4 Entering Joint Venture Master Records

This chapter discusses:

4.1 Understanding Joint Venture Master Records

You use the Joint Venture Master program (P09J30) to create joint venture master records. The joint venture master record identifies the attributes of the joint venture such as the name, description, and status. The record also identifies who the managing company, joint venture business unit and company, and the managing partner's business unit (managing business unit) are. In order to process transactions properly, the currency for the managing company and the joint venture company must be the same.

You can also specify an approval list that can be used to approve the joint venture. An approval list that is specified on a joint venture cannot be used on another joint venture. When all of the entities on the approval list have approved the joint venture, and the approval list is approved, the system automatically marks the joint venture as Approved and displays the date when the approval list was approved.

For a joint venture that is attached to an approval list, you can access the Division of Interest/Approval List program (P09J20) for approval list from the P09J30 program. The P09J20 program has two versions for approval list - one for creating and updating the approval list, and the other for creating, updating, and approving the approval list. You set up the approval list version that you want to access in the processing option for the P09J30 program. If you set up the processing option to access the version that enables you to approve the approval list, you can update the approval list as needed and approve the approval list when you create or update the joint venture. The system sets the joint venture as approved and populates the approved date of the joint venture in the P09J30 program.

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

You can also specify the person assigned to the joint venture, and you can use up to 10 category code fields to enter additional information about the joint venture.

Additionally, you can specify a minimum amount to use when generating vouchers and invoices for the joint venture. The invoice and voucher minimum amount that you specify for the joint venture is in the managing company's currency and is applicable to all partners in the joint venture. For example, if you specify 100 as the minimum amount and the currency of the managing company is USD, no invoices or vouchers are created for any of the partners associated with the joint venture until the invoice or voucher amount reaches 100 USD or more. This is the default minimum amount for the joint venture, and the value can be overridden on each partner's legal entity record.

You can use the media object attachment feature to save and attach documents or files that are relevant to the joint venture.

Joint Venture Master Setup to Calculate Overhead

You can specify whether to calculate overhead costs for the joint venture, whether to allow negative overhead (caused by adjustments from previous period), and the inception date for the joint venture.

You can set up this information at the business unit level to override the information entered at the joint venture level in the joint venture master.

See Section 10.1, "Understanding Joint Venture Business Unit Attributes"

Joint Venture Master Setup to Process Cash Calls

You can set up a G/L offset code at the joint venture level. The G/L offset code will be used in conjunction with the cash call AAIs when determining the account to use for cash call transactions. For example, if you are the managing partner of multiple joint ventures all under the same company, you can use the G/L offset to distinguish between joint ventures when determining which account to use for your cash call transactions.

Also, you can set up the system to use the subledger for the cash call accounts when you create journal entries for joint venture cash calls. The system uses the subledger type A (Address Book). For an outside partner, the partner's address book number is used. For an inside partner, the address book number for the partner's business unit is used.

Access to Other Joint Venture Programs

The Row menu of the program also provides access to the following information for a joint venture:

  • The joint venture distribution summary by partner information in the JV Distribution Summary by Partner program (P09J12B)

  • The operational status of the joint venture in the Joint Venture Operational Status program (P09J70)

    See Section 15.1, "Understanding the Operational Status for Joint Ventures"

  • The approval list for the joint venture in the Division of Interest/Approval List program (P09J20) if the joint venture is attached to an approval list

Joint Venture Master records are stored in the Joint Venture Master table (F09J30).

4.2 Working with Joint Venture Master Records

You use the Joint Venture Master program (P09J30) to add, update, and copy joint venture master records.

4.2.1 Prerequisite

Before you complete the tasks in this section:

  • Create an approval list if you are using approval list to approve your joint venture.

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

  • Set up the following processing options for the P09J30 program on the Versions tab:

    • JV Distribution Summary by Partner (P09J12B)

      Specify the version of the P09J12B program that you want the system to launch when you access the P09J12B program from the Row menu of the Work with Joint Ventures form. If you do not specify a version, the system uses ZJDE0001 as the default version.

    • Division of Interest/Approval List (P09J20)

      Specify the version of the P09J20 program that you want the system to launch when you click Approval List from the Row menu of the Work with Joint Ventures form or from the Form menu on the Edit Joint Venture form. If you do not specify a version, the system uses ZJDE0002 as the default version.

      Note:

      The system issues an error if you specify ZJDE0001 in this processing option and attempt to access Approval List from the Row or Form menu of the P09J30 program. This is because ZJDE0001 is the version for Division of Interest (DOI).

      If you specify ZJDE0003 version in this processing option and the P09J20|ZJDE0003 version has the Approve the Approval List processing option set to blank (Do not allow approval list to be approved), you will not see the Approval List menu option on the Row or Form menu of the P09J30 program.

4.2.2 Entering Joint Venture Master Records

To enter a joint venture master record:

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

  2. On the Work with Joint Ventures form, search for and review existing joint ventures.

  3. To enter a new joint venture, click Add.

  4. On the Add Joint Venture form, complete the required Joint Venture Name field. This must be a unique value.

  5. Optionally, complete any of the following fields:

    • Joint Venture Description

    • Joint Venture Status

      Select a status for the joint venture. This status is informational only and does not control any processing for the joint venture.

    • Joint Venture Business Unit

      Enter a business unit that is unique to the joint venture. This business unit must not already be associated with another joint venture. When you enter a value in this field, the system automatically populates the Joint Venture Business Unit Address and Joint Venture Company fields.

      In some cases, a joint venture might consist of a single business unit. In other cases, the joint venture might include multiple business units. If multiple business units are used for the joint venture, enter the project business unit in this field. You must not enter a business unit that is a child to another business unit.

    • Managing Business Unit

      Enter the business unit that is responsible for the financial transactions for the joint venture. The managing business unit is responsible for the distribution of expenses and revenue to the partners in the joint venture. When you enter a value in this field, the system automatically populates the Managing Company field. The managing business unit is also a partner specified on the DOI records for the joint venture.

      The managing business unit that you enter must be different from the joint venture business unit; or, if a project business unit is used, the managing business unit must be different from any of the business units under the project.

    • Managing Company

      The system populates this field with the managing company that is associated with the specified managing business unit. You can enter a different managing company that uses the same currency as that of the joint venture company.

    • Approval List

      Enter the name of the approval list that contains the entities that must approve the joint venture. You can only select an approval list that is not approved and that is not assigned to another joint venture. When you approve the approval list using the version of the Division of Interest/Approval List program (P09J20) that enables you to approve approval lists, the system automatically approves the joint venture and populates the Date Approved field with the date the approval list was approved.

    • Assigned To

      Use this field to specify the person or entity who is responsible for this joint venture. This might be the joint venture accountant. This field is available in other joint venture programs to facilitate searching for joint ventures that a specific person is responsible for.

    • Invoice Minimum Amount (Release 9.2 Update)

      Use this field to specify a minimum amount for creating invoices for the joint venture. For example, if you enter 100 in this field, the system will not generate invoices for the joint venture for any amounts below 100. When the cumulative total for a partner reaches 100, the system generates invoices as necessary. This value represents the default minimum amount for the joint venture and can be overridden on the legal entity.

      The invoice minimum amount is in the managing company's currency and is applicable to all partners in the joint venture.

    • Voucher Minimum Amount (Release 9.2 Update)

      Use this field to specify a minimum amount for creating vouchers for the joint venture. For example, if you enter 100 in this field, the system will not generate vouchers for the joint venture for any amounts below 100. When the cumulative total for a partner reaches 100, the system generates vouchers as necessary. This value represents the default minimum amount for the joint venture and can be overridden on the legal entity.

      The voucher minimum amount is in the managing company's currency and is applicable to all partners in the joint venture.

    • Inception Date (Release 9.2 Update)

      Use this field to specify the inception date of the Joint Venture.

    • G/L Offset Code (Release 9.2 Update)

      Enter a code that determines the account the system uses when creating joint venture transactions for cash calls. The system concatenates the value that you enter to the AAI item JVC (Partner Contributions Account), JVA (Agreement Default Charge Account), and JVJ (Journal Entry Offset Account) to locate the account.

      For example, if you enter WL1, the system searches for the AAI item JVCWL1, JVAWL1, or JVJWL1, as needed. You must, however, set up the corresponding AAI item for the system to use; otherwise, the system ignores the G/L offset and uses the account that is set up for JVC, JVA, or JVJ for the company specified.

    • Cash Call by Subledger (Release 9.2 Update)

      Select this check box to create journal entries for the partner contributions account by subledger. The system uses the partner' s address book number as the subledger with a subledger type of A (Address Book). If the partner is an inside partner, the address book number of the partner's business unit is used as the subledger.

    • On the Overhead section of the Edit Joint Venture form, select the following options as required:

      • Calculate Overhead

        Select this option to calculate overhead for the joint venture.

      • Allow Negative Overhead

        Select this option to allow negative overhead for the joint venture.

        Note:

        The negative overhead option is enabled only when the Calculate Overhead option is selected.
    • Category Code 1 through Category Code 10

      Use these fields to enter user-defined information that is required for your organization's joint ventures. Values for these fields are stored in UDC tables (09J/C1) through (09J/C0).

  6. Click OK to save your joint venture master.

4.2.3 Copying Joint Venture Master Records

To copy a joint venture master record:

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

  2. On the Work with Joint Ventures form, select the joint venture record that you want to copy and click Copy.

  3. On the Copy Joint Venture form, complete the Joint Venture Name field.

  4. Optionally, update any of the information that the system supplied from the copied joint venture as needed.

  5. Click OK to save your changes.