Why can't I select or specify an Organization for the cross charge in the default posting setup?
The Post Cross Charge Labor property is normally set to true when there are multiple indirect cost rates in the same Legal Entity and the Person Organization is different from the labor posting Organization. In this case, we need to be able to identify those amounts so that the total labor cost for the Person Organization can be determined for indirect rate calculation purposes.
If this property is selected, the system will (assuming a positive time entry to the posting organization) debit the Cross Charge Labor account and credit the Cross Charge Labor Offset account in the Person HOME Organization, and credit the Cross Charge Labor account and debit the Cross Charge Labor Offset account to the Labor POSTING Organization.
The cross charge labor cost is posted to gross up/down the labor cost in the Person Organization and posting organization for the purposes of indirect rate calculation as the labor cost should be included in the base of the pool to which the Person belongs. Note that the Cross Charge Labor Offset account should be excluded from the indirect rate calculation.
Since the cross charge labor cost always needs to be posted to the Person HOME Organization and original posting organization and cannot be static, there is no need to specify an Organization in the default posting group organization. Thus, the option to select an Organization type is not available in the default posting group setup.
The posting group Cross Charge Labor account and Cross Charge Labor Offset accounts would typically be set up as expense accounts that display in either the labor section or in an allocations section at the end of the income statement. Note that they will always net to zero.