Creating Journal Entries to Draw on the Cash Calls
As the cash calls are assigned to the distribution detail records, the system also creates the journal entries to create the credit and debit transactions for the cash call.
Debit and Credit Entries for Journal Entries in the F0911 Table Created During the Drawing Process
The distributed amount is debited to the partner contribution account.
The system determines the partner contribution account for the cash call draw transaction using the managing company and AAI JVCxxx (Partner Contributions) where xxx is the G/L offset code assigned to the joint venture. If you have specified a G/L offset code in the Joint Venture Master program (P09J30), the system concatenates the G/L offset code to the AAI Item JVC to locate the account. If the account is not found using the managing company, the system uses the company 00000. Also, if you have setup the Joint Venture Master program (P09J30) to create cash calls by subledger, the system uses the subledger type A (Address Book) to add the subledger information to the partner contribution account. The outside partner's address book number is used as the subledger value, and if the partner is an insider business unit, the address book number associated with the business unit is used as the subledger value.
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 are always summarized by cutback account and original business unit. Therefore, there may be multiple entries to cutback accounts depending upon the number of business units associated with the originating transactions. If you have set up the processing option for R09J620 program to create cutback entries by subledger, the system adds the subledger information to the cutback account. Depending on your processing option setup, the subledger can be:
The address book number for an outside partner {Subledger Type = A (Address Book)} or the business unit for an inside partner {Subledger Type = C (Business Unit)}
The address book number for an outside partner or the address book number of the insider business unit {Subledger Type = A (Address Book)}
Example: G/L Accounting Entries when Drawing on a Joint Venture Cash Call for One or More Distributed Expenses
A cash call for a partner and joint venture is drawn against by expense and capital cost distribution details.
Joint venture: A-GREENACREHOLDINGS
Partner: 7500010 (Thomson Company)
Cash call amount applied: Expenses = 50,000.00 and Capital Cost = 20,000.00
A journal entry is created for the partner's share of the expenses and capital cost. The journal entry uses the Partner Contributions account and the business unit of the original transaction for the joint venture's cutback accounts.
This diagram illustrates the G/L entries for the cash call journal entry for drawing on the cash call.
The systems creates the journal entry documents with the batch type JG (Joint Venture Journal Entries). A batch is created for each managing company.
As journal entries are created, the system updates the following information:
In the F09J40 table, the cash call open amount is updated with the difference between the previous open amount and the distributed amount from the distribution detail transaction.
In the F09J12 table, the processed records are updated with the cash call ID, exclusive cash call ID (for an exclusive cash call), distribution transaction type equal to Journal Entry, and transaction status equal to Process Complete.
The system also enters the following distribution document information for the journal entries created: Distribution Document Number, Distribution Document Company, Distribution Document Type, Distribution G/L Date, Distribution Line Number, Distribution Line Extension, and Distribution Ledger Type.
When the program completes processing, the system prints a report listing the number of journal entry documents created and the batch numbers generated in the process. The report also includes a message for records in error. You can review the errors in the work center, correct the issue, and rerun the process.