After you mark an adjustment to a cross charged transaction for reprocessing, Oracle Projects processes these adjustments similarly to the original transactions. The processing flow for adjustments is described in further detail on the following pages.
The cross charge processes perform the following common steps on adjustments marked for cross charge reprocessing, regardless of whether the transactions require borrowed and lent or intercompany billing processing:
Recalculate the transfer price if no transfer price amount exists in the transaction currency
Reconvert the transfer price amount from the transaction currency to the functional currency if an amount exists in the transaction currency but not the functional currency
After the PRC: Distribute Borrowed and Lent Amounts process completes the common processing steps for cross charge adjustments, it performs the steps for borrowed and lent adjustments, as described below.
Regenerate accounting entries. If any of the accounts have changed for which you have already generated cross charge accounting events, the Distribute Borrowed and Lent Amounts process reverses the original cross charge distributions and creates new ones. The process also determines the PA dates for the reversing and new distributions. If you have not yet generated cross charge accounting events for the original accounting entries, and the accounts or amounts have changed, the process replaces them with the new entries.
Reverse existing distributions if processing method has changed. If the cross charge processing method for the transaction changes from borrowed and lent to intercompany billing or no cross charge processing, the process reverses existing entries for which you have already generated cross charge accounting events.
After the Generate Intercompany Invoice process completes the common processing steps for cross charge adjustments, it performs the following steps:
Redetermine the intercompany revenue account and tax classification code.
The process determines the revenue account and tax classification code for the adjusted transactions. If intercompany invoice details exist for the transaction, the Generate Intercompany Invoice process compares the recalculated transfer price amount with the existing transfer price amount. If the transfer price amounts are different, you must reverse the existing invoice detail line and create a new one. Similarly, if the process detects a difference in the new intercompany revenue account or tax classification code and the existing values, then the process reverses the existing invoice details and creates new invoice details.
Create a credit memo.
The Generate Intercompany Invoice process creates a credit memo, in which reversing invoice details are grouped together by the invoice number and invoice line number on which the original invoice details are billed.
Create new invoices.
The process groups invoice details for changed values of the transfer price, revenue account, and tax classification code into the new invoice. You then interface the new invoices to Oracle Receivables.
(Optional) Regenerate provider cost reclassification accounting entries.
After you run the process PRC: Tieback Invoices from Receivables, if any of the accounts have changed from entries for which you have already generated accounting events, the Generate Intercompany Invoice process reverses the original distributions and creates new ones. The process also determines the PA dates for the reversing and new distributions. If you have not yet generated accounting events for the original accounting entries, and the accounts or amounts have changed, the process replaces them with the new entries.