How Are Burden Labor Costs Calculated On Intercompany Invoices Using Transfer Price Rules? (Doc ID 783488.1)

Last updated on AUGUST 19, 2022

Applies to:

Goal

Q1: On a labor transaction that has a raw cost of $100 and the burden schedule has a multiplier of 1.25, the expected bill rate would be $225 the system is generating a bill amount of $125. Why is PAICGEN PRC: Generate Intercompany Invoices not calculating the bill amount of $225.00?

Q2: If we set up a single burden schedule call schedule A and associate it with revenue and invoice there will be one value for revenue and invoice generation.  However,  if  the same schedule is associated with transfer pricing it calculates a completely different value. In other words you can not use the same burden schedule for revenue/invoice purposes and for cross charging purposes.  Why must we use a different burden schedule for Transfer Price Rules when generating an Intercompany Invoice?


Q3: When a particular expenditure type is not included in the burden schedule attached to the project the Intercompany Invoice process rejects these Expenditures indicating that there was an error applying the burden schedule. However, these same expenditures are processed by the distribute costs and PARGDR and PAIGEN processes. These EIs are just passed through at the raw cost price because they are not on any burden schedule. Why does the PAICGEN process reject these? We would expect the PAICGEN process to pass these EIs with the raw cost the same way the PAIGEN and PARGDR process do. Is this a bug that the PAICGEN process handles these differently or is there a reason for the process to reject them with an error message while costing and revenue/invoice processes process them at the raw cost?


Q4:  Are we able to use the same burden schedule for transfer pricing and revenue/invoice generation in order to get the same answer in both places, since the burden schedules work differently for transfer pricing than they work for invoice/revenue generation.

Solution

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.