JVA Saphelp All PDF

Joint Venture Accounting (JVA)
PDF download from SAP Help Portal:

http://help.sap.com
Created on August 03, 2016
The documentation may have changed since you downloaded the PDF. You can always find the latest information on SAP Help
Portal.
Note
This PDF document contains the selected topic and its subtopics (max. 150) in the selected structure. Subtopics from other structures are not included.
The selected structure has more than 150 subtopics. This download contains only the first 150 subtopics. You can manually download the missing
subtopics.
2016 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of SAP SE. The information contained herein may be changed without prior notice. Some software products marketed by SAP
SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are
provided by SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP
Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set
forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in
Germany and other countries. Please see www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.
Table of content
PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.
Page 1 of 109
Table of content
1 Joint Venture Accounting (JVA)
1.1 Introduction to Joint Venture Accounting (JVA)
1.1.1 Joint Venture Accounting (JVA) Objects
1.1.2 JVA Integration Activities
1.1.3 Joint Venture Accounting (JVA) Processes
1.2 Master Data
1.2.1 Joint Operating Agreements (JOAs)
1.2.1.1 Creating a Joint Operating Agreement (JOA)
1.2.1.2 Changing a Joint Operating Agreement (JOA)
1.2.1.3 Displaying a Joint Operating Agreement (JOA)
1.2.2 Equity Groups
1.2.2.1 Creating Equity Groups
1.2.2.2 Changing an Equity Group
1.2.2.3 Displaying an Equity Group
1.2.3 Joint Ventures
1.2.3.1 Creating a Joint Venture
1.2.3.2 Changing a Joint Venture
1.2.3.3 Displaying a Joint Venture
1.2.4 Equity Group and Equity Type Assignment
1.2.4.1 Equity Group Assignment
1.2.4.2 Equity Type Assignment
1.2.4.3 Assigning Equity Groups to Joint Ventures
1.2.5 Joint Venture Accounting (JVA) Cost Objects
1.2.6 Cost Centers
1.2.6.1 Creating a Cost Center
1.2.6.2 Changing a Cost Center
1.2.6.3 Displaying a Cost Center
1.2.7 Internal Orders
1.2.7.1 Creating an Internal Order
1.2.7.2 Changing an Internal Order
1.2.7.3 Displaying an Internal Order
1.2.8 Projects and Work Breakdown Structure (WBS) Elements
1.2.8.1 Creating a Project
1.2.8.2 Changing a Project
1.2.8.3 Displaying a Project
1.2.8.4 Creating a Work Breakdown Structure (WBS)
1.2.8.5 Changing a Work Breakdown Structure (WBS)
1.2.8.6 Displaying a Work Breakdown Structure (WBS)
1.2.9 Joint Venture Information and Profit Centers
1.2.9.1 Assigning Joint Venture Information to a Profit Center
1.2.9.2 Displaying Joint Venture Information Assigned to a Profit Center
1.2.10 Logistical Orders
1.2.10.1 Assigning Joint Venture Information to Production Orders
1.2.10.2 Assigning Joint Venture Information to Network Orders
1.2.10.3 Assigning Joint Venture Information to Plant Maintenance Orders
1.2.11 Business Partners
1.2.11.1 Creating Customer Accounts (Accounts Receivable)
1.2.11.2 Creating Vendor Accounts (Accounts Payable)
1.2.11.3 Maintaining a Joint Venture Accounting (JVA) Business Partner
1.2.11.4 Changing Joint Venture Partner Data
1.2.11.5 Displaying Joint Venture Partner Data
1.2.11.6 Creating an Additional Address
1.2.12 Suspension of JVA Projects, Partners, and Equity Groups
1.2.12.1 Suspending a Joint Venture Accounting (JVA) Project
1.2.12.2 Suspending an Equity Group
1.2.12.3 Suspending a Joint Venture Accounting (JVA) Partner
1.2.13 Intercompany Mapping Functions
1.2.13.1 Mapping Prerequisites
1.2.13.2 Reconciliation of Intercompany Mapping for Cutback
1.2.13.3 Mapping Accounts
PUBLIC
Page 2 of 109
1.2.13.4 Mapping Cost Centers

1.2.13.5 Mapping Projects / Work Breakdown Structure (WBS) Elements
1.2.13.6 Mapping Networks
1.2.13.7 Mapping Internal Orders
1.2.13.8 Mapping Assets
1.2.14 Prepaid Inventory Materials
1.2.15 Assigning House Banks to Joint Ventures
1.2.16 Assigning a Funding Group to Joint Ventures
1.3 Actual Posting
1.3.1 Posting Expenses and Managing Asset Transfers
1.3.2 Cash Calls
1.3.2.1 Issuing Cash Calls Operated/Venture/Net
1.3.2.2 Cash Call Direct Print
1.3.2.3 Issuing Cash Calls Operated/Venture/Gross
1.3.2.4 Issuing Cash Calls Operated/Project/WBS/Net
1.3.2.5 Issuing Cash Calls Operated/WBS/Gross
1.3.2.6 Reclassifying Cash Calls
1.3.2.7 Receiving Cash Calls Non-operated/Venture
1.3.2.8 Receiving Cash Calls Non-Operated/Projects/WBS Elements
1.3.2.9 Batching Cash Calls
1.3.3 Non-Operated Invoices
1.3.3.1 Processing Non-Operated Invoices by Operator
1.3.3.2 Processing Non-Operated Invoices by Venture
1.3.4 Asset Transfers
1.3.4.1 Transferring an Asset to a Work in Process (WIP)
1.3.4.2 Transferring an Asset to an Asset
1.3.4.3 Retiring an Asset
1.3.4.4 Processing an Asset Sale
1.3.4.5 Transferring a Work in Process (WIP) to a WIP
1.3.4.6 Transferring a Work in Process (WIP) to an Asset
1.3.5 Inbound EDI Intermediate Documents (IDocs)
1.3.5.1 Processing EDI Inbound Intermediate Documents (IDocs)
1.3.5.2 Reprocessing Inbound Intermediate Documents (IDocs)
1.4 Periodic Processes
1.4.1 Management of International Processes
1.4.1.1 Executing Venture Bank Account (VBA) Switching
1.4.1.2 Creating VBA Table Entries
1.4.1.3 Modifying VBA Table Entries
1.4.1.4 Executing House Bank Switching
1.4.1.5 Processing Realized Exchange Differences
1.4.1.6 Processing Unrealized Exchange Differences
1.4.1.7 Processing Non-Open Unrealized Exchange Differences
1.4.1.8 Processing Goods Receipt Expense Orders
1.4.1.9 Processing Goods Receipt Inventory Orders
1.4.1.10 Running an Advance Tax Report
1.4.2 Execution of CO Allocations
1.4.2.1 Executing CO Allocations: Prerequisites
1.4.2.2 Executing Assessments
1.4.2.3 Executing Distributions
1.4.2.4 Executing Order Settlement/Individual Processing
1.4.2.5 Executing Order Settlement/Collective Processing
1.4.2.6 Executing Order Settlement/Line Item Distribution
1.4.2.7 Executing Project Settlement/Individual Processing
1.4.2.8 Executing Project Settlement/Collective Processing
1.4.2.9 Executing Project Settlement/Line Item Distribution
1.4.3 Cost Calculations
1.4.3.1 Calculating Parent Company Overhead
1.4.3.2 Calculating Overheads - General
1.4.3.3 Calculating Payroll Burden
1.4.3.4 Calculating Overhead Escalation/Reduction Rate
1.4.3.5 Processing the Overhead Detail Report
1.4.4 Cutback
PUBLIC
Page 3 of 109
1.4.4.1 Identifying Suspended Projects and Equity Groups

1.4.4.2 Running Pre-Cutback Equity Change Management
1.4.4.3 Running Cutback
1.4.4.4 Clearing Partner Suspense After Cutback
1.4.4.5 Payment Term Schema for Cutback
1.4.5 Carried Interest (CI) and Net Profit Interest (NPI)
1.4.5.1 Executing Group Carried Interest and Net Profit Interest Netting
1.4.5.2 Carried Interest (CI) and Net Profit Interest (NPI) Statements
1.4.5.2.1 Billing Configuration of CI and NPI Statements
1.4.5.2.2 Executing Hard Copy Billing for CI and NPI Statements
1.4.6 Partner Netting and Convenience Netting
1.4.6.1 Partner and Convenience Netting: Prerequisites
1.4.6.2 Executing Partner Netting
1.4.6.3 Executing Convenience Netting
1.4.7 Executing Billing
1.4.7.1 Executing Billing: Prerequisites
1.4.7.2 Extracting an Invoice/Statement
1.4.7.3 Extracting Expenditure/Supplemental Detail
1.4.7.4 Using Billing Thresholds
1.4.7.5 Executing Hard Copy Billing
1.4.7.6 Executing EDI Billing-Creating Outbound IDoc
1.4.7.7 Executing EDI Billing-Release Outbound IDoc
1.4.7.8 Executing EDI Billing-Partners Processed
1.4.7.9 Executing Dunning
1.4.7.10 Lockbox Processing of SAP JVA Partner Bills
1.4.8 Equity Change Management
1.4.8.1 Managing Equity Changes
1.4.8.2 Farm-in/Farm-out/Redetermination
PUBLIC
Page 4 of 109
!--a11y-->
1 Joint Venture Accounting (JVA)

Purpose
Companies typically form joint venture partnerships to minimize risks involved in capital intensive operations that demand a long payback period. A joint
venture partnership consists of an operating partner (operator) and one or more non-operating partners who combine monetary or personnel resources to share
a projects expenses and revenues. The operator manages the venture, arranges venture activities, and maintains accounting records. The operator remits
venture expenses, collects revenues, and distributes these to the partners, according to their ownership shares. SAP JVA is a complete accounting system
for joint ventures.
!--a11y-->
1.1 Introduction to Joint Venture Accounting (JVA)

Definition
SAP designed JVA for joint venture operations. SAP JVA captures all expenditures and other joint venture transactions by using functions from Financial
Accounting (SAP FI), Controlling (SAP CO), Asset Management (SAP AM), Materials Management (SAP MM), Plant Maintenance (SAP PM), and Project
System (SAP PS). By working closely with customers and implementation partners, SAP ensures that JVA facilitates smooth management of joint ventures,
with great flexibility for growth.
!--a11y-->
1.1.1 Joint Venture Accounting (JVA) Objects

Definition
The primary SAP JVA objects are described in the following table.
Object name
Description
Joint Operating Agreement (JOA)
A JOA is a formal agreement that specifies the conditions for a joint

operation. This covers the interests of the partners and their properties, as
well as overheads and penalties.
Joint Venture
This is an association of two or more partners, formed to share a ventures

risks, costs, and revenues. Each partners share is proportional to their
undivided interest in the venture.
Equity Type
The JOA has different development stages, such as engineering and design,
construction, and production. Different partners participate at each stage. JVA
manages the different stages by using equity types. An equity type explains a
particular association of partners. This definition may be related to time,
phase or purpose and is linked with a specific equity group.
Equity Group
An equity group represents an association of venture partners and their

interests. An equity group may consist of all or some of the venture partners.
Joint Venture Partner
This is a partner mentioned in the JOA with an undivided interest in a venture.

One partner, called the operator, manages the operation. The remaining nonoperating partners share expenses and revenues.
Recovery and Billing Indicators
You assign a recovery indicator to a cost object to indicate whether or not

expenses, posted using the cost object, are billable to JVA partners. You
assign billable costs to the appropriate partners. Non-billable expenses are
assigned to the operator. Billing indicators are assigned to billable postings
and identify the type of posting involved, including cash call, normal
expenditure, and audit adjustment.
Use
The JOA specifies the relationship between partners, joint ventures, and rules for cost calculations. Joint ventures, equity types, and equity groups are
assigned to a JOA. Joint venture partners are assigned to equity groups. A joint venture can belong to only one JOA. However, multiple ventures can belong
to the same JOA. You can assign multiple equity groups to one JOA, and you can assign the same equity group to multiple joint ventures.
PUBLIC
Page 5 of 109
Structure
The following diagram shows the relationship between SAP JVA objects.
SAP JVA Business Object Structure
Common SAP JVA activities include setting up and maintaining JVA objects.
!--a11y-->
1.1.2 JVA Integration Activities

Use
SAP JVA data is linked to data in other SAP components. The Joint Venture Integration Manager (JVIM) is the interface between documents created in a
standard SAP component and SAP JVA. The JVIM processes documents booked in a standard SAP component that have JVA related data, and then
produces an SAP JVA document. Conversely, the JVIM transfers documents booked in SAP JVA to the relevant standard component and then a document is
created in the standard component. SAP JVA receives the following documents:
MM documents SAP JVA receives only those documents that also update FI.
SD documents SAP JVA receives only documents that will also update FI (especially invoices). Statistical and parked documents are excluded.
CO documents Statistical lines are excluded.
FI-SL documents SAP JVA will only use actual documents that have a RI or billing indicator.
Integration
SAP JVA receives the original documents and creates additional JVA documents. The SAP JVA documents contain additional venture information, including
the joint venture, equity group, and recovery (RI) indicator. Some lines of the SAP JVA document can be split, such as the vendor, customer, and tax
information lines.
JVIM Line Item Splitting

The JVIM splits relevant document lines (tax lines, discount lines, vendor lines) based on the venture and cost object information of the split basis lines. Each
relevant document line is split into as many lines as there is different venture and cost object information in the split basis.
PUBLIC
Page 6 of 109
For example, the following FI document has document lines 2, 3, 4 as split basis, while document lines 1 and 5 are subject to splitting.
Line
Account
Vendor
Cost Object
Venture
EqGr
RI
Amount
Material
CC1
V1
E1
BI
2,000
Material
CC1
V1
E1
BI
3,000
Material
CC2
V2
E2
BI
4,000
Tax
9,900-
900
The three split basis lines contain two different combinations of venture and cost object information, such that document lines 1 and 5 are split in the
SAP JVA document as follows:
Line
Account
Cost Object
Venture
EqGr
RecInd
Amount
FI Line
Vendor
CC1
V1
E1
BI
5,500-
Vendor
CC2
V2
E2
BI
4,400-
Material
CC1
V1
E1
BI
2,000
Material
CC1
V1
E1
BI
3,000
Material
CC2
V2
E2
BI
4,000
Tax
CC1
V1
E1
BI
500
Tax
CC2
V2
E2
BI
400
You can split lines into as many lines as dictated by the split basis. In addition, the SAP JVA document stores information on which split basis line
relates to a specific line that was split.
To allow this, there are two fields in the SAP JVA document table
JVSO1:
XSBL
is marked if the document line is part of the split basis.
SBREFLN
contains a running number that links the split basis lines to the split lines.
If you split lines as dictated by the split basis the SAP JVA document would look like the following table:
Line
Cost Object
Venture
EqGr
RI
Amount
FI Line
Split#
Split basis
Account
1
Vendor
CC1
V1
E1
BI
2,200-
Vendor
CC1
V1
E1
BI
3,300-
Vendor
CC2
V2
E2
BI
4,400-
Material
CC1
V1
E1
BI
2,000
Material
CC1
V1
E1
BI
3,000
Material
CC2
V2
E2
BI
4,000
Tax
CC1
V1
E1
BI
200
Tax
CC1
V1
E1
BI
300
Tax
CC2
V2
E2
BI
400
Effects on Customizing
You can use the JVIM line splitting functions on company code level within the implementation guide (IMG) for SAP JVA. To do this, use the following
menu path in the IMG:
Joint venture accounting -> Environment -> JVA Company Configuration -> Detailed Data and select the flag 'Split by line item' .
All SAP JVA documents have the following identifying information:

Reference document number
- links the SAP JVA document to the original document
Reference document line
- links the SAP JVA line to the original document line
Reference activity
- contains the original activity (for example, RFBU for most FI documents)
JVA document number
- identifies the document with a unique joint venture number
JVA activity
PUBLIC
Page 7 of 109
- contains the executable joint venture activity
JVA activity
The JVA activity is derived from the original activity. It can have the following values:
Joint Venture Cutback (JVCB)
JVCB is an activity that is set for all GB01 postings created during cutback. It is not used for the FI postings created by Cutback.
Joint Venture CO (JVCO)
JVCO is set for all joint venture documents created from CO documents. Some CO processes create both a CO and an FI document. In this case, this
activity is only used for the joint venture document created from the CO document.
Joint Venture Equity Change (JVEC)
JVEC is used for all GB01 postings created in the pre-cutback equity change phase.
Joint Venture FI (JVFI)
JVFI is used for all joint venture documents created from FI or SD documents.
Joint Venture MM (JVMM)
JVMM is used for all joint venture documents created from MM documents.
Joint Venture Production Month (JVPM)
JVPM is used for production month processing. This allows you to update an additional FI-SL ledger for documents that originate in FI and MM. JVPM
documents are created if the production month field PRODPER in JVSO1 is complete. All document lines with an entry in the PRODPER field will result in
the following:
A line is created in the first new document with posting date, production month, and activity JVPM. This document posts the values under the production
month period.
A new line is created in the second document with the normal posting date, activity JVPM, and reversed amounts and quantities. This document
reverses the FI view for this ledger.
Report writer, allows you to report on Ledger 4A or on an FI-SL ledger with the usual joint venture activities, to get the financial view. You can also report on a
ledger with the financial view and on a ledger with activity JVPM to get the view for the production month. To complete the field in JVSO1, you must use the
joint venture substitution. Possible entry fields include the document date (header) or field ABPER (line level).
Joint Venture Suspense (JVS1)
JVS1 is set for all postings initiated from the suspense process.
Joint Venture Unsuspense (JVS2)
JVS2 is set for all postings initiated from the unsuspense process.
Balanced Books by Venture (JVJV)
JVJV can appear in all types of joint venture documents. It is set for the balanced books by venture lines, which are additional lines in the joint venture
document with reference document line zero.
Even though the activities listed below begin with the letters J or JV, they are derived from the originating application and are only used as
a reference activity:
JVIU
Joint Venture Actual Assessment
JVIV
Joint Venture Actual Distribution
JRIU
Segment Reverse Actual Assessment
JRIV
Segment Reverse Actual Distribution
JRPU
Segment Reverse Plan Assessment
JRPV
Segment Reverse Plan Distribution
JVPL
Joint Venture Plan Data from CO
JVU1
Joint Venture Actual Primary Cost Transfer
Prerequisites
To create a link between SAP components, several configuration prerequisites are required before you set up and activate a company in SAP JVA. Your
system administrator or implementation team must complete these steps prior to setting up SAP JVA master data or performing transactions. A list of these
prerequisites is presented in the beginning of each chapter. You should refer to the IMG for detailed information regarding configuration. To ensure document
values correspond between applications, you must set all fields in the SAP JVA tables to unchangeable in FI configuration. To set the fields to unchangeable,
you clear the Field is modifiable indicator on the Document Change Rules: Details screen.
The activity, RFRK "Reconciliation posting CO > FI", is not used in SAP JVA because SAP JVA uses the CO transactions directly.
PUBLIC
Page 8 of 109
!--a11y-->
1.1.3 Joint Venture Accounting (JVA) Processes

Definition
The following is a list of primary SAP JVA processes:
Material and asset transfers between ventures
Allocations and settlement with ventures
Equity group change management
Equity group suspense
Partner carried interest
Cash calls
Partner netting (expense with revenue)
Parallel currencies
Partner billing including EDI inbound & outbound
Cutback to venture partners including intercompany
Joint venture audit reporting
!--a11y-->
1.2 Master Data

Definition
SAP Joint Venture Accounting (JVA) master data covers the following areas:
Creating and Changing Joint Operating Agreements
Setting Up Equity Groups
Setting Up and Changing a Joint Venture
Assigning Equity Groups and Equity Types
Setting up Joint Venture Accounting Cost Objects: Overview
Creating and Changing Cost Centers
Creating and Changing Internal Orders
Creating and Changing Projects and Work Breakdown Structures
Maintaining and Changing Business Partners
Suspending and Removing Projects, Partners, and Equity Groups from Suspense
Intercompany Mapping
Maintaining Prepaid Inventory Materials
!--a11y-->
1.2.1 Joint Operating Agreements (JOAs)

Definition
A JOA is a contract specifying the conditions of a joint venture operation. JOAs range in complexity. A JOA can include provisions for legal, tax, financial,
engineering, and other considerations negotiated by the venture partners. Within SAP, the JOA relates active joint ventures and equity groups to ensure
proportional distribution of costs to the partners during cutback. The JOA also allows for overhead calculations and non-consent and non-signatory penalties
that can be included in the costs distributed during cutback. In the SAP Joint Venture Accounting (JVA) component, the key data objects of a JOA are:
Joint ventures
Equity groups - an equity group contains a group of JVA partners
Cost calculations rules, percentages, and sets of excluded accounts for the joint ventures in the JOA
Penalty categories for carried interest (CI) and net profit interest (NPI) processes
!--a11y-->
1.2.1.1 Creating a Joint Operating Agreement (JOA)

PUBLIC
Page 9 of 109
Prerequisites
Your system administrator or implementation team should set up the following prerequisites in Financial Accounting (FI) and Joint Venture Accounting (JVA)
before you create a JOA:
Joint venture company
JOA number range
JOA class
FI customer (A/P) and vendor (A/R) accounts for the joint venture partners to be assigned to equity groups within the JOA
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Joint operating agmt Maintenance .
On the Joint Operating Agreement: Initial screen , choose Create
The Joint Operating Agreement:Create screen appears.
Procedure
1. Leave the Joint Oper. Agr field blank on the Joint Operating Agreement: Create screen if your system is configured to assign the code automatically.
Enter a code for the new JOA in the Joint Oper. Agr field if your system is configured to assign the code externally.
The range of possible JOA codes has been set up in the configuration of your system. JOA codes are either automatically assigned by the
system (
Internal Code) or assigned by the user (External Code)
2.
Enter the Company code .
3. Enter the JOA class .
4. If you are using an existing JOA as a model for the new JOA, enter the code for the model JOA in the Reference Joint Oper. Agr field.
5. Choose ENTER. The Create Joint Operating Agreement Basic Screen will be displayed.
6. Enter a JOA description in the Description field.
7. Choose SAVE. The system returns to the initial screen. A system message confirms that the JOA has been created.
!--a11y-->
1.2.1.2 Changing a Joint Operating Agreement (JOA)

Prerequisites
Menu Path
On the Joint Operating Agreement: Initial screen , choose Change
The Joint Operating Agreement:Change screen appears.
Procedure
1. Enter the JOA code in the Joint Oper.Agr field on the Joint Operating Agreement: Change screen.
2. Choose from the following functions:
Basic screen
Equity groups
Cost calculations
Penalty cat.rec.%
3. Enter your changes.
4. SAVE. A system message confirms that the JOA has been changed.
Delete JOA Report Modification

To delete a JOA in the use the following path in the implementation guide (IMG):
On the Display structure menu, choose Joint venture accounting Tools Productive start Delete a JOA.
PUBLIC
Page 10 of 109
The report that is generated with the JOA Delete program has been modified to show why the JOA cannot be deleted. The ventures associated with the JOA
are listed.
For example, when the program is run in test mode, the following two items could appear on a report:
Venture V00001 has been assigned to WBS element 00000025
Venture V09876 will be deleted
!--a11y-->
1.2.1.3 Displaying a Joint Operating Agreement (JOA)

Prerequisites
Menu Path
On the Joint Operating Agreement: Initial screen , choose Display .
The Joint Operating Agreement:Display screen appears.
Procedure
1. Enter the JOA code in the Joint Oper.Agr field on the Joint Operating Agreement: Display screen.
Basic screen
Equity groups
Cost calculations
Penalty cat.rec.%
!--a11y-->
1.2.2 Equity Groups

Definition
An equity group represents a specific association of partners and their working interests within a venture. One of the partners is the operator, who manages the
venture and is typically associated with the SAP company code, while the other partners are called non-operators. The operator collects all costs and bills the
non-operators, based on their interests defined in the active equity group. Active equity groups are associated with an
equity type which gives meaning to the current equity group. The same equity group can participate in several distinct ventures, but it can be used only once
in a venture.
An equity type describes the reason for a particular association of partners. This definition may be related to time, phase or purpose, and
is linked to a specific equity group.
An Association of Partners
PUBLIC
Page 11 of 109
Use
The way you assign the ownership percentage when you set up an equity group determines the type of ownership that the equity group represents. The
particular pattern of ownership of an equity group determines the type of joint venture to which it can be assigned. There are four types of equity groups and
four corresponding venture types. The venture type is automatically assigned to the equity group after you specify the ownership percentages and the partners
share.
Types of Equity Groups

Operated
(with and without tax)
The company using SAP JVA operates this venture. To assign ownership percentages to an Operated equity group on the Joint Operating Agreement:
Equity Groups screen, you should indicate the operating ownership of the company using SAP JVA in the OperShare field. The NonOpShare field remains
blank.
To specify the non-operating partners percentages of ownership, you access the Joint Operating Agreement: Partner Shares screen and enter the
percentages for each non-operating partner.
In the case of an Operated equity group, the sum of the percentage entered in the OperShare field on the Joint Operating Agreement: Equity Groups
screen and the percentages entered for all non-operating partners on the Joint Operating Agreement: Partner Shares screen should equal 100% ownership.
Non-Operated
In a non-operated venture, the company running SAP JVA holds a non-operated share of the venture, and is billed by the operator for its share of venture
expenses. To assign ownership percentages to a Non-operated equity group, you should indicate the non-operating ownership of the company using SAP
JVA in the NonOpShare field on the Joint Operating Agreement: Equity Groups screen. The OperShare field remains blank.
You do not need to access the Joint Operating Agreement: Partner Shares screen to enter partner percentages since the company running SAP JVA is the
non-operating partner in this type of ownership arrangement.
Non-Operated On-Billing
In a non-operated on-billing venture, the company running SAP JVA sells part of its non-operated share of the venture to third parties. The company running
SAP JVA distributes portions of the billings it receives from the venture operator to the partners in its non-operating share, in effect acting as an operator to
these third party partners.
To assign ownership percentages to a Non-operated On-billing equity group on the Joint Operating Agreement: Equity Groups screen, you should indicate
the total percentage ownership of the properties held by the company running SAP JVA in the NonOpShare field. You should also indicate the portion of that
ownership in the properties that the company running SAP JVA will retain in the OperShare field.
You should then indicate the portion of the non-operating ownership in the properties that the company running SAP JVA sells off to on-billing partners on the
Joint Operating Agreement: Partner Shares screen.
In the case of a Non-operated On-billing equity group, the sum of the percentage entered in the OperShare field on the Joint Operating Agreement: Equity
Groups screen and the percentages entered for all non-operating partners on the Joint Operating Agreement: Partner Shares screen should equal 100% of
the total non-operating ownership held in the properties by the company running SAP JVA.
Corporate
In a corporate venture, the company running SAP JVA holds 100% interest. Only one primary corporate venture and equity group should exist, as designated
on the Company Global Parameters screen in SAP JVA configuration. Expenses booked in the SAP JVA company without SAP JVA information (such as
venture and equity group) will be assigned to the corporate venture and equity group. These postings are not shared by partners.
A corporate equity group can be assigned to a regular operated or non-operated venture as well as to a corporate venture. A corporate equity group (100%
operator share) can be assigned as owner of operated ventures that are wholly owned by the company.
This might occur when a new venture is set up before prospective partners sign the agreement. In this case, a corporate equity group could be assigned to
ownership of the venture until the partners sign. When the partners sign the agreement, a new equity group, reflecting the new group of owners, would be
assigned to ownership of the venture.
If you are setting up equity groups in the International Region, refer to Creating a Joint Venture, and read the International Region section
for details on how to specify the funding currency and the substitute cost center at the equity group level.
!--a11y-->
1.2.2.1 Creating Equity Groups

