Project Costing, Cross Charge Processing

Cross Charge

This chapter describes accounting within and between operating units and legal entities.

This chapter covers the following topics:

• Overview of Cross Charge
• Processing Flow for Cross Charge
• Processing Borrowed and Lent Accounting
• Processing Intercompany Billing Accounting
• Adjusting Cross Charge Transactions

• Overview of Oracle Project Costing Integration
• Integrating Expense Reports with Oracle Payables and Oracle Internet Expenses
• Integrating with Oracle Purchasing and Oracle Payables (Requisitions, Purchase Orders, and Supplier Invoices)
• Integrating with Oracle Assets
• Integrating with Oracle Project Manufacturing
• Integrating with Oracle Asset Tracking
• Integrating with Oracle Inventory
• Integrating with Oracle Time & Labor

This will be covered for the benefit of functional and techno-functional Oracle ERP implementation.

Overview of Cross Charge:
Enterprises face complex accounting and operational project issues that result from centralized project management through sharing of resources across organizations.

Oracle Projects provides the following cross charge features to address these issues:

• Borrowed and Lent Accounting: This feature creates accounting entries to pass costs and revenue across organizations without generating internal invoices.
• Intercompany Billing Accounting: This feature creates internal invoices and accounting entries to pass costs and share revenue across organizations.

In addition to these two features that enable you to charge costs across organizations, Oracle Projects’ inter-project billing features enable you to charge costs between projects. For detailed information on this feature, see Inter-Project Billing, Oracle Project Billing User Guide.

Cross charge features depend on multiple organization support in Oracle Projects and other Oracle Applications. In addition, these features support multinational projects, which also call for other currency exchange management functionality.