22 Billing and Paying the Joint Venture Partners (Release 9.2 Update)

This chapter discusses:

Note:

Before you can bill and pay the joint venture partners, you must complete the joint venture distribution process so that the transaction amounts are internally distributed to the partners and the distribution records for each partner are available in the Joint Venture Distribution Detail table (F09J12).

To understand the joint venture distribution process, see Chapter 17, "Processing Joint Venture Account Ledger Transactions".

22.1 Understanding the Joint Venture Process for Billing and Paying the Partners

The expenses incurred and revenue generated by a joint venture are shared among the joint venture partners. You record expenses and revenue for actual amounts, and then bill the distributed expenses or pay the distributed revenue to the partners based on ownership percentages maintained in the Division of Interest (DOI) tables (F09J20 and F09J21).

Distribution records are marked as an invoice, voucher, or journal entry depending on the accounts used for the transactions. Transactions in the revenue account ranges will be vouchers and transactions in the capital cost account ranges or expense account ranges will be invoices based on the account type (expense, capital cost, or revenue) used for the transactions. Transactions for insider business units will be journal entries unless the DOI indicates that invoices and vouchers are to be generated.

See Section 17.5.1, "Transaction Type".

Figure 22-1 Creation of Joint Venture Invoices, Vouchers, and Journal Entries - AA Ledger

Description of Figure 22-1 follows
Description of ''Figure 22-1 Creation of Joint Venture Invoices, Vouchers, and Journal Entries - AA Ledger''

You run separate batch programs to generate journal entries, vouchers, and invoices for joint ventures. The batch programs process selected distribution records in the F09J12 table and create joint venture journal entries, invoices, and vouchers. This results in the creation of general ledger journal entries in the Account Ledger table (F0911), invoices in the Customer Ledger table (F03B11), and vouchers in the Account Payable Ledger table (F0411). The F09J12 table is updated with information about the resulting journal entries, invoices, or vouchers.

Cutback Process

The amount billed and paid to the partners through invoices and vouchers and journal entries must create balanced journal entries. The Cutback AAIs are used to create these balanced journal entries. The business unit used for the Cutback accounts is the business unit of the original transaction. The Cutback AAIs used are JVCBR for Revenue, JVCBC for Capital Cost, and JVCBE for Expenses.

See Section 6.1.1, "Joint Venture Cutback AAIs (Release 9.2 Update)".

The entries to the cutback accounts are always summarized by the cutback account and the business unit where the transaction originated. Therefore, there may be multiple entries to a cutback account depending on the number of business units associated with the originating transactions.

Journal Entry, Voucher, and Invoice Batches for Joint Ventures

The batch processes create invoice, voucher, and journal entry document batches for each managing company that is associated with the selected distribution records. The document batches are created with joint venture specific batch types:

  • JI (Joint Venture Invoices)

  • JV (Joint Venture Vouchers)

  • JG (Joint Venture Journal Entries)

These joint venture specific batch types enable you to distinguish transactions that originate from the JD Edwards EnterpriseOne Joint Venture Management system. You cannot make any changes (for example: edit, delete or void) to the transactions belonging to these joint venture batch types from outside the Joint Venture Management system.

Approving and Posting Joint Venture Document Batches

The system allows you to automatically approve and post the batches after they are created. When you set the system to automatically approve the batches, the approval process set up in the general accounting constants for journal entries, accounts payable constants for vouchers, and accounts receivable constants for invoices are overridden. The General Ledger Post program (R09801) posts the batches using post versions specific to the joint venture batch types.

The post versions are:

  • ZJDE0048 for JI batch type

  • ZJDE0049 for JV batch type

  • ZJDE0047 for JG batch type

Records Processed Successfully and Records with Errors and Warnings

When you run the batch programs to create journal entries, vouchers, and invoices, the system prints a report listing the number of documents for which journal entries, vouchers, or invoices were created and the batch numbers that were generated in the process. The report also includes a message if there are records in error. Each document that is successfully created has a unique document number that the system populates in the Distribution Document field in the F09J12 table. The system also updates additional fields for the records on the F09J12 table that links to the resulting journal entry created in the Account Ledger table (F0911), invoice in the Customer Ledger (F03B11), and voucher in the Account Payable Ledger (F0411). The fields for the journal entries are: Distribution Document Number, Distribution Document Company, Distribution Document Type, Distribution G/L Date, Distribution Line Number, Distribution Line Extension, and Distribution Ledger Type. In the case of invoices and vouchers, only these fields will be populated: Distribution Document Number, Distribution Document Company, Distribution Document Type, Distribution Pay Item, and Distribution G/L Date.

