Entering Automatic Accounting Instructions for Joint Venture Management (Release 9.2 Update)

Note: It is important that you set up the AAIs discussed in this section so that the Joint Venture Management system works as expected.

You must set up Automatic Accounting Instructions (AAIs) for Joint Venture Management to identify the revenue account ranges (JVR01 - JVR99), expense account ranges (JVE01 - JVE99) and capital cost account ranges (JVC01 - JVC99). Later, when you identify and mark the distributable accounts for the joint venture, the system uses the AAI ranges to define the Joint Venture Account Type for the distributable accounts as revenue, expense, or capital cost.

You use the Automatic Accounting Instructions program (P0012) to set up AAIs for joint ventures. AAI records are stored in the Automatic Accounting Instructions table (F0012).

Revenue AAIs

You must set up AAIs to specify a range or ranges of revenue accounts that are included in joint venture processing. You use codes JVR01 through JVR99 to create the ranges. When you define a range, you specify the object account and subsidiary values only. You can create up to 49 ranges of revenue accounts. For example, to set up the first range, use AAIs JVR01 (from account) and JVR02 (through account). To set up another range, use AAIs JVR03 and JVR04, and so on, until all revenue account ranges have been defined.

The system uses these AAIs to define the joint venture account type as Revenue for accounts that are within this AAI range and are marked as distributable in the P09J101 program. The system pays the partner when the joint venture account type is Revenue.

This table shows the setup considerations for revenue AAIs for the Joint Venture Management system:

AAI Item	Description	Company	Business Unit	Object	Subsidiary	Sequence Number
JVR01	Beginning Revenue Account Range	00000	Not Used	Required	Optional	9.1
JVR02	Ending Revenue Account Range	00000	Not Used	Required	Optional	9.1

This table shows an example of joint venture revenue accounts.

AAI Item	Company	Business Unit	Object	Subsidiary
JVR01	00000	Not Used	5000
JVR02	00000		5999	99999999

Expense AAIs (Release 9.2 Update)

You must set up AAIs to specify ranges of expense accounts to use for joint venture processing. You use codes JVE01 through JVE99 to create the expense account ranges. The system uses these AAIs to define the joint venture account type as Expense for accounts that are within this AAI range and are marked as distributable in the P09J101 program. The system bills the partner when the joint venture account type is Expense.

This table shows the setup considerations for expense AAIs for the Joint Venture Management system:

AAI Item	Description	Company	Business Unit	Object	Subsidiary	Sequence Number
JVE01	Beginning Expense Account Range	00000	Not Used	Required	Optional	9.8
JVE02	Ending Expense Account Range	00000	Not Used	Required	Optional	9.8

This table shows an example of joint venture expense accounts.

AAI Item	Company	Business Unit	Object	Subsidiary
JVE01	00000	Not Used	8000
JVE02	00000		8999	99999999

Capital Cost AAIs

You must also set up AAIs to specify ranges of capital cost accounts for joint venture processing. You use codes JVC01 through JVC99 to create the ranges for capital cost transactions. The system uses these AAIs to define the joint venture account type as Capital Cost for accounts that are within this AAI range and are marked as distributable in the P09J101 program. The system bills the partner when the joint venture account type is Capital Cost. Capital cost accounts represent the costs of projects in progress reported on the Balance Sheet.

Note: If you define Work in Progress type of accounts within the capital cost AAI range, Oracle recommends that you use an account that has the following attributes to clear the Work in Progress accounts upon recognition of the fixed asset associated with the costs:

An account that is at a higher level of detail than the current Work in Progress accounts
An account is not set as distributable

If the account that clears the Work in Progress accounts is within your capital cost account range and is set as distributable, your partners will be credited their portion of the cost during the distribution process, and this is not desirable.

This table shows the setup considerations for capital cost AAIs for the Joint Venture Management system:

AAI Item	Description	Company	Business Unit	Object	Subsidiary	Sequence Number
JVC01	Beginning Capital Cost Range	00000	Not Used	Required	Optional	9.7
JVC02	Ending Capital Cost Range	00000	Not Used	Required	Optional	9.7

This table shows an example of joint venture capital cost accounts.

AAI Item	Company	Business Unit	Object	Subsidiary
JVC01	00000		1320
JVC02	00000		2099	99999999

Note: Distributable accounts that are not within the 3 AAI ranges will be defined as Distribution Only and the system will not bill or pay the partners in such a case.