Difference between Firm and Provisional burdening
Summary
Difference between Firm and Provisional burdeningContent
Can someone help me understand the difference between the firm and provisional burdening.
As per the business requirement, the burden rates are not confirmed untill 1st Jan of the calendar year(Financial year is from Oct-Aug). So any provisional rates that are applied on the projects between Oct 1st till Dec 31 would be updated once the actual rates are confirmed and updated in the system.
As we were thinking of using the provisional rates(as per definition in the user guide docs.oracle.com) but realized that either we use provisional or firm method on burdening, it always reverses the accounting entries and creates the adjustments. Therefore the question arises if the transaction/accounting is always reversed in firm and provisional types of burdening so what exactly is the difference between 2?