Prerequisites
You must create a joint operating agreement (JOA) and joint venture accounting (JVA) partners before you create equity groups.
See also:
Creating a Joint Operating Agreement (JOA)
Business Partners
To access the screen on which you can create equity groups for the JOA from any other JOA screen, choose the function Equity groups . The Joint
PUBLIC
Page 12 of 109
Operating Agreement: Equity Groups screen will be displayed. On this screen, you can define either the operator share in the OperShare field or the nonoperating share in the NonOpShare field.
Menu Path
On the SAP Easy Access menu, choose
Master data Joint operating agmt Maintenance.
On the Joint Operating Agreement: Initial screen , choose Change.
The Joint Operating Agreement: Change screen appears.
Procedure
Enter a code for the JOA in the Joint Oper.Agr field on the Joint Operating Agreement: Change screen.
Choose the function Equity groups to access the Change Joint Operating Agreement: Equity Groups screen.
Enter an equity group code in the EG field.
Enter a percent ownership in the applicable fields ( OperShare field or NonOpShare field) or leave the field blank.
Refer to the definitions and table in the

Equity Groups section for additional information.
Enter a Description.
Choose ENTER. A venture type is assigned.
If the venture type assigned is non-operated, choose SAVE to complete setting up an equity group.
Proceed to step eleven, if the following venture type assigned is:
operated
on-billing
Use the menu path Details Partner shares to access the Change Joint Operating Agreement: Partner Shares screen.
Enter a partner code in the Partner field.
If you have created an equity group by copying from another equity group, and you want to remove the unsuspense flag from the Partner data, clear the U,
Per and Year fields associated with the unsuspense status.
Choose ENTER. Flag the S (suspense) field. Choose ENTER. You can now override or remove the defaulted period and year in the Per and Year fields
that are associated with the suspense status.
Enter the percent ownership of the joint venture in the EqShare field. The sum of the operating share added to all non-operating shares must equal
100%.
Flag the StopPay field X when revenue for a partner should not be included in the accounts receivable netting process. To remove a partner from the
StopPay status, leave the field blank.
Choose ENTER.
Use the menu path Goto Back to return to the Change Joint Operating Agreement: Equity Groups screen.
Choose SAVE. A system message confirms that the equity group has been set up.
!--a11y-->
1.2.2.2 Changing an Equity Group

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Master data Joint operating agmt Maintenance .
On the Joint Operating Agreement: Initial screen , choose Change.
The Joint Operating Agreement: Change screen is displayed
Procedure
1. Enter the joint operating agreement (JOA) code in the Joint Oper.Agr field on the Joint Operating Agreement: Change screen.
2. Choose the Equity groups function.
4. Choose SAVE. A system message confirms your changes to the JOA.
PUBLIC
Page 13 of 109
!--a11y-->
1.2.2.3 Displaying an Equity Group

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Master data Joint operating agmt Maintenance .
On the Joint Operating Agreement: Initial screen , choose Display.
The Joint Operating Agreement: Display screen appears.
Procedure
Enter the joint operating agreement (JOA) code in the Joint Oper.Agr field on the Joint Operating Agreement: Display screen.
Choose the function Equity groups .
!--a11y-->
1.2.3 Joint Ventures

Definition
A joint venture is an arrangement, based on the provisions of a joint operating agreement (JOA), in which two or more parties agree to work together for a
common purpose. Joint ventures are common when development or operational activities are capital intensive, involve high risk, and possibly long payback
periods. The joint venture allows participants to spread the risk by sharing in operational costs. The joint venture partners share revenues in proportion to their
investments. The partners also ensure operational efficiency, by contributing their expertise.
Use
The SAP joint venture business object is used to identify the type of venture, such as corporate, operated, or nonoperated, as well as the partners and their
working interests within the JOA. An equity group defines the joint venture partners and their interests. An equity type gives reason to the equity group.
Structure
Most expense data for joint ventures is captured in other SAP components and processed in SAP Joint Venture Accounting (JVA). When expenses are
captured, they are assigned to a cost object associated with a venture. SAP JVA re-assigns, these joint venture expenses to the joint venture operating
partner and the non-operating partners, according to their equity shares in the venture.
The following diagram illustrates how costs flow through SAP JVA.
PUBLIC
Page 14 of 109
There are five types of joint ventures or Venture types . Each type is used to identify a different form of ownership. The venture types are described in the
following table:
Operated (no tax)

Operated by the company managing SAP JVA
Allows carried interest (CI) or net profit interest (NPI), partner, and suspense processing
You can not add a tax to this type of venture
Operated (with tax)
Operated by the company running SAP JVA
Neither CI/NPI partner nor suspense processing is allowed for this type of venture
You can assign a tax code
Cutback calculates tax charges to venture partners, based on the tax setting for the company in the SAP JVA configuration
Non-operated venture
Company managing SAP JVA holds a non-operated venture share
This is billed by the operator for its share of venture expenses
Non-operated on-billing
Company running SAP JVA sells part of its non-operated share of the venture to third parties.
Company running SAP JVA distributes portions of the billings it receives from the venture operator to the partners in its non-operating share, in effect
acting as an operator toward these third party partners
Corporate venture
Company running SAP JVA holds a 100% interest
Only one default corporate venture and equity group exists in a JVA company
Expenses booked in the SAP JVA company without SAP JVA information, such as venture and equity group, are assigned to the corporate venture and
equity group by default
Your system administrator sets this up in configuration
!--a11y-->
1.2.3.1 Creating a Joint Venture

Prerequisites
Before you can create a joint venture, you must set up the following prerequisites:
Joint operating agreement (JOA)
Joint venture number range
Venture class
Equity groups
Posting method
Your system administrator sets up the joint venture number range, venture class, and posting method during configuration.
See also:
Creating a Joint Operating Agreement (JOA)
Creating Equity Groups
PUBLIC
Page 15 of 109
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Joint venture Maintenance.
On the Joint Venture Master: Initial screen , choose Create .
The Joint Venture Master Create screen appears.
Procedure
1. Enter a code for the new venture in the Joint Venture field on the Joint Venture Master: Create screen.
The range of possible joint venture codes has been set up in the configuration of your system. Joint venture codes are either automatically
assigned by the system (
Internal Code) or assigned by you (External Code).
2. Enter the Company code .
3. Enter a code in the Venture class field. A joint venture number range is assigned to a Venture class. This assignment determines whether the joint
venture code is generated internally or externally.
4. Enter a code for the JOA to which the venture will be assigned in the Joint Oper. Agr field.
5. Choose the Venture type that fits the ownership of the JV you are setting up. For further information, refer to the Venture type table in the
Joint Ventures
Only if you are using another joint venture as a model, enter the reference JV code in the Reference Joint Venture field.
6. Choose ENTER. The Create Joint Venture Master:Basic Screen is displayed.
7. Enter a brief description of the joint venture.
8. Enter a code in the Posting method field. The Posting method field determines whether the venture will be subject to cash calls.
9. Choose SAVE now or continue to complete the optional fields that are appropriate for your company and then save. A systems message confirms that a
joint venture has been created.
Optional fields on the Create Joint Venture Master: Basic screen: vary according to the region.
All Regions
The Venture active field is set by default. If the field is set , the venture expenses are included in cutback and billing.
International Region
In the Tax code field, you enter the code for the tax category containing the tax rate and cost calculation rules to be applied to venture expenses.
The Billing Format field code determines the layout of invoices and billing statements for the venture. If you perform billing at the venture level, as determined
by the company global parameters, you must define the billing format for each venture.
In the Billfrq field, you enter the code for the frequency at which billing is executed.
In the Ck. F. Cur. field, you enter an indicator if a check is to be performed, to ensure that all concurrently active equity groups in the venture have the same
funding currency.
On the Create Joint Venture Master: Equity Group screen, you can access the following optional fields by choosing the Fund Cur. by E. Grp . and the Sub.
Cost Obj . function keys:
Funding Currency
In the Funding Currency field, you enter the code for the funding currency for each equity group.
Substitute Cost Object
In the Substitute cost object fields,
RI, Cost center, Project/WBS, and Order number , you enter the code for the cost object to which the results of venture bank account (VBA) switching will be
posted.
Parent Company Overhead (PCO)
In the Parent company overhead fields, RI, Cost center, Project/WBS, and Order number, you enter the code of the parent company overhead for which
each equity group should be booked. If this field is blank, overheads are booked to the cost objects to which the original expenditures were booked. This only
applies to the international region.
See also:
Default Billing Currency
!--a11y-->
1.2.3.2 Changing a Joint Venture

Prerequisites
PUBLIC
Page 16 of 109
On the SAP Easy Access menu, choose Joint venture accounting Master data Joint venture Maintenance.
On the Joint Venture Master: Initial screen , choose Change .
The Joint Venture Master Change screen appears.
Procedure
1. Enter codes in both the Joint Venture and Company code fields on the Joint Venture Master: Change screen.
Basic screen
Equity groups
Equity Types
4. SAVE. A system message confirms that the joint venture has been changed.
!--a11y-->
1.2.3.3 Displaying a Joint Venture

Prerequisites
On the SAP Easy Access menu, choose Joint venture accounting
Master data Joint venture Maintenance.
On the Joint Venture Master: Initial screen , choose Display .
The Joint Venture Master: Display screen appears.
Procedure
Enter codes in both the joint venture and Company code fields on the Joint Venture Master: Display screen.
Basic screen
Equity groups
Equity Types
!--a11y-->
1.2.4 Equity Group and Equity Type Assignment

Definition
The following topics describe how to assign equity groups and equity types:
Equity Groups
Equity Types
Assigning Equity Groups to Joint Ventures
!--a11y-->
1.2.4.1 Equity Group Assignment

PUBLIC
Page 17 of 109
Use
After you set up a joint venture within a joint operating agreement (JOA), you must specify the owners of the venture. You establish ownership by assigning an
equity group within the JOA to the venture. This allows you to apportion all expenses booked to the venture to the partners in this equity group, based on their
equity share.
!--a11y-->
1.2.4.2 Equity Type Assignment

Use
Equity types explain the reason for a particular group of partners, represented by an equity group, within the venture during any billing period. While the joint
operating agreement (JOA) defines all possible partners and their working interests, all partners do not need to participate in all ventures at all times.
Therefore, the equity type is used to identify the active association of partners and their interests within a venture. The reasons for this active status may
result from elements of time, phase, or purpose according to operational requirements. You define equity types initially at the company code level and they are
available for all JOAs and their ventures. Equity types adopt a specific identity when they are associated with an equity group within a venture.
Features
Equity Type and Equity Group Relationships
!--a11y-->
1.2.4.3 Assigning Equity Groups to Joint Ventures

Prerequisites
Certain types of equity groups correspond to specific venture types. When you access the Change Joint Venture Master: Equity Types Assignm. screen, all
the equity groups set up for the joint operating agreement (JOA), that correspond to the venture type, are displayed. Correspondence between equity groups
and venture types depends on the entries made in the OperShare and the NonOperShare fields. These entries are made when you set up the equity group.
See also:
Equity Groups
Before you can assign an equity group to a joint venture, you must ensure that an equity type has been set up.
Menu Path
On the SAP Easy Access menu, choose
Joint venture accounting Master data Joint venture Maintenance.
PUBLIC
Page 18 of 109
On the Joint Venture Master: Initial screen , choose Change .

The Joint Venture Master: Change screen appears.
Procedure
1. Enter the joint venture code in the Joint Venture field on the Joint Venture Master: Change screen.
2. Enter the Company code .
3. Choose the function Equity types to access the Change Joint Venture Master:Equity Types screen. All the equity types for the company are listed on
this screen.
4. Choose Equity Type field to select the type that you want to assign to an equity group. This will display the Change Joint Venture Master: Equity Group
Assignm. screen where you can assign an equity group to the venture.
Valid from and EGAct Fields

You can post expense entries only to ventures with active equity groups. An indicator must appear in the EGAct field for an equity group. When
you make an equity group active, you must also indicate a date in the Valid from field. SAP JVA posts expense entries to the venture by using
the latest active equity group based on the system date (the date when the posting was entered). If there is no active equity group, a system
error message informs you that no active equity group exists for the venture.
You may specify a Valid from date for an equity group without making it active. If the active equity group for the venture has a Valid from date
that precedes the Valid from date of another equity group for the venture that is inactive, the system will post the entry to the venture, by using
the active equity group. A system message warns you that it used the latest active equity group, although another inactive equity group for the
venture with a later date exists.
5. Enter the validity date for the equity group within the venture in the Valid from and EGAct fields to connect an equity group to an equity type in the venture.
6. Choose ENTER. An x appears by default in the EGAct field indicator box to indicate that the equity group is active as of the date specified in the
previous step.
7. Use the menu path Go
Back.
8. Choose SAVE. A system message confirms the changes to the specified joint venture.
!--a11y-->
1.2.5 Joint Venture Accounting (JVA) Cost Objects

Use
You post SAP JVA expenses in SAP FI, SAP CO, SAP AM, and SAP MM. As you post these expenses, you assign these postings to cost objects that
contain links to SAP JVA.
The SAP cost objects are:
Cost centers
Internal orders
Projects and work breakdown structures (WBS elements)
Profit centers
You can assign profit centers to multiple companies that have joint venture activated.
Integration
You can link SAP JVA and the other applications by specifying SAP JVA attributes when setting up the cost objects. These attributes include the following:
Joint Venture
A joint venture is an association of two or more parties formed to diversify risks, achieve operational efficiencies, and share costs and revenues. Sharing is
proportional according to each partys interest in the venture. Each cost object used to post SAP JVA expenses must be assigned to a single joint venture.
Equity Type
An equity type describes the reason for a particular association of partners. This definition may be related to time, phase or purpose, and is linked to a specific
equity group.
Recovery Indicator
You may assign a recovery indicator (RI) to the cost object to indicate whether or not expenses posted using the cost object are billable to SAP JVA partners.
Billable expenses are assigned to partners. Non-billable expenses are assigned to the operator. You may override this RI in the posting itself.
Cost Object Type
PUBLIC
Page 19 of 109
SAP JVA cost object types carry the following information:

Type of expenses to be posted to cost objects (capital, AFE, drilling, catastrophic, cost calculation type, penalty category, field status selection)
Permissibility of overriding the RI manipulation rule for projects and orders (denoted in the MR-Override allowed field)
Cost calculation overhead type to be applied to cost objects (percentage producing, percentage development, CFR producing or drilling, construction,
operations, and maintenance)
Field selection requirements ( suppressed, optional, or mandatory )
Carried interest penalty category
JIB/JIBE Class and Subclass A (optional)
Joint interest billing (JIB) codes are used to classify international region accounts and joint interest billing exchange (JIBE) are used to classify US region
accounts.
Prerequisites
Your system administrator should set up the following prerequisites in SAP FI and SAP JVA before creating a cost center:
Joint venture
Equity type
Equity group assigned to a joint venture
Cost object types
JVA partners
See also:
Equity Group and Equity Type Assignment
Business Partners
!--a11y-->
1.2.6 Cost Centers

Definition
A cost center is an organizational unit that represents a defined location of cost incurrence.
The definition can be based on:
Functional requirements
Allocation criteria
Physical location
Responsibility for costs
!--a11y-->
1.2.6.1 Creating a Cost Center

Prerequisites
On the SAP Easy Access menu, choose Joint venture accounting Master data Cost center Create
The Create Cost Center:Initial screen is displayed and the Set controlling area dialog box appears.
Procedure
1. On the Create Cost Center: Initial screen , the system prompts you to enter your companys controlling area in the Set controlling area dialog box. Enter a
code. Choose Continue .
2. Enter the Cost center . Choose ENTER.
3. Enter the cost center name in the Name field.
4. Enter the name of the responsible party in the Person responsible field .
5. Specify the codes for the Cost center category, Hierarchy area, and Business area fields, if they are required.
6. Choose the Joint venture function. A Joint Venture screen pops up. If you receive a warning you can override it. Choose ENTER and then select the
Joint venture function key.
7. Specify the codes for the Joint venture, Recovery Indicator, Equity Type, and JV CC type (joint venture cost center type) fields . Choose ENTER .
PUBLIC
Page 20 of 109
The Recovery Indicator field specifies the billing status. The Equity Type denotes the validation date. The JV CC type determines the type
of overhead to be applied when you run cost calculations.
8. Choose SAVE. A system message confirms that a cost center has been created.
!--a11y-->
1.2.6.2 Changing a Cost Center

Prerequisites
On the SAP Easy Access menu, choose Joint venture accounting Master data Cost center Change.
The Change Cost Center:Initial screen is displayed, and the Set controlling area dialog box appears.
Procedure
On the Change Cost Center:Initial screen, the system prompts you to enter your companys controlling area in the Set controlling area dialog box.
Enter a code. Choose Continue .
Enter a cost center code. Choose ENTER.
Choose from the following tabstrips:
Basic data
Control
Templates
Address
Communication
History
Enter your changes
SAVE. A system message confirms the changes to the cost center.
!--a11y-->
1.2.6.3 Displaying a Cost Center

Prerequisites
On the SAP Easy Access menu, choose Joint venture accounting Master data Cost center Display.
The Display Cost Center:Initial screen is displayed, and the Set controlling area dialog box appears.
Procedure
On the Display Cost Center Initial screen, the system prompts you to enter your companys controlling area in the Set controlling area dialog box .
Enter a code. Choose Continue .
Enter a code in the cost center field. Choose ENTER.
Choose from the following tabstrips:
Basic data
Control
Templates
Address
Communication
History
PUBLIC
Page 21 of 109
!--a11y-->
1.2.7 Internal Orders

Definition
As expenses are generated in standard SAP components, cost objects pass these expenses to SAP Joint Venture Accounting (JVA). An internal order is one
type of cost object.
Use
Like all cost objects, an internal order provides the JVA information required to associate the posting with a joint venture or equity group combination. Cost
objects also provide billing rules through recovery indicator information and overhead rules through the cost object type.
!--a11y-->
1.2.7.1 Creating an Internal Order

Prerequisites
You should set up the following prerequisites in SAP FI and SAP Joint Venture Accounting (JVA) before creating an internal order:
Joint venture
Equity type
Cost object types
Recovery indicator
In addition, the status for internal orders must be released. To determine whether or not an order has been released, check the status by using
the Goto Status menu path. To release the order, use the menu path Edit Release
See also:
Creating a Joint Venture
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Internal order Create .
The Create Internal Order: Initial screen appears.
Procedure
Enter the Order type on the Create Internal Order: Initial screen .
Choose ENTER. The Create Internal Order: Master data screen appears.
Enter a description of the order in the Short text field.
Enter the Company code. You can enter only company codes that are set up under the specified controlling area at configuration.
Enter the Business area. You can enter only business areas that are set up under the specified controlling area and company code at configuration.
A settlement can contain a final allocation of costs from orders or work breakdown structure (WBS) elements to the following:
Cost centers
Projects
Fixed assets
General ledger accounts
Networks
Materials sales orders
Cost objects defined in the settlement rule for the sender.
6. Choose the function Settlement rule only if you want to specify the settlement rule. The Maintain Settlement Rule: Overview screen appears. This
step is optional. Find the Settlement receiver section of the screen. Enter the receivers Cost center .
7. SAVE your data. A system message confirms that your order was created and an order number is generated.
Settlement Rules
PUBLIC
Page 22 of 109
Settlement rules and the objects assigned to them govern settlements of expenses from WBS elements (or orders) to their receivers. Settlement rules are
assigned to both WBS elements and orders, and list the settlement objects (chiefly the settlement profile that governs the execution of settlement).
There are three types of objects assigned to settlement rules
Origin structure
groups sending cost elements together in order to settle them to dedicated receivers.
Settlement structure
defines the secondary cost elements used to post the results of the settlement to the receiving objects.
Settlement profile
is composed of the origin structure, settlement structure, and further settlement steering information.
When the origin structure, settlement structure, and settlement profile are defined, you can assign the settlement profile to the WBS element or order.
!--a11y-->
1.2.7.2 Changing an Internal Order

Prerequisites
On the SAP Easy Access menu, choose Joint venture accounting Master data Internal order Change .
The Change Internal Order: Initial screen appears.
Procedure
Enter the order number in the Order field on the Change Internal Order: Initial screen .
Choose ENTER. The Change Internal Order: Master Data screen appears.
Change or enter additional data on this screen.
Choose SAVE. A system message confirms the changes to the order.
!--a11y-->
1.2.7.3 Displaying an Internal Order

Prerequisites
Menu Path
On the Sap Easy Access menu, choose Joint venture accounting Master data Internal Order Display .
The Display Internal Order: Initial screen appears.
Procedure
Enter the order number in the Order field on the Display Internal Order: Initial screen .
Choose ENTER. The Display Internal Order: Master Data screen appears.
Choose the following tabstrips to access additional information:
Assignments
Control data
Prd-end closing
General data
Investments
!--a11y-->
PUBLIC
Page 23 of 109
1.2.8 Projects and Work Breakdown Structure (WBS)

Elements
Definition
A WBS is a hierarchical project model representing the actions and activities to be carried out in the project.
Use
The WBS gives you an overview of the project. It contains the work, time and costs involved. WBS elements are the individual structure elements in the WBS.
The term describes a concrete task or a partial task which can be further subdivided.
Structure
The following is a list of WBS properties:
Planning (to plan actual costs)
Account assignment (to post costs)
Billing (to post revenues)
The SAP Joint Venture Accounting (JVA) information you specify at the project level is applied to all WBS elements within the project, as you set them up.
You must assign all WBS elements to a project. Therefore, you must set up the project before attempting to set up a WBS element. In order to set up a
project, you must assign it to a project profile. The profile should be set up as a part of SAP CO configuration.
!--a11y-->
1.2.8.1 Creating a Project

Prerequisites
You need to set up the following prerequisites in SAP FI and SAP Joint Venture Accounting (JVA) before you create a project or work breakdown structure
(WBS):
Joint venture
Equity type
Cost object types
For additional information regarding the prerequisites, refer to the following topics:
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Projects/AFEs Project builder .
The Project Builder screen appears.
Procedure
In the Project Builder screen, choose Project New Project.
Under Identification and view selection, enter a brief description of the project in the Project def . field.
Specify the Project Profile code.
Choose the Detail function. The data in the Controlling area, Company code, Business area and Proj.currency fields appears automatically.
To specify JVA information for the project, choose the WBS Element Overview function.
The JVA information you specify at the project level applies to all WBS elements within the project, as you set them up.
Continue directly to setting up your WBS elements or SAVE your data now.
A system message confirms that the project has been created.
PUBLIC
Page 24 of 109
!--a11y-->
1.2.8.2 Changing a Project

Prerequisites
Menu Path
Procedure
To change a project, proceed as follows:
1. In the Project Builder screen, choose Project Open.
The Open project dialog box appears.
2. Enter the description of the project in the Project def inition field on the Open project dialog box.
3. Choose from the following function keys to access the change screens:
Function
Screen Name
Structure
Change Project: WBS Elements - Descriptions
Person respons
Change Project: WBS Elements - People Responsible
User status
Change Project: WBS Elements - User Status
System status
Change Project: WBS Elements - System Status
Proj.definition
Change Project: Project definition Basic Data
SAVE. A system message confirms that your project has changed.
From each of the Change Project screens, you can choose the following function keys for additional detail:
Proj.definition
WBS elem.
Settlement rule
Summarization
!--a11y-->
1.2.8.3 Displaying a Project

Prerequisites
Procedure
In the Project Builder screen, choose Project Open.
The Open project dialog box appears.
Enter the description of the project in the Project def inition field on the Open project dialog box.
Choose ENTER.
!--a11y-->
1.2.8.4 Creating a Work Breakdown Structure (WBS)

PUBLIC
Page 25 of 109
Prerequisites
You need to set up the following prerequisites in SAP FI and SAP Joint Venture Accounting (JVA) before you create a project or WBS:
Joint venture
Equity type
Cost object types
For additional information regarding the prerequisites, refer to the following topics:
Menu Path
You can create a WBS from the WBS screens or from the project set-up screens.
Procedure 1: Creating a WBS from WBS Screens

1. Enter data in the Project def. and WBS element fields on the Create WBS element: Initial Screen .
2. Choose the WBS elem. function (or Enter). The Create WBS element: Basic Data screen appears.
3. Enter a brief description of the WBS element in the field provided.
4. Examine the basic data. Changing the basic data appearing on this screen is optional.
5. To change the JVA information provided by the project, choose the tabstrip Joint venture and complete the appropriate fields.
A settlement can contain a final allocation of costs from orders or WBS elements to the following:
Cost centers
Projects
Fixed assets
Networks
Cost objects defined in the settlement rule for the sender
6. Choose the function Settlement rule only if you want to specify the settlement rule . The. Maintain Settlement Rule: Receiver Selection screen is
displayed.
7. Choose the appropriate Receiver . Choose Enter.
8. Complete the appropriate fields in the Settlement receiver section of the screen. Choose Enter.
9. Choose SAVE. The system returns to the initial screen. A system message confirms that a WBS element was created.
Settlement Rules
Settlement rules and the objects assigned to them govern settlements of expenses from WBS elements (or orders) to their receivers. Settlement rules are
assigned to both WBS elements and orders, and list the settlement objects (chiefly the settlement profile that governs the execution of settlement).
There are three types of objects assigned to settlement rules
Origin structure
groups sending cost elements together in order to settle them to dedicated receivers.
Settlement structure
defines the secondary cost elements used to post the results of the settlement to the receiving objects.
Settlement profile
is composed of the origin structure, settlement structure, and further settlement steering information.
Procedure 2: Creating a WBS from Project Set-Up Screens

1. Choose Structure .
2. Enter the name of the WBS in the WBS element field.
3. Complete the Description field.
4. If you want to change the JVA information provided by the project, choose the tabstrip Joint venture and complete the appropriate fields.
A settlement can contain a final allocation of costs from orders or WBS elements to the following:
Cost centers
Projects
Fixed assets
Networks
PUBLIC
Page 26 of 109

Cost objects defined in the settlement rule for the sender
5. Choose the function Settlement rule only if you want to specify the settlement rule . The Maintain Settlement Rule: Receiver Selection screen is
displayed.
6. Choose the appropriate Receiver . Choose ENTER.
7. Complete the appropriate fields in the Settlement receiver section of the screen. Choose ENTER.
8. Choose SAVE.
!--a11y-->
1.2.8.5 Changing a Work Breakdown Structure (WBS)

Prerequisites
Procedure
1. Enter the WBS element on the Change Project: Initial Screen .
2. Choose from the following function keys to access the several change screens:
Function
Screen Name
Structure
Change Project: WBS Elements - Descriptions
Person respons
Change Project: WBS Elements - People Responsible
User status
Change Project: WBS Elements - User Status
System status
Change Project: WBS Elements - System Status
Proj.definition
Change Project: Project definition Basic Data
3. SAVE. A system message confirms the changes to your WBS element.
!--a11y-->
1.2.8.6 Displaying a Work Breakdown Structure (WBS)

Prerequisites
Procedure
1. Enter the WBS element on the Display Project: Initial Screen .
2. Choose from the following function keys to access the several display screens:
Function
Screen Name
Structure
Display Project: WBS Elements - Descriptions
Person respons
Display Project: WBS Elements - People Responsible
User status
Display Project: WBS Elements - User Status
System status
Display Project: WBS Elements - System Status
Proj.definition
Display Project: Project definition Basic Data
PUBLIC
Page 27 of 109
!--a11y-->
1.2.9 Joint Venture Information and Profit Centers

Use
SAP Joint Venture Accounting (JVA) allows you to assign joint venture information to profit centers. You can assign a single profit center to multiple SAP FI
companies and to multiple joint ventures, when the number of joint ventures equals the number of SAP FI companies.
!--a11y-->
1.2.9.1 Assigning Joint Venture Information to a Profit Center

Use
You can assign the following joint venture information to a profit center:
Joint venture
Recovery indicator
Joint venture object type
Joint information billing (JIB) or joint information billing extended (JIBE) class and subclass
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Accounting Controlling Profit Center Accounting Master data Profit Center Individual Processing
Change .
The Change Profit Center screen appears.
Enter the code for the profit center to which you wish to assign joint venture information and press ENTER
Procedure
Choose the Joint venture tabstrip on the Change Profit Center screen.
A list appears, displaying the companies to which the profit center was assigned. Select the appropriate SAP FI company.
The Joint venture data dialog box appears.
Enter the required joint venture information.
When you exit the Joint venture data dialog box, you return to the list of assigned companies. You can choose another company for the profit center and
assign joint venture information for the SAP FI company.
!--a11y-->
1.2.9.2 Displaying Joint Venture Information Assigned to a

Profit Center
Use
The following joint venture information can be assigned to a profit center:
Joint venture
Recovery indicator
JIB or JIBE class and subclass
PUBLIC
Page 28 of 109
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Accounting Controlling Profit Center Accounting Profit Center Master data Profit Center
Individual Processing Display .
Enter the code for the controlling area in the Controlling area dialog box and press ENTER .
The Change Profit Center:Request screen appears.
Enter the code for the profit center to which you wish to assign joint venture information and press ENTER .
Procedure
Choose the Joint venture tabstrip on the Change Profit Center screen.
A list appears, displaying the companies to which the profit center was assigned. Select the appropriate SAP FI company.
The Joint venture data dialog box appears.
When you exit the Joint venture data dialog box, you return to the list of assigned companies. You can choose another company for the profit center
and display the joint venture information assigned for the SAP FI company.
!--a11y-->
1.2.10 Logistical Orders

Use
You can assign joint venture information directly to a logistical order. If no joint venture information is available on the order, it can be derived from the joint
venture information assigned to other cost objects specified on the logistical order.
You can assign joint venture information by using the following types of logistical orders:
Production orders
Plant maintenance orders
Network orders
!--a11y-->
1.2.10.1 Assigning Joint Venture Information to Production

Orders
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Logistics Production Production control Order Change.
The Production Order Change: Initial screen appears.
You can assign joint venture information to production orders in two ways:
Through the cost objects that are assigned to the plant
Through the joint venture information assigned directly to the plant maintenance order
PUBLIC
Page 29 of 109
Procedure
Cost objects for production orders
You can only assign work breakdown structure (WBS) elements to production orders.
Derivation of joint venture information
By default, the joint venture information for a production order is derived from the WBS element assigned to the order.
To assign a WBS element to a production order, choose the tabstrip Assignment on the Production Order Change screen.
To assign joint venture information directly to a production order or to display the joint venture information derived from the WBS element assigned to the
order, choose the tabstrip Assignment and choose the Joint venture button.
!--a11y-->
1.2.10.2 Assigning Joint Venture Information to Network

Orders
Prerequisites
On the SAP Easy Access menu, choose Logistics Project System Project Project Builder.
The Project Builder screen appears.
Choose a network.
You can assign a WBS element to a network order on a header level or an activity level.
You can assign a WBS element to a network order on a header level or an activity level.
Procedure
Cost Objects for Network Orders
You can only assign WBS elements to network orders.
Derivation of JV Information
By default, the joint venture information for a network order is derived from the
WBS element assigned to the order.
On the Network header or Network activity, choose the Assignments tab and then select the Joint venture button .
!--a11y-->
1.2.10.3 Assigning Joint Venture Information to Plant

Maintenance Orders
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Logistics Plant Maintenance Maintenance processing Order Change .
The Change Order: Initial screen appears.
You can assign joint venture information to plant maintenance orders in two ways:
Through the cost objects that are themselves assigned to the plant
Through the joint venture information assigned directly to the plant maintenance order
PUBLIC
Page 30 of 109
To assign the following cost objects to plant maintenance orders, choose the tabstrip Frame and enter the appropriate information in the relevant fields under
the heading Account assignment:
1. Cost center
2. WBS element
3. Settlement order
If you assign a cost center and a WBS element to an order, the joint venture information on the cost center takes precedence over that on
the WBS element. Also, the joint venture information on the WBS element takes precedence over that on an internal order.
Procedure 1
To assign joint venture information to a plant maintenance order through a cost center, an internal order or a WBS element, proceed as follows:
1. Choose the tabstrip Location .
2. In the appropriate field under the heading Account assignment, enter a cost center, a WBS element, or a settlement order.
Procedure 2
To assign joint venture information directly to a plant maintenance order or to display the joint venture information derived from one of the cost objects
assigned to the order, proceed as follows:
1. On the Maintenance Order Request screen, choose the pulldown menu Goto Assignments Joint venture .
2. Enter the following joint venture information:
Joint venture
Recovery indicator
Equity type
Joint interest billing (JIB) or joint interest billing extended (JIBE) class and subclass A
!--a11y-->
1.2.11 Business Partners

Purpose
Joint ventures are owned by business partners organized into groups called equity groups. Before you can set up the equity groups for the joint ventures, you
must first set up the business partners in SAP Joint Venture Accounting (JVA).
Process Flow
When you set up the business partners, you should set up a customer and a vendor account in SAP FI for all SAP JVA partners. You set up joint venture
partners, by using the following steps:
1. You create customer accounts for SAP JVA partners.
2. You create vendor accounts for SAP JVA partners.
3. You maintain SAP JVA partners.
!--a11y-->
1.2.11.1 Creating Customer Accounts (Accounts Receivable)

Procedure
Menu Path
PUBLIC
Page 31 of 109
On the SAP Easy Access menu, choose Joint venture accounting Master data Business partners Customers Create.
The Create Customer: Initial Screen appears.
!--a11y-->
1.2.11.2 Creating Vendor Accounts (Accounts Payable)

Prerequisites
You must create a vendor account for the partner in SAP FI accounts payable if:
You plan to use SAP JVA processes that generate accounts payable for partners (such as convenience netting and carried interest or net profit interest
processing)
The partner is an operator of a venture in which the company, for which SAP JVA is being configured, has a non-operating interest
Procedure
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Business partners Vendors Create.
The Create Vendor: Initial Screen appears.
!--a11y-->
1.2.11.3 Maintaining a Joint Venture Accounting (JVA)

Business Partner
Prerequisites
You must assign a new customer account to a company in SAP FI accounts receivable before you maintain an SAP JVA business partner for the customer.
Menu Path
Master data Business partners JV partners Maintain.
The Enter company code dialog box appears.
Procedure
Enter the company code in the dialog box. Choose ENTER . The Change View "Partner": Overview screen appears.
Choose New entries to define a new business partner group for your company. The New Entries: Details of Added Entries screen appears.
Enter the code for the new partner in the Partner field.
Complete the optional fields on the screen.
Some of the important fields include:

Cash call
Cash Call Threshold
The Cash Call Threshold is the minimum amount for which you can issue a cash call to a partner. Any cash calls below this amount are
not posted.
Partn/VE CC Threshold
Partn/PJ CCThreshold is the minimum amount for which you can issue a cash call to a partner for a Partner/Project/Operations Month
combination. Any cash calls below this amount will not be posted.
PUBLIC
Page 32 of 109
Partn/PJ CCThreshold
Partn/PJ CCThreshold is the minimum amount for which you can issue a cash call to a partner for a Partner/Project/Operations Month
combination. Any cash calls below this amount will not be posted.
Billing
Paper to Owner
The Paper to Owner indicator determines whether or not a partner will receive hard copy billing.
EDI to Owner
The EDI to Owner indicator determines whether or not a partner will receive electronic data interchange (EDI) billings.
Hardcopy Billing
Billing Format
The Billing Format field code determines the layout of invoices and billing statements for the venture. If you perform billing at the venture
level, as determined by the company global parameters, you must define the billing format for each venture.
EDI
EDI Partner Code
EDI Partner code is a code assigned externally by the EDI governing authority with jurisdiction over EDI in that area and sector. For
example, COPAS assigns these partner codes to oil companies in the United States. PASC is responsible for EDI partner codes for oil
companies in Canada.
Other
Convenience Netting
Generally, only US and Canadian region companies use convenience netting. There are three steps in the convenience netting process:
1. All open expense items for a partner for a specified period are summarized
2. All open revenue entries for the partner for the period are summarized
3. If the summarized revenues exceed the expenses, a single credit entry is posted to the partners vendor account in FI Accounts Payable
Convenience netting posts this credit entry to the partners account only if there is a credit balance. If there is no credit balance for the
partner, the netting program does not post.
Tax code
In the Tax code field, you enter the code for the tax category containing the tax rate and cost calculation rules, to be applied to venture
expenses.
Partner Proc. Group
Processing groups ( Partner Proc. Group) are set up at configuration. During the reclassification process you can specify a group. Cash
call payments for all members of the group are processed in the same way.
5. Choose SAVE.
!--a11y-->
1.2.11.4 Changing Joint Venture Partner Data

Prerequisites
Menu Path
On the Sap Easy Access menu, choose Joint venture accounting Master data Business partners JV partners Change.
PUBLIC
Page 33 of 109
Procedure
1. Enter the company code in the dialog box. Choose ENTER . The Change View "Partner": Overview screen appears.
2. Mark the appropriate Partner by clicking on the far left column. An arrow points to the selected Partner .
3. From the menu, choose: Goto Details.
The Change View "Partner": Details screen is displayed .
4. Change or enter additional data on this screen.
5. Choose SAVE. A system message confirms that the data is saved.
!--a11y-->
1.2.11.5 Displaying Joint Venture Partner Data

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Business partners JV partners Display .
Procedure
Enter the company code in the dialog box. Choose ENTER . The Display View "Partner": Overview screen appears.
Select the appropriate Partner by clicking on the far-left column. An arrow points to the selected Partner .
From the menu, choose: Goto Details
The Display View "Partner": Details screen appears .
!--a11y-->
1.2.11.6 Creating an Additional Address

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Business partners JV partners Additional addresses .
Procedure
1. Enter the company code in the dialog box. Choose ENTER. The Change View "Partner addresses": Overview screen appears.
2. Select the appropriate Partner by clicking on the far-left column. An arrow points to the selected Partner .
3. From the menu, choose Edit Address.
The Edit Address screen appears.
4 Enter the address data.
5. Choose SAVE.
!--a11y-->
1.2.12 Suspension of JVA Projects, Partners, and Equity

Groups
PUBLIC
Page 34 of 109
Purpose
If a project, partner, or equity group is suspended, cutback postings are not executed. When you remove the project, partner, or equity group from suspense,
cutback processes all expenses incurred during suspense. Suspended partners do not receive an invoice. When partners are removed from suspense, they
receive an invoice that includes expenses for the complete period of suspense.
You cannot place equity groups in suspense if there are any outstanding current or future postings to the equity group.
You can place work breakdown structure (WBS) elements in suspense if there are outstanding current or future postings other than cash calls.
You cannot place WBS elements in suspense if current or future cash calls have been posted for the WBS element.
You cannot place the WBS element in suspense if any SAP Joint Venture Accounting (JVA) month end processes have been run.
!--a11y-->
1.2.12.1 Suspending a Joint Venture Accounting (JVA) Project

Prerequisites
You must set up the following prerequisites before you can suspend the project:
Partners
Equity groups in the joint operating agreement (JOA)
Projects and work breakdown structures (WBSs) in SAP CO
The projects and WBSs must be released. To determine whether an order has been released, you check the status by using the Goto Status menu path.
To release a project and WBS, you use the menu path Edit Release.
See also:
Business Partners
Projects and Work Breakdown Structure (WBS) Elements
Menu Path
On the SAP Easy Access screen, choose Joint venture accounting Master data Projects/AFEs Maintain JV project suspense .
Procedure
Enter the company code in the Enter company code dialog box. The Change View "Project in Suspense": Overview screen appears.
Choose the New entries function key. The New Entries: Overview of Created Entries screen appears.
Enter data into the JV Project field.
To suspend the project:
Choose the S indicator. An x in this field indicates that all records on the joint venture ledger booked to this project will be placed in suspense and will
not be cutback until the project has been removed from suspense.
Enter a period in the Susp.Peri. field to specify the project suspense beginning period.
Enter a year in the SuPeYear field to specify the project suspense year.
5. To remove the project from suspense
Choose the U indicator. An x in this field indicates that all records on the joint venture ledger booked to this project will be removed from suspense
and will be cutback.
Enter a period into the Unsusp.Per field to specify the period in which a project is removed from suspense.
Enter a year into the UnSuPeYear field to specify the year in which the project is removed from suspense.
Either the S field (suspense) or the U field (unsuspense) will be activated. Both indicators can not be activated at the same time.
6. Choose ENTER.
7. Choose SAVE. A system message confirms that your data has been saved.
!--a11y-->
1.2.12.2 Suspending an Equity Group

PUBLIC
Page 35 of 109
Prerequisites
Menu Path
On the SAP Easy Access screen, choose Joint venture accounting Master data Joint operating agmt Maintenance .
The Joint Operating Agreement: Initial screen appears .
On the Joint Operating Agreement: Initial screen , choose the Change button.
Procedure
Enter the code for the Joint Venture on the Joint Operating Agreement: Initial screen.
Enter the Company code.
Use the menu path Go To Equity groups. The Change Joint Operating Agreement: Equity Group screen appears.
Choose the S indicator. An x will appear in the box.
Enter a period code in the Per field.
Enter a year in the Year field.
To remove an equity group from suspense:
Choose the U indicator. An x will appear in the box.
1. Choose SAVE. A system message confirms that the JOA has been changed.
!--a11y-->
1.2.12.3 Suspending a Joint Venture Accounting (JVA) Partner

Prerequisites
Menu Path
On the SAP Easy Access screen, choose Joint venture accounting Master data Joint operating agmt Maintenance.
The Joint Operating Agreement: Initial screen appears.
On the Joint Operating Agreement: Initial screen , choose the Change button.
Procedure
Enter the code for the Joint Venture on the Joint Operating Agreement: Initial screen .
Use the path Go To Equity groups . The Change Joint Operating Agreement: Equity Group screen is then displayed.
Choose the EG field to choose the JVA partners equity group. The Change Joint Operating Agreement: Partner Shares screen is then displayed.
5. To suspend a partner:
Choose the S indicator. An x will appear in the box.
6. To remove a partner from suspense:
Choose the U indicator. An x will appear in the box.
Enter a period code in the Per field
Enter a year in the Year field
Use menu path Goto Back.
7. Choose SAVE. A system message confirms changes to the JOA.
!--a11y-->
1.2.13 Intercompany Mapping Functions

Use
The intercompany functions of SAP Joint Venture Accounting (JVA) enable you to map transactions between two companies that are running SAP JVA and
share property ownership. In an intercompany venture, between companies running SAP JVA, there is a relationship between the company that operates the
PUBLIC
Page 36 of 109
intercompany property and the company that holds a non-operating interest in the intercompany property.
Prerequisites
You must create ventures, equity groups, and cost objects for the operator non-operating partner.
Activities
The intercompany functions work by mapping the following objects in the operated venture:
Joint venture
Equity group
Cost center
Internal orders
Work breakdown structure (WBS) elements
Networks
Assets
Accounts receivable and accounts payable (optional)
During normal processing, expenses are booked to the cost objects connected to the operated joint venture for the intercompany venture.
Cutback is executed at the end of the accounting period.
The company that operates the intercompany property posts the appropriate portion of expenses to the cost object, which is connected to the nonoperated joint venture and equity group in the non-operating partner company.
!--a11y-->
1.2.13.1 Mapping Prerequisites

Definition
You must configure the operator and non-operating partner in standard SAP components and in SAP Joint venture Accounting (JVA). In your companys
system, you must set up a customer account (in accounts receivable) and a vendor account (in accounts payable) for the appropriate partner company. When
you have set up the customer and vendor accounts for the partner company, you set this company up as a JVA partner.
Use
This procedure is the same as setting up a typical JVA partner, except that you also enter the SAP company code for the appropriate partner company in the
ICoC field on the JVA Partner screen.
To do this, go to the Master Data Business partners menu path on the SAP JVA main menu.
See also:
Business Partners
You must set up an operated equity group for the operator. The non-operating partner holds a non-operating interest in this equity group.
You assign this equity group to ownership of a joint venture with one of the following venture types:
1. 1 Operated venture (no tax)
2. 4 Operated venture (with tax)
You also create appropriate cost objects with JVA information for this venture.
You must set up a non-operating equity group for the non-operating company.
You assign this equity group to ownership of a joint venture with one of the following venture types:
1. 2 Non-operated venture
2. 3 Non-operated venture for on-billing
As you set up this non-operated joint venture, you must enter the operators customer account code on the JV basic screen. You must also create
appropriate cost objects (with SAP JVA information assigned) for this venture.
Operated-Intercompany Venture
Ventures operated by your company, in which a related company holds a non-operating share, are called operated intercompany ventures. To set up an
intercompany venture that your company operates, follow this procedure:
At the JOA level, set up an operating equity group:
PUBLIC
Page 37 of 109
Enter your companys operated percentage of ownership in the OperShare field on the Joint Operating Agreement: Equity Groups screen ( Master data
Joint operating agmt Change Equity groups) .
Enter the related companys non-operating share of ownership in the Partner and EqShare fields of the Joint Operating Agreement: Partner Shares screen (
Details Partner shares).
Set up the joint venture with a venture type of operated for the intercompany venture ( Master data Joint venture Created) .
Identify the non-operated venture ( INTCOV field) and equity group ( ICE field) in the related company that corresponds to this operated venture in your
company on the Joint Venture Master: Intercompany Data screen ( Goto Intercompany venture) .
Assign the equity group for the intercompany operated venture to ownership of this joint venture via the appropriate equity type.
Non-Operated Intercompany Venture

Non-operated intercompany ventures are ventures operated by a related company in which your company holds a non-operating share. To set up your
company as a non-operated intercompany venture follow this procedure:
1. At the JOA level, set up an non-operating equity group:
Enter your companys non-operated percentage of ownership in the NonOperShare field on the Joint Operating Agreement: Equity Groups screen ( Master
data Joint operating agmt Change Equity groups) .
2. Set up the joint venture with a venture type of non-operated for the intercompany venture ( Master data Joint venture Created) :
3. Identify the related company that operates the intercompany venture by entering its customer account code in the Operator field on the Joint Venture
Master: Basic screen. You can also enter the following additional data for the operator: Tax code , Terms of payment , and Tax jurisdiction code .
4. Assign the equity group for the intercompany non-operated venture to ownership of this joint venture, by using the appropriate equity type.
The operating company will book expenses to an operated venture that corresponds to this non-operating venture in your company. Your company will be
identified as a non-operating partner in that venture. Your companys portion of the expenses booked to that operated venture in the related company will be
forwarded to your company.
!--a11y-->
Reconciliation of Intercompany Mapping for Cutback

Use
During the process of intercompany cost object cutback mapping, cost objects related to ventures and equity groups in a company code (sender) are mapped
to a cost object related to venture and equity group in an intercompany code (receiver). Each intercompany mapping transaction (GJ26, GJ28, GJ30, GJ3D
GJ32, and GJ3B) contains an appropriate menu option (for account, cost center, project, network, internal order, and asset, respectively) For all those options,
you can enter a sender company code and a sending cost object range, together with a receiving company code and a receiving cost object. Within joint
venture master data, table T8JI stores the company code, venture, and equity group information of the operator and the appropriate partners.
SAP Joint Venture Accounting (JVA) contains a reconciliation check, to ensure consistent and accurate intercompany cost object cutback mapping.
Menu Path
On the SAP Easy Access menu, choose Accounting Joint Venture Accounting Master data Intercompany mapping Reconcile intercompany
mapping for cutback .
Features
The reconciliation check automatically verifies the accuracy of the intercompany cutback mapping, eliminating the risk of failed intercompany cutback
postings. The reconciliation check is designed to do the following:
Read all cost objects in the from range and determine the venture and equity type information of all cost objects
Read the venture and equity type information of the receiving cost object
Find the ventures and equity groups in T8JI and check the correct relation of ventures and equity groups on the company and intercompany side
Send an error message if there is no corresponding entry in T8JI, or if there is an entry in T8JI for an equity group other than the active equity group
!--a11y-->
1.2.13.3 Mapping Accounts

Prerequisites
Mapping Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Intercompany mapping Accounts.
PUBLIC
Page 38 of 109
Procedure
1. Enter the Company code on the Enter company code dialog box. Choose ENTER . The Change View "Cutback rules/accounts": Overview screen
appears.
2. Choose the New entries function. The New Entries: Overview of Created Entries screen appears.
3. Enter the Company Code for the related company that holds a non-operating interest in the intercompany venture in the ICoC field.
4. Enter the account code (or the first in a range) of the operating company in the Accnt From field.
5. Enter the account code (or the last in a range) of the operating company in the Account to field (optional if you only specify one account).
6. Enter the account code, for non-operating partner, in the Accnt cut field. This account in the non-operating company receives the expenses posted
by cutback in the operator.
7. Choose SAVE .
!--a11y-->
1.2.13.4 Mapping Cost Centers

Prerequisites
Menu Path
On the SAP Easy Access menu choose Joint venture accounting Master data Intercompany mapping Cost centers
Procedure
To map cost centers, proceed as follows:
1. Enter the Company code in the Enter company code dialog box. Choose ENTER . The Change View "Cutback rules/cost centers": Overview screen
appears.
3. Enter the Company Code for non-operating company in the intercompany venture in the ICoC field.
4. Enter the cost center code (or the first in a range) for the operator in the CCntr From field.
5. Enter the cost center code (or the last in a range) for the operator in the CCntr To field (optional if you only specify one cost center).
6. Enter the cost center code of the non-operating company in the CCntr Cut field. This cost center in the non-operating company receives the
expenses posted by Cutback in the operator.
7. Choose SAVE .
!--a11y-->
1.2.13.5 Mapping Projects / Work Breakdown Structure (WBS)

Elements
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Intercompany mapping Projects/WBS elemnts.
Procedure
1. Enter the company code in the Enter company code dialog box. Choose ENTER . The Change View "JV Project Intercompany Cutback Rule":
Overview screen appears.
PUBLIC
Page 39 of 109
2.
3.
4.
5.
6.
Choose the New entries function The New Entries: Overview of Created Entries screen appears.
Enter the Company Code for the non-operating company in the ICoC field.
Enter the project code (or the first in a range) for the operator in the Project From field.
Enter the project code (or the last in a range) for the operator in the Project to field. This is optional if you specify only one project or WBS element.
Enter the project code for the non-operating company in the Cutback project field. This project in the non-operating company receives the expenses
posted by Cutback in the operator.
7. Choose SAVE .
!--a11y-->
1.2.13.6 Mapping Networks

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Intercompany mapping Networks .
Procedure
1. Enter the company code in the Enter company code dialog box. Choose ENTER . The Change View "Cutback: Intercompany network mapping":
Overview screen appears.
3. Enter the Company Code for the non-operating company in the ICoC field.
4. Enter the network code (or the first in a range) for the operator in the Network from field.
5. Enter the operation code for the operator in the Op. from field.
6. Enter the network code (or the last in a range) of the operator in the Network to field. This is optional if you specify only one network.
7. Enter the operation code (or the last in a range) of the operator in the Op. to field. This is optional if you specify only one operation.
8. Enter the network code of the non-operating company in the Cutback project field. This network in the non-operating company receives the expenses
posted by Cutback in the operator.
9. Choose SAVE .
!--a11y-->
1.2.13.7 Mapping Internal Orders

Prerequisites
Menu Path
On the SAP Easy Access men, choose Joint venture accounting Master data Intercompany mapping Internal orders.
Procedure
1. Enter the company code in the Enter company code dialog box. Choose ENTER . The Change View "Cutback rules/orders": Overview screen
appears.
2. Choose the New entries function. The New Entries:Overview of Created Entries screen appears.
PUBLIC
Page 40 of 109
4. Enter the order code (or the first in a range) for the operator in the Order From field.
5. Enter the order code (or the last in a range) for the operator in the Order to field. This is optional if you specify only one internal order.
6. Enter the order code of the non-operating company in the Cutb Order field. This order in the non-operating company receives the expenses posted by
Cutback in the operator.
7. Choose SAVE .
!--a11y-->
1.2.13.8 Mapping Assets

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Master data Intercompany mapping Assets.
Procedure
1. Enter the company code in the Enter company code dialog box. Choose ENTER . The Change View "Asset intercompany cutback rule": Overview
screen is displayed.
2. Choose the New entries function. The New Entries: Overview of Created Entries screen is displayed.
4. Enter the main asset code for the operator in the Asset field.
5. Enter the sub-number asset code for the operator in the SNo. field.
6. Enter the main asset code for the operator in the Asset field. This is optional if you only specify only one asset.
7. Enter the sub-number asset code for the operating company in the SNo. field.
8. Enter the asset code for the non-operating company in the Asset field. This asset in the non-operating company receives the expenses posted by
Cutback in the operator.
9. Enter the sub-number asset code for the non-operating company in the SNo. field.
10. Choose SAVE.
!--a11y-->
1.2.14 Prepaid Inventory Materials

Use
All materials for all SAP Joint Venture Accounting (JVA) active companies are listed on the Pre-paid Inventory maintenance:Overview screen. On this
screen, you can designate selected materials as consisting of prepaid inventory, by making an entry in the PPInv indicator field.
Prerequisites
To maintain or display inventory materials, follow this menu path:
On the SAP Easy Access menu, choose Joint venture accounting Master data Prepaid inventory Maintain or Display .
If you choose Maintain , the Change View Pre-Paid Inventory maintenance": Overview screen appears.
If you choose Display , the Display View Pre-Paid Inventory maintenance": Overview screen appears.
Features
PUBLIC
Page 41 of 109
The following fields are displayed on the Maintain View Pre-Paid Inventory maintenance": Overview screen and on the Display View Pre-Paid Inventory
maintenance": Overview screen:
In the
In the
In the
In the
In the
Materials field, the code for the material is automatically listed

ValA field, the code for the plant, to which the material is assigned, is displayed
Val. type field, the code for the group or stock of materials, to which the listed material is assigned, is displayed
Material description field, the description of the listed material is displayed from the material master
PPInv indicator field, you enter a check if the material listed on the line is managed as prepaid inventory activities
!--a11y-->
1.2.15 Assigning House Banks to Joint Ventures

Procedure
Menu Path
Master data Joint Venture Maintenance.
On the Joint Venture Master: Initial Screen , enter the Company code and the Joint venture code.
!--a11y-->
1.2.16 Assigning a Funding Group to Joint Ventures

Procedure
Menu Path
Master data Joint Venture Maintenance.
On the Joint Venture Master: Initial Screen , enter the Company code and the Joint venture code.
!--a11y-->
1.3 Actual Posting

Definition
In SAP Joint Venture Accounting (JVA), actual posting covers the following areas:
Posting Expenses and Managing Asset Transfers
Issuing and Receiving Cash Calls
Processing Non-operated Invoices
Managing Asset Transfers
Processing Inbound EDI Intermediate Documents (IDocs)
!--a11y-->
1.3.1 Posting Expenses and Managing Asset Transfers

Use
Cash Calls
Companies use cash calls to fund expenditures incurred on behalf of a joint venture.
PUBLIC
Page 42 of 109
Non-operated invoices
These are generated after billing details are entered into the SAP Joint Venture Accounting (JVA) system.
Asset management transfers
The operator can use asset management transfers to remove an asset from its books and to bill the partners at the current price. This involves comparing the
historical cost against the current replacement price.
Electronic Data Interchange (EDI) inbound
This encompasses electronic billing.
Features
Viewing an SAP JVA Document Before Posting
During a test phase, it is often helpful to view an SAP JVA document before it is really posted. This feature is possible only if the user has the
GJ_JVA_TEST parameter with an X in the value field. If this parameter is set, the system prompts a pop-up screen for each posting where a joint venture
document is created. The screen shows the most important joint venture document fields and how it will be posted. You can either cancel or continue posting.
To set the GJ_JVA _TEST parameter follow this menu path:
Own parameters: System User profile Own data Parameter
or
User maintenance: Tools Administration User Maintenance Users
Problems With Posting Groups

Problems can arise in splitting if you group a vendor or customer posting with a clearing posting under one document. Different rules govern the two
transactions. A clearing line is always split according to the documents which will be cleared with the line. If a vendor or customer posting is in the same
document, it too will be split in error. By creating two separate documents, the proper split rule applies.
!--a11y-->
1.3.2 Cash Calls

Purpose
Cash calls are requests for payment for anticipated future capital and operating expenditures, sent by joint venture operators to non-operating partners. Most
joint operating agreements (JOAs) include a provision that allows the operator to issue cash calls to non-operating partners. When the company running SAP
Joint Venture Accounting (JVA) operates a venture, that company issues operated cash calls to its non-operating partners. When the company running SAP
JVA is a non-operating partner in a venture, that company receives non-operated cash calls from the operator of the venture.
Operated Cash Calls

Operated cash calls are requests to the non-operating partners of joint ventures for payment of expenses before they are incurred. The transactions are posted
as two equal and opposite open items to a partner account. The items are posted with two different Special G/L Entry Indicators ( SEI ). Although the items
update the same partner account, they update different general ledger accounts which are identified via the SEI . The open item is cleared when cash is
received from the partner.
An operator can also post a cash call to itself. The entries produced by this type of cash call are posted as memo entries (representing both cash requested
and cash received) directly to the billing ledger. The cash received is posted on the assumption that an appropriate transfer will be made from the operator
bank account to the joint venture bank.
Non-Operated Cash Calls

Non-operated cash calls are requests for payment of prospective expenses received from an operator of a venture in which the company running SAP JVA is
a non-operating partner. The transactions are posted as two open items to an operator vendor account. Like operated cash calls, the items are posted with two
different SEIs , which update the same partner account, but different general ledger accounts. One open item is cleared with a cash payment to the operator.
The other item is cleared manually in the non-operating companys system with actual expenditures received in a non-operated bill from the operator.
Reclassification
Cash calls are often issued by the operator and paid by partners several months before expenditures are incurred. When this occurs, a reclassification process
takes place. Reclassification is an SAP JVA process that has the following two major functions:
It creates an accounting record of cash call payments in the month when they are received
It applies cash call payments in the month when expenditures are incurred
The reclassification process accomplishes these two tasks by connecting the accounting entries related to the steps in the cash call process to two time
values:
Billing month ( the month the expense appears on the bill to the customer)
Operations month (the month the payment is matched against the expenditure)
By using the billing and operations month, the SAP JVA reclassification process identifies the cash call payments that should be included in the partners
PUBLIC
Page 43 of 109
current month bill.
Process Flow
A typical cash call transaction proceeds through the following sequence of steps:
1.
2.
3.
4.
A cash call is issued.

