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INTERCOMPANY BILLING ACCOUNTING ENTRY


INTERCOMPANY BILLING ACCOUNTING ENTRY
An intercompany cross charge transaction against an indirect project.
Entries for the provider operating unit.
CostLabor Expense  Dr
Labor Clearing       Cr

Intercompany Accounts Receivable -Invoice

Intercompany Accounts Receivable  Dr
Intercompany Revenue  Cr

The following table shows entries for the receiver operating unit.

Intercompany Accounts Payable -Invoice

Intercompany Cost  Dr.
Intercompany Accounts Payable  Cr.

An intercompany cross charge transaction against a contract project.

Entries for the provider operating unit.

CostLabor Expense  Dr
Labor Clearing       Cr

Intercompany Accounts Receivable -Invoice

Intercompany Accounts Receivable  Dr
Intercompany Revenue  Cr

The following table shows entries for the  receiver operating unit.

Intercompany Accounts Payable -Invoice

Intercompany Cost  Dr.
Intercompany Accounts Payable  Cr.

Client Revenue

UBR/UER  Dr
Revenue  Cr

Client Invoice

Accounts Receivable  Dr
UBR/UER Cr

Determining Accounts for Provider Cost Reclassification

Oracle Projects provides a pair of debit and credit AutoAccounting functions to support the reclassification of cost in the provider operating unit upon   generating intercompany invoices.

You may use these functions to reclassify cost if you were booking cost into work-in-process cost.

Provider Cost Reclass Dr.
Provider Cost Reclass Cr.

provider cost reclassification results in the intercompany billing accounting entries as shown below.

Entries for the provider operating unit.

Cost

Construction - In - Process Dr
Labor Clearing   Cr

Provider Cost Reclassification
Labor Expense Dr
Construction - In - Process Cr

Intercompany Accounts Receivable -Invoice 

Intercompany Accounts Receivable Dr.
Intercompany Revenue Cr.

Entries for the Receiver operating unit.

Intercompany Accounts Payable -Invoice

Intercompany Construction - In - Process Dr
Intercompany Accounts Payable    Cr

Client Revenue

UBR/UER Dr
Revenue    Cr

Cost Accrual

Cost Accrual Dr.
Construction - In - Process Contra Cr.

Client Invoice

Accounts Receivable Dr
UBR/UER   Cr

Close Project
Cost Accrual  Dr/Cr
Interrcompany Construction - In - Process Cr

Note: After you run the process PRC: Tieback Invoices from Receivables, you run the process PRC: Generate Cross Charge Accounting Events to generate accounting events for the provider cost reclassification journal entries.
r12-4c's-chart of accounts,currency,calender, convention (Subledger Accounting Convention (Cash / Accrual))

Seeded Conventions: 

•          Standard Accrual

•          Standard Cash

•          Accrual w/ Encumbrance

•          Cash w/ Encumbrance

•          US Federal Accounting

•          China Standard Accrual

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  1. rajeevSeptember 13, 2019 at 10:43 PM

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