19 Transferring Cash Calls (Release 9.2 Update)

This chapter discusses:

19.1 Understanding Cash Call Transfers

You perform a cash call transfer when you want to close a cash call and transfer the open amount to another cash call instead of refunding the amount to the partner. The scenarios in which you might want to transfer a cash call are: a partner participating in multiple joint ventures has backed out of a project and the open amount must be transferred to another partner, or the project has ended and the partner wants the open amount to be transferred to another cash call for another project within the same joint venture or to a different joint venture, or the partner has sold its share to another partner.

The transfer process includes two tasks:

  • Request the transfer of the cash call using the Cash Call Definition program (P09J40).

  • Process the transfer to create the transfer journal entries.

    You use the Submit Transfer option on the Row menu of the Work with Cash Call Definition form to run the batch program, Create JV Cash Call JEs (R09J630), that creates the transfer journal entries.

    You can also run this program from the standard Batch Versions program.

Figure 19-1 Process for Creating Journal Entries for Cash Calls

Description of Figure 19-1 follows
Description of ''Figure 19-1 Process for Creating Journal Entries for Cash Calls''

19.2 Requesting a Cash Call Transfer

You can transfer the remaining open amount for a cash call to a new cash call (thereby creating a new cash call definition record in the process) or to an existing cash call. You use the Cash Call Definition program (P09J40) to request the transfer by selecting the cash call to be transferred and providing information of the cash call to which the amount is to be transferred.

To transfer a cash call, the cash call must have an open amount not equal to zero and the cash call must not be at any of these statuses: In Progress, Available to Invoice, Closed, Pending Transfer, or Pending Closure.

19.2.1 Prerequisites

Before you complete the tasks in this section, set up the processing options for the P09J40 program.

The processing options enable you to:

  • Retain the information entered in the previous cash call definition record to the new cash call you are transferring the amounts to, in the case of transfer to a new cash call

    You can retain the joint venture name, partner, project number, business unit, and account group name in the new cash call definition record.

  • Specify a cash call status to set for the From Cash Call when you cancel a transfer request

See Section 18.2.1, "Prerequisites".

19.2.2 Requesting to Transfer a Cash Call to a New Cash Call

To request the transfer of a cash call to a new cash call:

  1. From the Joint Venture Management module (G09J), select Periodic Processing, Manage Cash Calls, and then select Cash Call Definition.

  2. On the Work with Cash Call Definition form, select the cash call that you want to transfer and then select Transfer to New from the Row menu.

    The system displays an error if the cash call is not eligible to be transferred. For example, cash calls that are not invoiced yet cannot be transferred.

  3. On the Transfer to New Cash Call Definition form, review the information on the From Cash Call section of the form.

    You are closing this cash call and transferring the open amount to a new cash call. The Transfer Amount field displays the open amount to be transferred. If the cash call that you are transferring the amount to is in a different currency, the system converts the open amount to the currency of the To Cash Call and displays the converted amount in the To Amount field.

  4. In the To Cash Call section of the form, review the information that the system has retained from the From Cash Call to this new cash call based on your processing options setup of the P09J40 program.

  5. Add or update the joint venture name, partner, project, business unit, and account group for the To Cash Call, as required.

  6. Complete the Effective Date field. This is the date the system will use to select the expense distribution details to be drawn from the cash call based on the service/tax date of the expense transactions. It is mandatory to enter a value in this field.

  7. Optionally, complete the following field and check box:

    • Transfer Reason Code: Enter a value in this field to denote the reason for the transfer. You can use your own user-defined reason code.

    • Exclusive: Select this check box to make the new cash call an exclusive cash call. A project or a business unit must be specified to mark the cash call as an exclusive cash call.

Note:

When you save the transfer request, the system updates the status of the From Cash Call and the To Cash Call to Pending Transfer and generates a cash call ID to uniquely identify the new cash call. This new cash call ID is recorded in the Transferred To Cash Call field in the cash call definition record for the cash call that is being transferred.

19.2.3 Requesting to Transfer a Cash Call to an Existing Cash Call

To request the transfer of a cash call to an existing cash call:

  1. From the Joint Venture Management module (G09J), select Periodic Processing, Manage Cash Calls, and then select Cash Call Definition.

  2. On the Work with Cash Call Definition form, select the cash call that you want to transfer and then select Transfer to Existing from the Row menu.

    The system displays an error if the cash call is not eligible to be transferred. For example, cash calls that are not invoiced yet cannot be transferred.

