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