Overview of Inter-Project Billing

Inter-Project Billing
This document intends to explain functionality and setup required

for Inter-Project billing along with some known issue and
frequently asked questions on inter-project.
October, 2020 | Version [1.03]
Copyright © 2020, Oracle and/or its affiliates
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PURPOSE STATEMENT
This document provides an overview of inter-project billing along with their process flow,
implementation steps and some technical components pertaining to the functionality. This
document also includes some known issue and frequently asked questions on inter-project billing.
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TABLE OF CONTENTS
Purpose Statement 2
Disclaimer 2
Disclaimers For Pre-Release, Pre-GA Products 2
Overview 4
Setups Required for Inter-project billing 5
Implementation Option Setup 5
Define Provider-Receiver Control 5
Auto-accounting Setup 6
Process Flow for Inter-project billing 8

Create Receiver Project 8
Enable Task for Receiving Project Invoices 8
Create Provider Project 9
Enter Receiver Project 10
Create Revenue Budget and Fund Project 11
Enter & Distribute Expenditures 12
Generate Draft Invoice 12
Interface Invoices to Receivables 13
Create Payable Invoices 14
Technical Components 15
Basic Data Model 15
Client Extension & Workflow 15
Important Issues and FAQ 17

Issues 17
Frequently Asked Questions 18

OVERVIEW
This section gives overview of inter-project billing functionality which is essential for
Organizations having complex business structures and mostly applicable in case of multi-national
organizations. Inter-Project billing is one of the method to generate internal invoices between two
different project running for the same organizations. In this functionality Provider project executes
some actions and incur expenses against which they send customer invoices to Receiver Project.
Receiver Project’s Operating unit will receive that invoice as a Payables invoice and then further bill
to an external customer.
In above picture an there is a Software Installation Project for a customer where some of the work
such as QA testing and Infrastructure installation is subcontracted to two other projects.
Now while doing infrastructure installation any cost incurred by Infrastructure Project will be billed
to Software Installation Project then further Software Installation project will generate invoice and
deliver it to Customer.
In Oracle E-Business Suite terminologies “Infrastructure Project” becomes provider project where
as “Software Installation Project” becomes receiver project.
Inter-Project functionality can utilize any type of Cross Charges.
1. Intercompany (Projects in different legal entities)
2. Inter-Operating Unit (Projects in same legal entity but different Operating Units)
3. Intera-Operating Unit (Projects belong to different organization but same Operating Unit)

SETUPS REQUIRED FOR INTER-PROJECT BILLING
This section gives required setups for creating inter-project invoices, here setups are given for
Inter-Operating unit case.
Implementation Option Setup

1. Navigate to Receiver Project’s responsibility
2. Go to Setup > System > Implementation Options
3. Go to Internal Billing Tab
4. Setup with appropriate customer, supplier details and batch source.
Define Provider-Receiver Control

1. Navigate to Provider Project’s Responsibility.
2. Go to Setup > Costing > Provider and Receiver Controls.
3. Query Provider Project Operating Unit.
4. Enter Receiver Project’s Operating Unit under Receiver Operating Unit section.
5. Enter Processing Method as Intercompany Billing and other details.

6. Navigate to Receiver Project’s Responsibility.
7. Go to Setup > Costing > Provider and Receiver Controls.
8. Query Receiver Project Operating Unit.
9. Enter Provider Project’s Operating Unit under Provider Operating Unit section.
10. Enter Supplier, Supplier Site, Expenditure Type and Expenditure Org information.
Auto-accounting Setup
To derive accounts for intercompany invoices, Auto-accounting setup is required for function
“Intercompany Invoice Accounts” on provider operating unit.
1. Navigate to Setup > AutoAccounting > Assign Rules
2. Query function “Revenue and Invoice Accounts”
3. Map each rules for all segments for both function transactions
a. Contract Asset Account (Only applicable if you’re on 12.2.7 and above)
b. Contract Liability Account (Only applicable if you’re on 12.2.7 and above)
c. Invoice Write-Off Account
d. Realized Gains Account (Optional)
e. Realized Losses Account (Optional)
f. Receivable Account
g. Rounding Account
h. Unbilled Receivable Account
i. Unbilled Retention Account (Only if “Account for Unbilled Retention” flag is enabled in
Implementation Option)
j. Unearned Revenue Account

PROCESS FLOW FOR INTER-PROJECT BILLING
This section gives process associated with inter-project billing functionality.
Create Receiver Project

After performing required setups, first step is to create receiver project.
1. Login to Receiver responsibility
2. Open Project Form
3. Create Project
Enable Task for Receiving Project Invoices

For receiving invoices from Provider project, A task has to be enabled for the same.

