1. Joint Venture Management Implementation Guide
  2. Understanding Overhead Rules for Joint Venture Management

Understanding Overhead Rules for Joint Venture Management

You use the Overhead Rules program (P09J50) to create overhead rules, and their associated overhead methods. Each method has effective start and end dates for calculating the overhead amount. The system provides six overhead methods to use: Fixed Amount, Fixed Amount with Escalations, Fixed Percent, Fixed Percent with Sliding Scale, Day Rate, and User Defined Method. Each method can have a specific account that is used to create the overhead journal entry.

You can create multiple methods within a rule. You can also create multiple overhead rules depending on the joint venture requirement. You can then choose which rule to assign at the business unit, joint venture parent business unit, joint venture, or joint ventures company level to process the correct rules for the business unit. You can also assign multiple rules at any level in the hierarchy.

Overhead method records are stored in these tables:

  • Overhead Rules Header (F09J50)

  • Overhead Rules Detail-Methods (F09J51)

  • Overhead Fixed Amount and Day Rate Method-Details (F09J52)

  • Overhead Sliding Scale Method Details (F09J55)