A cash call payment is posted.
An expense for which the cash call was issued is then posted.
The cash call is reclassified for clearing.
Cash Call Transactions Occur in SAP JVA and FI

Not all cash call steps are executed within SAP JVA itself. Some steps are executed within SAP JVA, and the results are posted to standard SAP
components through FI. Conversely, other steps are executed within FI, and the results are transferred to SAP JVA for further processing. FI and SAP JVA
documents are produced as a result of each transaction. The following table indicates the major steps in the sequence of processing cash calls.
Processes Executed in JVA or FI
Process
JVA
Issue cash call request
Post cash call payment
Post expense
Reclassify cash call
FI
X
X
Methods of Posting Cash Calls

Cash calls can be posted net or gross. Net cash calls are requests made to a single partner. Gross cash calls are requests made to all partners in an equity
group. In addition, cash calls can be posted by venture or by project.
Possible Cash Call Options
Type of Cash Call
Operated
Non-operated
Venture / Net
by venture for a single partner
by venture or equity group for various currencies
Venture / Gross
by venture for all partners in an equity group
Project / Net
by project for a single partner
Project / Gross
by project for all partners in an equity group
by project for various currencies
Cash Call Reclassification: Splitting by Billing and Operational Month

You can clear multiple cash calls issued in different months (with different billing months) against expenditures in the same operational month through a single
reclassification posting. You can also clear multiple cash calls, intended to be matched against expenditures in different months, (cash calls with different
operational months) within the same operational month.
The operational month is stored in the XREF1 and the billing month in the XREF2 field of the original cash call document, as well as in the final clearing
document posted by the reclassification process.
When you select multiple cash calls with different operational or billing months for inclusion in a single execution of the reclassification process, the cash call
clearing document posted by that process can be split according to operational and billing months. This handling may be selected through FI configuration.
The setting is independent of company client, so it applies to the entire SAP system.
To make this setting, follow this menu path in the IMG:
1. On the Display structure menu, choose Financial Accounting General Ledger Accounting Business Transactions Open Item Clearing.
2. Select Define clearing rules . On the FI Clearing Rules table, enter the name and description of the new clearing rule to be used to split cash call
reclassification documents by billing and operational months.
3. Select the radio button Clearing rule fields . On the Definition of FI Clearing Rules table, enter the item numbers and the field names by which the
documents controlled by this rule will be sorted (XREF1 for operational month and XREF2 for billing month).
4. After you define the new clearing rule, return to the Open Item Clearing heading on the IMG and select Assign clearing rules to account types . On the
Maintenance View for Assigning FI Clearing Rules screen, enter a D for customer accounts in the AcTyp field and the name of the clearing rule that
will ensure that reclassification documents are split by operational and billing months in the Clearing rule field.
Posting Cash Calls to Intercompany Partners
You can send cash calls from one company that uses SAP to another company that uses SAP within the same client. Both companies must be configured for
SAP JVA to enable this process.
Batch and Online Processing
Cash calls can be submitted online or batch. From the online screens, you can enter the venture or project cash call information and immediately post the
cash call. Alternatively, you can hold the online information in a batch file for processing later.
Cash Call Direct Print
Cash call direct print functions within the cash call transactions allow you to create a separate hardcopy output for cash call requests.
PUBLIC
Page 44 of 109
Example
Partner ABC and the Operator agree to construct a building. Two months before the project starts, the operator issues a cash call to Partner ABC on the
March bill for Partner ABC's portion of the project expenses expected in May. March is the Billing Month when the cash call appears on the bill. May is the
Operations Month when the actual expenditures will be incurred. Partner ABC pays the operator for the cash call in April. In May, the building is completed
and actual expenditures are incurred. The cash call payment is applied against the actual expenditures incurred in May.
When a cash call is issued, identifiers for the billing and operational month of the posting are stored in the SAP JVA billing ledger (JVTO2). However, the
values for the billing and operational month are not stored in the SAP JVA ledger. Instead, a value that reflects the delta between the billing or operational
month and the posting month of the cash call is stored in the ledger.
If a cash call is posted in 2/02 with a billing month of 6/02 and an operational month of 12/02, the values stored for billing month (BiM) and operational month
(POM) would be calculated as follows:
BiM = 4 (6/02 - 2/02) and POM = 10 (12/02 - 2/02).
The delta values (representing the difference between the billing month and the posting month on the one hand, and the operational month and the posting
month on the other), rather than the values for the months themselves, are stored in JVTO2.
!--a11y-->
1.3.2.1 Issuing Cash Calls Operated/Venture/Net

Prerequisites
As with all postings to customer accounts, amounts originating in SAP JVA are posted automatically to the reconciliation accounts in the general ledger using
the posting rules specified in SAP JVA configuration. In the case of the special general ledger transactions initiated by SAP JVA, the reconciliation account
used for ordinary postings must be mapped to the alternative reconciliation account to which the postings are made. The account type posting key, combined
with the special general ledger indicator, provides the key that maps the reconciliation account used for ordinary postings to the alternative reconciliation
account to which the posting is made. Therefore, it is important that you choose the appropriate SAP JVA cash call special indicator from the possible entries
on the pull-down menu.
To enable SAP JVA to process cash call requests, payments, and clearances of actual expenditures properly, you must configure certain objects and
accounts in standard FI. These items include the following:
Field status groups
Posting keys
Special general ledger entry indicators (SEIs)
SAP JVA clearing procedures
Reconciliation accounts
Customer accounts for partners to whom cash calls will be issued
Document type
The SAP client that contains SAP JVA is preconfigured with the FI objects and accounts as well as the SAP JVA objects needed to execute cash calls. Your
system administrator may choose to change some of these items.
Prerequisites in CO
You can issue cash calls for a joint venture or for a project. To issue cash calls for a project, you must first set up a work breakdown structure in CO with the
following characteristics:
Valid account in the project master record
Project status open for FI postings
Billable recovery indicator assigned to the project
See also:
If the company running SAP JVA is in the US or Canada, SAP JVA will verify that the project is not in suspense before posting to it.
Prerequisites in SAP JVA
To enable SAP JVA to process cash calls for your company, you must establish the following pre-conditions within SAP JVA:
Activate ventures for which cash calls will be issued on the venture master record screen.
Activate equity groups to whom cash calls will be issued
Use a funding currency that is valid for the venture
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting Cash calls operated Venture net .
The Net Cash Call to Equity Group Header screen appears.
Procedure
To issue cash calls operated/venture/net, proceed as follows:
1. Enter the Company code on the Net Cash Call to Equity Group Header screen .
2. Enter the partner code in the Partner field.
3. Enter a date for the operations month.
PUBLIC
Page 45 of 109
The operations month is the designated month in the future in which a cash call payment is matched against the actual expenditures and reported on the
customers bill. All cash call payments not already reclassified with an operations month equal to or less than the current month are included in the
reclassification process. The value is derived from user input on the cash call screen. The operations month appears in the FB01 Standard Expense Posting
document Ref. 1 field.
In addition to playing a key role in reclassifying cash call payments, billing month and operations month also affect follow-on processes, such as netting and
billing.
4. Choose ENTER. The Net Cash Call to Equity Group Detail screen is then displayed.
5. Enter the code for the venture for which the cash call will be issued in the JV field.
6. Enter the code for the equity group in the venture for which the cash call will be issued in the EqG field.
7. Specify the amount for which the cash call will be issued in the Fundcur field.
8. To override the operations month on the initial cash call screen, if this option is desired, enter the date for the operations month for which the cash call will
be issued for the particular venture and equity group or project in the OM field .
9 . Choose SAVE. A system message confirms that a document was posted.
!--a11y-->
1.3.2.2 Cash Call Direct Print

Use
SAP JVA allows you to create a separate hard copy output for cash call requests. The cash call transactions (GJ01, GJ02, GJ03, and GJ04) contain two push
buttons for this purpose: Print Cash Call Bill and Print Call and Post .
Menu Path
On the SAP Easy Access menu, choose Accounting Joint Venture Accounting Actual posting Cash calls operated .
Features
The cash call direct print capabilities allow you to print a letter (generated in SAPscript) based on a cash call request, then fax or e-mail the cash call letter to
joint venture partners.
The SAPscript document template consists of three pages (first page, next page, and attachment), each one containing at least one header window and a
main window. Each header window contains such details as the contact name and address of the operator and the appropriate joint venture partner and the
cash call currency. This header window also displays the effective date of the cash call and the due date, based on the billing month of the cash call and the
payment terms of the partners. The main section contains the actual cash call values, broken down by venture and equity group, and by venture, equity group
and project. The attachment displays the equity shares of all venture partners.
!--a11y-->
1.3.2.3 Issuing Cash Calls Operated/Venture/Gross

Prerequisites
Field status groups
Posting keys
Document type
PUBLIC
Page 46 of 109
Prerequisites in CO
For additional information, refer to
Projects and Work Breakdown Structure (WBS) Elements.
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting Cash calls operated Venture gross.
The Gross Cash Call to Equity Group Header screen appears.
Procedure
To issue cash calls operated/venture/gross proceed as follows:
1. Enter the Company code on the Gross Cash Call to Equity Group Header screen .
2. Enter a date for the operations month.
reclassification process. The value is derived from user input on the cash call screen. The operations month appears in the FB01 Standard Expense
Posting document Ref. 1 field.
In addition to playing a key role in reclassifying cash call payments, billing month and operations month also affect processes, such as netting and billing.
3.
4.
5.
6.
7.
Choose ENTER. The Gross Cash Call to Equity Group Detail screen is then displayed.
Enter the code for the venture for which the cash call will be issued in the JV field.
Enter the code for the equity group in the venture for which the cash call will be issued in the EqG field.
Specify the amount for which the cash call will be issued in the Fundcur field.
To override the operations month on the initial cash call screen, if this option is desired, enter the date for the operations month for which the cash call
will be issued for the particular venture and equity group or project in the OM field .
8. Choose SAVE. A system message confirms that a document was posted.
!--a11y-->
1.3.2.4 Issuing Cash Calls Operated/Project/WBS/Net

Prerequisites
Field status groups
Posting keys
Document type
PUBLIC
Page 47 of 109
Prerequisites in CO
See also:
Menu Path
Actual posting Cash calls operated Project/WBS el net
The Net Cash Call to Projects Header screen appears.
Procedure
Enter the Company code on the Net Cash Call to Projects Header screen .
Enter a date for the Operations month in the field provided.
Choose ENTER. The Net Cash Call to Projects Detail screen is then displayed.
Enter the code for the venture for which the cash call will be issued in the JV field.
Enter the code for the WBS element for which the cash call will be issued in the Project Nbr / Due on DT field.
Choose SAVE. A system message confirms that a document was posted.
!--a11y-->
1.3.2.5 Issuing Cash Calls Operated/WBS/Gross

Prerequisites
Field status groups
Posting keys
Document type
Prerequisites in CO
PUBLIC
Page 48 of 109
See also:
Menu Path
On the SAP Easy Access screen, choose Joint venture accounting Actual posting Cash calls operated Project/WBS el gross.
The Gross Cash Call to Projects Header screen appears.
Procedure
Enter the Company code on the Gross Cash Call to Projects Header screen .
Enter a date for the operations month in the field provided.
Choose ENTER. The Gross Cash Call to Projects Detail screen is then displayed.
Enter the code for the project for which the cash call will be issued in the Project Nbr field.
Enter the code for the WBS element for which the cash call will be issued in the Project Nbr / Due on DT field.
!--a11y-->
1.3.2.6 Reclassifying Cash Calls

Use
You can use this to reclassify cash calls.
Reclassification is the ability to roll forward cash call amounts not used in the current period, to the next billing cycle. JVA cash call reclassification is used to
allow entry of cash calls in one period that are to be matched against expenditure in a later period. The period in which a cash call is to be matched against
expenditure is called the operations month.
The advantages of doing this are the following:
Automates the process. Reduces the necessity of manually reclassifying cash calls
You do not have to re-bill the partner for cash call amounts used
You can speed up the reconciliation of billings. For example, your company might track amounts on spreadsheets, outside of JVA
The joint interest billing process is expedited
You can generate more accurate joint interest billings for owners
You can decrease the number of owner inquiries received regarding cash calls
You can eliminate the historical credit balance of cash call unused balances collections
If no expenses are incurred in the operations month, cash call amounts are not applied.
PUBLIC
Page 49 of 109
Procedure
1. At the SAP Easy Access menu, choose Accounting Joint venture accounting Actual posting Cash calls operated Cash call
reclass.
The Cash Call Reclassification screen appears.
2. Enter the relevant company code, and other relevant selection criteria (partner, equity group, venture). Within the Posting Period screen area, enter a
date for the operations month in the field provided, as well as the year.
reclassification process. The value is derived from user entry on the cash call screen. The operations month appears in the FB01 Standard Expense Posting
3. Within the Carry Forward screen area, select the cash call reclassification option(s) that you would like to run. These selections control the calculation of
the roll-forward:
Roll forward
Offset cash calls
Summarize single items
4. Choose a Processing Option .
You can run a Control report prior to running a batch session.
Choose Execut e to view the Cash Call Reclassification Batch Input Details screen.
Choose BACK to return to the Cash Call Reclassification screen.
Then choose the preferred option.
Choose EXECUTE.
The cash calls are reclassified when your batch jobs are complete.
To check the batch session status, choose:
System Services Batch input Session
The Batch Input: Session Overview screen appears.
a. Enter the session name and run the batch report.
When the results of the report are displayed, they can be displayed in an ALV list. It allows you to view the reclassification data at summary level (company
code/venture/equity group/currency), and at detail level (individual cash receipts).
The ALV displays the summary information, and:
Receipt amount
Expenditure in period
Cash called in period
Roll-forward amount
Example
A JV invoice is issued to a partner in May. The invoice comprises a cash call requesting payment for expenditure expected in June (20), cash receipts (to be
reclassified) from April (150) and expenditure incurred in the operations month May (120).
The reclassification document is built as follows:
1. First the cash received in April is matched against May expenditure and the received cash is activated (reclassified) up to the full value of the expenditure.
2. If the cash received exceeds the expenditure, the remainder is matched against any new cash calls and a cash call reversal is posted up to the full amount.
3. If the cash received exceeds both the expenditure and the cash called, the residual amount is rolled forward to the next operations month.
A document would be posted in this case, as follows:

PK
Partner
SEI
BI
Amount
Ref.
Explanation
0C
JV0201
02
150.00
200305RC
Reverse April cash

receipt
1C
JV0201
03
120.00
200305RC
Apply cash up to value

of expenditure
1C
JV0201
01
20.00
200306RC
Reverse cash call

(op.month 06/2003)
1C
JV0201
02
10.00
200306
Roll forward remaining

cash receipt
!--a11y-->
PUBLIC
Page 50 of 109
1.3.2.7 Receiving Cash Calls Non-operated/Venture

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting Cash calls non-oper. Venture.
The Non-operated Cash Call to Equity Group screen appears.
Procedure
Enter the code for the company in the Company code field on the Non-operated Cash Call to Equity Group screen .
Enter a date for the operations month in the field provided.
Choose ENTER. The Non-operated Cash Call to Equity Group (detail) screen is displayed.
Enter the code for the joint venture for which the cash call will be issued in the JV field (required).
Enter the code for the equity group in the venture for which the cash call will be issued in the EqG field (required).
Enter the funding currency in the Fcurr field.
SAVE. A system message confirms that a document was posted.
!--a11y-->
Receiving Cash Calls Non-Operated/Projects/WBS Elements

Prerequisites
On the SAP Easy Access screen , choose Joint venture accounting Actual posting Cash calls non-oper. Projects/WBS elements.
The Non-operated Cash Call to Projects screen appears.
Procedure
1. Enter the code for the company in the Company code field on the Non-operated Cash Call to Projects screen .
2. Enter a date for the operations month in the field provided.
3.
4.
5.
6.
7.
8.
The operations month is the designated month in the future in which a cash call payment is matched against the actual expenditures and
reported on the customers bill. All cash call payments not already reclassified with an operations month equal to or less than the current
month are included in the reclassification process. The value is derived from user input on the cash call screen. The operations month appears
in the FB01 Standard Expense Posting document Ref. 1 field.
In addition to playing a key role in reclassifying cash call payments, billing month and operations month also affect processes, such as netting
and billing.
Choose ENTER. The Non-operated Cash Call to Projects (detail) screen appears.
Enter the code for the project in the Project Nbr field.
Enter the funding currency in the Fcurr field.
To override the operations month on the initial cash call screen, if this option is desired, enter the date for the operations month for which the cash call will
be issued for the particular venture and equity group or project in the OM field .
!--a11y-->
1.3.2.9 Batching Cash Calls

PUBLIC
Page 51 of 109
Prerequisites
On the SAP Easy Access menu, choose Joint venture accounting Actual posting Cash call batch ses.
The Cash Call Update screen appears.
Procedure
1. Enter the code for the company in the Company code field on the Cash Call Update screen .
2. Specify the Posting period.
3. Choose from the Processing options :
Post gross documents
Delete batch after posting
Update via batch-input
Inter-company postings
4. Choose EXECUTE.
5. Choose SAVE.
6. To check the batch session status, follow this menu path:
System Services Batch input Edit
The Batch Input: Initial Screen appears.
Enter the session name.
!--a11y-->
1.3.3 Non-Operated Invoices

Use
You use the non-operated billing transaction to enter billing details (often from paper) into the SAP Joint Venture Accounting (JVA) system. You can enter
billing by operator or by venture. If you choose to enter billing by operator, a list of ventures and equity groups is proposed. If you choose to enter billing by
venture, only valid equity groups for the venture are displayed.
On the first screen of the transaction, you enter the company and venture, along with the posting date and funding currency. You can also specify a value date
for currency conversion to local currency. If tax is to be included with the billing, you should indicate an amount on the initial screen. In addition, you may enter
a billing text or reference document number that will appear on the header of any document posted by the billing transaction.
!--a11y-->
1.3.3.1 Processing Non-Operated Invoices by Operator

Prerequisites
Projects and or WBS Elements must be created prior to generating non-operated invoices.
See also:
Menu Path
Actual posting Non-operated invoice By operator
The Non-Operated Billing Header Screen by Operator screen appears.
Procedure
Enter the Company code on the Non -Operated Billing Header Screen by Operator.
Enter the code for the partner in the Partner field.
PUBLIC
Page 52 of 109
Enter the currency code in the Funding currency field.
Exchange rate, Translation date, Billing Text, Reference doc., and Tax Amount are optional fields. In the Exchange rate and Translation date fields you can
specify a conversion rate and a value date for currency conversion to local currency. If you do not specify a Translation date, the Posting date is used as the
default date for the currency conversion. If a Billing Text or Reference doc. number are entered, they will appear on the header of any document posted by the
billing transaction. If tax is to be entered with the billing, you should enter the total tax amount for all venture or ventures in the Tax Amount field. If this field is
left blank, no tax fields will be available in the following screens.
Choose either Net or Gross. The corresponding screen is displayed:
Non-Operated Venture/Equity Group Overview: Net Entry or
Non-Operated Venture/Equity Group Overview: Gross Entry
Enter the Net Amount for each venture.
Choose the Select function. The Non-Operated Billing Detail Screen will appear.
Enter the expense line detail. If, you have selected Net, the line amounts must equal the original total net amount specified in step 5. If you have
selected Gross, this amount will be a percentage share of the gross amount. For example, if the equity group non-operating share is 30% of the venture
and the net amount is $30, than the gross line detail should equal 100% in this example $100.
Cost objects must be set up and assigned to the joint venture, in order for line detail fields to appear on the screen. Refer to:
Cost Centers
A cost center is an organizational unit that represents a defined location of cost incurrence. The definition can be based on functional requirements, allocation
criteria, physical location, or responsibility for costs.
Choose ENTER. The total will appear in the Total Field. Choose the Accept function.
If more than one venture exists, repeat steps 5, 6, 7 and 8 for each venture.
Choose SAVE. A system message confirms that the document has been posted.
!--a11y-->
1.3.3.2 Processing Non-Operated Invoices by Venture

Prerequisites
Projects and or WBS Elements must be created prior to generating non-operated invoices.
See also:
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting Non-operated invoice By venture.
The Non-Operated Billing Header Screen by Venture appears.
Procedure
Enter the Company code on the Non -Operated Billing Header Screen by Venture.
Enter the venture code in the Venture field.
Enter the currency code in the Funding currency field.
Choose either Net or Gross. The corresponding screen is displayed:
Non-Operated Venture/Equity Group Overview: Net Entry or
Non-Operated Venture/Equity Group Overview: Gross Entry
Enter the Net Amount.
Choose the Select function. The Non-Operated Billing Detail Screen is displayed.
Enter the expense line detail. If, you have selected Net, the line amounts must equal the original total net amount specified in step 5. If you have
selected Gross, this amount will be a percentage share of the gross amount. For example, if the equity group non-operating share is 30% of the venture
and the net amount is $30, than the gross line detail should equal 100% in this example $100.
You must set up cost objects and assign them to the joint venture, so that line detail fields will appear on the screen. Refer to:
Cost Centers
A cost center is an organizational unit that represents a defined location of cost incurrence. The definition can be based on functional requirements, allocation
PUBLIC
Page 53 of 109
criteria, physical location, or responsibility for costs.

Choose ENTER. The total will appear in the Total Field. Choose the Accept function.
Choose SAVE. The document number appears.
!--a11y-->
1.3.4 Asset Transfers

Use
The SAP Joint Venture Accounting (JVA) component uses standard SAP Asset Management (AM) functions. To understand the AM processes for SAP JVA,
you must understand the standard SAP AM structure. This structure is comprised of the following components.
Chart of Depreciation
The chart of depreciation contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a given country or
economic area. Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation. The chart
of depreciation and the chart of accounts are completely independent of one another.
Depreciation Areas
The depreciation area shows the valuation of assets for a particular purpose (for example, the individual financial statements, balanced sheets for tax
purposes, and cost accounting values). In addition to defining real areas, you can define derived areas. The value of these derived areas are calculated from
two or more real areas.
Asset Class
This is the main criterion for classifying assets by business and legal requirements. For each asset class, you can define control parameters and default
values for depreciation calculation and other master data. Each asset master record must be allocated to one asset class. Special asset classes are:
Assets under construction
Low-value assets
Leased assets
Financial assets
Technical assets
Asset Master Records
You can represent asset master records by using unique numbers.
Individual Asset Records - One asset can represent one table or a set of tables that are charged to one CO element, such as a cost center.
Main Asset Records with Sub-Numbers and Individual Asset Records - In this configuration, many assets can be at an individual level, and assets will be
associated with other assets.
Main Asset Records with Sub-Numbers - You can configure main asset records with sub-numbers for asset classes, where the assets require an association
such as an acquisition year, location, or a similar use. This is used for joint venture asset transfers
Depreciation at a Group Asset Level

SAP functions allow depreciation at a summary or group asset level. All postings to the assets below a group asset are immediately reflected in the group
asset. In SAP JVA, the individual assets are linked to the group asset through the book depreciation area of each asset record. The benefits of group asset
functionality include:
Increased depreciation run efficiency or fewer calculations
Fewer monthly production units to enter into the system
Recovery Indicators
In AM, the depreciation areas are accumulators for the asset value and depreciation value for all of the depreciation calculations. These areas track billable
and nonbillable values for each asset. All acquisitions, transfers and retirements are tracked in the depreciation areas and the depreciation postings are
calculated from the resulting period end value of the assets.
SAP JVA, accumulates the postings based on recovery indicators. The value posted to the depreciation area is driven by the fact that the entry is billable or
non-billable. To do this, the following three new depreciation areas must be configured in SAP JVA:
Billable
- linked to the billable recovery indicator
Non-billable linked to the nonbillable recovery indicator
Gross value
- A derived area representing a summation of the billable and the nonbillable depreciation areas (optional)
Estimated Book Cost (EBC)
The EBC is the estimated cost of the asset at the time of acquisition. The EBC for the valuation of assets is based on the current value and the asset
acquisition year or vintage year. Asset accounting within SAP JVA requires automated EBC, because most companies will not have one asset record for each
asset, and in turn will not have historical cost for each asset. For example, one asset master record represents 1,000 different values.
For joint venture asset transfers, you must compare the historical cost against the current replacement price (CRP) to remove the asset from the operators
books and bill the partners at a current price. The historical price is an EBC and is based on published pricing indexes. The Replacement Value Index (RVI)
table is maintained within the SAP JVA configuration menus. The following graphics depict the EBC calculation:
PUBLIC
Page 54 of 109
The current replacement price is the estimated cost of purchasing or producing an equivalent item net of depreciation.
Requirements for Postings

Joint venture asset transfers are complex because of the need to accommodate book, tax, and joint venture requirements all in the same transaction. The
transaction is required to create a number of different postings to fulfill the following requirements:
An increase in asset ownership must be flagged as a current year addition for tax depreciation requirements and internal budgeting
For general ledger accounting or book purposes, you must remove assets from their old location at historical cost (EBC)
For joint venture contractual purposes, you must charge and credit assets to joint venture partners based on a current replacement price (CRP)
For book and tax purposes, you must report a decrease in ownership due to a transfer as an asset retirement.
The procedures described in this section are for North American requirements.
!--a11y-->
1.3.4.1 Transferring an Asset to a Work in Process (WIP)

Prerequisites
The following configuration requirements are needed before you transfer assets:
AM/MM Master Data (Company Level) Configuration
Estimated Book Cost Configuration
Depreciation Areas and Depreciation Keys Configuration
Refer to the IMG for complete configuration details.

Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting AM transfers in JV Asset to WIP.
The JV Transfer Asset to Project/Order screen appears.
PUBLIC
Page 55 of 109
Procedure
Enter the Document date and the Posting date only if the dates vary from the default dates that appear on the JV Transfer Asset to Project/Order
screen.
Complete the following fields:
Type
Company code
Asset
Vintage Yr/Mth.
G/L account no. (receiver)
Fixed asset
Material
Quantity (You can enter the unit of measure in the adjacent field.)
Choose Continu e. The JV Transfer Asset to Project/Order dialog box appears with a CRP total displayed.
Choose Continue. The following fields are displayed on the JV Transfer Asset to Asset dialog box:
Current New Price
Index vintage year
Index current year
Estimated book cost (EBC)
Choose Continue . The CRP total and EBC total values are displayed. Enter an amount in the EBC selected field.
You can change the EBC total by entering the new amount and choosing the Update EBC function.
Choose SAVE . A message system confirms that an asset transaction was posted with a document number.
!--a11y-->
1.3.4.2 Transferring an Asset to an Asset

Prerequisites

Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting AM transfers in JV Asset to asset.
The JV Transfer Asset to Asset screen appears.
Procedure
Enter the Document date and the Posting date only if the dates vary from the default dates that appear on the JV Transfer Asset to Asset screen.
Type
Company code
Asset
Vintage Yr/Mth.
Fixed asset (Asset to which the transfer is to be made. )
Material
Choose Continu e. The JV Transfer Asset to Asset dialog box appears with a CRP total displayed.
Choose Continue. The following fields are displayed on the JV Transfer Asset to Asset dialog box:
Current New Price
Index vintage year
PUBLIC
Page 56 of 109
Index current year

Choose Continue . The CRP total and EBC total values are displayed. Enter an amount in the EBC selected field.
You can change the EBC total by entering the new amount and choosing the Update EBC function.
Choose SAVE . A system message confirms that an asset transaction was posted with a document number.
!--a11y-->
1.3.4.3 Retiring an Asset

Prerequisites

Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting AM transfers in JV Asset retirement .
The JV Asset Retirement screen appears.
Procedure
Enter the Document date and the Posting date only if the dates vary from the default dates that appear on the JV Asset Retirement screen.
Type
Company code
Asset
Vintage Yr/Mth.
Fixed asset (Asset to which the transfer is to be made. )
Material
Quantity. (You can enter the unit of measure in the adjacent field.)
Choose Continu e. The JV Asset Retirement dialog box appears with a CRP total displayed.
Choose Continue. The following fields are displayed on the JV Transfer Asset Retirement dialog box:
Current New Price
Index vintage year
Index current year
Choose Continue . The CRP total and EBC total values are displayed. Select the individual indicators and enter an amount in the corresponding EBC
Selected field. You can use the following function keys to make your selection:
Retire Full
Retire Rest.
Mark all
!--a11y-->
1.3.4.4 Processing an Asset Sale

Prerequisites
PUBLIC
Page 57 of 109
On the SAP Easy Access menu, choose Joint venture accounting Actual posting AM transfers in JV Asset sale .
The JV Asset Sale screen appears.
Procedure
1. Enter the Document date and the Posting date only if the dates vary from the default dates that appear on the JV Asset Sale screen.
2. Complete the following fields:
Type
Company code
Asset
Vintage Yr/Mth.
Material
Neg.Price (negotiated price)
Text
3. Choose Continue. The following fields are displayed on the JV Asset Sale dialog box:
Current New Price
Index vintage year
Index current year
4. Choose Continue . The CRP total and EBC total values are displayed. Select the individual indicators and enter an amount in the corresponding EBC
Selected field .
5. Choose SAVE . A system message confirms that an asset transaction was posted with a document number.
!--a11y-->
1.3.4.5 Transferring a Work in Process (WIP) to a WIP

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting AM transfers in JV WIP to WIP.
The JV Project/Order to Project/Order screen appears.
Procedure
Enter the Document date and the Posting date if the dates vary from the default dates that appear on the JV Project/Order to Project/Order screen.
Type
Company code
Order or WBS elem. (Sender)
Order or WBS elem. (Receiver)
G/L account no.
Material
Text
Choose Continue
The JV Project/Order to Project/Order dialog box displays the CRP total.
Choose Continue .
The line items, posting keys, account numbers are displayed on the screen.
PUBLIC
Page 58 of 109
!--a11y-->
1.3.4.6 Transferring a Work in Process (WIP) to an Asset

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting AM transfers in JV WIP to Asset.
The JV Project/Order to Asset screen appears.
Procedure
1. Enter the Document date and the Posting date only if the dates vary from the default dates that appear on the JV Project/Order to Asset screen.
2. Complete the following fields:
Type
Company code
Order or WBS elem. (Sender)
G/L account no.
Fixed Asset (Receiver)
Material
Text
4. Choose Continue . The JV Project/Order to Asset dialog box displays the CRP total.
5. Choose Continue . The line items, posting keys, account numbers are displayed on the screen.
6. Choose SAVE . A system message confirms that an asset transaction was posted with a document number.
!--a11y-->
1.3.5 Inbound EDI Intermediate Documents (IDocs)

Use
In North America, joint interest billing exchange (JIBE) trading partners use standard industry approved service codes to classify joint interest expenditures
that are transmitted electronically. The use of service codes ensures consistent and accurate billing descriptions on the electronic bills, regardless of
differences in each individual companys chart of accounts. Service codes may be periodically added or deleted by the JIBE user group to reflect current
industry and governmental or accounting requirements.
Electronic data interchange (EDI) for joint venture billing for the US and Canada consists of two standard JIBE transmissions:
1. Operating Statement Transaction Set 819 - Expenditure Detail
2. Invoice Summary Transaction Set 810
Currently, 63 service codes exists for the 819 (Operating Statement) and 10 service codes for the 810 (Invoice) for the US alone. In addition, free form
descriptive segments are used to provide further clarification of the charges transmitted on the JIBE service codes (such as tangible material
descriptions, audit exceptions).
Operating Statement Transaction Set 819 (Expenditure Detail)
Transaction Set 819 contains a detailed summary of costs charged to the joint property in support of expenditures incurred on the Invoice (810 Transaction
Set). It includes the following information:
Description of the property
Authority for expenditure (AFE)
Summary of gross costs billable to the joint property according to accepted standard service code cost categories
Partners ownership interest
PUBLIC
Page 59 of 109

Partners share of charges
Invoice Summary Transaction Set 810
Transaction Set 810 commonly contains a summary of items shown on the Expenditure Detail (819 transaction set), plus cash advances and other
miscellaneous items charged directly to the partner. The invoice commonly summarizes the non-operating partners share of multiple joint ventures and is
normally the basis for remittance by the non-operating partner.
!--a11y-->
1.3.5.1 Processing EDI Inbound Intermediate Documents

(IDocs)
Prerequisites
Your implementation team or system administrator should maintain the following mapping data prior to processing inbound electronic data interchange (EDI)
intermediate documents:
Company configuration
Receivers joint interest billing exchange (JIBE) code
Senders JIBE code
Property code
Withhold code
Mapping qualifier
Operating statement cost object mapping
Operating statement account mapping
Operating statement memo authorization for expenditure (AFE)
Invoice cost object mapping
Invoice account mapping

You can refer to the IMG for complete configuration details.
Menu Path
Actual posting EDI inbound Create IDoc.
The Trigger inbound processing screen appears.
Procedure
1. Enter the Path name on the Trigger inbound processing screen.
2. Choose the Access test function. If processing is successful, the following system message will appear: EDI: Transfer to ALE level carried out. If it is
unsuccessful, an error message will appear.
3. To review the IDocs, follow this menu path:
On the SAP Easy Access menu, choose Joint v enture accounting
Information system EDI Review IDoc.
!--a11y-->
PUBLIC
Page 60 of 109
1.3.5.2 Reprocessing Inbound Intermediate Documents

(IDocs)
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Actual posting EDI inbound Reprocess IDoc .
The Start error handling for non-posted IDocs screen appears.
Procedure
1. Define your search by entering selection criteria in the appropriate fields. For example, the IDoc number, Date created or Time created on the Start
Error Handling for Non-Posted IDocs screen.
2. Choose the Execute function. The Start Error Handling for Non-posted IDocs screen appears. IDocs that are processed successfully are highlighted in
green, and errors appear in red.
!--a11y-->
1.4 Periodic Processes

Use
Periodic processing includes the following SAP Joint Venture Accounting (JVA) posting procedures:
Processing International Foreign Currency Exchange
To assign costs to SAP JVA partners at the end of an accounting period you must:
Determine the value of the balances of foreign currency accounts in terms of local currency
Account for the differences (gains and losses) that have resulted from exchange rate changes during the period
Assign gains and losses to SAP JVA cost objects and ultimately to partners
Executing CO Allocations
SAP JVA provides functions for allocating costs originally booked to CO cost objects to other CO cost objects. The following types of allocations are available
in SAP JVA:
Assessments
When you execute an assessment, the expenses, booked to various cost elements during the period, are aggregated under a special secondary cost element,
specified on the assessment segment. Then, the aggregate amount is booked to each receiving cost object.
Distributions
When you execute a distribution, the expenses booked to various cost elements during the period are allocated from the sending cost centers (to which the
expenses were originally booked) to receiving cost objects using the cost element of the original posting. Distributions do not make use of the special
secondary cost elements that are used by assessments.
Settlements
A settlement consists of an allocation of costs from orders or work breakdown structure (WBS) elements to cost centers, projects, fixed assets, general ledger
accounts, networks, materials sales orders, or cost objects defined in the settlement rule
for the sender.
Settlement Rules
Settlement rules, and the objects assigned to them, govern settlements of expenses from WBS elements or orders to their receivers. Settlement rules are
assigned to both WBS elements and orders, and list the settlement objects (mainly the settlement profile that governs the execution of settlement). There are
three types of objects assigned to settlement rules.
Origin structure groups sending cost elements together in order to settle them to dedicated receivers.
Settlement structure defines the secondary cost elements that will be used to post the results of the settlement to the receiving objects.
Settlement profile is composed of the origin structure, settlement structure, and further settlement steering information.
Processing Cost Calculations

Many joint venture operators apply overhead charges, some of which must be calculated, to cover the indirect costs incurred in operating ventures. After these
overhead charges are determined by the SAP JVA Cost Calculations process, the JVA Cutback and Billing processes assign these charges to the
appropriate venture partners.
PUBLIC
Page 61 of 109
Running Cutback
The operating partner of a joint venture carries all of the operating costs of that venture throughout the accounting period. At the end of the accounting period,
the operators expenditures are divided between the operator and the non-operating partners, according to their equity shares. SAP JVA's cutback process
assigns expenses to partners.
Executing Netting
In the US and Canada Regions, it is common for one or more partners in a venture to carry the ownership interest of another partner. In this situation, the
carrying partners assume both the expenses and the revenues that would normally accrue to the carried partner. There are two types of joint venture
partnership arrangements that address these situations:
Carried interest
A normal working interest partner may become a carried interest partner (CI) by taking one of the following actions:
failing to sign the joint operating agreement (JOA)
exercising the non-consent provisions of the JOA and declining to participate as a working interest partner in proposed exploration, development, and
production activities
If one of these conditions continues, a group of working interest partners in the venture bears the expenses and shares the revenues that would normally
accrue to the CI partner, based on equity share. Payout is achieved when the revenues exceed the sum of the expenses accumulated since initiation of this
arrangement with a designated additional percentage of the expenses. As a result, the CI partners interest reverts to a normal working interest, and that
partner once again participates as a full working interest equity owner in the venture. A specific CI arrangement usually applies to one JOA. Payout is
achieved when the penalty provisions of that one JOA are met.
Net Profit Interest
A normal working interest partner becomes a net profit interest (NPI) partner by making an agreement with the operating partner to yield a working interest to
the operator in return for a negotiated percentage of the interests future revenue. The NPI arrangement is different from the CI arrangement, because the NPI
partner permanently surrenders a working interest in the venture; whereas, the CI partner temporarily yields the working interest until the interests revenues
exceed its expenses by a specified ratio.
Under the conditions of a typical NPI arrangement, the operator of the venture bears the expenses and enjoys the revenues that would have accrued to the
NPI partner, based on the interests equity share. When the revenues exceed the expenses accumulated since initiation of the arrangement, the NPI partners
interest does not revert to a normal working interest. Instead the NPI partner receives a percentage of the relinquished interests revenues which is specified in
that partners agreement with the operator.
SAP JVA also offers two netting processes to facilitate the period-end closing of customer accounts by performing reconciliation and by preparing for the SAP
JVA billing process. These two netting processes are:
Partner Netting
Partner netting refers to netting all expense postings for a partner into one posting for the venture or equity group.
Convenience Netting
Usually, convenience netting is used only by US and Canadian region companies. Convenience netting is a three-step process
1. All open expense items for a partner for a specified period are summarized
2. All open revenue entries for the partner for the period are summarized
3. If the summarized revenues exceed the expenses, a single credit entry is posted to the partners vendor account in FI Accounts Payable
Convenience netting posts this credit entry to the partners account if there is a credit balance. If there is no credit balance for the partner, the netting program
does not post.
You can use these SAP JVA processes to clear open items and consolidate these open items into a single new open item. Because they clear postings
produced by the other SAP JVA processes, the netting programs are run at the end of the period after cutback.
Executing Billing
At the end of an accounting period, the operating partner recovers the cost of venture expenditures from the non-operating partners. The SAP JVA Billing
program extracts relevant billing information from the SAP JVA databases and issues invoices and supporting documents to non-operating venture partners.
Updating Company Codes Periodically
By using the Periodic Update Company Code functions, you can:
Change the overhead or payroll burden
Open periods to enable posting documents in joint venture
Carrying Year End Balances Forward
This report calculates the carry forward balances of the transaction totals. This allows inception-to-date calculations
!--a11y-->
1.4.1 Management of International Processes

Definition
The following are two international SAP Joint Venture Accounting (JVA) processes:
Processing foreign currency exchange and valuation differences
Executing house bank switching and venture bank account switching
Processing Foreign Currency Exchange and Valuation Differences
PUBLIC
Page 62 of 109
The process of assigning costs to SAP JVA partners at the end of an accounting period involves:
Determining the value of the balances of foreign currency accounts in terms of local currency
Accounting for the differences (gains and losses) that have resulted from exchange rate changes during the period
Assigning those gains and losses to SAP JVA cost objects and ultimately to partners
Reconciling the impact of foreign currency exchange differences for the period involves three types of process:
Transferring exchange differences that have been realized (automatic posting to CO)
Accounting for unrealized exchange differences involving open items
Revaluing non-open items in foreign currency balance sheet accounts
Venture Bank Account Switching

Some operating companies fund joint ventures from dedicated venture bank accounts (VBAs). The VBA is then reimbursed by the non-operating partners
payments in response to SAP JVA billing and cash calls. You can create multiple VBAs for a single venture.
Use
Methods of Managing Venture Bank Accounts
SAP JVA supports two methods of managing venture bank accounts:
Payment from a central disbursement account (CDA)
CDA is a method of managing venture bank accounts, in which all payments for venture expenditures are made from a single central disbursement account.
Non-billable payments are also made from the CDA. The CDA is periodically reimbursed by the various VBAs, and all payments from non-operating partners
are paid directly into the VBAs. For non-billable expenditures, the CDA is refunded from bank accounts held by the operator.
Payment directly from VBAs
VBA is a method of managing venture bank accounts, in which all payments for venture expenditures are made directly from the appropriate VBAs. Cash
receipts from partners are also paid directly into these VBAs. Payments for non-billable venture expenditures are made from operator-owned bank accounts
dedicated to that purpose.
Invoices with Expenses for Multiple Ventures

Payments for invoices that include costs for multiple ventures are made from the VBA belonging to the venture with the highest expenditure. This VBA is then
periodically reimbursed by the other ventures whose expenditures were included in the invoices.
Some companies combine the two methods of managing venture accounts, by paying expenditures for large ventures directly from VBAs and paying
expenditures for smaller ventures from a CDA.
VBA Processing
See also:
VBA Switching Process
Transferring Funds Between Venture Bank Accounts
Assigning a Bank Account
Additional VBA Switching Attributes
!--a11y-->
1.4.1.1 Executing Venture Bank Account (VBA) Switching

Prerequisites
Prior to processing international foreign currency exchange and valuation, your implementation team must set up prerequisites in FI, CO and SAP Joint
Venture Accounting (JVA). For specific details, refer to the following topics:
FI Prerequisites for International Currency Exchange and Valuation Differences
CO Prerequisites for International Currency Exchange and Valuation Differences
JVA Prerequisites for International Currency Exchange and Valuation
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International VBA switching Execute VBA.
The JV Bank Account Switches screen appears.
Procedure
Enter a Company Code on the JV Bank Account Switches screen.
PUBLIC
Page 63 of 109
Complete the Selection Year and Selection Period only if you want to change the defaulted year and period.
Enter the Posting date and period .
Enter text (if any) to be assigned to the document posted by this process in the Document text field.
Select the appropriate options under the following headings.
Choose EXECUTE. The JV Bank Switch Document Audit report appears.
Perform Net Calculation and Two-Way Netting

Perform net calculation and Two-way netting are mutually exclusive alternative ways of netting the VBA transfer postings.
If you select Perform net calculation , all the outstanding obligations between all funding groups are netted in a single document.
Example
Funding group FNG1 has an outstanding obligation of $100 to funding group FNG2, FNG2 in turn has a $100 obligation to FNG1, and FNG1 has a $100
obligation to FNG3. If you select Perform net calculation , the VBA process nets these obligations and posts a single transfer document for $100 from
the bank account for FNG1 to the account for FNG3. By default, three documents are posted, one transfer for each obligation.
If you select Perform net calculation , the transfer postings between bank accounts are summarized on the report screen and no details are displayed
for the documents being processed.
If you select Two-way netting rather than Perform net calculation , only transactions involving the same pairs of funding groups are netted against one
another. Bank account transfers based on transactions that cannot be paired by funding groups are posted separately.
Funding group FNG1 and FNG2 owe each other $100. FNG1 also owes FNG3 $100 and FNG3 owes FNG2 $100. If neither netting option is selected,
four separate transfer documents are posted.
If you select Perform net calculation , the mutual obligations between FNG1 and FNG2 are netted to zero, and the obligation of FNG1 to FNG3 and
FNG3 to FNG2 is resolved to a single posting from FNG1 to FNG2 for $100. In effect, FNG1 pays FNG2 for FNG3s obligation, thus satisfying its own
debt to FNG3.
If you select Two-way netting , the obligations between FNG1 and FNG2 are still netted to zero, because the same two funding groups are involved in
both transactions. The obligations between FNG3 and FNG1, and between FNG 3 and FNG2, are not netted under Two-way netting . Each transaction
involves a different pair of funding groups (FNG3 to FNG1 and FNG3 to FNG2).
Post Using Ventures and Cost Object Analysis

The two methods, Post using ventures and Cost object analysis are mutually exclusive ways to determine the cost objects to which the VBA
postings are assigned in SAP JVA.
If neither Post using ventures nor Cost object analysis is selected, the VBA posting lines in the JVA document produced by this process will be
assigned to the corporate venture and equity group designated on the JV Company Corporate Data screen in JVA configuration.
If balanced ventures is selected for the JVA company on the Company Global Parameters screen, you must ensure that VBA postings are
balanced by venture by selecting Post using ventures or Cost object analysis .
An invoice payment involving an expenditure for joint venture V1, which is assigned to funding group FNG1, is posted on December 1 when equity group EG1
owns V1. The payment is made from the bank account for funding group FNG2. When VBA is run at the end of December, V1 is owned by EG2. By default,
the transfer payment from the bank account for FNG1 to the account for FNG2 is posted to the current equity group (EG2). If you select Post using equity
group , the VBA transfer is posted to the equity group in the original item (EG1).
Options
Test run
If you select this option, a report screen displays the results of processing,
but no bank transfer documents are posted.
Post Using Ventures
You select this option to use the joint ventures, from the original documents
involved in the bank account transfers, to determine the substitute cost object
that will receive the transfer posting in the SAP JVA document. The recovery
indicator on the substitute cost object is assigned to the posting line. If a
substitute cost object is not specified on the joint venture master, an error
appears.
Cost Object Analysis
You select this option to assign the cost objects, from the original documents
involved in the bank account transfers, to the lines of the transfer posting
document in SAP JVA. The recovery indicator on the cost objects will be
assigned to the posting lines.
Post using equity group
You select this option, to post the VBA transfer to the equity group assigned
to the original item that formed the basis for the transfer. By default, the VBA
transfer is posted to the current equity group, which is the equity group
assigned to the venture on the VBA document date.
PUBLIC
Page 64 of 109
Post using value date
You select this option to post the VBA transfer using the value date entered
on the bank line of the original payment document.
Generate additional report
You select this option to produce an additional report, that totals cash and
non-cash transfers by funding group and currency, on the report screen.
Interest Calculation
You cannot select one of the netting options at the same time as you select
interest calculation, because interest calculation is based on the original
amounts.
Calculate interest due
You select this option to calculate interest on the obligation of one funding
group to another. The calculated interest amount is included in the VBA
Switching document, and it is posted to the bank account specified through
SAP JVA configuration for automatic process JV7.
If a substitute cost object is not specified on the joint venture master, an error
message appears when VBA Switching is run in update mode.
Effective date
In this field, you specify the final date, until which interest is calculated.
Elapsed days analysis
If you select Calculate interest due , you must also select this option, to
enable calculation of the days for which interest will be charged.
If the value date is available on the bank line of the payment, then the value
date is used in conjunction with the effective date, to determine the number of
days for which interest is due. The value date is the first day for which
interest should be charged. The formula for calculating the interest period
using the value date is:
Elapsed days = Effective Date Value Date + 1
A minimum of one days interest is always charged.
If the value date is not available on the bank line of the payment, then the
posting date of the payment is used in place of the value date, and the
formula for determining the number of days for which interest is due is:
Elapsed days = Effective Date Posting Date + 1
Create switch letters
You select this option to generate letters providing instructions on the bank
account transfers, which result from VBA switching in the SAPScript formats
that are assigned to the funding groups in SAP JVA configuration.
Letter for each branch
You select this option to generate a separate letter for each bank branch.
SAPScript Device
In this field, you specify the SAPScript output device to which the generated
letter should be sent.
Net amounts in switch letters
You select this option, to net amounts shown on the bank transfer requests.
Re-running Venture Bank Account Switching
By default, the VBA switching is run once in each period, so that transfer
documents, posted in the first run, are not selected in a later run. You can rerun the process for a period, but, to avoid reversing the results of previous
runs, you must carefully select the documents for inclusion in the process.
Override event check (re-run)
If you select this option and you do not select Test run , the system re-runs
VBA switching for the period and then posts documents. You should use this
option together with one of two alternative ways to select certain documents
to be included in processing available on the JV Bank Account Switches
screen.
Read data from VBA table
If you select this option, the switching function processes only those entries
in the VBA table that are marked for release to processing. Another SAP JVA
process allows you to modify this table. If you select this option, the system
ignores the period and year selections on the JV Bank Account Switches
screen. All documents released for processing on the VBA table are then
included in processing regardless of period and year.
If you do not select Read data from VBA table option
You should enter selection criteria for the documents to be included in the
selection (if not use VBA table) section of the JV Bank Account Switches
screen. In this section, you can select documents by using the following
criteria:
Document type
Reference Document number
JV Document number
System date
Netting Based on Cost Objects

Netting based on cost objects is a new function, designed to increase the processing flexibility in bank switching. To perform netting based on cost objects,
you must verify cost object analysis and one of the netting options (either net calculation or two-way netting).
Since SAP JVA allows you to differentiate between the fiscal year and the calendar year, the bank switch program will not default processing period based on
the calendar. Instead, it determines a default processing period based on the fiscal year variant assigned to the company code that has been entered (or the
company code held in the parameter id BUK). Since the company code in parameter BUK is not always available, it is difficult to determine a default
processing period based on fiscal year. Instead, the period field will be empty, but mandatory for the user. After you enter the period for the first time, the
period will be saved in the parameter PER.
PUBLIC
Page 65 of 109
!--a11y-->
1.4.1.2 Creating VBA Table Entries

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International VBA switching Create table entries .
The Create Table Entries for VBA Switching screen appears.
Procedure
Enter a Company Code on the Create Table Entries for VBA Switching screen .
Enter the Fiscal year .
Enter the Posting period .
Select the appropriate Blocking parameters for both cash switches and non-cash switches.
Select the appropriate Execution parameter, either Test mode; do not update table entries or Update the table entries .
The JV Bank Switch Documents Table Generation Report appears.
!--a11y-->
1.4.1.3 Modifying VBA Table Entries

Prerequisites
Menu Path
On the SAP Easy Access menu , choose Joint venture accounting Periodic processing International VBA switching Modify table entries.
The Bank Acct Switch - Maintain Data screen appears.
Procedure
On the Bank Acct Switch - Maintain Data screen, enter a company code in the Enter company code dialog box.
Select the SAP JVA documents you wish to block or release from processing, by clicking on the indicator in the far-left column of the table. An arrow
appears next to the selected row or rows.
To block documents, select the Blocked marked lines function. To release the documents, select the Release marked lines function. A green indicator
confirms the document is released from blocking and a red indicator confirms the document is blocked.
This Ind field contains a number representing a VBA indicator. For example, the number a 2 indicates the document is blocked for bank account switching,
and a number 4 indicates the document is relevant (released from blocking) for bank account switching. For a complete list of the VBA indicators, use the pulldown menu to view the codes.
!--a11y-->
PUBLIC
Page 66 of 109
1.4.1.4 Executing House Bank Switching

Prerequisites
See also:
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International Housebank switching.
The House Bank Switching screen appears.
Procedure
1. Enter a Company code on the House Bank Switching screen.
2. Enter a Payment date .
3. Enter a Vendor (or range of vendors).
4. Select Processing options from the following:
Include blank house bank items
Batch process (update)
Keep batch input
List control report
5. Choose EXECUTE. The House Bank Detail Report appears.
!--a11y-->
1.4.1.5 Processing Realized Exchange Differences

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International For. currency valu. Realized exchg.diff.
The Transfer automatic postings to CO screen appears.
Procedure
Enter a Company Code on the Transfer automatic postings to CO screen .
Enter a Period.
Enter a Fiscal Year.
Select the appropriate options under the following headings:
Processing options
Execute options
Choose EXECUTE. The Transfer automatic postings to CO report appears.
!--a11y-->
PUBLIC
Page 67 of 109
1.4.1.6 Processing Unrealized Exchange Differences

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International For. currency valu. Unreal. exchg. diff.
The Unrealized exchange differences screen appears.
Procedure
Enter a Company Code on the Unrealized exchange differences screen.
Enter a Posting Period.
Enter a Fiscal posting year.
Enter a Reversal period.
Enter a Fiscal reversal posting year.
Choose EXECUTE. The Unrealized exchange differences report appears.
!--a11y-->
1.4.1.7 Processing Non-Open Unrealized Exchange

Differences
Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International For. currency valu. Non-open unreal. exch.
The Valuation of foreign curr. balances of GL accounts at a posting period screen appears.
Procedure
1. Enter a Company Code on the Valuation of foreign curr. balances of GL accounts at a posting period screen .
2. Enter the Company code currency valuation method.
3. Select EXECUTE. The Batch input session RGJNOUXD report appears.
!--a11y-->
1.4.1.8 Processing Goods Receipt Expense Orders

Prerequisites
Menu Path
PUBLIC
Page 68 of 109
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International For. currency valu. GR Expense orders .
The Valuation of foreign currency POs assigned to an account screen appears.
Procedure
1. Enter the Purchasing document (or range of documents) on the Valuation of foreign currency POs assigned to an account screen.
2. Enter a Company Code on the Valuation of the G/L Accts Managed in FC at the Key Date DD.MM.YY screen .
3. Select Batch input requested.
4 . Enter the Input tax code 0%. Press F4 to view the options .
5. Choose EXECUTE. The Valuation of foreign currency POs assigned to an account , the LIST OF POSTINGS CARRIED OUT IN BATCHINPUT report
appears.
!--a11y-->
1.4.1.9 Processing Goods Receipt Inventory Orders

