Oracle Exam 1Z0-511 Topic 10 Question 42 Discussion

The provider operating unit runs the process PRC: Tieback Invoices from Receivables, which automatically creates corresponding intercompany invoice supplier invoices ready to be interfaced to Oracle Payables in the receiver operating unit.

Note:

See step 6 below.

Intercompany Billing Processing Flow

Intercompany billing processing requires the following steps:

1. The provider operating unit enters or imports cross charge transactions.

2. The provider operating unit distributes costs of the cross charges, which are identified as cross charge transactions by the cost distribution processes. The distribution of the costs is independent of revenue generation and are distributed even if revenue has not been generated.

The provider operating unit also imports project-related supplier costs from Oracle Purchasing and Oracle Payables and project-related expense report costs from Oracle Payables.

3. The provider operating unit runs the process PRC: Generate Intercompany Invoices for a Single Project, or the process PRC: Generate Intercompany Invoices for a Range of Projects, to generate draft intercompany invoices with the associated intercompany receivable and revenue accounts, and the transfer price.

4. The provider operating unit reviews, approves, and releases the intercompany invoices.

5. The provider operating unit interfaces the approved intercompany invoices to Oracle Receivables. You can include the following activities in this process:

o Accounting for invoice rounding

o Creation of receivable invoices including sales tax

6. The provider operating unit runs the process PRC: Tieback Invoices from Receivables, which automatically creates corresponding intercompany invoice supplier invoices ready to be interfaced to Oracle Payables in the receiver operating unit.

Use Oracle Receivables to print the invoice as well as to create accounting for Oracle Subledger Accounting.

7. If cost reclassification is enabled, the provider operating unit performs the following processing steps:

a. Runs the process PRC: Generate Cross Charge Accounting Events to generate accounting events for the provider cost reclassifications.

b. Runs the process PRC: Create Accounting to create accounting entries for the provider cost reclassification accounting events in Oracle Subledger Accounting. When you run the process in final mode, you can optionally choose to transfer the accounting to Oracle General Ledger. If you select this option, the create accounting process initiates Journal Import in Oracle General Ledger.

The receiver operating unit imports the intercompany supplier invoices into Oracle Payables. This import process calculates recoverable and non-recoverable tax amounts. Upon review and approval in Oracle Payables, the receiver operating unit runs the process Create Accounting to create subledger accounting entries for the supplier invoices in Oracle Subledger Accounting. When you run the process in final mode, you can optionally choose to transfer the accounting to Oracle General Ledger.

The receiver operating unit interfaces the supplier invoice to Oracle Projects, which pulls in the non-recoverable tax amounts as additional project costs.

(Optional) You can require the receiver operating unit to run additional customized processes to create additional accounting entries in Oracle Subledger Ac