24 Generating Distribution Ledgers for Financial Reporting (Release 9.2 Update)

This chapter discusses:

24.1 Understanding Distribution Ledgers for Financial Reporting

Standard financial reporting and statements are done using the Account Ledger table (F0911) and Account Balances table (F0902). The transactions distributed to the joint venture partners reside only in the Joint Venture Distribution Detail table (F09J12), and do not exist in the F0911 and F0902 tables. Therefore, to be able to report on the distributed transactions, at a minimum, the account balances records for the distributed transactions must exist in the F0902 table. To accomplish this, distribution ledger functionality has been provided in the Joint Venture Management system. This functionality converts the distributed transactions into records in the F0902 table and optionally in the F0911 table in specific ledgers called the distribution ledgers.

There are two types of distribution ledgers that you define. One contains only the distributed transactions for the managing business unit, the other contains summarized distributed transactions for the non-managing business units. Non-managing partners include outside partners and insider buisness units that are non-managing.

You can use the distribution ledgers to generate financial reports and statements using the standard JD Edwards EnterpriseOne reporting tools.

24.2 Generating Distribution Ledgers

After you have defined the distribution ledgers using the Distribution Ledger Types program (P09J25), you run the Generate Distribution Ledgers program (R09J500) to add the distributed transactions to the distribution ledgers. The R09J500 program selects the distribution records from the F09J12 table that are associated with a specified source ledger type and processes only those records that fulfil the following conditions:

  • Transaction Status = Process Complete

  • Distribution Ledger Type = Blank (the transaction has not been added to the distribution ledger)

The program creates account balances records, placing the managing partner's share in the managing ledger and the totals of the non-managing partners' share in the non-managing ledger. You can choose to only populate the managing or non-managing distribution ledgers when you define distribution ledgers in the Distribution Ledger Types program (P09J25).

You can set up a processing option to generate journal entries. The system creates the journal entries using the original account where the transaction occurred.

Note:

Distribution ledger journal entries are not required to balance.

The document type used for the journal entries is JG (Joint Venture Distribution Ledgers Journal Entries). A distribution journal entry batch is created for each distribution ledger that is processed. You do not need to run the GL Post program (R09801) for these distributed transactions as the R09J500 program creates the journal entries with the status as Posted. The journal entries contain a reference to the original transactions that were distributed, and this information is stored in the original document fields: Original Document, Original Document Type, Document Company, and Line Number.

After the R09J500 program completes processing, it generates a report. If there are records that the program is not able to process, the errors are reported to the work center and the R09J500 report contains the message Review Errors Written to Work Center. The system updates the Distribution Ledger Type field in the F09J12 table for each record processed to indicate that the transaction has been added to the distribution ledger.

Example:

Consider this setup and review how the system processes the records:

  • The Distribution Ledger Types program (P09J25) has a distribution ledger record with these values: Source Ledger = AA, Managing Ledger Type = 1A, and Non-Managing Ledger Type = 2A.

  • The processing options for the R09J500 program have been set up to generate both managing and non-managing ledgers, and to create journal entries in the F0911 table and the account balances records in the F0902 table.

  • In the F09J12 table, you have three distribution records distributed in this manner: 25% to the managing business unit = 30 USD, 25% each to two outside partners = 60 USD (30 USD to each partner), and 25% to an insider business unit = 30 USD. The total distributed amount = 120 USD.

When you run the R09J500 program, the system creates entries to the distribution ledgers 1A and 2A. The 1A ledger has the distributed amount for the managing business unit = 30 USD. The 2A ledger has the totals of the distributed amounts for the two outside partners + the distributed amount for the insider business unit, which is 60+30=90 USD.

The system creates summarized journal entries (summarized by line number) using the original account where the transaction occurred. The system also creates account balances record for the account with 90 USD in the 1A ledger and 30 USD in the 2A ledger. The AA ledger has 120 USD.

24.3 Prerequisites

Before you complete the tasks in this section:

  • Set up distribution ledger types using the Distribution Ledger Types program (P09J25).

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

  • Set up processing options for the Generate Distribution Ledgers program (R09J500).

    • On the Select tab, enter values to the following processing options:

      • Source Ledger Type: The source ledger to use for selecting transactions from the Joint Venture Distribution Detail table (F09J12). If you leave this processing option blank, the system selects transactions associated with the AA (Actual Amounts) ledger type.

      • Fiscal Year: The accounting fiscal year to be used for selecting transactions from the Joint Venture Distribution Detail table (F09J12). If this processing option is left blank, the system uses the current fiscal year for the joint venture company.

      • Period Number: A number (from 1 to 14) that identifies the accounting period to be used for selecting transactions from the Joint Venture Distribution Detail table (F09J12). If this processing option is left blank, the system uses the current G/L period for the joint venture company.

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

      • Generate Distribution Ledgers: Specify whether to generate the managing distribution ledger or the non-managing distribution ledger, or both. If this processing option is left blank, the system generates both the ledgers.

      • G/L Date Value: Specify whether the end date of the current financial period for the joint venture company or a specific date will be used as the G/L date. If this processing option is left blank, the joint venture company's current period end date will be assigned as the G/L date to the journal entries created for the distribution ledgers. Otherwise, the date specified in the G/L Date processing option will be used as the G/L date.

      • G/L Date: The date that you enter in this processing option will be assigned to the journal entries during distribution ledger creation. If this processing option is left blank, the system date is used.

        Note that even if you do not opt to create distribution journal entries, the date used in this processing option will be used to determine the period number and fiscal year used to update the account balances table.

      • G/L Updates: Specify whether to create journal entries in addition to updating the account balances records for the distribution ledgers. If this processing option is left blank, the system creates only account balances records.

      • Bypass Units Ledger: Specify whether to create journal entries for the units ledger. If this processing option is left blank, journal entries for the units ledger will be created.

  • Set up data selection to include the joint ventures for which you want to generate distribution ledgers.

24.4 Running the Generate Distribution Ledgers Program (R09J500)

From the Joint Venture Management module (G09J), select Periodic Processing, Process Distributed Transactions, and then select Generate Distribution Ledgers.