  3. On the Select Cash Call window, select the cash call that will receive the open amount, and click OK.

    This window displays only those cash calls that are eligible to receive the transfer amount. Cash calls at statuses In Progress, Available to Invoice, and Closed are not eligible and are not included.

  4. On the Transfer to Existing Cash Call Definition form, review the information in the From Cash Call section.

    You are closing this cash call and transferring the open amount to an existing cash call.

    The Transfer Amount field displays the open amount to be transferred. If the cash call that you are transferring the amount to is in a different currency, the system converts the open amount to the currency of the To Cash Call and displays the converted amount in the To Amount field.

  5. In the To Cash Call section of the form, review the information of the cash call that will receive the transfer amount.

    Note that the Amount and Open Amount fields display the original cash call amount for this cash call and does not include the transfer amount yet. When you run the process to complete the transfer, the system adds the transfer amount to the existing cash call amount and the existing cash call open amount.

  6. Optionally, complete the Transfer Reason Code field. This is the only update you can make in this form.

Note:

When you save the transfer request, the system updates the status of the From Cash Call to Pending Transfer.

19.3 Canceling a Transfer Request

You can cancel a transfer request prior to processing. The system enables you to verify the details of a request before you cancel the request. You can cancel a transfer request only if journal entries are not yet created to process the transfer.

To cancel a transfer request:

  1. From the Joint Venture Management module (G09J), select Periodic Processing, Manage Cash Calls, and then select Cash Call Definition.

  2. On the Work with Cash Call Definition form, select the cash call for which you want to cancel the transfer request and then select Review Transfer from the Row menu.

  3. On the Review Pending Transfer Request form, verify the information of the cash call that you are going to cancel and click Cancel Request.

  4. On the Cancel Transfer Request window, enter the status that you want the From Cash Call to be set to after the transfer request is canceled.

    The system populates the status that you have specified in the processing option for the P09J40 program, but you can specify a different status that is eligible for this process.

  5. Click Cancel Request on the window to process the cancellation request.

    The system deletes the new cash call that was created during the transfer request, in the case of a transfer to a new cash call.

19.4 Processing Cash Call Transfers

To process the transfer request that you have created, you run the Create JV Cash Call JEs program (R09J630). You can access and run this batch process for a specific cash call using the Submit Transfer option on the Row menu of the Work with Cash Call Definition form. You can also run this process for multiple cash calls through the standard Batch Versions form by using the data selection for the program to select the records to process.

The system processes only those selected records that are at the status Pending Transfer and creates a journal entry document for each cash call record included in the R09J630 process. A batch is created for each managing company that is associated with the selected cash calls. The batches are created with the batch type JG (Joint Venture Journal Entries).

When you run the R09J630 program, the system creates the journal entry document. The system adds the transfer amount from the From Cash Call to the To Cash Call that is receiving the amount. If the From and To Cash Calls have managing companies with different currencies, the system converts the open amount of the From Cash Call before transferring to the To Cash Call.

Cash Call Information Updated as a Result of the Transfer

The system closes the From Cash Call and updates the F09J40 table with the cash call open amount equal to 0, cash call status equal to 99 (Closed), and cash call close date with today's date. For a new cash call created during the Transfer to New process, the system updates the cash call status using the value specified in the processing option for the R09J630 program and populates the transferred amount as the open amount.

The system also adds ledger records for the From Cash Call and To Cash Call in the Cash Call Ledger table (F09J41) with the transaction type = 20 (Transfer From) for the From Cash Call and 25 (Transfer To) for the To Cash Call. The Related Cash Call ID fields include the cash call ID from or to which the cash call was transferred. For the From Cash Call, the system also updates the F09J41 table with the reversed transaction amount to indicate the amount removed from the cash call. The ledger records also include the journal entry transaction information (Document Number, Document Type, Document Company, G/L Date, and Ledger Type).

You can access the ledger records and the associated journal entries that are created by clicking Review Ledger on the Row menu of the Work with Cash Call Definition form of the P09J40 program.

Debit and Credit Entries for Cash Call Transfers in the F0911 Table

The cash call open amount is debited and credited to the partner contribution accounts.

The system determines the partner contribution debit account for the transfer transaction using the From Cash Call managing company and AAI JVCxxx (Partner Contributions), and the partner contribution credit account for the transfer transaction using the To Cash Call managing company and AAI JVCxxx (Partner Contributions). If the account is not found using the managing company, the system uses the company 00000.

