Overview of Burdening

"Burdening is a method of calculating burden costs by applying one       or more burden cost components to the raw cost amount of each

individual transaction."

Burdening is also Known as Cost Plus Processing.

By Using Burdening:

1. We can review the Raw Cost and Total Burdened Cost (the sum of raw cost and burden cost) of each transaction.
2. We can perform internal costing, revenue accrual, and billing for any type of burdened costs that your company applies to raw costs.

Oracle Projects calculates costs using the following formulas.

Raw Cost                 = Quantity x Cost Price

Burden Cost            = Raw Cost x Burden Multiplier

Total Burden Cost   = Raw Cost + Burden Cost.

Oracle Projects displays the raw cost and burdened cost in the Expenditure inquiry windows, and shows the cost of each detail transaction in reports.

 You can choose to account for the individual burden cost components to either track the overhead absorption or to account for the total burdened costs. 

You can write custom reports using standard views to report all burden cost components for each detail transaction.