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International For. currency valu. GR Inventory orders.
The GR/IR Clearing Accounts and Display Acquisition Tax screen appears.
Procedure
Enter the G/L account (or range of accounts) on the GR/IR Clearing Accounts and Display Acquisition Tax screen.
Choose EXECUTE. The Analyze GR/IR Clearing Accounts and Display Acquisition Tax screen appears.
!--a11y-->
1.4.1.10 Running an Advance Tax Report

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing International Advance tax report.
The Advance Return for Tax on Sales/Purchases screen appears.
Procedure
1. Enter the Company code (or range of company codes) on the Advance Return for Tax on Sales/Purchases screen.
2. Enter the Fiscal year.
3 . Enter the Posting date (or range of posting dates).
4. Select the appropriate options under the following headings:
Further selections
Tax payable posting
Output control
Output lists
Postings parameters
5. Choose EXECUTE. The Sales tax advance return report appears.
PUBLIC
Page 69 of 109
!--a11y-->
1.4.2 Execution of CO Allocations

Definition
SAP Joint Venture Accounting (JVA) enables you to allocate costs, which were originally booked to CO cost objects, to other objects. The following types of
allocations are available in SAP JVA:
Assessments
When you execute an assessment, the expenses booked to various cost elements during the period are aggregated under a special secondary cost element,
specified on the assessment segment. The aggregate amount is booked to each receiving cost object.
Distributions
When you execute a distribution, the expenses booked to various cost elements during the period are directly allocated, from the sending cost centers to
which the expenses were originally booked, to receiving cost objects by using the cost element of the original posting. Distributions do not make use of the
special secondary cost elements that are used by assessments.
Settlements
A settlement consists of a final allocation of costs from orders or work breakdown structure (WBS) elements to cost centers, projects, fixed assets, general
ledger accounts, networks, materials, sales orders, or cost objects defined in the settlement rule for the sender.
Use
Both assessments and distributions consist of allocations of costs booked to CO primary or secondary cost elements, and cost centers from the sending cost
centers to receiving cost objects (orders, cost centers, WBS elements, or cost objects). The relationships between sending cost centers and the receiving
cost objects are defined in cycle or segment hierarchies.
Segments are groups of sending cost centers and receiving cost objects. During execution of the assessment or distribution, the costs collected in the
sending cost centers are allocated to the receiving cost centers. The costs are allocated from all the sending cost centers according to the assessment or
distribution sender rule, and the costs are processed by all the receiving cost centers according to the assessment or distribution receiver rule for tracing
factors. The need to use a different rule or different tracing factors for some senders or receivers, indicates that you should set up a separate segment. During
execution of the allocation, the segments are processed sequentially.
Cycles are groups of segments. You can create different cycles for planned and actual costs. In addition, you can define cycles to be executed repeatedly.
Cycles are valid for a period of time, and only postings made within that time period are processed by the allocation using the cycle.
!--a11y-->
1.4.2.1 Executing CO Allocations: Prerequisites

Purpose
The configuration and processing screens in SAP Joint Venture Accounting (JVA) for CO allocations are for joint venture expense processing. Alternatively,
you may use standard CO functions to set up and execute allocations.
Prerequisites
If you want to execute allocations in SAP JVA, you should define the related allocation methods and customizing (assessment cycles, distribution cycles, and
settlement customizing) in SAP JVA, so that the system can interpret them properly when you execute allocations.
Before configuring allocations immediately after the client copy, you should run the RK811XST report. This report builds the control sets for new
internal business activities used in allocations.
To process CO allocations in SAP JVA, you must first create the following prerequisites in FI and CO:
In FI, you create the general ledger accounts, to which joint venture expenses are booked.
In CO, you must first set up the cost objects that will be used as senders and receivers . When you set these objects up, you must also assign joint
venture information to them to ensure that the expenses you book to the objects are passed through to SAP JVA.
To enable specific types of CO allocation processing in SAP JVA, you must set up certain special objects, particularly cost elements in CO . For
assessments, you should define a secondary cost element of type 42 in CO. You can use this to post the credit entries to the sending cost centers
and debit entries to the receiving cost objects of assessments. For settlements, you should create a secondary cost element of type 21 internal
settlement , to be assigned in the settlement structure.
PUBLIC
Page 70 of 109
The Recovery Indicator (RI) Manipulation Rule

The RI manipulation rule allows you to indicate how to determine the RIs for the sender and receiver records resulting from allocations. The two available
screens for defining manipulation rules for RIs for allocations are the Joint Venture: Manipulation Rules for Recovery Indicator screen and the Manipulation
Rule Detail screen.
After you define the RI manipulation rules on these two screens, you can assign them to the allocations (assessments, distributions, and settlements) as you
set them up. The rule you assign to a particular allocation governs the determination of the RIs for the postings that result from execution of the allocation.
On the Joint Venture: Manipulation Rules for Recovery Indicator screen, to define different rules for your companys controlling area you do the following:
Enter the CO controlling area for your company in the COAr field.
Enter the name for the manipulation rule in the Mrul field.
Enter the description of the rule in the Manipulation Rule Description field.
Enter the number in the M-Derive field for the default method by which the RIs for the allocation are derived, when the RI of the sending record is not handled
by the MRULE detailed settings. Enter one of the three numbers:
1. Transfer RI from sender to receiver record
2. Derive RI from receiver master file
3. Derive RI from cost element
Enter the letter in the Msg-Type field for the type of message to be produced when the RI of the sending record is not handled by the MRULE detailed
settings, and the default settings are used instead. Enter one of the three letters:
E error - no posting performed
N no message - pass through the RI from the sending record - posting was performed
W warning message - pass through the RI from the sending record - posting was performed
Menu Path
To define RI manipulation rules (that can be assigned to allocations to govern RI determination for postings produced by the allocation, follow this menu path in
the IMG:
On the Display structure menu, choose Joint venture accounting
Processing CO Processing RI Manipulation Rule.
When you have defined a RI manipulation rule, you access the Manipulation Rule Detail screen to define the detailed information for the rule, by selecting the
newly defined rule and then selecting Recovery Indicator Relations. You can define the detailed information for the manipulation rule on this screen, by
entering the following information:
You enter the RI of the record from the sending cost object that is to be allocated in the Send D. RI field
This RI screens records for application of the remainder of the manipulation rule.
You enter the RI to be assigned to the clearing record posted to the sending cost object by the allocation in the SndClrRI field
You enter the RI to be assigned to the debit record posted to the receiving cost object by the allocation in the RecRvryInd field
You enter the number for the method by which the RI, for the debit record posted to the receiving cost object by the allocation, is derived in the M-Derive
field, if no REcRvryInd was specified. Enter one of the three numbers.
1. Transfer RI from sender to receiver record
2. Derive RI from receiver master file
3. Derive RI from cost element
You can enter either code in the receiver ( RI) field or th e master record derived ( Mder) field, but not in both fields.
!--a11y-->
1.4.2.2 Executing Assessments

Prerequisites
Executing CO Allocations: Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing CO processing Assessment .
PUBLIC
Page 71 of 109
The Set controlling area dialog box appears.
Procedure
1. Enter the Controlling area code on the Set Controlling Area dialog box.
2. Choose Continue . The Execute JV actual assessment: Initial Screen appears.
3. Enter the Period.
4. Enter the Fiscal year .
5. Check the appropriate process indicator ( Background processing, Test run, Detailed lists ).
6. Enter the Cycle by clicking on the pull-down arrow. The Start.date , and Text fields will be completed automatically.
7. Choose the Execute function.
8. If Test run and Detailed lists are selected, choose the following functions for additional information:
Segments
Senders
Receivers
Journals
If Background processing is selected, the Background Processing: Job Parameters screen will appear. Enter a Job name , Planned start Date and Time .
Choose Confirm . A system message appears.
!--a11y-->
1.4.2.3 Executing Distributions

Prerequisites
Menu Path
Periodic processing CO processing Distribution.
Procedure
To execute distributions, proceed as follows:
1. Enter the Controlling area code on the Set controlling area dialog box.
2. Choose Continue . The Execute JV actual distribution: Initial Screen appears.
3. Enter the Period.
5. Check the appropriate process indicator ( Background processing, Test run, Detailed lists ).
6. Enter the Cycle by clicking on the pull-down arrow. The Start.date and Text fields will be completed automatically.
8. If Test run and Detailed lists are selected. Choose the following functions for additional information:
Segments
Senders
Receivers
Journals
If Background processing is selected, the Background Processing: Job Parameters screen appears. Enter a Job name , Planned start Date and Time .
Choose Confirm . A system message appears.
PUBLIC
Page 72 of 109
!--a11y-->
1.4.2.4 Executing Order Settlement/Individual Processing

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Joint venture accounting Periodic processing CO processing Order Settlement Indiv. processing.
Procedure
Enter the
Enter the
Enter the
Enter the
Controlling area code on the Set controlling area dialog box. The Actual Settlement: Order dialog box appears.
Order number .
Settlement Period .
Fiscal year .
You can change the Processing type default. Processing type is important because it determines whether settlement can be run before or after cutback. For
example, Processing type determines whether the expense is settled before cutback and the costs to be capitalized are settled after cutback. For further
discussion of the various Processing types , press the F1 and F4 keys .
Select a Processing option .
Choose Execute . The Actual Settlement: Detailed List appears .
!--a11y-->
1.4.2.5 Executing Order Settlement/Collective Processing

Prerequisites
Menu Path
Periodic processing CO processing Order settlement Collective proc.
Procedure
Enter the Controlling area code on the Set controlling area dialog box. The Actual Settlement: Orders screen appears.
Enter the Settlement period .
You can change the Processing type default. Processing type is important because it determines whether settlement can be run before or after cutback (for
example, whether the expense is settled before cutback and the costs to be capitalized are settled after cutback). For further discussion of the various
Processing types press the F1 and F4 keys .
Select the appropriate Processing option ( Background processing, Test run, Detailed lists, or Check trans data ).
Choose the Execute function.
If the process you selected is Test run or Detailed list, the Actual Settlement: Basic List appears.
If Background processing is selected, the Background Processing: Job Parameters screen appears. Enter a Job name , Planned start Date and
Time . Choose Confirm . A system message appears.
!--a11y-->
PUBLIC
Page 73 of 109
1.4.2.6 Executing Order Settlement/Line Item Distribution

Prerequisites
Menu Path
Periodic processing CO processing Order Settlement Line item distrbtn
Procedure
2. Choose Continue . The Order: Line Item Apportionment for Settlement screen appears.
3. Enter the Order number .
4. Choose Enter. A Basic list appears.
To continue through final settlement choose the Final settlmt . function and complete the appropriate fields on the Maintain Settlement Rule: List .
!--a11y-->
1.4.2.7 Executing Project Settlement/Individual Processing

Prerequisites
Menu Path
Periodic processing CO processing Project Settlement Indiv. processing.
Procedure
2. Choose Continue . The Actual Settlement: Project/WBS element/network screen appears.
3. Enter the Project definition , or WBS element , or Network .
4. Enter the Settlement period .
6. Select the appropriate Process option ( Test run, Detail list, or Check trans. data).
7. Choose the Execute function. The Actual Settlement: Basic List appears.
!--a11y-->
1.4.2.8 Executing Project Settlement/Collective Processing

Prerequisites
Menu Path
Periodic processing CO processing Project Settlement Collective proc.
PUBLIC
Page 74 of 109
Procedure
2. Choose Continue . The Actual Settlement: Projects/WBS/networks screen appears.
3. Enter the Selection variant.
4. Enter the Settlement period .
6. Check the appropriate Processing option ( Background processing, Test run, Detail list, or Check trans. data ).
If the process you selected is Test run or Detailed list, the Actual Settlement: Basic List will be displayed .
If Background processing is selected, the Background Processing: Job Parameters screen appears. Enter a Job name , Planned start Date and Time .
Choose Confirm .
!--a11y-->
1.4.2.9 Executing Project Settlement/Line Item Distribution

Prerequisites
Menu Path
Periodic processing CO processing Project Settlement Line item distbtn.
Procedure
2. Choose Continue . The Display Project Settlement Line Items screen appears.
3. Enter the work breakdown structure code in the WBS element field.
4. Choose Enter. A Basic list appears.
To continue through final settlement, choose the Final settlmt . function and complete the appropriate fields on the Maintain Settlement Rule: List .
!--a11y-->
1.4.3 Cost Calculations

Purpose
Many joint venture operators apply overhead charges, some of which must be calculated, to cover the indirect costs incurred in operating ventures. After these
overhead charges are determined by the SAP Joint Venture Accounting (JVA) Cost Calculations process, the SAP JVA Cutback and Billing processes
assign them to the appropriate venture partners.
Process Flow
During processing, SAP JVA Cost Calculations collects costs that have a billable recovery indicator (RI), associated with joint ventures within the company
for which the process is being executed.
The process sorts these billable costs for the joint ventures by overhead type, such as Construction, Combined Fixed Rate Drilling , or Percentage
Producing . SAP JVA Cost Calculations then applies the rule for calculating overhead charges, specified for each overhead type at the joint operating
PUBLIC
Page 75 of 109
agreement level, to the appropriate joint venture costs.

In the final step of processing, SAP JVA Cost Calculations posts overhead costs to appropriate SAP FI accounts and SAP CO cost objects. Different cost
calculations are available in SAP JVA for the three different regions supported by the system.
Example
The cost calculations for the United States region consist of the following:
Payroll Burden Clearing
Major Construction Overhead (MCO)
Catastrophe Overhead
Combined Fixed Rate (CFR) Drilling
Combined Fixed Rate Producing
Percentage Basis Overhead

Overhead is only applied to the billable costs of company-operated joint ventures for companies in the United States region.
!--a11y-->
1.4.3.1 Calculating Parent Company Overhead

Prerequisites
SAP FI Prerequisites
The SAP JVA cost calculations process derives its source cost data from the joint venture summary ledger. This cost data is originally booked to SAP FI
accounts. Cost calculations also posts the results of its processing to SAP FI accounts .
You should create the following list of accounts in SAP FI to support cost calculations:
Accounts to receive the expense and offset entries that result from cost calculations
Sets of accounts to be used at the company, joint operating agreement (JOA), or work breakdown structure (WBS) level to exclude expenses from cost
calculations processing of overheads
Balance sheet accounts to receive the offset entries of cost calculations processing
Set of accounts for payroll burden

SAP JVA Configuration Prerequisites
In addition to the SAP FI prerequisites, you should take the following configuration steps to enable the processing of cost calculations:
Define sets of exclusion accounts that can be excluded from overhead cost calculations
Define accounts to which postings created by calculations of the various overhead costs will be posted through SAP JVA configuration automatic postings
Set up SAP JVA master objects for cost calculations
Establish prerequisites for the SAP JVA cost calculations in CO
Assign rules, exclusion sets, and WBS elements for cost calculations at the JOA and joint venture level during company set-up in SAP JVA
Exclusion Accounts for Cost Calculations
You can define sets of existing FI accounts in SAP JVA configuration that
can be selectively excluded from overhead calculations at the following levels
for:
Your company
Specific JOAs
Specific project/WBSs
PUBLIC
Page 76 of 109
Menu Path
Environment Sets Create.
To define sets of exclusion accounts for cost calculations, on the Create Set:
Initial screen, enter the following information:
Name for the set of exclusion accounts you are defining in the Set ID
field
JVTO1
in the Table field (All cost calculation exclusion sets are assigned to
table JVTO1 )
Select Basic set or Single set in the Set Type area
When you have made these entries on the Create Set: Initial screen, select
Basic Entries . When the Create Set: Field Name dialog box appears, enter
RACCT in the Field Name field and select Continue to display the Create
Set: Basic Entries screen. On this screen, make the following entries:
Account number of the single account or the first account in a series
that are to be included in this set of accounts in the No. From Value
field (If only one account is to be specified for the set, enter the account
number in this field.)
Account number of the last account in a series that are to be included in the
To Value field
Accounts and Automatic Postings
SAP JVA has automatic posting processes for every overhead type. These
processes specify the general ledger accounts to which amounts are posted
in FI . The account to which cost calculation expenses are booked must be a
cost element. The offset account for an overhead type may be a cost element
or a balance sheet account.
Master Objects for Cost Calculations
You must set up the following types of master objects to run SAP JVA cost
calculations:
Cost Object Types
Cost Calculations Rules
Special Cost Elements
Menu Path
Master Data Cost Object Types.
You can access all the SAP JVA cost calculations objects from the
Processing pull-down menu.
Prerequisites for SAP JVA Cost Calculations in CO
The following is a list of the cost objects that your implementation team
should set up in CO to support SAP JVA cost calculations:
Cost elements corresponding to FI accounts to receive either expense
or offset entries resulting from Cost Calculations processing
Projects and WBSs for authorizations for expenditures (AFEs), cost
centers, and orders connected to joint ventures and JV overhead types
via JVA cost object types
Hierarchy of WBSs
Drilling statistical ratio and producing statistical ratio for each well depth
that will carry a different overhead rate
Special drilling cost elements
Each cost object (set up in CO) can be connected to only one SAP JVA cost
object type and overhead type, and each can only collect overhead costs for
that single overhead type for the venture to which it is attached.
Menu Path
To calculate parent company overhead, follow this menu path:
Periodic processing Cost calculations Parent company ovrhd.
The Joint Venture Cost Calculations - International screen appears.
Procedure
1. Enter the Company Code on the Joint Venture Cost Calculations - International screen.
2. Enter the Year.
3. Enter the Period .
4. Select the appropriate processing option ( Update, Keep Batch Input ).
5. Choose the Execute function to view the Overhead Expense Account and Overhead Offset Account.
PUBLIC
Page 77 of 109
!--a11y-->
1.4.3.2 Calculating Overheads - General

Prerequisites

Assign rules, exclusion sets, and WBS elements for cost calculations at the JOA and joint venture level during company set-up in SAP JVA.
for:
Your company
Specific JOAs
Menu Path
field
JVTO1
table JVTO1 )
Account number of the last account in a series that are to be included in
the To Value field
calculations:
Cost Object Types
PUBLIC
Page 78 of 109

Menu Path
Hierarchy of WBSs
Menu Path
To calculate overheads, follow this menu path:
Periodic processing Cost calculations Overheads - general.
The Joint Venture Overhead Calculations screen appears.
Procedure
1. Enter the Company Code on the Joint Venture Overhead Calculations screen .
2. Enter the Year.
4. Select the appropriate processing option ( Update, Keep Batch Input, Direct Input w/o Batch Input ) .
5. Choose the Execute function to view the overhead data.
!--a11y-->
1.4.3.3 Calculating Payroll Burden

Prerequisites
The SAP Joint Venture Accounting (JVA) cost calculations process derives its source cost data from the joint venture summary ledger. This cost data is
originally booked to SAP FI accounts. Cost calculations also posts the results of its processing to SAP FI accounts .

You should also take the following configuration steps to enable the processing of cost calculations:
PUBLIC
Page 79 of 109

for:
Your company
Specific JOAs
Menu Path
field
JVTO1
table JVTO1 )
the To Value field
calculations:
Cost Object Types
Menu Path
Hierarchy of WBSs
Menu Path
To calculate payroll burden, follow this menu path:
Periodic processing Cost calculations Payroll burden.
The Joint Venture Payroll Burden Clearing screen appears.
PUBLIC
Page 80 of 109
Procedure
1. Enter the Company Code on the Joint Venture Payroll Burden Clearing screen .
2. Enter the Year.
4. Select the appropriate processing option ( Update, Keep Batch Input, Direct Input w/o Batch Input ).
5. Choose the Execute function to view the Payroll Burden Clearing data.
!--a11y-->
1.4.3.4 Calculating Overhead Escalation/Reduction Rate

Prerequisites
Menu Path
Periodic processing Cost calculations Auto. o/h escalation
The Overhead Rate Escalation/Reduction Calculation screen appears.
Procedure
1. Enter the Company Code on the Overhead Rate Escalation/Reduction Calculation screen .
2. Completing the Percentage Change field is optional.
Enter the percentage, by which the rates for the following overhead cost calculation types for a JOA within the company, are increased or decreased:
Combined Fixed Rate (CFR) Drilling Rate
CFR Producing Rate
Flat Rate
To decrease rates, enter a number with a trailing minus sign.
3. Select the processing option ( Update ).
4. Choose the Execute function to view the Payroll Burden Clearing data.
!--a11y-->
1.4.3.5 Processing the Overhead Detail Report

Prerequisites
PUBLIC
Page 81 of 109

for:
Your company
Specific JOAs
Menu Path
To define sets of accounts that can be selectively excluded from cost
calculation processing, follow this menu path:
field
JVTO1
table JVTO1 )
the To Value field
calculations:
Cost Object Types
Menu Path
To set up the SAP JVA master data objects in the IMG to enable the cost
calculations follow this menu path:
Hierarchy of WBSs
PUBLIC
Page 82 of 109
Menu Path
Periodic processing Cost calculations Overhead detail rpt.
The Joint Venture Overhead Detail screen appears.
Procedure
1. Enter the Company code on the Joint Venture Overhead Detail screen .
2. Enter the Year.
4. Choose the Execute function to view the Joint Venture Overhead Detail data.
!--a11y-->
1.4.4 Cutback
Purpose
A joint venture operating partner carries all operating costs throughout the accounting period. At the end of the accounting period, the operators expenditures
are shared by the non-operating partners and the operator, according to their equity shares. This process is called cutback.
The SAP Joint Venture Accounting System (JVA) cutback process assigns expenses to partners. Cutback accomplishes the following three tasks:
Prepares partner expense data for the summary invoice
Posts accounts receivable entries for each partners share of venture expenses (including posting inter-company expenses directly to associated companies
books)
Cuts back gross to net expenditure on the operators own books
Process Flow
Cutback Processing
PUBLIC
Page 83 of 109
Cutback extracts all costs with a billable recovery indicator for each joint venture and equity group currency combination from the joint venture summary
ledger. Depending on the decisions made when SAP JVA is configured, there may be a number of different types of billable recovery indicators ( BI for normal
billable and AD for billable adjustment).
Cutback Applies Posting Rules to Billable Expenses
Cutback processes these billable transactions for each joint venture, applying the posting rules defined during configuration. As it processes these
transactions and assigns costs to partners in the joint venture, cutback posts debit entries for these assigned costs to the various receivable accounts for the
partners that are stored in SAPs Financial Accounting System. As part of this processing, cutback also posts offsetting entries to either user-defined
cutback accounts or, in the absence of user-defined accounts, to the same accounts to which the original expenditures were posted.
Cutback Provides Input Data to the SAP JVA Billing Process
When cutback has completed running for the period, the SAP JVA billing process takes the receivable documents produced by cutback as one source of
information for its processing. Cutback also posts the operating for venture expenditures to the joint venture billing ledger, so that all expenses associated with
the venture can be included in reports to the partners.
Non-Operated On-Billing Ventures
Usually cutback is run for ventures for which the company is the operator, but cutback can also assign expenses to partners for non-operated on-billing
ventures. In a non-operated on-billing venture, the company for which cutback is being run has sold portions of its non-operating partnership share of the
venture to others. When cutback is run for such ventures, expenses that the venture operator assigned to the company are apportioned to these partners in
the companys share, based on their equity holding.
Result
Cutback posts its output directly to other SAP JVA ledgers or to other system ledgers, such as SAP FI.
!--a11y-->
1.4.4.1 Identifying Suspended Projects and Equity Groups

Prerequisites
To process cutback in SAP, you must configure the following accounts:
Fixed accounts and objects in SAP FI
Posting rules for cutback
Cutback accounts for accounts that cannot post expenses directly
You must also configure accounts and objects in SAP FI and SAP JVA, for the following conditions, to enable cutback to post entries:
Special Partnership Arrangements
When your implementation team configures cutback for your company to process expenditures for typical ventures, it should also set up objects to enable
cutback to process postings for the following special partnership arrangements:
Carried Interest (CI) Partners
A normal working interest partner may become a CI partner by taking one of the following actions:
Failing to sign the joint operating agreement (JOA)
Exercising the non-consent provisions of the JOA and declining to participate as a working interest partner in proposed exploration, development,
and production activities
As long as one of these conditions continues, a group of working interest partners in the venture bears the expenses and shares the
revenues that would normally accrue to the CI partner based on equity share. Payout is achieved when the revenues exceed the sum of
the expenses accumulated since initiation of this arrangement and a designated additional percentage of the expenses. As a result, the CI
partners interest reverts to a normal working interest, and that partner once again participates as a full working interest equity owner in the
venture. A specific CI arrangement usually applies to one JOA; thus, payout is achieved when the penalty provisions of that one JOA are
met.
Net Profit Interest (NPI) Partners
A normal working interest partner becomes an NPI partner by making an agreement with the operating partner to yield a working interest to
the operator in return for a negotiated percentage of the interests future revenue. The NPI arrangement is different from the CI
arrangement because the NPI partner permanently gives up a working interest in the venture; whereas, the CI partner temporarily yields
the working interest until the interests revenues exceed its expenses by a ratio. At this time, the CI partner once again participates as a
full working interest equity owner in the venture.
Under the conditions of a typical NPI arrangement, the operator of the venture bears the expenses and enjoys the revenues that would
have previously accrued to the NPI partner based on the interests equity share. When the revenues exceed the expenses accumulated
since initiation of the arrangement, the NPI partners interest does not revert to a normal working interest. Instead the NPI partner receives
a percentage of the relinquished interests revenues which is specified in that partners agreement with the operator.
Suspended Partners, Projects, and Equity Groups
If a partner, project, or equity group is suspended, cutback postings are not executed until the affected entity is removed from
suspension. When the entity is unsuspended, cutback processes all expenses for the complete time of its suspense.
Suspended partners do not receive an invoice. In a subsequent period when partners are unsuspended, they will receive an invoice that
PUBLIC
Page 84 of 109
includes expenses for the complete period of their suspense.
If there are any outstanding postings for the project, partner or equity group and cutback has not been run, (and no entries exist per line in
the billing ledger) you can suspend a project, WBS or equity group.
If cutback has been run, you can not suspend a project, WBS or equity group if you can not place the entity in suspense directly because
cutback has been run. Create a new project, WBS or equity group with identical attributes to the former, then suspend.
Equity Group, Partner, and Project Suspense

Your implementation team must configure special cutback posting rules to enable cutback to process the expenses for equity groups, partners, and projects
that are in suspense, but to avoid posting these expenses to the equity groups, partners, or projects during the suspense period.
Intercompany Ventures
To enable cutback to process expenses for intercompany ventures, your implementation team must create the following:
Cutback objects for intercompany partners
Accounts to be used specifically by cutback to post expenses for intercompany ventures
These objects and accounts feed cutback generated postings to corresponding target objects and accounts in the associated companys general ledger
.
Cutback does not pick up expenses from suspended projects and equity groups. When you remove and object from suspense, cutback picks up the expenses
for all the previous accounting periods in which the project or equity group was suspended. By executing the following program prior to running cutback, you
can change the recovery indicator for identified projects and equity groups. This transaction allows you to suspend a previously billable project or equity group,
and to remove a project or equity group from suspense and change it to billable.
Menu Path
Periodic processing Cutback processing Susp. project/eq.gr.
The Suspense projects and equity groups screen appears.
Procedure
1. Enter the Company code on the Suspense projects and equity groups screen.
4. Select from the Processing options ( Test run ).
5. Choose the Execute function. The Project/equity group suspense run for the specified company and period appears.
!--a11y-->
1.4.4.2 Running Pre-Cutback Equity Change Management

Prerequisites
PUBLIC
Page 85 of 109
As long as one of these conditions continues, a group of working interest partners in the venture bears the expenses and shares the revenues
that would normally accrue to the CI partner based on equity share. Payout is achieved when the revenues exceed the sum of the expenses
accumulated since initiation of this arrangement and a designated additional percentage of the expenses. As a result, the CI partners interest
reverts to a normal working interest, and that partner once again participates as a full working interest equity owner in the venture. A specific CI
arrangement usually applies to one JOA; thus, payout is achieved when the penalty provisions of that one JOA are met.
A normal working interest partner becomes an NPI partner by making an agreement with the operating partner to yield a working interest to the
operator in return for a negotiated percentage of the interests future revenue. The NPI arrangement is different from the CI arrangement because
the NPI partner permanently gives up a working interest in the venture; whereas, the CI partner temporarily yields the working interest until the
interests revenues exceed its expenses by a ratio. At this time, the CI partner once again participates as a full working interest equity owner in
the venture.
Under the conditions of a typical NPI arrangement, the operator of the venture bears the expenses and enjoys the revenues that would have
previously accrued to the NPI partner based on the interests equity share. When the revenues exceed the expenses accumulated since initiation
of the arrangement, the NPI partners interest does not revert to a normal working interest. Instead the NPI partner receives a percentage of the
relinquished interests revenues which is specified in that partners agreement with the operator.
If a partner, project, or equity group is suspended, cutback postings are not executed until the affected entity is removed from suspension. When
the entity is unsuspended, cutback processes all expenses for the complete time of its suspense.
Suspended partners do not receive an invoice. In a subsequent period when partners are unsuspended, they will receive an invoice that includes
expenses for the complete period of their suspense.
If there are any outstanding postings for the project, partner or equity group and cutback has not been run, (and no entries exist per line in the
billing ledger) you can suspend a project, WBS or equity group.
.
Menu Path
Periodic processing Cutback processing Pre-cutback eq. chng.
The Pre-Cutback Equity Change Management screen appears.
You run the pre-cutback equity change management transaction prior to cutback when there has been a change of equity group within a period for which
cutback is being run. The expenses for the former equity group are apportioned to the current equity group.
Procedure
Enter the Company code on the Pre-Cutback Equity Change Management screen.
Enter the Period .
Select from the Processing options ( With recs processed by cutback , Test run ).
Select the Recovery indicators ( All billable, All non-billable, or a range of Recovery indicators)
Choose the Execute function. The Equity Change Management Report appears.
!--a11y-->
1.4.4.3 Running Cutback

Prerequisites
PUBLIC
Page 86 of 109

met.