Both partner contribution entries uses the AAI JVCxxx (Partner Contributions) where xxx is the G/L offset code that is assigned to the joint ventures. The system determines the partner contribution account for the transaction using the managing company and the AAI JVCxxx (Partner Contributions) where xxx is the G/L offset code assigned to the joint venture. If you have specified a G/L offset code in the Joint Venture Master program (P09J30), the system concatenates the G/L offset code to the AAI Item JVC to locate the account. Also, if you have setup the Joint Venture Master program (P09J30) to create cash calls by subledger, the system uses the subledger type A (Address Book) to add the subledger information to the partner contributions account. The outsider partner address book number is used as the subledger value, and if the partner is an insider business unit, the address book number associated with the business unit is used as the subledger value.

The Remark column in the F0911 table shows the cash call IDs of the From Cash Call (for the debit transaction) and To Cash Call (for the credit transaction) enabling you to easily note the cash calls that have been processed.

Example: G/L Accounting Entries when a Joint Venture Cash Call is Transferred to a New or an Existing Cash Call

A cash call for a partner and joint venture is transferred to a new cash call with the same partner but different joint venture.

The From Cash Call has the following information:

  • Joint venture: A-GREENACREHOLDINGS

  • Partner: 7500010 (Thomson Company)

The To Cash Call has the following information:

  • B-WILDCATDRILLING-S

  • Partner: 7500010 (Thomson Company)

Cash call open amount: 80,000.00 USD

A journal entry is created for the transfer using the from and to cash calls. The journal entry uses the From Cash Call partner contributions account and the To Cash Call partner contributions account.

This diagram illustrates the G/L entries for the cash call transfer journal entry.

Figure 19-2 Joint Venture Cash Call Transfer Journal Entry Transactions

Description of Figure 19-2 follows
Description of ''Figure 19-2 Joint Venture Cash Call Transfer Journal Entry Transactions''

The system prints a report listing the number of journal entry documents created and the batch numbers generated during the process. The report also includes a message if there are records with warnings or errors. You can review the errors or warnings in the work center, correct the issue, and rerun the process.

19.4.1 Prerequisites

Before you complete the tasks in this section:

  • Set up the processing options for the Create JV Cash Call JEs program (R09J630).

    • On the Process tab, enter values for the following processing options:

      • Transfer To New Cash Call Status: Specify the cash call status to use for the new cash call when you create the journal entry for transfer to a new cash call. If you leave this processing option blank, the system uses the cash call status Available to Draw (40). The valid statuses for this process are: Available to Draw (40), On Hold (80), or a status that you have defined in the system.

      • G/L Date: Specify the G/L date to assign to the journal entries. If you do not enter a date, the system date is used.

      • Document Type: Specify the document type to assign to the journal entry document. If you leave this processing option blank, JE is used.

      • Batch Approval: Specify whether to set the batch as approved or apply the status specified in the general accounting constants. If you leave this processing option blank, the system applies the status specified in the general accounting constants.

      • Transactions to Process: Specify whether to process the transactions only for transfers or only for closures, or for both. If you leave this processing option blank, the system processes the transactions for both transfers and closures.

    • On the Versions tab, specify the versions that you want to use for these programs: Journal Entry MBF (P0900049) and General Ledger Post (R09801). If you do not specify a version for the P0900049 program, the system uses ZJDE0001 as the default version.

      When you specify a version of the R09801 program in the processing option, the system automatically runs the R09801 program after creating the journal entry batch and posts the batch. The system submits the R09801 program for each batch that is created. A batch is created for each managing company that is included in the cash call records selected for transfers.

  • Set up data selection for the R09J630 program if you are running the program from the Batch Versions form. In the data selection, you can include the joint ventures for which you want to create cash call transfer journal entries.

  • Enter a value to the G/L Offset Code field and select the Cash Call by Subledger check box in the P09J30 program as required.

    See Section 4.2.2, "Entering Joint Venture Master Records".

19.4.2 Running the Create JV Cash Call JEs Program (R09J630)

To run the program interactively for a specific cash call:

  • Access the Cash Call Definition program (P09J40). On the Work with Cash Call Definition form, select the cash call that you want to transfer and select Submit Transfer from the Row menu.

  • On the confirmation window that displays, revise the following fields as required:

    • G/L Date

    • New Cash Call Status

      The New Cash Call Status field is available only when you process the transfer to a new cash call.

      The system populates these fields with the values from the processing options, but you can override the values.

  • Click Submit to proceed.

To run the program for multiple cash calls:

  • From the Joint Venture Management module (G09J), select Periodic Processing, Manage Cash Calls, and then select Create JV Cash Call JEs for Transfer and Close.