The document that resulted in error does not have a distribution document, but has a unique distribution ID that the system populates in the Distribution ID field. You use this distribution ID to identify the specific error in the work center. After you review and resolve the errors, you can rerun the program to generate the journal entries, vouchers, or invoices. The system also populates the distribution ID for the document that is successfully created but has warnings. You can reference the specific warning message in the work center using the distribution ID. Error or warning messages for cutback entries are written to the work center in line number 0 (zero).

22.2 Creating Invoices for Joint Venture Partners

To bill the partners for the capital cost and expense incurred in a joint venture, you must create invoices based on each partner's percent of interest. You can also choose to create invoices for insider business units. You run the Create JV Invoice Transactions program (R09J406) to create the invoices.

The R09J406 program processes the distribution records in the F09J12 table that you select using the data selection and the Service/Tax Date processing option for the program. The system processes only those selected records that are marked as:

  • Invoice transactions (Distribution Transaction Type = Invoice)

  • Available to process (Transaction Status = Available to Process)

  • Not distribution only transactions (Distribution Only = 0)

  • Cash call not assigned (Cash Call ID = 0)

The system groups the selected distribution records and creates invoices by partner, or by joint venture name and partner based on the Document Level processing option setup. If you create invoices by partner, the invoice for a partner can contain transactions across multiple joint ventures associated with the partner. If you create invoices by joint venture and partner, the system creates an invoice for each joint venture that a partner is associated with.

The invoices contain pay items of the distribution records in detailed or summarized format based on the Transaction Summarization Level processing option setup. The records can be summarized by account, business unit, joint venture name, or managing company. The remark for each pay item is populated with the original transaction information to indicate how the distribution transactions are summarized: account description for account level, business unit description for business unit level, joint venture name for joint venture name, managing company name for managing company, and original transaction explanation or remark if the transaction is not summarized (transactions in detail). There is a limit of 999 pay items per voucher and the system creates a new voucher when the limit is reached.

For example, consider a partner ABC who is a partner in three joint ventures. If you have set up the system to create invoice documents by partner and summarize the transactions by joint venture name, the system creates an invoice for the partner ABC and the invoice contains three pay items (of the summarized distributed amounts) for each of the joint venture.

Debit and Credit Entries for Joint Venture Invoices in the F0911 Table

The amount is debited to the accounts receivable (AR) trade account for the managing company.

The offset credit entry is made to the appropriate cutback account of the business unit to which the original transaction is booked. The cutback account that is used is determined by the AAI value written in the Cutback AAI Item column for the record in the F09J12 table. This value is populated when you run the Load Joint Venture Distribution Detail Program (R09J402) to create the records in the F09J12 table. There may be multiple entries to cutback accounts depending on the number of business units associated with the originating transactions.

See Section 17.5.1, "Transaction Type".

If you set the processing option to populate the partner as the subledger in the cutback entries, you can easily identify which offset cutback entries are for which partner.

Example: G/L Accounting Entries when a Joint Venture Invoice Transaction is Entered for an Expense

A voucher for 500 USD is received for the rent on a joint venture mobile office at a job site.

Joint venture business units: BU251, BU25

Figure 22-2 Voucher Received by the Joint Venture for Expense

Description of Figure 22-2 follows
Description of ''Figure 22-2 Voucher Received by the Joint Venture for Expense''

The rent expense is distributed to the partners in a joint venture. An invoice is created for each of the partners for their share of the rent expense. The invoice uses the A/R Trade and the joint venture's cutback accounts.

This diagram illustrates the G/L entries for a partner whose share of the expense is 200 USD.

Figure 22-3 General Accounting - Joint Venture Invoice Transactions

Description of Figure 22-3 follows
Description of ''Figure 22-3 General Accounting - Joint Venture Invoice Transactions''

Example: G/L Accounting Entries when a Joint Venture Invoice Transaction is Entered for Capital Cost

A voucher is received for material used at a job site.

Joint venture business units: BU251, BU25

Figure 22-4 Voucher Received by the Joint Venture for Capital Cost

Description of Figure 22-4 follows
Description of ''Figure 22-4 Voucher Received by the Joint Venture for Capital Cost ''

The material cost is distributed to the partners in a joint venture. An invoice is created for each of the partners for their share of the material cost. The invoice uses the A/R Trade and the joint venture's cutback accounts.

