0.PTS - Intercompany

Define Project Intercompany
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Overview of Internal Billing
Borrowed and Intercompany Interproject

Lent Billing Billing
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Intercompany Billing - Transaction Processing Overview
Vision Enterprise
US1 (Receiver) UK (Provider)
Client Contract Intercompany Contract
Customer
P1 • Negotiate price
• Define bill rate
• Define billing
T1 T2
limit
1.1 1.2 2.1 2.2
• Charge and bill to Project and Task

• Allow charges to any of the tasks from
Provider BU using the IC contract
Intercompany Billing - Transaction Processing Overview
Vision Enterprise
US1 (Receiver) UK (Provider)

Customer Client Contract Intercompany Contract
P1 Timecard
Jenny worked 40 HR DR
For P1, Task 2.2 Expense
Client Invoice
T1 T2 CR Labor
$2,000 x 1.5 = $3,000 40 hr x $ 50 = $2,000 Clearing
DR Receivables
CR Deferred Revenue 1.1 1.2 2.1 2.2
IC AR Invoice IC Revenue
External Revenue 40 hr x $ 60 = $2,400 40 hr x $ 60 = $2,400
IC AP Invoice Transfer price Transfer price
$2,000 x 1.5 = $3,000 DR IC Cost
$2,400 at the DR IC Receivables DR Unbilled Receivables
DR Unbilled Receivables CR IC A/P
Transfer price CR Deferred Revenue CR IC Revenue
CR Revenue
Intercompany Billing – Setup Steps
Define Internal Supplier and Customer

Set up bill rate, burden Define Contracts BU
association with Legal entity in AGIS.
schedules or transfer price Implementation options for
schedules for the contract Internal billing
Define Intercompany Payables and
Receivables Accounting in AGIS
Define Intercompany Contract in Define Intercompany Billing

Provider Legal Entity with internal Optionally define IC specific specific Invoice and Revenue
customer and associate contract line/s Invoice formats Methods
with receiver project/s
Define Internal Project Billing
Manage Intercompany Customer Supplier Association

Associate the appropriate customer account and supplier name to each internal legal entity.
In TCA, each customer account can only be assigned to a single customer party.
Primary Party LOV on an internal contract contains the customer parties of the customer
accounts defined here.


Transfer Price Rules
120
120
The Transfer Price Rule determines the:
•Type - Labor or Nonlabor

•Basis - Raw, Burdened, External Recognized Revenue
•Calculation Method – Basis Only, Apply Burden Schedule, Apply Rate Schedule
Transfer Price Schedules
Three Transfer Price Schedules have been defined – all

with 20% markup on cost
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Contract BU Implementation Options




Invoice Methods
•The Intercompany Invoice Method is defined for use with Transfer Price Schedules

Invoice Formats
•Three formats – Labor, Non Labor & Event

•Must be marked for Internal Invoices with Fixed Format




Define Receiver Project
•The seeded project is Dixon Financials Upgrade

•The Receiver BU is US1 Business Unit (login as Amy Marlin)

Edit Cross Charge Options on the Project Definition
•Allow charges from other Business Units

Edit Task Cross-Charge Options
•Allow cross-charge needs to be enabled on the task(s)

•For the Dixon Financials Upgrade – allow cross-charge has been enabled for tasks 5.1 through 8




Create Contract in Provider Business Unit
•Seeded contract UKIC20001 - Contract Type – Sell: Project Lines, Intercompany

•The Provider BU is UK Business Unit (login as Honey Hopkins)

IC Contract Setup - Parties
•The Supplier is UK Business Unit

• Internal party is Intercompany
•Bill-to Account is Intercompany US1
IC Contract Setup – Bill Plan General Information
•Method Name – Intercompany

•Invoice Formats – Intercompany…

IC Contract Setup – Bill Plan Schedules and Overrides
Schedules - Transfer Price Schedules

IC Contract Setup – Contract Lines – Billing Tab
•One line for IC charges

•Internal Billing - details for the Payables invoice created in the receiver bu

IC Contract Setup – Contract Lines – Associated
Projects Tab
Associated project is Dixon Financials Upgrade

