English Bus/Financial Accounting cost accounting manual

1. Importance or right ICP Activity
For this purpose, management of intercompany matching at value chain level is important:
a) An engineering unit working for another group company which works for an SPV will have to report its revenues on X - E&C Activity toward X - E&C Activity as intercompany activity. The X E&C client unit behaves in the same way by recording the related costs.
b) An engineering unit X - E&C working for an SPV must declare its revenues toward X - Generation activity as intercompany activity of the SPV. The SPV must account AUC or costs against group or third parties on Y Generation toward the X activity as intercompany activity

2. Companies offering E&C services account costs of people and external services on OpEx WBSs and, consequently, they recognize related revenues against group client company. Revenues are determined depending on the specific contract conditions. Recognition of ICP revenues and capitalized costs are performed:
Monthly, for the project within the same country;
Quarterly, for the project where the supplier and the client are in two different countries.