To create cross charge transactions, you enter expenditures and distribute costs.

Enter Expenditures

Enter or import the cross charge transactions as you would for any project transactions. Oracle Projects enforces cross charge controls and transaction controls to ensure that you charge valid transactions to a project or task. See Cross Charge Controls.

Distributing Costs

In addition to determining the raw and burden cost amounts and the accounting information for project transactions, the cost distribution processes also determine the following information for cross charge transactions:

• Provider and receiver legal entities, operating units, and organizations

• Cross-charge type indicates if a transaction is an intra-operating unit, inter-operating unit, or intercompany cross charged transaction or not a cross charged transaction

• Cross-charge processing method, which indicates whether a transaction is subject to cross charge processing and which processing method to use

Determining the cross charge type

Oracle Projects determines a transaction's cross charge type as follows:

• Default provider organization is the expenditure or non-labor resource organization

• Receiver organization defaults to the project organization

• Call the Provider and Receiver Organizations Override extension to determine whether to override these values

• Cross charge type is based on the values above and logic in the following table:

  Cross Charge Type	Conditions
  Intra-operating unit	Provider operating unit equals receiver operating unit Provider organization does not equal receiver organization
  Inter-operating unit	Provider operating unit does not equal receiver operating unit Provider legal entity equals receiver legal entity
  Intercompany	Provider legal entity does not equal receiver legal entity

Determining the cross charge processing method

A transaction can have one of the following cross charge processing methods:

• Borrowed and lent accounting

• Intercompany billing

• No cross charge processing

Oracle Projects determines the cross charge processing method for a transaction, based on how you have implemented the following items:

• Transaction source options.If you enable the option Process Cross Charge for the transactions source, Oracle Projects performs cross charge processing for transactions originating from that transaction source.

• Project attributes for processing labor and non-labor cross charge transactions. If you do not enable cross charge processing for cross charge labor transactions at the project level, no labor transactions for that project will be subject to cross charge processing. The same applies to non-labor transactions.

• Cross-charge options for provider operating unit

  • Intra-operating unit transactions. Implementation options determine processing method.

  • Inter-operating unit transactions. If you have enabled users to charge to all operating units within the legal entity, the implementation options determine the default processing method.

• Provider and receiver controls

• Cross Charge Processing Method Override extension

Other Sources

• Defining Legal Entities Using the Legal Entity Configurator, Oracle Financials Implementation Guide

• Oracle HRMS Implementation Guide