Cross Charge
description producers & consumers template example
Description top
Collaboration in Projects between the various Divisions of an organisation is an increasing feature of business. It can take several forms:
- the supply of Resources to another Business Unit’s Bid and/or Project
- the provision of services to another Business Unit’s Bid and/or Project
- the sale of a Product "owned" by one Business Unit through another, (for example as part of a Project owned by the other Business Unit)
- the provision of continuing services and/or support following the completion of a Bid and/or Project, usually through a separate Business Unit.
In each of these cases there will be costs transferred to the Business Unit that is supplying the End User or Customer from the Business Unit that is providing the Resources, services, or Product. This sort of transfer is called a Cross Charge.
Cross Charges may be made in a number of ways. The two most common are via a Time Recording System, or as a transaction recorded in a Project Commercial Report. A Project Commercial Report is a specialised tool produced and used in Financial Control to record details of a Project's commercial transactions and status, for later use in the organisation’s management and financial accounting systems. Normally these transactions will be Approved by the relevant Business Unit Manager.
Producers and Consumers top
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Producers |
Consumers |
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Financial Control (supported by Project Managers) |
Templatetop
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Example top
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