Capture Expenditure Information in Project Costing for Interorganization Transactions
You can capture project attributes on transfer orders, and fulfill these transfer orders from a common or pooled inventory to track costs against a project.
You can capture expenditure information for these material shipment.
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From common inventory to a project striped inventory
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From common inventory to a project location (expense destination)
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Interorganization transfers within a project
The project details associated with the transfer order are listed on the Review Cost Accounting Distributions page.
Interorganization and Intraorganization Transfers
For an interorganization transfer, the shipping organization and receiving organization must be project enabled. In this case, transfer from a project striped inventory to a project striped inventory is supported and the costs are interfaced to PPM.
In the case of an intraorganization transfer, transfer from a common inventory to a project-striped inventory or from a project-striped inventory to a common inventory is supported.
A negative charge is sent for the source or sending organization and a positive charge is sent for the destination organization.
This table lists the accounting events interfaced to PPM for the source and destination organizations.
|
Source Organization |
Destination Organization |
|---|---|
|
Transfer Order Issue |
Transfer Order Receipt from In-Transit |
|
Transfer Order Issue to Expense with Receipt |
Receipt from In-Transit |
|
Transfer Order Issue to Expense without Receipt |
Transfer Order Direct Transfer Receipt |
|
Transfer Order Shipment to In-Transit |
Transfer Order Return Shipment |
|
Shipment to In-Transit |
Transfer Order Return with Scrap |
|
Transfer Order Direct Transfer Shipment |
Direct Transfer Receipt |
|
Transfer Order Return Receipt |
Transfer Order Intraorganization Receipt |
|
Direct Transfer Shipment |
|
|
Transfer Order Subinventory Transfer |
|
|
Transfer Order Intraorganization Shipment |
The corresponding accounting lines that are interfaced to PPM are listed here:
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Cost Variance
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Expense
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Freight Expense
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Inventory Valuation
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Inventory Write Off
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Transfer Price Variance
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Valuation Unit Transfer Variance
Return of Project-Based Transfer Orders from Expense Destination and Selected Inventory Destination Receipts
When tracking your on-hand quantities by project and task, it's common to use an internal material transfer, or transfer order, to an expense destination or an inventory destination to a subinventory that isn't tracking on-hand quantity when you're physically issuing material to a project site. As a cost accountant, you can cost and properly account transfer order returns of project-based goods from nonquantity tracked subinventories and expense destinations back to the stockroom, ensuring correct project-specific inventory valuation.
The table here lists the different business scenarios and transaction types where the costs are sent to project in case of transfer scenarios.
| Project enabled in both sending and receiving organization | Shipping from | Receiving into | Costs sent to Projects |
|---|---|---|---|
| Yes | Project Striped Inventory | Project Striped Inventory |
As a Negative Charge in Shipping Organization As a Positive Charge in Receiving Organization |
| Yes | Common Inventory | Project Striped Inventory |
As a Positive Charge in Receiving Organization |
| Yes | Common Inventory | Common Inventory |
No costs will be send to projects because the inventory isn't striped by project. |
| Yes | Project Striped Inventory | Project Expense Destination |
As a Negative Charge in Shipping Organization As a Positive Charge in Receiving Organization |
| Yes | Common Inventory | Project Expense Destination |
As a Positive Charge in Receiving Organization |
For project striped inventory issue or receipt = Inventory project details will be available on transaction
For common inventory issue or receipt event = Inventory project details won't available on transaction
The table here summarizes the transaction types for the business flow: Intraorganization, In-transit Shipment Inventory Destination, Nonquantity tracked subinventories.
| Flow | Applicable Transaction Type | Subledger |
|---|---|---|
| Forward | Transfer Order Intraorganization Shipment | Cost Accounting |
| Forward | Transfer Order Intraorganization Receipt | Cost Accounting |
| Return | Transfer Order Return Intraorganization Shipment | Cost Accounting |
| Return | Transfer Order Return Intraorganization Receipt | Cost Accounting |
The table here summarizes the transaction types for the business flow: Intraorganization, Expense Destination Transfers with Receipt.
| Flow | Applicable Transaction Type | Subledger |
|---|---|---|
| Forward | Transfer Order Issue | Cost Accounting |
| Forward | Transfer Order Delivery to Expense | Receipt Accounting |
| Return | Transfer Order Expense Return to Receiving | Receipt Accounting |
| Return | Transfer Order Return Intraorganization Receipt from Expense | Cost Accounting |
The table here summarizes the transaction types for the business flow: Interorganization, In-transit Shipment Inventory Destination, Nonquantity tracked subinventories.
| Flow | Applicable Transaction Type | Subledger |
|---|---|---|
| Forward | Transfer Order Interorganization Shipment | Cost Accounting |
| Forward | Transfer Order Interorganization Receipt | Cost Accounting |
| Return | Transfer Order Return Interorganization Shipment | Cost Accounting |
| Return | Transfer Order Return Interorganization Receipt | Cost Accounting |
The table here summarizes the transaction types for the business flow: Interorganization, Direct Transfers Inventory Destination, Nonquantity tracked subinventories.
| Flow | Applicable Transaction Type | Subledger |
|---|---|---|
| Forward | Transfer Order Interorganization Transfer | Cost Accounting |
| Return | Transfer Order Return Transfer | Cost Accounting |
The table here summarizes the transaction types for the business flow: Interorganization, Expense Destination Transfers with Receipt.
| Flow | Applicable Transaction Type | Subledger |
|---|---|---|
| Forward | Transfer Order Issue | Cost Accounting |
| Forward | Transfer Order Delivery to Expense | Receipt Accounting |
| Return | Transfer Order Expense Return to Receiving | Receipt Accounting |
| Return | Transfer Order Return Receipt from Expense | Cost Accounting |
Direct intraorganization transfers are excluded for sending costs to project because the transaction costs get nullified in the same period and in the same expenditure organization.