Intercompany Billing - Transaction Process Flow
Enter expenditures in provider

Optionally enter billable Run Cross Charge
org, charged to receiver
events Identification process
project/task
Run AP invoice import Interface invoices to Process Transactions for

process to create IC Receivables and perform Intercompany Billing
payables invoice in Receiver Tieback - Generate IC Revenue
BU -Generate IC Invoices
Interface IC Payables from Interface IC Receivables from Interface IC Revenue to GL

AP to GL AR to GL

Enter Transactions in Provider BU
•Seeded transactions – timecard for Jenny Fox (Consulting North UK)

•Enter and process any type of transaction required for your demo
•If charging labor – make sure your resource is a team member on the receiver project
• Charge to the project and task where you have enabled cross charge
•You must run “Create Accounting”
•When logged in as Amy Marlin (Receiver BU) you will only be able to see the transactions
from Manage Project page - not Manage Expenditure Items page


project/task


AP to GL AR to GL

Run Identify Cross Charge Transactions
Run from Provider BU as Honey Hopkins


project/task


AP to GL AR to GL

Generate Intercompany Invoices
•Run from Provider BU

•Billing Type = Intercompany
•Contract Number = IC contract

Generate Intercompany Revenue



project/task


AP to GL AR to GL

Interface Invoice to Receivables and Perform Tieback


Interface Invoice to Receivables and Perform Tieback


Interface Invoice to Receivables and perform Tieback

•To Interface the IC Invoice - same steps as External invoice
•See GSE script: Fusion Projects GSI: Manage Contract Billing and Revenue (R9+)
•One difference - On Submit AutoInvoice - Contract Source = “Contract Internal”


project/task


AP to GL AR to GL

Run Import Payables Invoice Process
•Run from Receiver BU

•Source = Projects Intercompany Invoices

project/task


AP to GL AR to GL

Summary
In this lesson, you should have learned how to:

• Configure the additional intercompany and interproject cross-
charge options

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Define Project Intercompany

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Borrowed and Intercompany Interproject

1.1 1.2 2.1 2.2

• Charge and bill to Project and Task

US1 (Receiver) UK (Provider)

Define Internal Supplier and Customer

Define Intercompany Contract in Define Intercompany Billing

Manage Intercompany Customer Supplier Association

Define Internal Supplier and Customer

Define Intercompany Contract in Define Intercompany Billing

The Transfer Price Rule determines the:

•Type - Labor or Nonlabor

Three Transfer Price Schedules have been defined – all

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Define Internal Supplier and Customer

Define Intercompany Contract in Define Intercompany Billing

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Define Internal Supplier and Customer

Define Intercompany Contract in Define Intercompany Billing

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•Three formats – Labor, Non Labor & Event

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Define Internal Supplier and Customer

Define Intercompany Contract in Define Intercompany Billing

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•The seeded project is Dixon Financials Upgrade

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•Allow charges from other Business Units

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•Allow cross-charge needs to be enabled on the task(s)

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Define Internal Supplier and Customer

Define Intercompany Contract in Define Intercompany Billing

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•Seeded contract UKIC20001 - Contract Type – Sell: Project Lines, Intercompany

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•The Supplier is UK Business Unit

•Method Name – Intercompany

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Schedules - Transfer Price Schedules

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•One line for IC charges

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Associated project is Dixon Financials Upgrade

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Enter expenditures in provider

Run AP invoice import Interface invoices to Process Transactions for

Interface IC Payables from Interface IC Receivables from Interface IC Revenue to GL

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•Seeded transactions – timecard for Jenny Fox (Consulting North UK)

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Enter expenditures in provider

Run AP invoice import Interface invoices to Process Transactions for

Interface IC Payables from Interface IC Receivables from Interface IC Revenue to GL

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Run from Provider BU as Honey Hopkins

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Enter expenditures in provider

Run AP invoice import Interface invoices to Process Transactions for

Interface IC Payables from Interface IC Receivables from Interface IC Revenue to GL

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