1 Introduction to JD Edwards EnterpriseOne Joint Venture Management

This chapter contains the following topics:

1.1 JD Edwards EnterpriseOne Joint Venture Management Overview

A joint venture is a partnership between multiple entities, where those entities share in the cost and revenue associated with the joint venture.

Using the JD Edwards EnterpriseOne Joint Venture Management system, you can manage all aspects of a joint venture, including:

  • Define the joint venture as a legal entity.

  • Define the attributes for the joint venture, for example, the minimum amount to use for payments and invoicing, and the status of the joint venture (whether active or not).

  • Record the list of partners that are approvers of the joint venture and track the approval date.

  • Define the division of interest for the partners in the joint venture.

  • Create and manage cash calls for the joint venture partners.

  • Define the accounts to distribute expenses and revenue among the partners in the joint venture.

  • Calculate overhead and create journal entries for the calculated overhead amounts.

  • Allocate indirect costs incurred by the managing partner to the joint venture business units and create journal entries of the allocated amounts.

  • Retrieve distributable expenses based on the parent child hierarchy for projects and business units.

  • Assign the division of interest to the distributable transactions.

  • Distribute expenses by calculating the pro rata share of each joint venture partner based on the date-effective division of interest.

  • Draw on cash calls for expenses and costs, create invoices to bill expenses and costs that are not covered by cash calls, and create vouchers to pay the partners' share of the joint venture revenue. Record the share for the managing business unit or other inside partners.

1.2 JD Edwards EnterpriseOne Joint Venture Management Integrations

The JD Edwards EnterpriseOne Joint Venture Management system integrates with these JD Edwards EnterpriseOne products:

  • JD Edwards EnterpriseOne Address Book

  • JD Edwards EnterpriseOne Accounts Receivable

  • JD Edwards EnterpriseOne Accounts Payable

  • JD Edwards EnterpriseOne General Accounting

  • JD Edwards EnterpriseOne Job Cost

  • JD Edwards EnterpriseOne Sales Order Management

  • JD Edwards EnterpriseOne Procurement

1.3 JD Edwards EnterpriseOne Joint Venture Management Implementation

In the planning phase of the implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information.

When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Joint Venture Management, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.

See the JD Edwards EnterpriseOne Tools Software Updates Guide.

For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Joint Venture Management, review the documentation available.

See http://docs.oracle.com/cd/E24705_01/index.htm

1.3.1 Global Implementation Steps

The suggested global implementation steps for JD Edwards EnterpriseOne Joint Venture Management are:

  1. Set up companies, fiscal date patterns, and business units.

    See "Setting Up Organizations" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implemenation Guide.

  2. Set up accounts and the chart of accounts.

    See "Set up accounts, and the chart of accounts" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implemenation Guide.

  3. Set up multicurrency processing, including currency codes and exchange rates.

    See "Set up multicurrency processing, including currency codes and exchange rates" in the JD Edwards EnterpriseOne Applications Multicurrency Processing Implementation Guide.

  4. Set up address book records for the partners included in the joint ventures.

    See "Enter address book records" in the JD Edwards EnterpriseOne Applications Address Book Implementation Guide.

  5. Set up supplier master and customer master records for each partner in a joint venture, if you want to create joint venture vouchers and invoices after distributing each partner's share in the Joint Venture Management system.

    To invoice a partner, the partner must have a record in the Customer Master table (F0301) and to create a voucher for a partner, the supplier master record must exist for the partner in the Supplier Master table (F0401).

    See "Entering Supplier Master Information" in the JD Edwards EnterpriseOne Applications Accounts Payable Implementation Guide.

    See also "Setting Up Customer Master Information" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.

1.3.2 Joint Venture Management Implementation Steps

These are the suggested application-specific implementation steps for JD Edwards EnterpriseOne Joint Venture Management:

  1. (Optional) Create a legal entity record for each entity associated with the joint ventures.

    See Chapter 3, "Setting Up Legal Entities for Joint Ventures".

  2. Set up the joint venture master records for the joint ventures.

    See Chapter 4, "Entering Joint Venture Master Records".

  3. (Optional) Create an approval list to track the date on which you receive approvals from all required entities.

    See Chapter 5, "Setting Up Approval Lists for Joint Ventures".

  4. Identify the distributable accounts for the joint venture.

    See Chapter 6, "Setting Up Account Information for Joint Ventures".

  5. Set up the Automatic Accounting Instructions (AAIs) for the joint venture.

    See Section 6.1, "Entering Automatic Accounting Instructions for Joint Venture Management (Release 9.2 Update)".

  6. Set up one or more Division of Interest (DOI) records for the joint venture.

    See Chapter 7, "Setting Up Division of Interest Records".

  7. Define the DOI assignment rules for the joint venture.

    See Chapter 8, "Setting Up Division of Interest Assignment Rules".

  8. Define distribution ledgers for the joint venture.

    See Chapter 9, "Setting Up Distribution Ledgers for Financial Reporting (Release 9.2 Update)".

  9. Set up business unit attributes

    See Chapter 10, "Setting Up Joint Venture Business Unit Attributes (Release 9.2 Update)".

  10. Set up account groups to process overhead and cash calls.

    See Chapter 11, "Setting Up Account Groups (Release 9.2 Update)".

  11. Set up escalation indices.

    See Chapter 12, "Setting Up Escalation Indices for Overhead (Release 9.2 Update)".

  12. Set up overhead rules.

    See Chapter 13, "Setting Up Overhead Rules (Release 9.2 Update)".

  13. Assign overhead rules.

    See Chapter 14, "Assigning Overhead Rules (Release 9.2 Update)".

  14. Set up joint venture-based allocations.

    See ”Setting Up Versions for Joint Venture-Based Allocations” and ”Setting Up Specifications for Advanced Variable Numerator Allocations” in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide.

Note:

To understand in detail the order of these setup tasks, see Chapter 2, "Understanding Joint Venture Management Setup".