Project Components for Internal Billing
To use the intercompany billing or interproject billing functionality, your implementation team must configure a number of distinct features within Oracle Fusion Projects. These features work in cohesion with contract and financial features to create internal invoices and revenue transfers between organizations.
Invoice Formats
Define internal invoice formats for invoices generated by intercompany or interproject billing contracts. The invoice formats control the grouping of transactions on invoice lines for intercompany contracts. Specify the grouping options to summarize expenditure items and events, and the fields that should be displayed on the invoice line. Create different invoice formats for intercompany labor, nonlabor, and event billing.
If you want the invoice format to be used for both customer and internal invoices, enable the invoice format for customer invoices and internal invoices.
Invoice Methods and Revenue Methods
Define invoice methods and revenue methods to determine the calculation method of invoice and revenue amounts for intercompany contracts during invoice generation and revenue recognition. Enable the invoice methods and revenue methods for intercompany billing.
Select from the following labor and nonlabor schedule types that are available for rate-based intercompany invoice generation and revenue recognition:
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Bill rate
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Burden rate
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Transfer price
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Cost reimbursable
Billing Resource Breakdown Structure
Enter resource formats and resource types for the intercompany billing resource structure that is shared by business units. This billing resource breakdown structure defines the types of resources that can be referenced on billing controls for intercompany and interproject contracts.
Receiver Project
Create a receiver project in the receiver business unit.The receiver project can be a project that is linked to both and external contract (for external billing) and intercompany contract (for creating internal cross-charge transactions). The receiver business unit receives the supplier invoices.
Each receiver project can receive invoices from multiple internal contracts or from multiple contract lines of the same contract.
Enable the tasks on the receiver project that can be used for interproject billing and to allow cross-charge transactions.
Provider Project
Create a provider project to use during interproject billing. Each receiver project can have one or more provider projects. The provider project can be in the same business unit or a different business unit as the receiver project.
Expenditures are charged to the provider project during interproject billing scenarios.