Non-Labor Cost Rates

Oracle Applications Fusion Cloud - Manufacturing

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An expenditure type cost rate is a currency amount that Oracle Projects multiplies by the expenditure type unit to calculate cost. In the Expenditure Types window, select an expenditure type and choose the cost rates button to enter a cost rate for it. You cannot define a cost rate for a non–labor expenditure type that does not require a cost rate. Instead, you must disable the expenditure type and create a new one that requires a cost rate and has a unique name.

In a multi–organization environment, expenditure types are set up once and are shared across
all operating units. However, the cost rates for expenditure types are specific to each operating
unit. Each operating unit must have cost rates set up for expenditure types.

Non-Labor Cost Rate Overrides

You define usage cost rate overrides in the Non–Labor Resources window when you define non–labor resources. When you define non–labor resources, you assign each asset an expenditure type with the Usages expenditure type class. The cost rates you define for the expenditure type apply to all non–labor resources classified with that expenditure type.

You can define a usage cost rate override for any non–labor resource. Usage cost rate overrides
are defined by the non–labor resource and organization. The cost rate override applies only to a
specific non–labor resource owned by that organization; if there are multiple non–labor resources with that expenditure type or multiple owning organizations of the same resource, they retain the existing expenditure type cost rate you define.

In a multi–organization environment, non–labor resources are set up once and are shared across all operating units. For each of the non–labor resources that an operating unit may put in service, you must set up a cost rate for the associated expenditure type.

You can enter a cost rate only when the UOM is not currency.
Ex: You create two expenditure types
1. MI_PRINTER (EA) with cost rate 0.1
2. MI_Travel with UOM Currency
When you enter the expenditure
1. MI_PRINTER (EA) 100
total cost = 0.1 *100 =10

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