9 Setting Up Distribution Ledgers for Financial Reporting (Release 9.2 Update)

This chapter discusses:

9.1 Understanding Distribution Ledgers

To be able to do financial reporting on the distributed transactions in the Joint Venture Distribution Detail table (F09J12), you must define distribution ledgers to separately record the amounts distributed to the managing business unit and the cumulative amounts distributed to the non-managing partners. Distribution ledgers are ledgers in the Account Ledger (F0911) and Account Balances (F0902) tables that contain the summarized transactions and account balances specifically for the distributed transactions.

After you define the distribution ledgers, you run a batch process to generate the distribution ledgers with the associated distributed amounts. The batch process creates account balances in the F0902 table, and optionally creates journal entries in the F0911 table.

See Chapter 24, "Generating Distribution Ledgers for Financial Reporting (Release 9.2 Update)".

After records exist in the F0902 table, you can generate financial reports and statements using the standard JD Edwards EnterpriseOne reporting tools.

9.2 Setting Up Distribution Ledger Types

You define distribution ledger types using the Distribution Ledger Types program (P09J25). For each source ledger type that is distributed within the Joint Venture Management system, you can define two distribution ledger types:

  • One distribution ledger type to contain the transactions and balances for the managing business unit's share

    The managing business unit is defined in the Joint Venture Master program (P09J30).

  • Another distribution ledger type to contain the summarized transactions and balances for all the non-managing partners in the joint venture

    Non-managing partners include outside partners and insider business units that are non-managing.

The system provides you the flexibility to report on the managing business unit's and the non-managing partners' share in two ways:

  • Define distribution ledgers for both so that the system generates the amounts for both in different distribution ledgers.

  • Define only one distribution ledger, either for the managing business unit or for the non-managing partners. Then, subtract the total distributed amounts in the source ledger with the amounts in the distribution ledger that you have defined.

9.2.1 Prerequisites

Before you complete the tasks in this section:

  1. Set up user-defined codes for the distribution ledgers in the Ledger Types UDC table (09/LT). You can set up two distribution ledgers for a source ledger type, one for the managing business unit and another for all the non-managing partners.

    Additionally, you must also set up corresponding units ledgers if you want to record the balances for the units associated with the amounts in the distribution ledgers.

  2. Define the distribution ledger types in the Ledger Type Master Setup program (P0025) using the user-defined codes for distribution ledgers that you have set up in the UDC table 09/LT.

    When you define the distribution ledger types on the Ledger Type Rules Setup form, note the following:

    • Do not select the Ledger is Required to Balance option. Distribution ledger types that are required to balance cannot be used to generate distribution ledger journal entries.

    • The currency code of the distribution ledger types must be the same as that of the source ledger type that is associated with the distributed transactions.

9.2.2 Setting Up Distribution Ledger Records

To set up distribution ledger records:

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

  2. On the Revise Distribution Ledgers form, search for and review existing records of distribution ledgers.

  3. To set up a new record, enter values in the following fields on the last empty row on the form.

    • Source Ledger Type

      This is the ledger type that you have used to load general ledger transactions to the Joint Venture Management system. The system will retrieve distributed transactions that are associated with this source ledger type.

    • Non-Managing Ledger Type

      This is the ledger type to which the system will assign the distributed transactions for non-managing partners. The ledger type that you enter must not already be used on a distribution ledger record.

    • Non-Managing Ledger Reverse Sign

      If you select this option, the system reverses the sign on the total distributed amount for the non-managing partners. For example, when the total distributed amount on the source ledger type has a positive value, the distributed amount on the non-managing ledger type will have a negative value. This enables you to perform mathematical calculation to get the managing business unit's share for the purpose of financial reporting when you have not defined a managing ledger type.

      You can choose not to use this option by defining a managing ledger type so that the system can automatically calculate the managing business unit's share.

    • Managing Ledger Type

      This is the ledger type to which the system will assign the distributed transactions for the managing business unit. The ledger type that you enter must not already be used on a distribution ledger record.

    • Managing Ledger Reverse Sign

      If you select this option, the system reverses the sign on the total distributed amount for the managing business unit. For example, when the total distributed amount on the source ledger type has a positive value, the distributed amount on the managing ledger type will have a negative value. This enables you to perform mathematical calculation to get the non-managing partners' share for the purpose of financial reporting when you have not defined a non-managing ledger type.

      You can choose not to use this option by defining a non-managing ledger type so that the system can automatically calculate the non-managing partners' share.

  4. To set up another distribution ledger record, enter values in the fields on the next empty row on the form.

    You can define as many distribution ledger records as your business requires. Note that you must enter unique values in these fields: Source Ledger Type, Managing Ledger Type, and Non-Managing Ledger Type.