Borrowed and lent processing requires the following steps:
The provider operating unit enters or imports cross charge transactions.
The provider operating unit distributes the costs of the cross charges, which are identified as cross charge transactions by the cost distribution processes. The cross charge distribution process is independent of revenue generation. The process distributes the costs even if revenue has not been generated.
The provider operating unit also imports project-related supplier costs from Oracle Purchasing and Oracle Payables, and project-related expense report costs from Oracle Payables.
The provider operating unit runs the process PRC: Distribute Borrowed and Lent Amounts to determine the transfer price amount and generate the borrowed and lent accounting entries.
The provider operating unit runs the process PRC: Generate Cross Charge Accounting Events.
The provider operating unit runs the process PRC: Create Accounting to create accounting entries for the cross charge accounting events in Oracle Subledger Accounting. When you run the process in final mode, you can optionally choose to transfer the accounting to Oracle General Ledger. If you select this option, the create accounting process initiates Journal Import in Oracle General Ledger.
(Optional) You can require the receiver operating unit to run additional customized processes to create additional accounting entries in Oracle Subledger Accounting and transfer the accounting entries to Oracle General Ledger. For example, your implementation team can develop customized processes to handle organizational profit elimination to satisfy your company's accounting practices.
(Optional) The provider operating unit may adjust cross charge transactions or perform steps resulting in the reprocessing of borrowed and lent transactions. See: Adjusting Cross Charge Transactions.