Defining a Mass Transaction for Joint Venture Processing

To change the ownership allocation of assets in an existing joint venture, PeopleSoft Asset Management is delivered with these joint venture mass transactions:

Mass Transaction Description

JVA-Joint Venture BU Addition

Adds a joint venture participant.

JVP-Joint Vent BU Add (w/Prof)

Adds a joint venture participant using book values from the new business unit's profile ID.

JVR-Joint Venture BU Removal

Removes a joint venture participant.

JVT-JV Allocation Change

Transfers the allocation percentages for a joint venture from one business unit to another.

Note:

After you run these changes, it is a good idea to update the allocation table to reflect the new equity percentages. Joint venture mass transactions do not affect Joint Venture Allocation tables, and you must change these tables to reflect the updated joint ventures.

In addition to selecting the appropriate mass transaction, make other selections that are specific to joint venture processing. PeopleSoft Asset Management requires a Transaction Date and an Accounting Date.

Depending on the joint venture mass transaction you select, you may also need to select a set of default values for some or all of these fields:

Field or Control Description

Joint Venture Business Unit to Add to

Value is inserted into INTFC_FIN table.

Percentage of Cost

Enter a decimal value—for example, enter 0.50 for 50 percent.

Disposal Code

Choose a disposal code from the available options. Disposal codes are fully described in Retiring Assets.

Total Proceeds

Enter 0 if there are none.

Percentage of Quantity

Enter a decimal value—for example, enter 0.50 for 50 percent.

Total Removal Cost

Enter 0 if there is none.

Retirement Type

Enter either Extraordinary or Ordinary to indicate how the gain or loss that results from a retirement should be reported. This is for information only.

Retirement Convention

Select a retirement convention. This indicates how depreciation will be calculated through retirement.

Voluntary/Involuntary

Enter either Voluntary or Involuntary to indicate the reason for a retirement. This is for information only.

See Understanding Mass Transaction Manager.

Adding a Joint Venture Participant

The Mass Transaction application engine program adds a joint venture participant business unit to an existing joint venture and performs these additional functions:

  • Retires an established percentage of cost and quantity from one business unit and its books by using the defaults you specify for the retirement.

  • Adds the same percentage of cost and quantity to the new business unit and its books by using the proceeds you specify for the retirement.

Use the mass transaction JVA-Joint Venture BU Addition to add a joint venture participant. If you want to use book values from the profile ID of the new participant business unit, use the JVP-Joint Vent BU Add (w/Prof) mass transaction.

Note:

Before adding a business unit to an existing joint venture, that business unit must be fully established.

Removing a Joint Venture Participant

When Mass Transaction removes a joint venture participant business unit from an existing joint venture, it also performs these functions:

  • Retires the total cost and quantity from one business unit and its books, using the defaults you specify for the retirement.

  • Adds that cost and quantity to another business unit and its books, using the proceeds you specify for the retirement.

Use the mass transaction JVA-Joint Venture BU Removal to remove a joint venture participant.

Changing Joint Venture Ownership Allocations

When the Mass Transaction process changes ownership allocations for an existing joint venture, it also performs these functions:

  • Retires a percentage of the cost and quantity from one business unit and its books, using the defaults specified for the retirement.

  • Adds that same percentage of cost and quantity to another business unit and its books, using the proceeds specified for the retirement.

Use the mass transaction JVT-JV Allocation Change to change joint venture ownership allocations.