JVA Configuration Document.docx

JOINT VENTURE ACCOUNTIG-CUTTING EDGE DOCMENT FOR CONFIGURATION

Basic Environment in Joint Venture Accounting-Configuration Guide: SAP designed JVA for joint venture operations. SAP JVA captures all expenditures and other joint venture transactions by using functions from Financial Accounting (SAP FI), Controlling (SAP CO), Asset Management (SAP AM), Materials Management (SAP MM), Plant Maintenance (SAP PM), and Project System (SAP PS). By working closely with customers and implementation partners, SAP ensures that JVA facilitates smooth management of joint ventures, with great flexibility for growth.

To Activate the JVA in a client, to populate the JVA related r elated configurable nodes in configuration. This is one of the prerequisite functions before start ing the actual configuration in JVA. It enables to configure the updated functionalities in SAP Joint venture Accounting. Path: SPRO-Activate business functions Activate the relevant business functions as below

If already activated need not activate these business functions

the bulb indicator shows whether

activated or not.

Notes: The Consultants has to do the necessary configuration relating to Company code in Finance. Activate the Joint Venter Accounting for a Company code as below. Navigation SPRO-Finanacial SPRO-Finanacial Accounting(New)-Financial Accounting(New)-Financial Accounting Global Settings ( path new)-Global Parameters for a Company Code-Enter Global Parameters Parameters Transaction OBY6. code Click on Enter Globale Parameters

Click on position buttion Give your company code

1

Select your company code and click on Details buttion

Activate the JV Accounting Active. It is mandatory configuration to do the JVA in a company code. Notes: the Consultants should not forget to do the necessary configuration relating to Finance, Controlling and other logistics configuration as usual.

Activate JVA in a Client. SPRO-Joint Venture Accounting-Activate JVA in a C lient Click on Activate JVA in a Client

Pop up message displayed as below

Click on Yes option.it is one time only. Repeated activation does not have further usage, hence it is discouraged. Repeated activation is no use.

System creates new tables relating to JVA in the database to allow the necessary JVA Configuations.

Click on Yes option. System insets the nece ssary JV Specific tables in a client.

The following are the important JVA ledger s where the data updates.

The Important Tables in JVA. In addition of this standard FI, CO and other logistics tables are also important for JVA. TJ01: Business Transactions table T886: Ledger Master Table T881T: FI-SL Ledger Text table TRWCA (interface information): FI/CO Active interface components T8JOA: address details JVT01: JV Summary table with objects (4A ledger) JVSo1: JV Line item table with o bjects in JVTo1. JVTo2: JV FI-SL Billing Summary JVS02: JV FI-SL Line item Activate Joint Venture Accounting: SPRO-Joint Venture Accounting-Environment-JVA Company Configuration-Activate joint Venture Accounting. TC: GJAC Click on Execute Button

Give the company code And activate the necessary ledgers for a company code. Deactivation of JVA can also be done completely o r specific ledgers. Copy the configuration from one company code to another company code for JVA is also possible with different options.

JVA Company Code Global Data: SPRO-Joint Venture Accounting-Environment—JVA Company code configuration-Global Data TC: GJZA Click on Global Data Click on new entries

Give the company code for which JVA configuration to be done. Check the company code is activate d for JVA in Activated check box Give the Region from standard re gions only, basing on the region selection further processing will be affected in JVA configurations.

Select region I for all countries other than Canada and US. Billing Basis

Billing Basis determines the point in procurement cycle at which the incurred expenditure against Joint Venture can be Cutback and billed by the operator to other partners. Expenditure Based Billing: Expenditure can be billed as soon as t he goods and services are received by the operator. Invoice Based Billing: Expenditure can be billed as soon the vendor invoice received by the operator for the goods and services. Cash Based Billing: Expenditure on goods and services can be only be billed once payment is made to vendor. Balanced Ventures: Please select if you want the document line items are split by the venture. It ensures the line item balances are zero by venture. This flag is used exclusively by the Joint Venture data c apture process. If balanced books by venture are re quired, and a venture is not balanced within a document, o ffsetting entries are added to a suspense account within the JV document. This offset account is defined in the automatic posting table under the JV6 key . Inception to date:

The field determines the cutback is to be run on inception to date or periodic basis. When cutback is run on an inception to date basis, then it will only cutback those new billable entries posted since the last run of cutback. When run on a period to date, it will cutback all billable entries posted for the period being processed and can be run multiple times per month. Processing operational month and billing month active: Indicator to derive and store the processing operational and billing month for this company. If the allocation field in A/R postings is in the cor rect date format, it is used to derive the operational month. Usage of the operational month is in cash calls, cash call reclassification, partner netting and billing. The billing month is derived from the baseline date. It is used in cash calls, cash call reclassification and payment. Operator: Fill with the Business partner who was created as a customer in FI. Operator as a partner: This flag determines if the operator should be treated like a partner. I n this case intercompany ventures and cost objects must be defined for all operated ventures. Field status information controls the mandatory fields for joint venture document posting purposes.

Set up Corporate Data: SPRO-Joint Venture Accounting-Environment-JVA Company Configuration-Corporate Data TC: GJZC Click on execute button Give company code in the pop up scr ee

Continue

Give Joint venture Code (it must be pre-defined) further explanation in Master Data unit.

 A joint venture in the SAP System is a summarization of cost objects whose costs are split up among partners.

A joint venture is usually lead by an oper ating authority, who is responsible for the costs incurred. At t he end of a period, all of the costs incurred are split up and allocated to the partners involved. Joint ventures are created to keep costs as low as possible for t he operating authority and the partners. This is achieved by distributing the costs incurred to the participants of the joint venture. Give Equity Group Give the corporate recovery indicators Corporate cost center if necessary otherwise keep it blank. Give the default tax codes for a company code and tax jurisdiction applicable for some countries only.

Set up Detailed Data: SPRO-Joint Venture Accounting-Environment-JVA Company Configuration-Detailed Data. TC: GJZD Click on execute button Give company code in the pop up scr ee

Continue

The Detailed data discuss with the following processes 

Processing expense postings

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JVA processes Cutback and Billing

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Asset and material management for JVA

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JVA Cost Calculations process

Set up General Ledger Integration: SPRO-Joint Venture Accounting-Environment-JVA Company Configuration-GL integration. TC: GJGL

Give Company code Select the check box for New GL splitter for applying the new gl splitting for JVA. Enrich new gl with JV is not required. Either of the one be selected. Ledgers in JVA: Path:

SPRO-Joint Venture Accounting-Environment-Ledgers-Additional Ledgers

TC: GJL2

JVA ledgers are fixed, so it is not possible to directly influence their structure. There are, however, two possible methods of restructuring JVA ledger data: 

Creating additional ledgers from the standard JVA ledgers

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Defining validations or substitutions to control input to the  standard JVA single item ledger (JVSO1)

 Additional Ledgers: You may set up extra ledgers in addition to those delivered for JVA by defining the characteristics of the new ledgers during company configuration.

JVA is delivered with ledger 4 A as the summary ledger (JVTO1) and 4B as the billing ledger (JVT02). 4A contains expense postings to joint venture/ equity gr oups, and 4B contains the postings to partners that result from cutback processing or direct posting. Two additional ledgers are also delivered with additional currencies. 4C is based on JVTO1 and includes hard and index currency. 4D is based on JVTO2 and also includes hard and index currency.

Planning Joint Venture Accounting: Path: SPRO-Joint Venture Accounting-Environment-versions-Plan Versions TC: GJL8

You can use different plan versions within the S pecial Purpose Ledger. Version numbers are used to manage different plans. The plan integration from CO into JVA is o nly possible, if the fiscal year variant in CO is identical to the fiscal year variant in JV. Two prerequisites exist before the CO plan integration into Joint Venture Accounting can be used. You must: 

Activate the plan integration in CO



Activate the plan version in JV.

Create validations and substitutions in Joint Venture Accounting Path: SPRO-Joint Venture Accounting-Environment-Validations and Substitutions-validations TC: GJBV For Substitutions path is same as validations. TC: GJBS