10 Setting Up Joint Venture Business Unit Attributes (Release 9.2 Update)

This chapter discusses:

10.1 Understanding Joint Venture Business Unit Attributes

You use the Joint Venture Business Unit Attributes program (P09J0006) to set up the attributes or override the attributes of a joint venture business unit. Business unit attributes include setting up whether to calculate the overhead for the business unit, whether to allow negative overhead, and whether to use a specific business unit to which the offset journal entry for the overhead is written. These attributes are specifically used in Joint Venture Management. If there is no attributes setup at the child business unit level, the system searches for the parent business unit. If there are no attributes setup until the highest business unit level, then the system searches for the attributes setup at the Joint Venture of that business unit. The system uses the attributes that you assign to the business units in this program when you calculate overhead using these methods: Fixed Amount, Fixed Percent, Day Rate, Fixed Percent with Sliding Scale, Fixed Amount with Escalations, and User Defined Method.

One of the business unit attributes is inception date, which is the date from when a business unit is added to the joint venture. If the inception date is not specified for a business unit, the system considers the inception date specified in the joint venture for calculating overhead. The system uses the business unit inception date when you calculate the overhead using these methods: Fixed Amount, Fixed Percent, Day Rate, Fixed Percent with Sliding Scale, Fixed Amount with Escalations, and User Defined Method.

You charge negative overhead for the cost adjustments made to a joint venture or a business unit when calculating overhead using the fixed percent and fixed percent with sliding scale methods that uses the inception-to-date and year-to-date basis. If you do not allow negative overhead, the system will not write the overhead records into the F09J100 table.

you can specify a business unit that the system uses to offset journal entry records created for an overhead amount.

The system stores the attribute information in the Joint Venture Business Unit Attributes table (F09J0006). Information about whether to calculate overhead, to allow negative overhead, and whether to use a specific business unit to which the offset journal entry for the overhead is written to recover the overhead amount is stored in this table.

10.2 Entering Joint Venture Business Unit Attributes

To enter a business unit attribute record:

  1. From the Joint Venture Management module (G09J), click Joint Venture Setup, and then Business Unit Attributes.

  2. On the Revise Joint Venture Business Unit Attributes form, complete the required Business Unit field.

    When you add a business unit, note that the system displays the name of the company, company description, project number, and project description associated with the business unit.

    Note:

    You can add business unit attribute record only when a business unit is part of a joint venture.
  3. Enter a remark in the Remark field.

  4. To calculate overhead for the business unit, select the Calculate Overhead option.

    When you select the Calculate Overhead option, note that the system enables the Allow Negative Overhead option and the Overhead Recovery Business Unit field.

    Note:

    If the Calculate Overhead option is not selected, any attribute or value in the Allow Negative Overhead and the Overhead Recovery Business Unit fields will be removed.
  5. To allow negative overhead, select the Allow Negative Overhead option.

    Note:

    The Allow Negative Overhead option is enabled only when the Calculate Overhead option is selected.
  6. To offset the overhead amount to a different business unit, enter that specific business unit in the Recovery Business Unit field.

    Note:

    The Overhead Recovery Business Unit field is enabled only when the Calculate Overhead option is selected.
  7. To use the inception date for a business unit, enter the inception date of that business unit.

    Note:

    Business unit inception date cannot be prior to the joint venture inception date.
  8. To add an attachment to the business unit attribute, select the row, and then select Attachment from the Row menu.

  9. When you have finished entering a business unit attribute record, click OK to save your changes, and then click Cancel to exit the form.