2. Query Project Number
3. Navigate to Options > Task
4. Chose Task and Click on Options > Task Details
5. Enable Receive Inter-Project Invoices Flag
Create Provider Project

Once receiver project is created, Business has to create provider project where work will be
performed and expenses will be incurred. Customer for the provider project should be same as the
customer mentioned in Internal Billing Tab of Receiver Operating Unit’s Implementation Option.
Provider project should be of Contract type, but should not be of intercompany billing project type.
1. Login to Provider responsibility
3. Create Project

Enter Receiver Project
In order to setup relationship between both provider and receiver projects. Receiver project need
to be entered to provider project
2. Query Provider Project
3. Click on Options > Customer and Contacts
4. Enable Bill Another Project Flag
5. Enter Receiver Project Details

Create Revenue Budget and Fund Project
To generate invoice, provider project has to be funded and revenue budget should be created.
Revenue budget amount should be same as that of funding amount to baseline the revenue
budget.
1. Navigation Billing > Agreement
2. Create Agreement for Customer of Provider Project
3. Click on Funding button

4. Add Funding for Provider Project
5. Navigate to Project Self Service responsibility

6. Go to Projects: Delivery > Search Projects
7. Query Project and Go to Financial Plan tab
8. Add Financial Plan Type for Revenue Budget

Enter & Distribute Expenditures
After doing all pre-requisite setup at Operating Unit and Project levels, User will start booking
expenses for provider project which is being worked on behalf of receiver project.
1. Navigation Expenditures > Preapproved Batch > Enter
2. Enter expenditure batch with required details
3. Submit and Release expenditure batch
4. Run Distribution process to calculate cost. In this case User needs to run “PRC: Distribute
Labor Costs”.
Generate Draft Invoice

In this step Provider project will generate an intercompany invoice and send it to Receiver project.
1. Run PRC: Generate Draft Revenue for Single Project
2. Run PRC: Generate Draft Invoices for a Single Project
3. Approve Invoice
a. Navigation Billing > Invoice Review
b. Query for the provider project
c. Click on Approve button.
d. Save the changes.
e. Click on Release button.
Interface Invoices to Receivables

Invoices should be interfaces to Receivables after they are released. Invoices will be created in
Receivables with source “PA Internal Invoices”.
1. Run request “PRC: Interface Invoices to Receivables”
2. Navigate to Receivables responsibility
3. Run request “Autoinvoice Import Program”
4. Go to Transactions > Transaction

Create Payable Invoices
Once customer invoice is created in Provider operating unit then corresponding supplier invoice
should be created in Receiver Operating Unit.
For this below steps should be followed.
1. Run request PRC: Tieback Invoices from Receivables from provider operating unit’s
responsibility.
2. Run request Payables Open Interface Import from receiver operating unit’s responsibility.
Source should be “Oracle Projects Inter-Project Invoices”.
3. Payable Invoice number will be same as that of Receivable invoice created in provider
operating unit.
4. Payable invoice should have receiver project details.
5. Task number will be the same for which flag “Receive Inter-Project Invoices” is enabled.
6. Expenditure Type and Expenditure Organization will come from Provider-Receiver setup.

TECHNICAL COMPONENTS
This section includes technical components used for inter-project billing functionality.
Basic Data Model

This section gives details of tables used to project and invoice details for inter-project invoices.
Project Data Model
Project Invoice Data Model
Client Extension & Workflow

This section gives details of client extension and workflow associated to this functionality.

1. Client Extension Name: Internal Payables Invoice Attributes Override Extension
a. Procedure: PA_CC_AP_INV_CLIENT_EXTN. OVERRIDE_EXP_TYPE_EXP_ORG
b. Usage: Override expenditure type and expenditure organization derived from provider-
receiver control setup while creating payable invoice in Receiver Operating Unit.
c. Procedure: PA_CC_AP_INV_CLIENT_EXTN. OVERRIDE_SUPPLIER_SITE_INFO
d. Usage: Override supplier related information for payable invoices which will be created
in receiver operating unit.
2. Workflow: Project Supplier Invoice Account Generation
Usage: Derive code combinations for payable invoices generated in receiver operating unit.

