Negative Overhead Processing

Optionally include negative overhead amounts in the processing of a joint venture overhead.

To process joint venture overhead with negative overhead amounts:

1. Run the Process Joint Venture Overhead process in the Create Joint Venture Source Transactions mode.

2. In the parameters, select Yes for Allow Negative Overhead to allow the processing and creation of negative overhead transactions. The default is No for this parameter..

Business benefits include:

• Improve reporting on the joint operating agreement by ensuring accurate calculation and distribution of overhead and management fees to be billed to the joint venture partners.

• Use automated processes to minimize month-end processing and reduce potential errors caused by manual entry.

Steps to Enable

You don't need to do anything to enable this feature.

Tips And Considerations

If your normal business practice is not to create negative overhead amounts, set Allow Negative Overhead to No. The report will print the negative overhead amount, the overhead method, and the joint venture name with a message indicating that negative overhead was calculated for the joint venture.

If you set Allow Negative Overhead to Yes, the report will generate and print the negative overhead along with information about the amount created, the overhead method, and the joint venture name. It will also display a message indicating that the negative overhead was successfully created.

Key Resources

• For more information, refer to
  • Implementing Joint Venture Management guide and
  • Using Joint Venture Management guide.

• Watch Joint Venture Overhead Readiness Training.

Access Requirements

• Joint Venture Accountant