.
Menu Path
Periodic processing Cutback processing Cutback.
The Cutback screen appears.
Procedure
1. Enter the Company code on the Cutback screen.
4. Select from the Processing options ( Testrun, Intermediate cutback run, Not completed ventures only, or Perform asset postings ).
5. Choose the Execute function. The Cutback report will appear if you selected Testrun as a processing option. If you selected Intermediate cutback , a
document number will appear.
If the Not completed ventures only field is flagged, cutback will process only the ventures that have not been processed successfully for the current month.
The first cutback run processes all selected ventures. The second cutback run processes only the ventures that have been in error status at the time of the
first cutback run.
If the Not completed ventures only field is not flagged, cutback will process all selected ventures.
If the Perform asset postings field is flagged, cutback handles expenses posted to an asset in the following two steps:
PUBLIC
Page 87 of 109
1. Cutback posts the expense offset to a cutback account defined in configuration

2. The cutback account is cleared to the original asset
If the Perform asset postings field is not flagged, the second part of the posting is not processed.
!--a11y-->
1.4.4.4 Clearing Partner Suspense After Cutback

Prerequisites
Introduction
met.

.
PUBLIC
Page 88 of 109
Cutback does not pick up expenses for suspended partners. To book these expenses, you must clear partner suspense by changing the billing
indicator to billable.
Menu Path
Periodic processing Cutback processing Partner susp.clear.
The Partner Suspense Clearance screen appears.
Procedure
1. Enter the Company code on the Partner Suspense Clearance screen.
4. Select from the Processing options ( Testrun, Keep batch input ).
5. Choose the Execute function. The Partner Suspense Clearance Report - Open Items Cleared report appears.
!--a11y-->
1.4.4.5 Payment Term Schema for Cutback

Use
You can define a payment term schema for a venture that is used by the cutback process to determine the payment terms used in the cutback postings.
Complete Payment Term Schema for Cutback Postings

The payment term defined on the venture (that is being processed by cutback) is used in the cutback postings, if a payment term is defined.
The payment term schema defined on the venture (that is being processed by cutback) determines the payment term used in the cutback postings, if no
payment term, but a payment term schema, is defined on the venture.
The payment term defined on the customer is used in the cutback postings, if no payment term or payment term schema is defined on the venture.
If the payment term schema is used for deriving cutback payment terms, the following logic is applied:
You can define payment terms for each recovery indicator (RI) that can be picked up by the cutback process. This payment term will then be used in the
cutback posting.
You can define payment terms for each RI and original payment term used in the original posting.
You can call a user exit that changes the payment term assignment of the cutback postings.
Prerequisites
Menu Path
On the Display structure menu in the IMG, choose Joint venture accounting
Processing Cutback Control Payment Term Schema.
There are three maintenance levels for payment term schemas, as follows:
Level 1: Payment Term Schema
Here, you can define and describe the payment term schema.
Level 2: Cutback Payment Terms for RIs
Here, you can define cutback payment terms for each billable RI, as well as a user exit that can be called for derivation of the payment terms. In detail, you
can maintain the following fields on this level:
RI
Cutback processes each billable RI separately. You specify the billable RI here.
Cutback Payment Term
This payment term is used for all cutback postings that are created based on the billable items posted with the corresponding RI. If no payment term is
defined on this level, the next level is checked to determine the cutback payment terms.
User Exit Function
You can enter a function here that will be called as a user exit, where the cutback payment terms (derived by the standard process) can be modified.
PUBLIC
Page 89 of 109
Single Item Information Required

For performance reasons, the cutback process only reads line item information when the cutback payment terms are derived on the third level. However, if
the user exit is used and if it requires line item information, this flag should be activated. This forces the cutback process to read the line item information.
Level 3: Cutback Payment Terms for RI and Original Payment Term
Here, you can define cutback payment terms for each billable RI and payment term assigned to the original posting. You can maintain the following fields on
this level:
Original Payment Term
Each SAP JVA document with a customer or vendor line has payment terms assigned to each line item of this document. Here we define what payment
term of the original document this configuration is being made for.
Cutback Payment Term
This payment term is used for all cutback postings that are created based on the billable items posted with the corresponding RI and original payment term.
Features
User Exit Function

On the second level, you can enter a function that will be called as a user exit during the cutback process. This function expects the following input
parameters
I_BUKRS
This is the company code that is valid for this call of the user exit.
I_WAERS
This is the currency that is valid for this call of the user exit.
I_VNAME
This is the venture that is valid for this call of the user exit.
I_EGRUP
This is the equity group that is valid for this call of the user exit.
I_T8JV_ITEM
This table contains the SAP JVA line item information that is relevant for the cutback process of this venture and equity group.
I_CB_RESULT
This table contains the partner lines of the cutback document as it has been calculated by the cutback process.
The function returns a table E_CB_RESULT that contains the modified partner lines of the cutback document. You can add or delete lines and assign
new payment terms, if the total amount charged to the partners has not been changed and if no new partners are added to the cutback
document.
Example
Master Data
All examples use the following master data.
Equity group E1 assigned to venture V1 contains the following partners:
Partner
Share
Operator
60 %
Partner A
30 %
Partner B
10 %
Venture V1 is assigned to payment term schema 0001.

RIs B1 and B2 are set up as billable RIs.
Original postings
The following invoices were posted during one period. B1 and B2 are billable RIs:
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Vendor A
PT01
CC1
V1
E1
CP
2,000-
Material
PT01
CC1
V1
E1
B1
2,000
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
PUBLIC
Page 90 of 109
Vendor A
PT02
CC1
V1
E1
CP
3,000-
Material
PT02
CC1
V1
E1
B1
3,000
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Vendor A
PT03
CC1
V1
E1
CP
4,000-
Material
PT03
CC1
V1
E1
B2
4,000
With this, the following data is relevant for the cutback process:
Summary
level:
Account
Cost obj.
Venture
EgGr
RI
Amount
Material
CC1
V1
E1
B1
5,000
Material
CC1
V1
E1
B2
4,000
Line item
level:
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Material
PT01
CC1
V1
E1
B1
2,000
Material
PT02
CC1
V1
E1
B1
3,000
Material
PT03
CC1
V1
E1
B2
4,000
Payment Term Schema Definition

Payment term schema 0001 is defined as follows:
PT Schema
RI
Cutback PT
0001
B1
CPT1
0001
B2
CPT2
Cutback Postings
Cutback creates separate postings for each RI. Based on the configuration of payment term schema 0001, the cutback postings are made with the
following payment terms:
Cutback postings made for RI B1 are posted with payment term CPT1.
This results in the following cutback postings:
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Partner A
CPT1
CC1
V1
E1
CB
1,500
Partner B
CPT1
CC1
V1
E1
CB
500
CC1
V1
E1
CB
2,000-
Material
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Partner A
CPT2
CC2
V2
E2
CB
1,200
Partner B
CPT2
CC2
V2
E2
CB
400
CC2
V2
E2
CB
1,600-
Material
Payment Term Schema Definition

Payment term schema 0001 is defined as follows:
PT Schema
RI
0001
B1
0001
B2
Cutback PT
CPT2
For RI B1, the payment term schema 0001 has the following additional configuration on RI / payment term level:
PUBLIC
Page 91 of 109
PT Schema
RI
Original PT
Cutback PT
0001
B1
PT01
CPT1
0001
B1
PT02
CPT3
Cutback Postings
Cutback creates separate postings for each RI. Based on the configuration of payment term schema 0001 the cutback postings are made with the
following payment terms.
Cutback postings made for RI B1 are posted with:
Payment term CPT1 if the payment term of the original posting was PT01
Payment term CPT3 if the payment term of the original posting was PT02
This results in the following cutback postings:
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Partner A
CPT1
CC1
V1
E1
CB
600
Partner A
CPT3
CC1
V1
E1
CB
900
Partner B
CPT1
CC1
V1
E1
CB
200
Partner B
CPT3
CC1
V1
E1
CB
300
CC1
V1
E1
CB
2,000-
Material
Account
PayTerm
Cost obj.
Venture
EgGr
RI
Amount
Partner A
CPT2
CC2
V2
E2
CB
1,200
Partner B
CPT2
CC2
V2
E2
CB
400
CC2
V2
E2
CB
1,600-
Material
!--a11y-->
1.4.5 Carried Interest (CI) and Net Profit Interest (NPI)

Definition
In North America, Joint Venture Accounting (JVA) Regions US and Canada , it is common for joint venture partners to carry the ownership interest of another
partner. The carrying partners assume the expenses and the revenues of the carried partner. This arrangement usually results when the carried partner takes
one of the following actions:
Fails to sign the joint operating agreement (JOA)
Exercises the non-consent provisions of the JOA and does not participate in proposed development and production activities
Agrees to yield a working interest to the operator in return for a negotiated percentage of the interests future revenue
CI and NPI partnerships are the two types of joint venture arrangements that address these situations.
Use
CI Partners
A working interest partner can become a CI partner by failing to sign a JOA or by exercising the non-consent provisions of the JOA and refusing to participate
in proposed development and production activities.
The operator can penalize the CI by defining penalty percentages (in the JOA) for the venture development and operational costs assumed by other partners.
Revenue must exceed these costs before the CI partner can receive payment and resume participation in the venture. A CI arrangement usually applies to one
JOA.
NPI Partners
A working interest partner can becomes an NPI partner by giving a working interest to the operator in return for a negotiated percentage of the interests future
revenue. The NPI arrangement is different from the CI arrangement because the NPI partner surrenders a working interest permanently.
In a typical NPI arrangement, the operator bears the expenses and enjoys the revenues that would have accrued to the NPI partner. When the revenues
exceed the expenses accumulated since initiation of the arrangement, the NPI partner receives an agreed percentage of the relinquished interests revenues.
Netting
Both CI and NPI partnership arrangements involve netting expenses and revenues to determine whether or not the partner has been paid. This occurs after
cutback. Processing expenses for CI or NPI arrangements, which includes both cutback and CI or NPI netting, involves the following:
1. Cutback is executed to assign expenses that were booked to cost objects for a venture to the equity group owners based on their ownership share
2. CI or NPI netting is executed to compare cutback-generated expenses with revenues booked to the CI or NPI partner to determine whether payout has
been achieved.
3. If payout is not achieved, CI or NPI netting does not post any entries. If payout is achieved, CI or NPI netting posts appropriate revenues to the CI or
PUBLIC
Page 92 of 109
NPI partner.
Payout for CI Partners
Before CI or NPI netting, cutback apportions the expenses for the partners share among the working interest partners and the operator according to the CI
arrangement for the joint venture and equity group. When CI or NPI netting determines that the CI partner has reached payout, the interest is converted to a
normal working interest. Expenses and revenues once again accrue to the CI partner based on the equity share.
Payout for NPI Partners
Before CI or NPI netting, cutback assigns all expenses associated with the NPI partners equity share to the venture operator. The CI or NPI netting function
assigns a portion of the revenues for the interest to the NPI partner, while the remaining revenue and all expenses are booked to the operator.
Source of Revenue
SAP JVA Cutback is the source of the expense data input to CI and NPI netting. Revenues must be fed into SAP JVA from another system, and this data is
the source of revenue data input to CI and NPI netting.
Non-executable Processes for CI and NPI Partners
The following SAP FI and SAP JVA processes cannot be executed for CI and NPI partners:
Placing the partner in suspense
Posting direct charges to the partner
Issuing cash calls to the partner
Each CI and NPI Partner May Have A Different Billing Format
A billing format is assigned to each partner or venture during configuration. If partner-based billing has been selected, each partner can have a different billing
format. If venture-based billing has been selected, all venture partners are assigned the billing format of venture.
!--a11y-->
1.4.5.1 Executing Group Carried Interest and Net Profit

Interest Netting
Prerequisites
Prior to running netting, configuration requirements must be completed in SAP FI, SAP CO, and SAP Joint Venture Accounting (JVA). For more information,
see:
Prerequisites in FI
Prerequisites in CO
Prerequisites in JVA
Menu Path
On the SAP Easy Access screen, choose Joint venture accounting
Periodic processing Netting Grouped CI/NPI nettg.
The CI/NPI Processing screen appears.
Procedure
1. Enter the Company code on the CI/NPI Processing screen.
3. Enter the Posting period .
4. Select from the Processing options: Test run or Equity Group list (act/inact) .
5. Choose the Execute function. The JV Billing Ledger Entries statement appears.
!--a11y-->
1.4.5.2 Carried Interest (CI) and Net Profit Interest (NPI)

Statements
Definition
The CI and NPI statements are produced by executing the SAP Joint Venture Accounting (JVA) hard copy billing process. Previously, CI and NPI statements
were produced during SAP JVA CI or NPI netting.
PUBLIC
Page 93 of 109
!--a11y-->
1.4.5.2.1 Billing Configuration of CI and NPI Statements

Use
Carried Interest (CI) and Net Profit Interest (NPI) statements are produced as part of the execution of SAP Joint Venture Accounting (JVA) billing. As a result,
you can customize these statements by using the extensive formatting and totaling functions of SAP JVA billing. Also, you must establish settings for CI and
NPI statements in SAP JVA billing configuration. To enable production of CI and NPI statements through SAP JVA billing, you must perform the following
configuration tasks:
1. You must assign the combination of the form type for CI and the type for NPI and the billing program form routines for both CI and NPI to the billing
structure for the SAP JVA company
2. You must assign the SAPscript layout sets for CI and NPI to the form types for CI and NPI for the billing structure.
3. You must map the billing indicators that are relevant to the CI and NPI statements, with reference to subtotaling, for the CI and NPI layout sets
4. You must link the billing levels or events to text elements in the CI and NPI layout sets.
5. Finally, you must assign the combination of the CI and NPI form types and layout sets to the SAP JVA partners billing format.
Assigning CI and NPI Form Types and Form Routines to Billing Structure
A single billing structure is defined for each SAP JVA company in SAP JVA Billing configuration, and that structure is assigned to the company on the
Detailed Data screen in SAP JVA configuration. All billing documents to be produced for the JVA company must be assigned to the companys billing
structure. Each billing document has the following dimensions:
1. The form routine accessed from the SAP JVA Billing program RGJVBR15
2. The SAPscript layout set that controls format of the document
The form type for the billing document links the form routine and the layout, set to generate a document during execution of SAP JVA billing. All available form
types are pre-defined and delivered with the system. There is a corresponding form type for each type of billing document. The types are also specific to SAP
JVA regions. For example, the form type for the invoice document is IV.
The first step in assigning a new billing document to an SAP JVA company is to assign the combination of the form type and the RGJVBR15 form routine to
the billing structure. Two new form types have been defined for CI and NPI statements: CI and NI .
Menu Path
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Billing structure .
Procedure
On the Billing Structures: Overview screen, choose the billing structure for the SAP JVA company and then choose the Form routine assignment
button.
On the Form routines used for billing: Overview screen, choose New entries .
On the New Entries: Details of Created Entries screen, enter the code for the CI or NPI form type ( CI or NI ) in the Form Type field of the
Assignment section, and choose the Assign button to automatically assign the form routine to the form type and billing structure.
Assigning CI and NPI Layout Sets to Form Types for the Billing Structure
SAPscript layout sets are used to format SAP JVA billing documents. The next step of setting up a new billing document for an SAP JVA company is to
assign the layout set for the document to the JVA form type for that type of document.
Two new layout sets produce standard CI and NPI billing documents:
JV_CI_STATEMENT
JV_NPI_STATEMENT
You can use these layout sets as delivered or create your own based on these delivered layout sets.
Menu Path
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Layout Sets Layout Set Assignment.
Procedure
On the JV Layout sets: Overview screen, choose New entries .
On the New Entries: Overview of Created Entries screen, enter the name of the layout set for the CI or NPI statement in the Form field. Enter the code
for the form type for CI or NPI ( CI or NI ) in the FT field, and enter the code for the SAP JVA companys billing structure in the BStr field.
Press Enter to edit the entry and select your new entry.
Map Billing Indicators for the CI and NPI Layout Sets
SAP JVA billing indicators designate specific types of billable expenses in the SAP JVA ledger. These billing indicators are used during JVA billing to produce
subtotals of certain types of expenses, and these subtotals appear on specific billing documents that are formatted by layout sets. The next step in defining a
new billing document for an SAP JVA company is to map the billing indicators for the documents layout set. This involves mapping the billing indicators that
are relevant to CI and NPI netting to produce subtotals of the expenses and the revenues, netted against one another to determine payout.
Procedure
On the New Entries: Overview of Created Entries screen with the newly assigned layout set selected, choose the Billing indicator mapping button.
On the Billing indicator mapping screen, choose New entries and enter the mapping instructions to achieve the desired subtotal and total. You assign
PUBLIC
Page 94 of 109
the mapping of billing indicators defined here to the text elements of the billing documents layout set in the next step of configuration. The subtotal and
total defined here can be used as the document is generated during SAP JVA billing.
You can enter information into five fields on the New Entries: Overview of Created Entries screen. Four of these fields work together to indicate the mapping
of billing indicators and the subtotals and totals. The fifth field, the indicator R , shows whether an entry amount is billed to the SAP JVA partner. Other
processes, such as Lockbox, use this indicator. The four fields that work together to determine mapping of billing indicators and summation are: FT for form
total, No for number, PT for previous total, and BI for billing indicator.
Each new form total number indicates a new subtotal. Each summary level on the billing document should be defined as a separate form total.
Example 1
With regard to CI, if expenses for a partner under CI should be broken down on the bill, based on expense type and penalty category, you must define a
separate form total for each billing indicator with a different expense type or penalty category combination. If there are three CI relevant billing indicators
( P0 , P1 , P5 ) with different combinations of expense type and penalty category, then a form total would be defined for each billing indicator as
follows:
FT
No
PT
BI
P0
P1
P5
The No field holds the sequence number of each entry to a form total. There is only a single entry for each of the three form totals for CI expenses in
the first example, so each is assigned the sequence number 1. Since you can assign multiple sequential numbers to the No field for separate entries to
the same form total, you can combine different types of expenses into a single form total.
Example 2
The following example shows an alternative to breaking down CI expenses by individual billing indicator. The expenses assigned billing indicators P1
and P5 are combined into form total 3 .
FT
No
PT
BI
P0
P1
P5
Using the sequence number available through No and the previous total (PT) field, you can also produce subtotals consisting of groups of previous form
totals. To display a subtotal of all CI expenses on the statement, you must define this subtotal as a separate form total. In Example1 0there were three
lines of different types of expenses. The sum of these three lines forms a subtotal of all CI relevant expenses. There will be three entries to the
summing form total, each with a different sequence number. Since each of these entries references a previous form total, the number of that previous
form total will appear in the entry as well.
FT
No
PT
BI
Form total 9 is a summary of all CI relevant expenses. Three entries are necessary to gather all expenses under the form total, so the sequence in No
runs from 1 to 3. Each entry to form total 9 accesses a previous form total (shown in the first example above).
Link Billing Levels or Events to Text Elements in the CI and NPI Layout Sets
The data extracts used to produce the various SAP JVA billing documents are stored in special structures. The next step of setting up a new billing
document for an SAP JVA company is to link the billing levels of the appropriate structure to the text elements in the layout set that formats the billing
document.
Procedure
On the Billing indicator mapping screen for the selected layout set, choose the Events button.
On the JV Billing events: Overview screen, choose New entries.
On the New Entries: Overview of Created Entries screen, enter the billing events and the corresponding text elements in the layout sets and, when
appropriate, the form totals that go with them.
There are six fields on the New Entries: Overview of Created Entries screen, but you should only use the billing level ( BiLev ), text element ( Element ), and
form total ( FT ) fields to define the links between billing levels and text elements. The following entries should always appear in the other three fields:
No
Window
MAIN
+
3
If you are using the delivered layout sets for CI and NPI documents, the text elements have the same names as the corresponding billing levels or events, so
for each billing level entry the contents of the BiLev and Element fields are identical.
Assign the CI and NPI Form Types and Layout Sets to the SAP JVA Partners Billing Format
PUBLIC
Page 95 of 109
SAP JVA billing formats are assigned to partner records through JVA p rocessing Master data maintenance. An SAP JVA billing format consists of a list of
billing documents. The billing format assigned to a partner indicates which billing documents should be produced for that partner when SAP JVA billing is
executed.
You define billing formats during SAP JVA billing configuration. Documents are assigned to billing formats by the combination of the JVA form type and the
layout set for the billing document.
Menu path
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Billing Formats.
Procedure
On the Billing formats:Overview screen, choose the billing format and billing structure combination to which you intend to assign a new billing
document.
With the billing format and billing structure selected, choose the Format type assignment button.
On the entry screen, choose New entries
On the New Entries: Overview of Created Entries screen, enter the form type for the new billing document in the FT field. Enter the sequence number
of the document for the form type within the billing structure in the No field (usually 1), and the name of the layout set for the document in the Form field.
!--a11y-->
1.4.5.2.2 Executing Hard Copy Billing for CI and NPI

Statements
Use
Carried Interest (CI) and Net Profit Interest (NPI) statements are produced in two steps, each controlled by a different SAP Joint Venture Accounting (JVA)
process:
1. CI/NPI Netting
produces a data extract with all relevant data for CI and NPI statements.
2. Hard Copy Billing
produces a formatted printout of the CI and NPI statements.
To enable this second step, CI statement and NPI statement indicators have been added to the Printout selection section of the Hard Copy Billing selection
screen.
As a result of integrating the CI and NPI statements with Hard Copy Billing , you can customize the CI and NPI statements. Depending on how the
statements are defined in
JVA Billing Configuration, you can set them up to show detail at the following levels:
Venture or equity group
Venture or equity type
Venture
CI or NPI group
Billing configuration determines the amounts shown on the CI and NPI statements, how those amounts are subtotaled, and the order of the amounts and
subtotals on the statements. You can even present all amounts and subtotals on a single line.
!--a11y-->
1.4.6 Partner Netting and Convenience Netting

Use
SAP Joint Venture Accounting (JVA) offers the processes partner netting and convenience netting to facilitate the period-end closing of customer accounts by
performing reconciliation and by preparing for the SAP JVA billing process.
You can use these SAP JVA processes to clear open items and consolidate them into a single new open item. Because they clear postings produced by other
SAP JVA processes, the netting programs are run at the end of the period after cutback.
The main difference between partner netting and convenience netting is the range of items included in the clearing. Partner netting only includes expense
items in clearing, but convenience netting includes revenues, as well as expenses in clearing. Also, partner netting is executed for an operation month, while
convenience netting is executed for a billing month.
Partner Netting
Partner netting is available for operated and non-operated joint ventures. When partner netting is executed for operated joint ventures, the following items are
included in netting for the partner, joint venture, and equity group:
Cash calls
Reclassifications of cash call payments
PUBLIC
Page 96 of 109
Cutback expenditures
When partner netting is executed for non-operated joint ventures, the following items are included in netting for the joint venture and equity group:
Cash calls due to the operator
Cutback expenditures for non-operated joint ventures
Partner netting is a two-step process:
1. All selected items for the partner within the equity group and joint venture cleared.
2. A single new open expense item, summarizing the previously outstanding cleared expense items, is posted to the partner's customer account in SAP FI
accounts receivable.
Partner netting creates a new clearing entry for each unique combination of partner, equity group, and venture. To be included in a single clearing entry booked
by partner netting, SAP FI accounts receivable entries must be booked to the same equity group and venture, as well as to the same partner. All three
elements (partner, equity group, and venture) must be the same for multiple entries to be selected for clearing by a single entry posted by partner netting.
Convenience Netting
Usually convenience netting is used only by US and Canadian region companies. Convenience netting is a three-step process.
1. All open expense items for a partner for a specified period are summarized.
2. All open revenue entries for the partner for the period are summarized.
3. If the summarized revenues exceed the expenses, a single credit entry is posted to the partners vendor account in SAP FI accounts payable .
Convenience netting posts this credit entry to the partners account only if there is a credit balance. If not, the netting program does not perform any
processing.
The convenience netting process nets the following items for a partner for a specified (usually the current) billing month:
Revenues
Expenses
Cash calls
Reclassified cash payments

Open items can be netted for a partner across all ventures, in which case convenience netting creates a single open item per partner. Alternatively, open items
can be netted per venture but across equity groups, in which case convenience netting creates one open item per partner per venture. You specify the netting
level when you execute convenience netting.
Partner netting summarizes all the entries related to a billing month, clearing the following:
Cash Calls
Cash calls are requests from joint venture operating partners to non-operating partners requesting payment for anticipated future capital and operating
expenditures. Cash call functionality is completely integrated with accounts receivable in SAPs FI application. Cash call requests and receipts are
carried forward to the SAP JVA billing process.
Reclassified Cash Call Payments
Reclassification is an SAP JVA process that enables you to:
Create an accounting record of cash call payments in the month when they are received
Apply cash call payments in the month when expenditures are incurred
Match payments and expenditures even though they occur in different accounting periods and the payment actually precedes the expenditure
Expenditure (Cutback )
The operating partner of a joint venture carries all of the operating costs of that venture throughout the accounting period. At the end of the accounting
period, the expenditures made by the operating partner are apportioned to the non-operating partners as well as to the operator of the venture according
to their equity shares. This process is referred to as cutback.
The transactions on the partner account are summed by venture, equity group, and (in North America) billing month. If a balance exists, all the original
transactions are cleared, and a new open item is posted for the remaining balance.
Partner netting may be run for the current or the previous operations month.
Billing and Operations Month