IMPORTANT ISSUES AND FAQ
This section includes some frequent issues and frequently asked questions.
Issues
ISSUE STEPS TO CAUSE SOLUTION
REPRODUCE
Payable invoice is not 1. Navigate to Projects Due to lower version 1. Please download and review the
getting created after responsibility of PAXARAPB.pls, if readme for Patch. 26978259:R12.PJB.C
running PRC: Tieback 2. Run request PRC: receiver project is in 2. Apply patch in a test environment.
Invoices from Tieback Invoices from different legal entity
Receivables then AP Invoice was 3. Confirm the file version.
Receivables
not getting interfaced. PAXARAPB.pls 120.10.12020000.16
Run below command to check file
version
strings -a
$PA_TOP/patch/115/sql/PAXARAPB.pls
|grep '$Header'
4. Retest the issue.
5. If the issue is resolved, please migrate
the solution as appropriate to other
environments.
Receivable Invoice is not 1. Navigate to Projects Data is not inserted 1. Please download and review the
created for inter-project responsibility into readme for Patch. 27584203:R12.PJB.C
transactions 2. Run request PRC: ra_interface_lines_all 2. Apply patch in a test environment.
Interface Invoices to table.
3. Confirm the file version.
Receivables
PAXITCAB.pls 120.12.12020000.15
Run below command to check file
version
strings -a $PA_TOP/patch/115/sql/
PAXITCAB.pls |grep '$Header'
environments.
While interfacing invoice 1. Navigate to Projects Code issue with 1. Please download and review the
to Receivables getting responsibility pattat.lpc and readme for Patch. 18772101:R12.PJB.B
below error. 2. Run request PRC: pattal.lpc 2. Apply patch in a test environment.
Transferring all I for Interface Invoices to 3. Confirm the file version.
project ID. Receivables
pattat.lpc 120.7.12010000.31
AutoAccounting error
code=1 Run below command to check file
version
strings -a $PA_TOP/bin/PATTAR |grep
'$Header'
environments.

Receiver project does 1. Navigate to Projects Due to below reasons To implement the solution, execute the
not appear in the list of responsiblity receiver project following steps:
values in provider 2. Query project number. cannot appear
1. Please validate all the cause and
project customer screen
3. Go to Options > 1. The receiver accordingly take action.
Customers and project status 2. For Cause 1- Change the status of
Contacts must allow new Receiver Project.
transactions
4. Enable Bill for Another 3. For Cause 2 – Check customer defined
Project. 2. The customer on in Internal Billing tab of Implementation
the provider Options of Receiver Operating Unit and
5. Try to add another
project is the then accordingly update project
project in Receiver
same as the customer with same customer.
Project field.
customer defined
as the receiver for 4. For Cause 3 – Enable Receive Inter-
internal billing in Project Invoices flag at least for one task
the in Receiver Project.
implementation 5. For Cause 4 – Navigate to Setup >
options of the Costing > Provider and Receiver Control
receiver operating and assign relationship between both
unit. projects.
3. The task defined
as the IP billing
task ("Receive
Inter-Project
Invoices" is
checked) on the
receiver project is
chargeable
4. Receiver controls
have been setup
between the
provider and
receiver OU's and
a supplier is
associated with
the relation.
Frequently Asked Questions

Q1. Can multiple customer be used for internal billing purpose?
For one OU at a time, there can be only one customer and one supplier assigned for Internal Billing
purposes.
More than one "internal customers" at a time is not possible for internal invoices assigned for the
same OU as the Customer Receive.
Q2. Can separate projects be used for Intercompany Billing and Inter-Project Billing?
Yes different projects can be used for these two process. One project can be created for
Intercompany billing where as another project can be created for inter-project billing.

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Inter-Project Billing
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Inter-Project Billing

This document intends to explain functionality and setup required

DISCLAIMERS FOR PRE-RELEASE, PRE-GA PRODUCTS

2 WHITE PAPER | Inter-Project Billing | Version [1.03]

Process Flow for Inter-project billing 8

Important Issues and FAQ 17

3 WHITE PAPER | Inter-Project Billing | Version [1.03]

4 WHITE PAPER | Inter-Project Billing | Version [1.03]

Implementation Option Setup

Define Provider-Receiver Control

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Create Receiver Project

Enable Task for Receiving Project Invoices

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Create Provider Project

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3. Click on Funding button

5. Navigate to Project Self Service responsibility

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Generate Draft Invoice

Interface Invoices to Receivables

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14 WHITE PAPER | Inter-Project Billing | Version [1.03]

Basic Data Model

Project Invoice Data Model

Client Extension & Workflow

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Frequently Asked Questions

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