This diagram illustrates the G/L entries for a partner whose share of the capital cost is 40 USD.

Figure 22-5 General Accounting - Joint Venture Invoice Transactions

Description of Figure 22-5 follows
Description of ''Figure 22-5 General Accounting - Joint Venture Invoice Transactions''

Invoice Currency

When the currency of the partner and the managing company is different, the invoice amounts are in the currency of the managing company for the domestic side of the transaction and in the partner's currency for the foreign side of the transaction. Original transaction amounts used to create the invoice are in the same currency as the managing company and then converted to the partner's currency.

Minimum Amount to Create Invoices

When the cumulative total for a partner is below the set minimum amount specified in the Legal Entities program (P09J10) or in the Joint Venture Master program (P09J30), the batch process issues a warning message in the work center and does not create an invoice for the partner. The transaction remains in the F09J12 table with the status Available to Process. When the transaction amounts exceed the minimum amount, the system creates the invoice for the partner.

When the minimum amount is specified in both the P09J10 and P09J30 programs and the amounts are different, the minimum amount on the legal entity record for the partner overrides the joint venture minimum amount.

The invoice minimum amount specified for the joint venture is in the managing company currency, whereas the invoice minimum amount specified in the partner's legal entity record is in the partner's currency. When the managing company currency is different from the partner's currency, the system converts the joint venture minimum amount to the partner's currency and uses the converted amount.

Override Tax Information in Customer Master Record

The R09J406 program does not calculate tax on the invoice amount even if the customer master record for the partner is set up with tax information in the Customer Master by Line of Business (F03012).

Payment Terms for Joint Venture Invoices

If payment terms have been set up for the partners who are also customers, the system applies the payment terms when generating the invoices.

Note:

The payment terms specified on the legal entity record for the partner will be used on the invoice instead of the payment terms on the Customer Master record for the partner.

See Section 3.3.2, "Entering Legal Entities for Joint Ventures".

22.2.1 Prerequisites

Before you complete the tasks in this section:

  • Set up the processing options for the Create JV Invoice Transactions program (R09J406).

    • On the Select tab, in the Service/Tax Date processing option field, enter the date to be used to select the records where the Service/Tax Date is less than or equal to the date entered in this processing option. If you do not enter a date, the system date is used.

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

      • Document Level: Specify whether the system creates a new document when the partner changes, or when the joint venture name and the partner changes. If this option is left blank, the system creates a new invoice when the partner changes.

      • Transaction Summarization: Specify whether to summarize the transactions by account, business unit, joint venture name, or managing company or to not summarize (transactions in detail). If this option is left blank, the system summarizes by account.

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

      • Invoice Date: Specify the date to assign to the invoice during invoice creation. If you do not enter a date, the system date is used.

      • Batch Approval: Specify whether to set the batch as automatically approved or apply the status specified in the accounts receivable constants. If this option is left blank, the system applies the status specified in the accounts receivable constants.

      • Cutback Account by Subledger: Specify whether to populate the partner's address number in the Subledger field in the entries made to the cutback accounts. If this option is left blank, the system does not use the partner's address number in the Subledger field.

      • Separate Reversal Invoice Documents: Specify whether to create a separate document for the reversal records or to include the reversal records along with the distribution records in the document. If this option is left blank, the system creates a separate document for the reversal records.

        See Chapter 23, "Voiding and Deleting Joint Venture Distribution Documents (Release 9.2 Update)".

        Note that if you have chosen to include reversal transactions with the rest of the distribution transactions, you cannot void the distribution document because it will contain transactions with the Distribution Reversal void code. However, you can reverse individual transaction lines on the distribution document.

    • On the Versions tab, specify the versions that you want to use for these programs: Invoice Entry MBF (P03B0011), Journal Entry MBF (P0900049), and General Ledger Post (R09801). If you do not specify a version for the Invoice Entry MBF (P03B0011) and the Journal Entry MBF (P0900049), the system uses ZJDE0001 as the default versions.

      When you specify a version of the R09801 program in the processing option, the system automatically runs the program after creating the invoice batch and posts the invoice 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 distribution records selected.

    • Set up data selection to include the joint ventures for which you want to create joint venture invoices.

