Oracle Cloud Project Portfolio Management (PPM) is an integrated solution designed to manage a wide range of project types, including capital, service, and IT. One of the key features is Cross Charge, which enables organizations to allocate and redistribute costs and revenues across various departments, business units, or projects.

How Cross Charge Works in Oracle Cloud PPM:

1. Initiate Cross Charge: Project managers or financial analysts can initiate a cross-charge transaction from within a project. This is often based on the utilization of resources, or the allocation of shared costs.

2. Approval Workflow: Usually, the cross-charge transaction needs to be approved by responsible parties in both the sending and receiving business units. Oracle Cloud PPM often has built-in workflows to streamline this approval process.

3. Automatic Calculations: Oracle Cloud PPM can be configured to automatically calculate the amounts to be charged based on predefined rules, rates, or other metrics.

4. Financial Integration: Once approved, the cross-charge details are integrated into the financial systems for invoicing, if necessary, and for accounting reconciliation.

5. Reporting: Detailed reports can be generated showing the cross-charge activities, enabling more accurate cost and revenue tracking, and ensuring compliance with company policies and regulatory requirements.

Advantages:

• Flexibility: Can be customized to fit specific business rules and processes.

• Visibility: Gives detailed insights into project costs and revenues.

• Streamlining: Automates complicated financial transactions, saving time and reducing errors.

Configuration Steps:

1. Set Up Charge Codes: Define the codes or cost types that can be cross-charged.

2. Configure Approval Flows: Define who needs to approve cross-charges and in what sequence.

3. Map to Financials: Ensure that the cross-charge data can be mapped correctly to your existing financial systems.

4. Test: Before going live, it’s crucial to test the cross-charge feature thoroughly to make sure it works as expected.