Are Cross Charges Allowed on Capital Projects Across Legal Entities and Operating Units when not Using Intercompany Invoicing or Borrowed and Lent? (Doc ID 2665769.1)

Last updated on OCTOBER 21, 2024

Applies to:

Goal

Users want to cross charge on capital projects between legal entities (LE) and operating units (OU), i.e., LE 1 has OU1 and they want to cross charge to LE2 which has OU2.  Intercompany Invoicing is not an option as there is no Project Billing license.  Borrowed and Lent is not used as journal entries are not required.  The cross charge option in the Provider Receiver Controls form is NONE.  With this setup, cross charge to an Indirect project is successful, but not to a Capital project.  The constraints around cross charging to Capital projects have been lessened over time in certain circumstances, but it is not clear if that is true of cross charges NOT using Intercompany Invoicing or Borrowed and Lent.  

Verified:

1.   MO:  Operating Unit is properly set
2.   HR: Business Group is set
3.   HR:  Cross Business Group is set to YES
4.  Setup works fine with Indirect project which indicates setup is correct
5.  Per 'R12: PA: Projects LOV in Expenditure Pre-approved batch, do Not show CAPITAL projects to Cross Charge within the Ledger. (Doc ID 1642352.1)', the latest version of the file $Header: pav0531.odf 120.4.12010000.3 has been applied and still the issue persists.

Can Capital projects receive cross charges across legal entities and operating units? 

Solution

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