22.2.2 Running the Create JV Invoice Transactions Program (R09J406)

From the Joint Venture Management module (G09J), select Periodic Processing, Process Distributed Transactions, and then select Create JV Invoice Transactions.

22.3 Creating Vouchers for Joint Venture Partners

You run the Create JV Voucher Transactions program (R09J407) to create vouchers in order to pay the partners their share of the joint venture revenue.

The R09J407 program processes the distribution records in the F09J12 table that you select using the data selection and the Service/Tax Date processing option for the program. The system processes only those selected records that are marked as:

  • Voucher transactions (Distribution Transaction Type = Voucher)

  • Available to process (Transaction Status = Available to Process)

  • Not distribution only transactions (Distribution Only = 0)

The system groups the selected distribution records and creates vouchers by partner, or by joint venture name and partner based on the Document Level processing option setup. If you create vouchers by partner, the voucher for a partner can contain transactions across multiple joint ventures associated with the partner. If you create vouchers by joint venture and partner, the system creates a voucher for each joint venture that the partner is associated with.

The vouchers contain pay items of the distribution records in detailed or summarized format based on the Transaction Summarization Level processing option setup. The records can be summarized by account, business unit, joint venture name, or managing company. The remark for each pay item is populated with the original transaction information to indicate how the distribution transactions are summarized: account description for account level, business unit description for business unit level, joint venture name for joint venture name, managing company name for managing company, and original transaction explanation or remark if the transaction is not summarized (transactions in detail). There is a limit of 999 pay items per voucher and the system creates a new voucher when the limit is reached.

For example, consider a partner ABC who is a partner in three joint ventures. If you have set up the system to create voucher documents by partner and summarize the transactions by joint venture name, the system creates a voucher for the partner ABC and the voucher contains three pay items (of the summarized distributed amounts) for each of the joint ventures.

Debit and Credit Entries in the F0911 Table for Joint Venture Vouchers

The amount is credited to the accounts payable (AP) trade account for the managing company.

The offset debit entry is made to the appropriate cutback account of the business unit to which the original transaction is booked. The cutback account that is used is determined by the AAI value written in the Cutback AAI Item column for the record in the F09J12 table. This value is populated when you run the Load Joint Venture Distribution Detail Program (R09J402) to create the records in the F09J12 table. There may be multiple entries to cutback accounts depending on the number of business units associated with the originating transactions.

See Section 17.5.1, "Transaction Type".

If you set the processing option to populate the partner as the subledger in the cutback entries, you can easily identify which offset cutback entries are for which partner.

Example: G/L Accounting Entries when a Joint Venture Voucher Transaction is Entered for Revenue

An invoice for 200 USD is entered for the joint venture JV_ABC.

Joint venture business units: BU251, BU25

Figure 22-6 Invoice Entered for Revenue Generated by the Joint Venture

Description of Figure 22-6 follows
Description of ''Figure 22-6 Invoice Entered for Revenue Generated by the Joint Venture''

The joint venture revenue is distributed to the partners in a joint venture. A voucher is created for each of the partners for their share of the joint venture revenue. The voucher uses the A/P Trade and the joint venture's cutback accounts.

This diagram illustrates the G/L entries for a partner whose share of the revenue is 80 USD.

Figure 22-7 General Accounting - Joint Venture Voucher Transactions

Description of Figure 22-7 follows
Description of ''Figure 22-7 General Accounting - Joint Venture Voucher Transactions''

Voucher Currency

When the currency of the partner and the managing company is different, the voucher amounts are in the currency of the managing company for the domestic side of the transaction and in the partner's currency for the foreign side of the transaction. Original transaction amounts used to create the voucher are in the same currency as the managing company and then converted to the partner's currency.

Minimum Amount to Create Vouchers

When the cumulative total for a partner is below the set minimum amount specified in the Legal Entities program (P09J10) or in the Joint Venture Master program (P09J30), the batch process issues a warning message in the work center and does not create a voucher for the partner. The transaction remains in the F09J12 table with the status Available to Process. When the transaction amounts exceed or equal the minimum amount, the system creates the voucher for the partner.

If the minimum amount is specified in both the P09J10 and P09J30 programs and the amounts are different, the minimum amount on the legal entity record for the partner overrides the joint venture minimum amount.

The voucher minimum amount specified for the joint venture is in the managing company currency, whereas the voucher minimum amount specified in the partner's legal entity record is in the partner's currency. When the managing company currency is different from the partner's currency, the system converts the joint venture minimum amount to the partner's currency and uses the converted amount.

