Revenue Category
Whenever we are doing revenue recognition from project and transferring the revenue entry to GL system identifies what is the revenue category. for that particular revenue transaction.
A revenue category describes a source of revenue for the organization and helps to classify revenue streams.
We are linking the revenue category to expenditure category to group expenditure type and event type
For example -suppose we are doing the revenue recognition for a time and material project.So based on your time and material you are providing to the customer ,you are billing to the customer One employee works 100 hrs for the project and the cost of same 100 hrs,you are billing to your customer .In this case when you are recognizing the revenue ,system needs a revenue category.
But when we are doing any kind of transactions we are not entering the revenue category Manually anywhere.But this revenue category is tracked based on your expenditure type .As for every PO or invoices or while entering the time sheet we are entering the POET information (Project number,organization,expenditure type and task) for the project revenue category is identified based on expenditure type.
That is why revenue category is mandatory even if we are not using project billing and need to link to a expenditure type
For example, a revenue category named Labor refers to labor revenue. Report by the revenue
category for a more accurate view of the source of revenue for the organization
We can use the revenue category for budgeting ,reporting and accounting rules.
Expenditure type
Expenditure types is the attributes which identifies the expenses at the lowest level.It is similar to our natural account segment values as each lowest level expenses is defined as a segment value under natural account segment
To define expenditure type we need two mandatory information-Revenue Category and expenditure category.
expenditure category is the grouping of your expenditure types for costing.
For example, an expenditure category named Labor refers to the cost of labor. An expenditure
category named Supplier refers to the cost incurred on supplier invoices.
Use expenditure categories for budgeting, transaction controls, and in accounting rules and reporting
system will now the expenditure type if its a labor or non labor expenditure type based on unit of measure(UOM)
For example suppose I defined expenditure type as a cab expense and professional charges
Expenditure type classes
Expenditure type classes specify how an expenditure item is processed.
For example, if you assign the Straight Time expenditure type class to an expenditure type, Oracle Fusion Projects uses labor cost schedules to calculate the cost of an expenditure item with that expenditure type and expenditure type class.
You can assign multiple expenditure type classes to an expenditure type.
For example, an expenditure with the expenditure type Materials can have the expenditure type class Supplier Invoice if it originated in Oracle Fusion Payable, and the expenditure type class Inventory if it originated in Oracle Fusion Inventory Management. This allows you to use a single expenditure type to classify as many costs as you need.
