Understanding Joint Venture-Based Allocations

The advanced variable numerator method of computing joint venture-based allocations provides the same functionality that is available in the account balance-based variable numerator method but also supports allocations to different joint ventures and joint venture business units for indirect costs incurred by the managing partner. The transactions to be allocated are excluded from the joint venture distribution process until the allocation process is complete. After the costs are allocated to the impacted business units, the amounts are distributed to the partners, including the managing partner.

Joint venture-based allocation enables you to select joint venture data over the data selected from the Account Balances (F0902), Account Master (F0901), and Business Unit Master (F0006) tables. The joint venture data selection includes all the business units defined in the joint venture hierarchy for the joint venture.

The advanced method retrieves source and basis amounts for joint venture-based allocations from these tables:

• Business Unit Master (F0006)

• Account Master (F0901)

• Account Balances (F0902)

• Joint Venture Master (F09J30)

To select the source data and the basis data to use for joint venture-based allocations, you set up versions of the following programs:

• Create Source / Basis Data Selection Versions for Account Balance Based Allocations (R09123B)

  You use the data selection for the R09123B program to specify the source and basis accounts to retrieve from the F0006, F0901, and F0902 tables.

• Create Source / Basis Joint Venture Data Selection Versions for Joint Venture Based Allocations (R09J30S)

  You use the data selection for the R09J30S program to specify the joint venture information to retrieve the source and basis joint venture business units from the F09J30 table.

You must also set up the Advanced Variable Numerator program (P09123) for joint venture-based allocations.