Override Tax Information in Supplier Master Record

The R09J407 program does not calculate tax on the voucher amount even if the supplier master record for the partner is set up with tax information in the Supplier Master table (F0401).

Payment Terms for Joint Venture Vouchers

If payment terms have been set up for the partners who are also suppliers, the system applies the payment terms when generating the vouchers.

Note:

The payment terms specified on the legal entity record for the partner will be used on the voucher instead of the payment terms on the Supplier Master record for the partner.

See Section 3.3.2, "Entering Legal Entities for Joint Ventures".

22.3.1 Prerequisites

Before you complete the tasks in this section:

  • Set up the processing options for the Create JV Voucher Transactions program (R09J407).

    • On the Select tab, in the Service/Tax Date processing option, enter the date to be used to select the records where the Service/Tax Date is less than or equal to the date entered in this processing option. If you do not enter a date, the system date is used.

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

      • Document Level: Specify whether the system creates a new voucher when the partner changes, or when the joint venture name and the partner changes. If this option is left blank, the system creates a new voucher when the partner changes.

      • Transaction Summarization: Specify whether to summarize the transactions by account, business unit, joint venture name, or managing company or to not summarize (transactions in detail). If this option is left blank, the system summarizes by account.

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

      • Voucher Date: Specify the date to assign to the voucher during voucher creation. If you do not enter a date, the system date is used.

      • Batch Approval: Specify whether to set the batch as automatically approved or apply the status specified in the accounts payable constants. If this option is left blank, the system applies the status specified in the accounts payable constants.

      • Cutback Account by Subledger: Specify whether to populate the partner's address number in the Subledger field in the entries made to the cutback accounts. If this option is left blank, the system does not use the partner's address book number in the Subledger field.

      • Separate Reversal Voucher Documents: Specify whether to create a separate document for the reversal records or to include the reversal records along with the distribution records in the document. If this option is left blank, the system creates a separate document for the reversal records.

        See Chapter 23, "Voiding and Deleting Joint Venture Distribution Documents (Release 9.2 Update)".

        Note that if you have chosen to include reversal transactions with the rest of the distribution transactions, you cannot void the distribution document because it will contain transactions with the Distribution Reversal void code. However, you can reverse individual transaction lines on the distribution document.

    • On the Versions tab, specify the versions that you want to use for these programs: Voucher Entry MBF (P0400047), Journal Entry MBF (P0900049) and General Ledger Post (R09801). If you do not specify a version for the Voucher Entry MBF (P0400047) and the Journal Entry MBF (P0900049), the system uses ZJDE0001 as the default versions.

      When you specify a version of the R09801 program in the processing option, the system automatically runs the program after creating the voucher batch and posts the voucher 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 distribution records selected.

  • Set up data selection to include the joint ventures for which you want to create joint venture vouchers.

22.3.2 Running the Create JV Voucher Transactions Program (R09J407)

From the Joint Venture Management module (G09J), select Periodic Processing, Process Distributed Transactions, and then select Create JV Voucher Transactions.

22.4 Creating Journal Entries for Insider Business Units

You run the Create JV Journal Entry Transactions program (R09J404) to create journal entries for insider business units.

The R09J404 program processes the distribution records in the F09J12 table that you select using the data selection and the Service/Tax Date processing option for the program. The system processes only those selected records that are marked as:

  • Journal entry transactions (Distribution Transaction Type = Journal Entry)

  • Available to process (Transaction Status = Available to Process)

  • Not distribution only transactions (Distribution Only = 0)

  • Cash call not assigned (Cash Call ID = 0)

The system groups the selected distribution records by insider business unit or by joint venture name based on the Document Level processing option setup and creates a journal entry document for every insider business unit or joint venture. If you create documents by insider business unit, the document for an insider business unit can contain journal entries across multiple joint ventures in which the insider business unit is a partner.

The journal entry transactions can be detailed or summarized. If you have set up the Transaction Summarization Level processing option to summarize the distribution amounts by account, the system creates a summarized journal entry line with the aggregated distribution amount for each account. Note that the summarized journal entry line in the F0911 table does not retain certain detail line-level information - for example, the asset ID and subledger type.

Debit and Credit Entries for Joint Venture Journal Entries in the F0911 Table

The amount is debited to the insider business unit using the distributable account for the company to which the original distribution is booked.

