Capital Projects with Recoveries/Billing

Summary:

Content (required):

We have a requirement where Entity A in the enterprise is responsible for managing capital project construction (eg. a building) on behalf of Entity B. Project costs will be incurred by Entity A's capital project, who will recover expenditures from Entity B. Even though Entity A will fully recover costs from Entity B, the asset (ie. building) that was constructed will be on Entity A's books in Fixed Assets.

My plan was to use Inter-Project Billing so that Entity A can recognize revenue and bill Entity B on a cost reimbursement basis. Entity A would define the project asset on their project and transfer to Fixed Assets. My initial tests seem to confirm that there will not be any changes to the asset nor asset lines generated for Entity A after billing is processed.