A customer has two operating units: US and Ireland. A project that is set in the Ireland operating
unit requires the services of employees from the US operating unit.
Identify three mandatory steps that must be completed for the employees in the US to enter their
time on the project and for costs to be successfully distributed.
A.
Set up Internal Billing Implementation optionsin US and Ireland.
B.
Define providercontrolsin US and receiver controlsin Ireland.
C.
Setup a new transaction source to receive Intercompany transactions in Ireland.
D.
For theprojectinIreland, select “Allow Cross Charges to all Operating Units within Legal Entity”.
E.
For the projectin Ireland,set up transaction controls to allow charges from other operating units.
Explanation:
B:Provider and Receiver Controls Setup
For each provider operating unit or receiver operating unit involved in the cross charge, the
Provider/Receiver Controls window Provider Controls and Receiver Controls tabs specify:
The cross charge method to use to process intercompany cross charges and to override default
cross charge method for inter-operating unit cross charges.
Attributes required for the provider operating unit to process intercompany billing to each receiver
operating unit. This includes the Intercompany Billing Project and Invoice Group.Attributes required for the receiver operating unit to process intercompany billing from each
provider operating unit. This includes the supplier site, expenditure type and expenditure
organization.
* (C)Intercompany Billing Accounting
Companies choose the intercompany billing method largely due to legal and statutory
requirements. When you use this method, Oracle Projects generates physical invoices and
corresponding accounting entries at legal transfer prices between the internal seller(provider) and
buyer (receiver) organizations when they cross a legal entity boundary or operating units.
* (D)Overview of Cross Charge
When projects share resources within an enterprise, it is common to see those resources shared
across organization and country boundaries. Further, project managers may also divide the work
into multiple projects for easier execution and management. The legal, statutory, or managerial
accounting requirements of such projects often present complex operational control, billing, and
accounting challenges.
Oracle Projects enables companies to meet these challenges by providing timely information for
effective project management. Project managers can easily view the current total costs of the
project, while customers receive bills as costs are incurred, regardless of who performs the work
or where it is performed.
Oracle Project Costing User Guide,Cross Charge