Billing Month
The billing month is the month in which a cash call request appears on a partners bill. The billing month value is stored in the baseline date field. The
value is derived from the baseline date default on the payment terms assigned to the accounts receivable customer record. The billing month appears in
the FB01 Standard Expense Posting document Ref. 2 field. In addition to playing a key role in reclassifying cash call payments, billing month and
operations month also affect other processes, such as netting and billing.
Operations Month
The operations month is the future month in which a cash call payment is matched against the actual expenditures and reported on the customers bill.
All cash call payments not already reclassified with an operations month equal to or less than the current month are included in the reclassification
process. The value is derived from user input on the cash call screen. The operations month appears in the FB01 Standard Expense Posting document
Ref. 1 field.
In addition to playing a key role in reclassifying cash call payments, billing month and operations month also affect follow-on processes, such as netting
and billing.
PUBLIC
Page 97 of 109
Billing month and operations month make it possible to create an accounting record of cash call payments in the month they are received, yet apply these
payments during the month (usually later) the expenditures, for which the cash call was issued, are incurred. SAP JVA accomplishes these two tasks by
recording payments in the billing month when they were submitted and applying these payments to expenditures in the operations month, when the expenditure
is incurred. By retaining these two dates for the life of the cash call record, SAP JVA can perform the appropriate process at the proper time.
In addition to playing a key role in reclassifying cash call payments, billing month and operations month also affect follow-on processes, especially netting. All
related transactions (cash calls, cash call payments, and cash call reclassifications) are assigned the same billing and operations months, so the transactions
can be grouped together for billing, convenience netting, and partner netting. In this way, the billing and operations months identify:
Cash calls and payments for the current billing month that should be included in convenience netting
Open cash call items that should be cleared in the operations month by partner netting
You can decide to use both the operational month and billing month. The operational month and billing month in clearing documents is then
transferred from the original open item to the clearing document. This means those fields split the clearing lines. In FI, the fields are stored in
XREF1 (operational month) and XREF2 (billing month).
SAP FI can be customized to do the split by those fields. It is important to note that this customizing is company independent. If the operational
month and billing month are to be used in JVA, use the following menu paths in the IMG:
On the Display structure menu, choose Financial Accounting -> General Ledger Accounting -> Business Transactions -> Open Item Clearing > Define Clearing Rules.
On the Display structure menu, choose Financial Accounting -> General Ledger Accounting -> Business Transactions -> Open Item Clearing > Assign Clearing Rules to Account Types.
!--a11y-->
1.4.6.1 Partner and Convenience Netting: Prerequisites

Purpose
The SAP FI elements used by partner and convenience netting can be divided into two categories, customary SAP FI configuration and clearing-related
configuration.
Customary SAP FI Configuration

To enable SAP Joint Venture Accounting (JVA) to process netting clearances of actual expenditures, you must configure the following objects and accounts in
SAP FI:
Field status groups
Posting keys
Special general entry indicators (SEIs)
Partner reconciliation accounts
Document type
The SAP client that contains JVA is preconfigured with the SAP FI objects and accounts as well as with the SAP JVA objects needed to execute cash calls.
Field Status Groups
SAP FI field status groups control the number of fields available for entry (either Required, Optional, or Suppressed ) during SAP FI postings when they are
assigned to general ledger accounts and posting keys. The field status groups assigned to accounts used for SAP JVA partner and convenience netting
should make the SAP JVA fields available for entry. Either optional or required must be selected .
Posting Keys
You must configure the posting keys for SAP JVA partner and convenience netting to allow the use of SEIs, so that postings, created by netting, can be
matched and cleared within the general ledger accounts.
SEIs
SEIs are assigned to posting keys. The SEIs identify alternative reconciliation accounts used to post special transactions (such as cash calls or partner and
convenience netting). The SEIs used to post cash call requests and follow-on processes like netting to partner accounts, whether in A/R or A/P, must be
configured so that transactions are booked with the baseline date field. The baseline date is used to track the billing month for the cash call and distinguish it
from the operations month. The SEIs used for cash call transactions and follow-on processes like netting should require that the baseline date be entered on
the entry screen. These same SEIs must also be identified during SAP FI payment program configuration as used in capturing special general ledger
transaction payments for the company.
SAP FI Account for the Partner
To support processing of SAP JVA posted entries within SAP FI, you must create either a customer account in SAP FI Accounts Receivable (A/R) or a
vendor account in FI Accounts Payable (A/P) for each SAP JVA partner. Whether you should set up only an A/R account or both an A/R and an A/P account
for an SAP JVA partner is determined by how the partner participates in joint ventures and the type of postings that will be made to the partner.
PUBLIC
Page 98 of 109
Customer Account in SAP FI A/R

To allow you to post amounts due for monthly billing, cash calls, or partner netting to SAP JVA partners, every SAP JVA partner must have a customer
account in A/R. This A/R customer account must access a reconciliation account that is assigned a field status group, which allows the input of the field
groups Joint Venture Account Assignment and Joint Venture Billing Indicator .
Vendor Account in SAP FI A/P
If the partner is also an operator in non-operated ventures or the partner is subject to convenience netting, used in the United States and Canadian regions,
you must create a vendor account for the partner in A/P in addition to the A/R customer account. In this case, the field Vendor must contain the name
assigned to the partner in SAP JVA.
Clearing-Related Configuration
To enable both partner and convenience netting to post clearing entries to SAP FI, and to enable convenience netting to post credit amounts to partners in
SAP FI, your implementation team must set up the following types of procedures for clearing and for posting credit balances for SAP JVA postings in SAP FI:
Clearing posting keys
Payment program configuration

Clearing Posting Keys
SAP FI clearing procedures are sets of posting keys used for various types of clearing postings. SAP JVA posting rules refer to SAP FI clearing procedures
and the posting keys specified in these clearing procedures. The posting keys used for these clearing procedures must be configured with the correct SEIs
and field status groups, as described above.
Each clearing procedure includes a specification for both debit and credit posting keys to be used for postings to A/R, A/P, and general ledger accounts . The
specification for A/R and A/P postings includes debit and credit posting keys for the three types of postings: clearing entry; residual item; and special general
ledger transaction.
Since SAP JVA makes use of special general ledger entry indicators, the posting keys specified in the clearing procedure for special general ledger
transactions are used for SAP JVA postings. The SAP JVA posting rules identify the SAP FI clearing procedure that applies to a particular type of SAP JVA
posting. Partner netting makes use of the clearing procedure called JVACLEAR to post a single summary entry to the partners A/R account . Convenience
netting uses the clearing procedure called JVAPAYMT to post a residual credit balance to the partners A/P account.
Payment Program Configuration
SAP FI payment program configuration involves identifying the SEIs to be used in capturing special general ledger transaction payments for the company.
These SEIs must be identified with the companys payment program to enable the SAP JVA posting rules for partner and convenience netting to be booked to
the partner account with the baseline date field. The baseline date provides the billing month in which a cash call is issued. In cash call transactions and all
follow-on processes, such as partner and convenience netting, this field distinguishes the billing and operations months.
The system requires the baseline date field for all payment transactions. Therefore, the SEIs determine the availability of the baseline date on the screen, and
the usage of the billing month in cash call processing.
SAP JVA Master Data Prerequisites

As part of the company set-up within SAP JVA, you activate the following:
Operational and billing month

Activating operational and billing month processing is part of specifying the company global parameters in SAP JVA configuration (United States and Canadian
regions only). You can activate operational and billing month processing for your company by selecting the field entitled Op. and Bill M. Act .
The partner in SAP JVA

In addition to setting up a customer account in SAP FI A/R and a vendor account in SAP FI A/P , if the partners account is subject to convenience netting,
you have to activate the customer and vendor in SAP JVA by maintaining the SAP JVA partner table.
Partner for convenience netting if appropriate

In addition to setting up the partner record in SAP JVA, select the convenience netting indicator C for the partner, if the partner will be subject to convenience
netting. The partner must also have a vendor record to be used in the accounts payable transaction produced by convenience netting.
Menu Path
To access the global parameters screen for your company to activate operations and billing month processing, follow these steps:
1. On the Display structure menu in the IMG, choose Joint venture accounting
Environment JVA Company Configuration Global Data .
On the JV Global Company Parameters: Overview screen, place the cursor in the company code field for your company and choose Detail, to access
the JV Global Company Parameters: Details screen for your company. On this screen, you should activate the Op. & Bill M. Act flag to initiate operations
and billing month processing.
To access the partner master record screen to activate partners for convenience netting, follow this menu path:
1. On the SAP Easy Access menu, choose Joint venture accounting
Master data Business partners JV partners Change.
Enter the Company code.
On the Change View "Partner": Overview screen, enter the information required for the partner
To access the partner master record screen to activate partners for convenience netting, follow this menu path:
1. On the SAP Easy Access menu, choose Joint venture accounting
Master data Business partners JV partners Change.
On the Change View Partner: Overview screen, enter the information required for the partner.
PUBLIC
Page 99 of 109
!--a11y-->
1.4.6.2 Executing Partner Netting

Prerequisites
Partner and Convenience Netting Prerequisites
Menu Path
Periodic processing Netting Partner netting.
The Partner Netting screen appears.
Procedure
1. Enter the Company code on the Partner Netting screen.
2. Enter the Operations month (MMYYYY ) only if you want to change the defaulted date.
5. Select from the Processing options ( Batch process update, Keep batch input ).
6. Choose the Execute function. The Partner-Netting - Open Items Clearing Report appears.
!--a11y-->
1.4.6.3 Executing Convenience Netting

Prerequisites
Partner and Convenience Netting Prerequisites
Menu Path
Periodic processing Netting Convenience netting.
The Convenience Netting screen appears.
Procedure
1. Enter the Company code on the Convenience Netting screen.
2. Enter either a P for partner or a V for venture in the joint venture invoice Level field. This determines whether an invoice is generated for a partner for all
the ventures or whether one is created for each venture.
3. Enter the Billing month (MMYYYY ) only if you want to change the defaulted date.
6. Select from the Processing options ( Batch process update, Keep batch input ).
7. Choose the Execute function. The Convenience -Netting - Applicable Open Items statement appears.
!--a11y-->
1.4.7 Executing Billing

Definition
PUBLIC
Page 100 of 109
At the end of an accounting period, the joint venture operator recovers venture costs from the non-operating partners. The SAP Joint Venture Accounting
(JVA) Billing program is designed to extract relevant billing information from the SAP JVA databases, and to issue invoices and supporting documents to nonoperating venture partners.
The documents may include some or all of the following:
Invoice for expenses either at the partner or venture level
Operating expense statement
Expenditure report
Supplemental detail
When executed for the period, the billing program uses the SAP JVA billing indicator , assigned to the entries at posting, to extract the information for the
invoice and billing statement. The recovery indicator assigned to entries at posting is used to extract information for the expenditure detail.
JVA Ledgers
Billing Information
JVA Ledger
Invoice and billing statement data
Billing Ledger
Expenditure detail
Summary Ledger
You can configure the billing program to produce paper or EDI invoices. The layouts are controlled by SAPscript.
Current Period/Year to Date/Inception-to-Date

International region companies can execute billing either for current period, year to date, or from inception-to-date amounts. International region companies are
also required to provide partners with billing or cash statements along with invoices. Canadian and US region companies have the same functions with the
exception of inception to date billing.
Billing and Other Month End JVA Processes

The billing program is run at the end of the accounting period, after the other month end processes, such as cutback and partner netting or convenience
netting.
!--a11y-->
1.4.7.1 Executing Billing: Prerequisites

Purpose
Prerequisites in FI
To process SAP Joint Venture Accounting (JVA) posted entries within SAP FI and to facilitate SAP JVA Billing, you must create at least the following two
accounts:
Customer account for partners in SAP FI Accounts Receivable (A/R)
Vendor account for the operator in SAP FI Accounts Payable (A/P)
Company Set up Decisions in SAP JVA

To enable SAP JVA Billing, your implementation team must assign a billing structure for your company in the company detailed data screen of SAP JVA
configuration. You can assign only one billing structure to each company.
The billing structure contains the definition for the different possible types of billing documents, such as invoice, statement, expenditure detail, and
supplemental detail. You define the billing structure and the billing documents as you configure billing.
Setting up JVA Master Data Objects

Your implementation team must configure recovery indicators and billing indicators in SAP JVA.
Recovery Indicators
Recovery indicators are SAP objects with an attribute indicating whether or not an expense is billable. If an SAP FI expense posting should be forwarded to
SAP JVA, a recovery indicator is attached to the posting at entry. When a posting that will be forwarded to SAP FI is generated in SAP JVA, it is also
assigned a recovery indicator .
To facilitate this transfer of expense postings between SAP FI and SAP JVA, you must set up appropriate recovery indicators in both SAP JVA and SAP FI.
Recovery indicators are company specific.
Billing Indicators
Billing indicators are defined as part of SAP JVA configuration. Billing indicators can be assigned to partner related postings and identify the type of posting
involved, such as cash call, normal expenditure, or audit adjustment. You use billing indicators to assign different types of billable expenditures on the invoice.
Billing indicators are client specific, so any user of any company in the same SAP client can use any billing indicator set up within that client.
Recovery and Billing Indicators are Master Data Objects in SAP JVA
PUBLIC
Page 101 of 109
Configuration Requirement for SAP JVA Billing

For the invoice, the statement, and the expenditure detail, you should execute the following steps:
1.
2.
3.
4.
5.
6.
Define the billing structure for your company

Maintain the layout sets for billing documents
Assign the layout sets to your companys billing structure
Map expenditures to the invoice and statement by billing indicator
Define the sequence of formatting events to be used in generating billing documents
Assign the billing structure to your company
Configuring Supplemental Detail

In addition to defining the configuration settings for the invoice and the expenditure detail report, you must configure supplemental detail reports for either the
invoice or the expenditure detail report. The supplemental detail report supplies additional detailed billing expense information for these two billing documents.
You must complete the following steps to configure supplemental detail:
1.
2.
3.
4.
5.
Assign the supplemental detail to the billing structure

Define the billing levels and supplemental detail sets (SDS) required for the supplemental detail report
Add text elements for the supplemental detail to the layout set for the invoice or expenditure detail
Link the supplemental detail text elements to the billing levels through Layout Set Assignment.
Define the drivers that trigger the supplemental detail for the invoice or expenditure
Menu Paths
To Assign Billing Structure
On the Display structure menu in the IMG, choose Joint venture accounting Environment JVA Company Configuration Environment Detailed
Data.
Enter your company code in the dialog box that appears and press ENTER. The Change View Company Code: Details screen appears.
To Define Billing Indicators
On the Display structure menu in the IMG, choose Joint venture accounting Master Data Billing Indicator Master Data.
To Define Billing Structure
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Billing Structure.
To Maintain Layout Sets
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Layout Sets Layout Set Maintenance.
To Assign Layout Sets
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Layout Sets Layout Set Assignment.
To Assign Billing Levels to an SDS
Choose the SDS, to which billing levels are to be assigned, on the Change View SDS for Billing: Overview screen and choose Goto Details.
To Assign Drivers to SDSs
On the Display structure menu in the IMG, choose Joint venture accounting Joint Venture Environment Configuration Billing Operated
Supplemental Detail Supplemental Driver.
To Define Billing Formats
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Billing Formats.
PUBLIC
Page 102 of 109
If partner based billing has been selected, each partner can have a different billing format. If venture based billing is selected, all partners sharing the
venture will have the billing format assigned to that venture. Define the Invoice Level by following this menu path:
On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Billing structures.
Drill down on a billing structure. Use the pull-down menu to select Partner or Venture .
To Assign the Billing Format:

On the SAP Easy Access menu, choose Joint venture accounting Master Data Business partners JV partners Maintain.
The BFor is the Billing format field.
To Assign a Layout Set to a New Billing Format

1. On the Display structure menu in the IMG, choose Joint venture accounting Billing Operated Billing formats.
On the Billing formats: Overview screen, choose the new billing format and choose format type assignment .
!--a11y-->
1.4.7.2 Extracting an Invoice/Statement

Prerequisites
Executing Billing: Prerequisites
Menu Path
On the SAP Easy Access screen, choose Joint venture accounting
Periodic processing Billing Extract inv./statem.
The Billing data selection: Invoice/Statement screen appears.
Procedure
1. Enter the Company code on the Billing data selection: Invoice/Statement screen.
2. Enter the Joint venture and Partner information (both fields are optional).
4. Enter the Accounting period .
5. Choose the Execute function. The Billing extract (invoice/statement) appears.
!--a11y-->
1.4.7.3 Extracting Expenditure/Supplemental Detail

Prerequisites
Menu Path
Periodic processing Billing . Extract exp. detail.
The Billing data selection: Expenditure detail/supplemental detail screen appears.
Procedure
1. Enter the Company code on the Billing data selection:Expenditure detail/supplemental detail screen.
2. Enter the Joint venture and Partner information (both fields are optional).
PUBLIC
Page 103 of 109

4. Enter the Accounting period .
5. Choose the Execute function. A screen copy of the Billing extract (expenditure detail) appears.
!--a11y-->
1.4.7.4 Using Billing Thresholds

Use
You can use a billing threshold during billing in JVA.
A billing threshold is a currency amount that can be set. During a billing period, billings will be suppressed in the system for a partner that you specify, until the
set billing threshold is reached. Then, the suppressed billings are prepared in the system, and displayed as a summary in the current billing period. This can be
used, for example, if the amount to be billed to a partner is not, in your view, enough to justify printing and sending a paper check. You simply delay the billing
amount until the next billing period.
You can also set the billing threshold to:
Have the suppressed billing packages (billings) prepared for the original billing period, instead of being summarized
For each JVA partner, you can suppress billings irrespective of threshold amount (you basically set the billing threshold to zero for that partner). This could
be used, for example, when the partner address is not known
Procedure
1. At the SAP Easy Access Menu, choose Accounting Joint Venture Accounting
Check .
Periodic Processing Billing Billing Threshold
The Billing Threshold Check screen appears.

On this screen, you enter the selection criteria for the billing threshold check. The selections that you make determine how the system uses the billing
threshold for the partner and billing period that you selected, when billing is carried out.
2. On the Billing Threshold Check screen, enter the relevant data (partner and billing period).
If you want to:
Select:
Run the threshold check only as a test
Testrun
Ignore the billing threshold, in effect, setting the threshold to zero; this results in a
bill being created.
Bypass billing threshold
3. Select Execute .
Result
The selection that you choose determines how the system will use the billing threshold for the partner and billing period that you chose.
!--a11y-->
1.4.7.5 Executing Hard Copy Billing

Prerequisites
Menu Path
Periodic processing Billing Hard copy billing.
The Billing output: Hard copy billing screen appears.
Procedure
Enter the Company code on the Billing output: Hard copy billing screen.
Enter the Joint venture and Partner information (both fields are optional).
Enter the Fiscal year.
Enter the Accounting period .
Change the Invoice date only if it differs from the default date.
Currency rate conversions are also based on the rate at the date entered in the Invoice date field. If the rate is based on a date different than the default date,
PUBLIC
Page 104 of 109
that date should be specified in this field.

Choose the Execute function. The Billing extract (expenditure detail) appears.
Choose an appropriate Printout selection.
Choose the appropriate Form generation parameters for your printout.
!--a11y-->
1.4.7.6 Executing EDI Billing-Creating Outbound IDoc

Prerequisites
Menu Path
Periodic processing Billing . EDI billing Create outbound IDoc.
The JV EDI Billing screen appears.
Procedure
Enter the Company code on the JV EDI Billing screen.
Enter the Accounting period .
Choose the Execute function. The JV EDI Billing - Control Report appears.
!--a11y-->
1.4.7.7 Executing EDI Billing-Release Outbound IDoc

Prerequisites
Menu Path
Periodic processing Billing EDI billing Release outbnd IDoc.
The Process all selected IDocs (EDI) screen appears.
Procedure
1. Enter the IDoc number or range of numbers.
2. Enter the Output mode .
3. Choose EXECUTE.
To view an IDoc status report follow this menu path:

SAP Easy Access menu
Tools Administration Management Process technology IDoc Monitoring IDoc lists
Choose EXECUTE.
!--a11y-->
PUBLIC
Page 105 of 109
1.4.7.8 Executing EDI Billing-Partners Processed

Prerequisites
Menu Path
Periodic processing Billing EDI billing Partners processed.
Procedure
1. Enter the Company code on the Enter company code dialog box.
2. Choose ENTER. The Change View "JV EDI Processed Partners/Ventures" Overview screen appears.
!--a11y-->
1.4.7.9 Executing Dunning

Use
You can specify the summary level at which dunning should be applied as part of SAP JVA configuration in the IMG.
Menu Path
On the Display structure menu in the IMG, choose Joint venture accounting Billing Dunning.
The Dunning Customizing: Overview screen appears.
Procedure
In the Sum. Field , enter one of the following settings to indicate the level at which dunning should be applied:
Level Description
VNAME Joint Venture
EGROUP Equity Group
BTYPE Billing Indicator
XREF1 Operations Month
XREF2 Billing Month
Select the Summarize indicator, if information should be summarized at this level for dunning.
Select the Subtotal indicator if you need a subtotal of information at this level for dunning.
!--a11y-->
1.4.7.10 Lockbox Processing of SAP JVA Partner Bills

Use
You can process SAP Joint Venture Accounting (JVA) billing generated invoices for partners with lockbox functions. The lockbox file for SAP JVA invoices
should contain one line item, consisting of the invoice number for the partner used by SAP JVA billing. SAP JVA billing generated invoice numbers are
composed in the following way:
MMYYYYCCCC, where MM is the month, YYYY is the year, and C is a single character of the SAP JVA partner's code.
Lockbock uses the SAP JVA invoice number to derive additional billing information in the following manner:
1. Lockbox identifies all recovery indicators (RI) for which the billing indicator is set to active in SAP JVA master data configuration. The partner's portion of
PUBLIC
Page 106 of 109
all expense lines posted with one of these RIs are included in calculating the partner's total bill.
2. Lockbox then uses the SAP JVA invoice number to derive the accounting period, fiscal year, and partner number.
3. Finally, the RIs identified in Step 1 are used to select all open items posted to the partner for the accounting period and fiscal year for further lockbox
processing.
!--a11y-->
Equity Change Management

Definition
Equity adjustment covers several business processes that require the creation of new equity groups (or movements from one or more equity groups to
another) and different handling for historical cost.
Every posting to the SAP Joint Venture Accounting (JVA) ledger is assigned to a combination of a joint venture and an equity group. The equity group
contains all the partners percentage ownership shares. When an expense is booked in FI to a cost object (such as a cost center or a work breakdown
structure), that expense is also booked in the SAP JVA ledger as well as in CO. In the SAP JVA ledger, the expense is assigned to the joint venture identified
on the cost object and to the equity group that owns the venture.
Use
The document date is used together with the equity type on the cost object to identify the equity group that owns the joint venture when the expense document
is recorded. The expense is then assigned to this equity group in the SAP JVA ledger.
During a single accounting period, multiple equity groups might have ownership of the same joint venture for a specific equity type. Depending on the changes
in equity group during the accounting period, records posted to the same joint venture with different document dates can be assigned to different equity groups
in the SAP JVA ledger.
For cutback and billing purposes, all records posted to a joint venture during an accounting period should be assigned to the equity group that owns the venture
at the end of the period. If you run the SAP JVA month end processes (especially cutback and billing) without reconciling any ownership changes, you could
incorrectly charge a former owner for expenses.
The SAP JVA month end process, equity change management, reconciles ownership changes, by reassigning records to the equity group that owns the
venture at the end of the period. Depending on whether or not you choose to run equity change management before or after final cutback, you can execute
one of the following processes to handle equity group changes during an accounting period:
Pre-cutback equity change management
Prior period equity adjustment
SAP JVA enhanced its equity adjustment capabilities to provide additional functions that cover farm-in and farm-out, and redetermination business processes.
Structure
Equity Change Management
PUBLIC
Page 107 of 109
!--a11y-->
1.4.8.1 Managing Equity Changes

Prerequisites
Menu Path
On the SAP Easy Access menu, choose Accounting
Joint Venture Accounting Periodic processing Prior equity adjstmt.
The Prior period equity adjustment screen appears.
Procedure
1.
2.
3.
4.
5.
6.
7.
8.
Enter the Company Code on the Prior period equity adjustment screen.
Enter the Venture.
Enter the Old Equity Group.
Enter the New Equity Group.
Enter the Adjustment Period.
Enter the Posting Period.
Choose the Processing Option.
Choose EXECUTE. The Equity Adjustment Detail Report appears.
PUBLIC
Page 108 of 109
!--a11y-->
1.4.8.2 Farm-in/Farm-out/Redetermination
Use
Enhancements to the SAP Joint Venture Accounting (JVA) equity adjustment capabilities include the following five transactions:
Process Description (GJFARM_0)
Allows you to define the farm-in, farm-out, and redetermination process
Equity Change for posting Ledger and Cutback (GJFARM_1)
Allows you to adjust the summary ledger entries and carry out cutback
Cutback Correction (GJFARM_2)
Allows you to carry out a cash call correction
Change for Billing Ledger (GJFARM_3)
Allows you to adjust the billing ledger entries
Cash Call Correction (GJFARM_4)
Allows you to carry out a cutback correction (for intercompany ventures)
Menu Path
On the SAP Easy Access menu, choose Accounting Joint Venture Accounting Periodic processing Farm in/out & Re-determination .
Farm-in and Farm-out

The farm-in and farm-out process is usually a deal between two partners in the joint venture, where payment or earn-in takes place directly between the buyer
and seller, and the license is not involved. The operator must present a statement reflecting the new situation, as one partner has taken over the financial
values (total expenditure and total cash paid).
Redetermination
Redetermination is a process that takes place when new technical information reveals that the original unitization of the block or licenses needs to be
redistributed among the equity holders. This redetermination process results in a new set of owner percentages, based on the rules in the joint operating
agreement, which require an inception-to-date (ITD) equity adjustment.
PUBLIC
Page 109 of 109

JVA Saphelp All PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

JVA Saphelp All PDF

Uploaded by

Copyright:

Available Formats

Joint Venture Accounting (JVA)

PDF download from SAP Help Portal:

1.2.13.4 Mapping Cost Centers

1.4.4.1 Identifying Suspended Projects and Equity Groups

1 Joint Venture Accounting (JVA)

1.1 Introduction to Joint Venture Accounting (JVA)

1.1.1 Joint Venture Accounting (JVA) Objects

Joint Operating Agreement (JOA)

A JOA is a formal agreement that specifies the conditions for a joint

This is an association of two or more partners, formed to share a ventures

An equity group represents an association of venture partners and their

Joint Venture Partner

This is a partner mentioned in the JOA with an undivided interest in a venture.

Recovery and Billing Indicators

You assign a recovery indicator to a cost object to indicate whether or not

1.1.2 JVA Integration Activities

JVIM Line Item Splitting

All SAP JVA documents have the following identifying information:

- contains the executable joint venture activity

1.1.3 Joint Venture Accounting (JVA) Processes

1.2 Master Data

1.2.1 Joint Operating Agreements (JOAs)

1.2.1.1 Creating a Joint Operating Agreement (JOA)

1.2.1.2 Changing a Joint Operating Agreement (JOA)

Delete JOA Report Modification

1.2.1.3 Displaying a Joint Operating Agreement (JOA)

1.2.2 Equity Groups

Types of Equity Groups

1.2.2.1 Creating Equity Groups

Refer to the definitions and table in the

1.2.2.2 Changing an Equity Group

1.2.2.3 Displaying an Equity Group

1.2.3 Joint Ventures

Operated (no tax)

1.2.3.1 Creating a Joint Venture

1.2.3.2 Changing a Joint Venture

1.2.3.3 Displaying a Joint Venture

1.2.4 Equity Group and Equity Type Assignment

1.2.4.1 Equity Group Assignment

1.2.4.2 Equity Type Assignment

1.2.4.3 Assigning Equity Groups to Joint Ventures

On the Joint Venture Master: Initial screen , choose Change .

Valid from and EGAct Fields

1.2.5 Joint Venture Accounting (JVA) Cost Objects

SAP JVA cost object types carry the following information:

1.2.6 Cost Centers

1.2.6.1 Creating a Cost Center

1.2.6.2 Changing a Cost Center

1.2.6.3 Displaying a Cost Center

1.2.7 Internal Orders

1.2.7.1 Creating an Internal Order

1.2.7.2 Changing an Internal Order

1.2.7.3 Displaying an Internal Order

1.2.8 Projects and Work Breakdown Structure (WBS)

1.2.8.1 Creating a Project

1.2.8.2 Changing a Project

Change Project: WBS Elements - Descriptions

Change Project: WBS Elements - People Responsible

Change Project: WBS Elements - User Status

Change Project: WBS Elements - System Status

Change Project: Project definition Basic Data

SAVE. A system message confirms that your project has changed.

1.2.8.3 Displaying a Project