Beruflich Dokumente
Kultur Dokumente
Cross Charge
Objectives
17 - 2
Agenda
17 - 3
Provider Organization
Receiver Organization
Expenditure Organization:
Services-East
Task Organization:
Cleveland Mfg
Example: Timecard
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US
Services
Inter-Operating
Dallas
IntraOperating
Unit
17 - 6
Unit
Denver
Business Group
US
Corp.
Legal Entities
New
York
Operating Units
Intercompany
Processing Methods
Borrowed and Lent Accounting
Inter-operating unit and intra-operating
unit cross charges
Intercompany Billing Accounting
Intercompany and inter-operating unit
cross charges
None: No Additional Processing
Intercompany, inter-operating unit, and
intra-operating unit cross charges
Processing methods and the cross charge
types with which you can use them
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Quiz
Which of the following is not a cross charge transaction?
a. Intercompany
b. Interproject
c. Inter-Operating Unit
d. Intra-Operating Unit
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Agenda
17 - 9
Legal
Entity
US
Services
Dallas
Lent To
Denver
Operating
Units
Borrowed From
17 - 10
Project
Task 1
Task 1.1
Task 2
Task 1.2
Task 2.1
Task 2.2
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Accounting
Debit (DR)
Credit (CR)
Amount
Cost
Labor Expense
DR
01-490-5020-000
500.00
Cost
Labor Clearing
CR
01-000-2410-000
500.00
Borrowed and
Lent
Lent
DR
01-422-7050-000
2,000.00
Borrowed and
Lent
Borrowed
CR
01-490-7050-000
2,000.00
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Perform
adjustments
Reprocess cross
charges
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Recalculates
transfer price
Reconverts
transfer price
amount
Regenerates
accounting
entries
Reverses
existing
distributions
17 - 15
Quiz
The borrowed and lent processing method creates accounting
entries to pass costs or share revenue between the provider
and receiver organizations within a legal entity.
a. True
b. False
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Quiz
The ___ program uses AutoAccounting to determine the
default credit account and then to generate accounting events.
a. PRC: Distribute Borrowed and Lent Amounts
b. PRC: Generate Cross Charge Accounting Events
c. PRC: Create Accounting
d. PRC: Transfer Journal Entries to GL
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Agenda
17 - 18
Required?
Setup Level
Yes
Site
Yes
Site
Yes
Operating Unit
Yes
Operating Unit
Yes
Operating Unit
Site
17 - 19
Project
Provider
Receiver
Transfer
Price
Credit
Debit
Borrowed and
Lent Processing
17 - 20
Provider
Receiver
Services-East
Cleveland Mfg
17 - 21
Cross Charges to
Operating Units with
in Same Legal Entity
Allow?
None
None
US
Services
Dallas
Denver
Legal
Entity
Operating
Units
AutoAccounting Function
Business Activity
Borrowed Account
Lent Account
17 - 24
17 - 25
Quiz
You need not define transfer price schedules at the site level to
implement borrowed and lent cross charge processing.
a. True
b. False
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Summary
In this lesson, you should have learned how to:
Explain the cross charge processing methods
Enter and process borrowed and lent cross charges
Implement borrowed and lent cross charge processing
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