To bill inter-project work and expenditures, you use processes and AutoAccounting functions similar to those used for external customer billing with the following differences:

When you bill inter-project work, an additional Payables invoice is created in the receiver operating unit that is charged to the receiver project and task based on the provider operating unit's Receivables invoice. The Payables invoice is automatically generated when the provider operating unit runs PRC: Tieback Invoices from Receivables. Oracle Projects generates inter-project invoices even when the provider and receiver projects are in the same operating unit.

You must import the internal Payables invoices into Oracle Payables in the receiver operating unit. The Open Interface Import process calculates recoverable and non-recoverable tax amounts. After you review and validate the invoices in Oracle Payables, you run the process Create Accounting to create accounting for the accounting events in Oracle Subledger Accounting. The invoice is treated like any other supplier invoice that is interfaced to Oracle Projects as costs for the receiver project and tasks.

For inter-project billing, you use the same draft revenue and draft invoice processes that you use for external customer billing. As a result, the provider project tracks unbilled receivable and unearned revenue amounts and accounts for them accordingly. You can configure AutoAccounting, the Account Generator, and Oracle Subledger Accounting (optional) to generate different accounts for inter-project billing and third-party receivables and payables.

See also: Workflow: Project Supplier Invoice Account Generation, Oracle Projects Implementation Guide.