Transfer of Invoice Charges

This chapter covers the following topics:

Transfer of Invoice Charges Overview

This process enables you to transfer Invoice Price Variances (IPV), Exchange Rate Variances (ERV), Tax Rate Variances (TRV), and other special charges including freight, tax and miscellaneous costs for invoices matched to project PO distributions or receipts with a destination of Inventory or Shop Floor. The amounts are transferred to Oracle Projects as project expenditures.

The invoice amount for a purchased inventory item may not match the purchase order cost because of a difference in item price, a change in the exchange rate for items purchased in a currency other than the functional currency of the Set of Books, or additional charges such as freight, tax, and other miscellaneous charges.

You can recognize actual paid invoice cost for your purchased inventory items in Oracle Projects. You can transfer any difference between the AP invoice amount and the PO amount for project and common project inventory items to Oracle Projects.

Define Expenditure Types for Invoice Charges

The process uses the different expenditure types (IPV, ERV, Freight, Tax, and Miscellaneous Charges) held in the Project Parameters window for each project. Default expenditure types specified in the PJM Organization Parameters window are used for common project related invoices. If you do not check the Transfer to PA checkbox in the PJM Organization Parameters window for a particular invoice charge type, the transfer program assumes you do not wish to transfer any invoice charges for that charge type.

To transfer invoice chargers

  1. Match the invoice to project purchase orders or receipts. See: Entering Purchase Order Matched Invoices,

  2. Allocate tax, freight, and miscellaneous charges. You can allocate these charges to multiple projects if the purchase order has multiple distributions to more than one project.

    • You can remove holds, if any.

  3. Validate the invoice.

    • Perform 'Create Accounting'.

    • View the accounting entries to ensure Create Accounting status is set as Yes to transfer variances from Accounts Payable to Oracle Projects.

  4. Post the invoice to the General Ledger using the Payables Accounting Process. The transfer to GL can be run as a separate process or as a part of the Payables Accounting Process.

  5. Once the invoice has been accounted, submit the concurrent program Transfer Project Invoice Charges. See: Transfer Project Invoice Charges Request .

  6. If you have chosen not to submit the PA Transaction Import from the Transfer Project Invoice Charges program, submit the Transaction Import to PA concurrent program.

    If you are submitting the PA transaction import as a separate process, run the request for the source = Inventory to import the invoice charges to PA.

    Use Review Transactions window to verify the data that has been transferred to Oracle Projects and resolved any problems that the Transaction Import program has reported.

  7. Optionally, run a process that adds the invoice charges to the on-hand value of items in the project cost group to balance your inventory cost to the cost held in Oracle Projects. For additional information, see: Project Manufacturing Costing, Oracle Cost Management User's Guide.

    Receipt Adjustments

    The invoice charge transfer process does not transfer any receipt adjustments made after the invoice has been matched to a receipt.

    Non-Recoverable Tax

    Only non-recoverable (VAT) tax is picked and transferred to PA.

    Transfer of Project Inventory Items

    You can transfer an item from one project to another at the current average cost of the item in the sending project cost group. If you previously transferred invoice charges to Oracle Projects for the sending project item prior to making the project cost transfer to another project, the additional invoice charges does not automatically transfer to the receiving project. You should run the Average Cost Update - Transfer Invoice Variance process to update the cost of the item in the sending project cost group prior to transferring the item to another project. An example appears below.

    PO cost of Qty 1 of Item X in Project S Cost Group = $10

    Invoice Cost of Item X for Project S = $12

    You run the process to transfer Invoice Charge of $2 to Oracle Projects for Item X, but you do not run Average Cost Update - Transfer Invoice Variance

    You transfer Qty 1 of Item X from Project S to Project R @ $10 (average cost in Project S cost group)

    Project S in Oracle Projects has the following expenditures:

    $10 - PO Cost of Item X

    $2 - Invoice Charge for Item X

    ($10) - Project Cost Transfer of Item X to Project R

    Result $2 Invoice Charge for Item X remains on Project S after item is transferred. If you had run Average Cost Update - Transfer Invoice Variance for Item X in Project S Cost Group prior to making project cost transfer, Item X would have been transferred at $12 and no cost would remain in Oracle Projects for Item X in Project S.

Related Topics

Matching to Receipts, Oracle Accounts Payable User's Guide.

Entering Purchase Order Matched Invoices, Oracle Accounts Payable User's Guide.