About Processing Joint Venture Overhead
The Process Joint Venture Overhead process creates transactions with overhead amounts for your joint ventures. These overhead transactions are another source of transactions, along with transactions from subledger accounting and the general ledger, that you can process to recoup the costs of running a joint venture from joint venture partners.
Schedule the following processes to periodically generate, distribute, and invoice overhead amounts:
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Process Joint Venture Overhead
This process uses the details in an overhead method associated with a joint venture to generate transactions with overhead amounts. Depending on the overhead method type, it can either generate a transaction with a fixed overhead amount, calculate the overhead amount using a percentage of costs, or calculate the amount based on a rate applied to operational measures.
You can view transactions generated by this process in the Joint Venture Source Transactions work area. And you can update certain details in the transactions to change how they're processed. Initially, all overhead transactions in this work area have a status of “Available to process.”
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Identify Joint Venture Transactions
Run this process over joint venture source transactions to identify overhead transactions for distribution. Joint venture source transactions identified by this process are displayed in the Joint Venture Transactions work area along with transactions identified from subledger accounting and the general ledger.
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Create Joint Venture Distributions process
This process splits overhead transactions for a joint venture according to each stakeholder’s percentage defined in the ownership definition assigned to an overhead method. It creates distributions with each stakeholder’s overhead amount. Distributions are displayed in the Joint Venture Distributions work area with a status of “Available to process.”
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Create Joint Venture Invoices and Journal Entries process
This process creates invoices from overhead distributions so you can recoup indirect costs from the joint venture partners.
You can run these processes over a single joint venture or over all joint ventures that have overhead methods associated with them.