Invoicing the Partners for Their Cash Calls
After you have defined the cash calls, you request the cash from the partners by creating invoices of the cash call amount using the Create JV Cash Call Invoices program (R09J610). You can access and run this batch process for a specific cash call using the Submit Invoice option on the Row menu of the Work with Cash Call Definition form. You can also run this process for multiple cash calls through the standard Batch Versions form by using the data selection for the program to select the records to process.
The system processes only those selected records that are at the status Available to Invoice, and creates an invoice for each cash call record included in the R09J610 process. In order to set a cash call to the status Available to Invoice, the cash call amount and effective date are required.
After the invoices are created, the system updates the status of the cash calls in the F09J40 table to the default value of 30 (Invoiced) or to the status that is set up in the Cash Call Status processing option. The system also creates records in the Cash Call Ledger table (F09J41) with the transaction type 10 (Cash Call Invoice). You can access the ledger record for the cash call invoice by clicking Review Ledger on the Row menu of the Work with Cash Call Definition form.
After the invoices are created, the system updates the status of the cash calls to 30 (Invoiced) in the F09J40 table, and creates records in the Cash Call Ledger table (F09J41) with the transaction type 10 (Cash Call Invoice). You can access the ledger record for the cash call invoice by clicking Review Ledger on the Row menu of the Work with Cash Call Definition form.
Debit and Credit Entries for Cash Call Invoices in the F0911 Table
The cash call amount is credited to the partner contribution account and debited to the accounts receivable (A/R) trade account.
The system determines the partner contribution account for the invoice 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 set up 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 detail to the partner contribution account. The outsider partner 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 systems creates an invoice document for each cash call and an a batch for each managing company. The invoice documents are created with the batch type JI (Joint Venture Invoices).
Example: G/L Accounting Entries when a Joint Venture Cash Call Invoice Transaction is Created for a New Cash Call
A cash call for a partner and joint venture is created and is set to the cash call status Available to Invoice.
Joint venture: A-GREENACREHOLDINGS
Partner: 7500010 (Thomson Company)
Cash call amount: 150,000.00 USD
An invoice is created for the cash call in order to collect the cash. The invoice uses the Partner Contributions account and the A/R Trade account.
This diagram illustrates the G/L entries for the cash call invoice.
The system prints a report listing the number of invoice documents created and issues a message if there are cash calls in error. You can review the error in the work center, correct the issue, and rerun the process.
The system prints a report listing the number of invoice documents created and the batch numbers generated during the process. The report also includes a message if there are cash calls in error. You can review the error in the work center, correct the issue, and rerun the process.
Invoice Currency
When the currency of the partner and the managing company are different, the invoice is created in the currency of the managing company for the domestic side of the transaction and in the partner's currency for the foreign side of the transaction.
When the cash call for the partner is defined in a foreign currency, the cash call invoice is generated in the specified currency enabling partner payment in a foreign currency. (Release 9.2 Update)
Override Tax Information in Customer Master Record
The R09J610 program does not calculate tax on the invoice amount even if the customer master record for the partner is set up with tax information in the Customer Master by Line of Business (F03012).
Payment Terms for Cash Call Invoices
The payment terms, if specified on the legal entity record for the partner, will be used on the cash call invoice instead of the payment terms on the partner's Customer Master record.