The offset credit entry is made to the appropriate cutback account of the business unit to which the original expense is booked. The cutback account that is used is determined by the AAI value written in the Cutback AAI Item column for the record in the F09J12 table. The entries to the cutback accounts is always summarized by cutback account and insider business unit. Therefore, there may be multiple entries to cutback accounts depending on the number of business units associated with the originating transactions.

If you set the processing option to populate the insider business unit as the subledger in the cutback entries, you can easily identify which offset cutback entries are for which insider business unit. Depending on your processing option setup, the subledger can be:

  • The business unit of the inside partner with a subledger type of C (Business Unit)

  • The address book number of the insider business unit with a subledger type of A (Address Book)

Example: G/L Accounting Entries when a Joint Venture Journal Entry Transaction is Entered for an Insider Business Unit

The rent expense, material capital cost, and joint venture revenue are also distributed to the insider partners in the joint venture. A journal entry is created for the insider partner's share of the rent expense, material capital cost, and joint venture revenue. The journal entry uses the insider business unit and the original transaction object account and subsidiary for the debit side and the joint venture's cutback accounts for the credit side of the journal entry.

Joint venture business units: BU251, BU25

This diagram illustrates the G/L entries for an insider partner whose share of the expense is 300 USD.

Figure 22-8 Journal Entry Created for Insider Business Unit for Joint Venture Expense

Description of Figure 22-8 follows
Description of ''Figure 22-8 Journal Entry Created for Insider Business Unit for Joint Venture Expense''

This diagram illustrates the G/L entries for an insider partner whose share of the capital cost is 60 USD.

Figure 22-9 Journal Entry Created for Insider Business Unit for Capital Cost

Description of Figure 22-9 follows
Description of ''Figure 22-9 Journal Entry Created for Insider Business Unit for Capital Cost''

This diagram illustrates the G/L entries for an insider partner whose share of the revenue for the joint venture JV_ABC is 120 USD.

Figure 22-10 Journal Entry Created for Insider Business Unit for Joint Venture Revenue

Description of Figure 22-10 follows
Description of ''Figure 22-10 Journal Entry Created for Insider Business Unit for Joint Venture Revenue''

22.4.1 Prerequisites

Before you complete the tasks in this section:.

  • Set up the processing options for the Create JV Journal Entry Transactions program (R09J404).

    • On the Select tab, in the Service/Tax Date processing option, in the Service/Tax Date processing option, enter the date to be used to select the records where the Service/Tax Date is less than or equal to the date entered in this processing option. If you do not enter a date, the system date is used.

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

      • Document Level: Specify whether the system creates a new journal entry document when the insider business unit changes, or when the joint venture name changes. If this option is left blank, the system creates a new journal entry document when the insider business unit changes.

      • Transaction Summarization: Specify whether to summarize the transactions by account or to not summarize (display details of the transactions). If this option is left blank, the system summarizes by account.

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

      • Document Type: Specify the document type to assign to the journal entry. If this option is left blank, JE (journal entry) is used.

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

      • Cutback Account by Subledger: Specify whether to use subledgers when creating entries to the cutback account.

        If you enter 1, the system uses the business unit of the inside partner as the subledger with a subledger type of C (business unit).

        If you enter 2, the system uses the address book number of the insider business unit as the subledger with a subledger type of A (address book).

        If you leave this processing option blank, subledgers will not be used in the entries to the cutback account.

      • Separate Reversal Entry Documents: Specify whether to create a separate document for the reversal records or to include the reversal records along with the distribution records in the document. If this option is left blank, the system creates a separate document for the reversal records.

        See Chapter 23, "Voiding and Deleting Joint Venture Distribution Documents (Release 9.2 Update)".

        Note that if you have chosen to include reversal transactions with the rest of the distribution transactions, you cannot void the distribution documents, because it will contain transactions with the Distribution Reversal void code. However, you will be able to reverse individual transaction lines on the distribution document.

    • 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 Journal Entry MBF (P0900049), 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 program after creating the journal entries and posts the journal entries. 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 distribution records selected.

    • Set up data selection to include the joint ventures for which you want to create joint venture journal entries.

22.4.2 Running the Create JV Journal Entry Transactions Program (R09J404)

From the Joint Venture Management module (G09J), select Periodic Processing, Process Distributed Transactions, and then select Create JV Journal Entry Transactions.