Setting Up the Chart of Accounts for a Joint Venture

Before You Begin

This 10-minute tutorial shows you how to create accounts required for processing joint venture transactions.

Scenario

You must set up the chart of accounts for the managing business unit and for all the joint venture business units participating in the joint venture  A-GREENACREHOLDINGS. You must also set up cutback accounts that will be used to create balance journal entries in subsequent tutorials.

What Do You Need?

You must have completed these tasks:

• Set up address book records.
• Defined a joint venture.

Setting Up the Chart of Accounts

In this task, you will set up the chart of accounts for all the business units in the joint venture (including the managing business unit) using the Review and Revise Accounts program (P0901).

1. For this tutorial, set up the accounts required for joint venture business units 98 and 980000 in the P0901 program using the information in the table below.
   
   Note: Leave the Subsidiary field blank for all the accounts.

   Business Unit	Object Account	Account Description
   98	1341	Regular Time
   98	1344	Materials
   980000	5010	Store Sales
   980000	5020	Direct Ship Sales
   980000	5090	Service Sales
   980000	8870	JV Overhead Expense
   980000	8879	JV Overhead Offset
   980000	8110	Salaries and Wages
   980000	8350	Rent Expense
   980000	8360	Telephone Expense
   980000	8810	Electricity
   980000	8812	Water & Sewer
   980000	8814	Fuel, Oil, and Gas
   980000	8815	Security Charges
   980000	8850	Auditor Charges
   980000	8370	Utilities Expense
   980000	8355	Maintenance and Repair

2. After adding these accounts, use existing functionality to copy the accounts of the joint venture business unit 980000 into the joint venture business units 980001, 982000, 982002, 983000, 983003, 984000, 984001, and 984002.
3. Also, set up the accounts required for the managing business unit using the information in the table below. The chart of accounts for the managing business unit must have all the distributable accounts from the joint venture business units participating in the joint venture.
   
   Note: Leave the Subsidiary field blank for all the accounts.

   Business Unit	Object Account	Account Description
   981	1341	Regular Time
   981	1344	Materials
   981	5010	Store Sales
   981	5020	Direct Ship Sales
   981	5090	Service Sales
   981	8870	JV Overhead Expense
   981	8110	Salaries and Wages
   981	8350	Rent Expense
   981	8360	Telephone Expense
   981	8810	Electricity
   981	8812	Water & Sewer
   981	8814	Fuel, Oil, and Gas
   981	8815	Security Charges
   981	8850	Auditor Charges
   981	8370	Utilities Expense
   981	8355	Maintenance and Repair

   Your accounts for the managing business unit should look like this:

   

   The chart of accounts for the joint venture business units must include the cutback accounts based on the account type (capital cost, revenue, or expense).

4. For this tutorial, set up the required cutback accounts using the information in the table below.
   
   Note: Leave the Subsidiary field blank for all the cutback accounts.

   Business Unit	Object Account	Account Description
   98	4990	JV Capital Cutback
   980000	9950	JV Revenue Cutback
   980000	9990	JV Expense Cutback
   981000	9950	JV Revenue Cutback
   981000	9990	JV Expense Cutback
   981001	9950	JV Revenue Cutback
   981001	9990	JV Expense Cutback
   982000	9950	JV Revenue Cutback
   982000	9990	JV Expense Cutback
   982002	9950	JV Revenue Cutback
   982002	9990	JV Expense Cutback
   983000	9950	JV Revenue Cutback
   983000	9990	JV Expense Cutback
   983003	9950	JV Revenue Cutback
   983003	9990	JV Expense Cutback
   984000	9990	JV Expense Cutback
   984000	9950	JV Revenue Cutback
   984001	9990	JV Expense Cutback
   984001	9950	JV Revenue Cutback
   984002	9990	JV Expense Cutback
   984002	9950	JV Revenue Cutback

   Your cutback accounts should look like this: