expenditure item date on or before this date, and events that have a completion date on or before this date, when accruing revenue. Exceptions to this rule are projects that use cost-to-cost revenue accrual; in this case, the accrue through date used is the PA Date of the expenditure item's cost distribution lines.
A contract with a customer that serves as the basis for work authorization. An agreement can represent a legally binding contract, such as a purchase order, or a verbal authorization. An agreement sets the terms of payment for invoices generated against the agreement, and affects whether there are limits to the amount of revenue you can accrue or bill against the agreement. An agreement can fund the work of one or more projects.
A classification of agreements. Typical agreement types include purchase order and service agreement.
describe the term “allocation”.
A method for distributing existing amounts between and within projects and tasks. The allocation feature uses existing project amounts to generate expenditure items for specified projects.