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All Development News for SAP R/3 Enterprise Cross-Application Components - Joint Venture Accounting

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2003 SAP AG. All rights reserved Page 1 of 5

JVA BW Extractors

Component Joint Venture Accounting (CA-JVA) in the SAP R/3 Enterprise Financials Extension 2.00

Target audiences of Development News

– Planners and Managers of SAP Customers

– Sales and Presales Staff of SAP and SAP Partners

Management Summary

Traditionally, JVA used the special purpose ledger (FI-SL) report writer to generate joint venture reports. However, since the SAP Business Information Warehouse (BW) became the standard reporting method and reporting tool, JVA has used BW to generate some basic reports, such as the extraction of joint venture summary data. JVA now provides additional extract structures, to allow you to retrieve further data from various JVA tables.

Business Value

SAP JVA includes new extractor modules to support the extract structures, to allow you to retrieve transaction data, so that you can generate reports through BW. The extractor modules (together with corresponding DATASOURCES) add business value, because they enable you to easily use the flexible reporting facilities in BW.

Description

JVBO1

JVBO1 is the extract structure for JVA table JVTO1.

JVBO2

JVBO2 is the extract structure for JVA table JVSO2.

View Extractions

View extractions are used to retrieve master data and extensions to core master data.


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JVA Cash Call Direct Print





Management Summary

JVA provides new functions within the cash call transactions to allow you to create a hardcopy output for cash call requests. The JVA cash call transactions (GJ01, GJ02, GJ03, and GJ04) include two extra push buttons, called Print Cash Call Bill and Print Call and Post.

Business Value

The JVA cash call direct print capabilities add business value, because you can use the new functions to print a letter (generated in SAPscript), based on a cash call request, and then fax or e -mail the cash call letter to joint venture partners.

Description

The SAPscript document template consists of three pages (first page, next page, and attachment), each one containing at least one header window and a main window. Each header window contains such details as the contact name and address of the operator and the appropriate joint venture partner and the cash call currency. This header window also displays the effective date of the cash call and the due date, based on the billing month of the cash call and the payment te rms of the partners. The main section contains the actual cash call values, including equity group references and percentage shares and project information. The attachment displays the equity shares of all venture partners.


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JVA Equity Adjustment





Management Summary

Equity adjustment covers several business processes that require the creation of new equity groups and different handling for historical cost. JVA already provides functions to handle precutback equity changes and prior period equity changes. However, JVA has enhanced its equity adjustments capabilities to provide additional functions that cover farm-in, farm-out, and re-determination.

During asset portfolio transactions such as farm-in, farm-out, and in equity re-determination, partners can strengthen or dilute their equity in a joint venture. When partners buy into a venture, they usually buy all the outstanding assets and liabilities of the partners they are replacing. As a result, the cash balances on the ventures must be adjusted to reflect these changes. A journal entry is also required to reflect the change in the operator’s books. This represents the outstanding payables and receivables that need to be settled between the partners and the operator.

Business Value

The JVA enhancements to its equity adjustments capabilities farm-in program add business value, because they meet industry requirements for changes to equity shares. The enhancements cover the following processes:

• Farm-in, farm-out, and mergers between partners (including intra-company partners)

• Re-determination and unitization

Description

Farm-in and Farm-out

The farm-in and farm-out process is usually a deal between two of the partners in the joint venture, where payment or earn-in takes place directly between the buyer and seller, and the license is not involved. The operator must present the statement reflecting the new situation, as one partner has taken over the financial values (total expenditure and total cash paid).

Re-determination

Re-determination is a process that takes place when new technical information reveals that the original unitization of the blocks or licenses needs to be re-distributed amongst the equity holders. This re-determination process ends up with a new set of owner percentages, based on the rules in the joint operating agreement.


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JVA JADE Report





Management Summary In joint venture projects, certain countries require a full audit report, breaking down the expenditure and working capital, based on the originating invoice. This report must also correspond to the payment document. JVA now enables you to show the original invoice, outstanding (unpaid) working capital and actual payments, and to reconcile these to billing. JVA also allows you to download the data to a Microsoft EXCEL worksheet. After reconciliation, you can save the data on a CD and forward this to the joint venture partners’ auditors.

Business Value

The modified Joint Audit Data Exchange (JADE) report adds business value, because it provides a more detailed breakdown, and includes the following additional data:

• An employee number, work date, and hours

• A goods receipt document number (imported from MM)

• A goods receipt reference document number (imported from FI) if one exists, or the controlling document

• An indicator for multiple invoice receipts for one goods receipt

• A vendor or customer number

• A vendor or customer name

• The document header text

• The clearing document number

• Quantity from the goods movement document

• General ledger account and cost element text

• The short text of the cost object


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JVA Reconciliation





Management Summary During the JVA process of intercompany cost object cutback mapping, cost objects are mapped to cost objects within the same company code or in other company codes. Within the intercompany mapping transactions, there is one menu option for cost center, project, network, and internal orders. For all those options, you can enter a sender company code and a sending cost object range, together with a receiving company code and a receiving cost object. Within joint venture master data, table T8JI stores the company code, venture, and equity group information of the operator and the appropriate partners. JVA provides an additional reconciliation check to enhance the smooth running of intercompany cost-object cutback mapping.

Business Value Prior to this development, you had to pay close attention during mapping to ensure a ccuracy. However, JVA now provides additional software support through the reconciliation check. The reconciliation check adds business value, because it verifies the accuracy of the intercompany cutback mapping automatically, eliminating the risk of failed intercompany cutback postings.

Description This reconciliation check is designed to do the following:

• Read all cost objects in the from range and determine the venture and equity type information of all cost objects

• Read the venture and equity type information of the receiving cost object

• Compare this information with the entries in T8JI

• Send an error message if there is no corresponding entry in T8JI, or if there is an entry in T8JI for an equity group other than the active equity group

Copyright

Copyright � 2003 SAP AG. All rights reserved

No part of this document may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein reflects current planning and may be changed without prior notice.

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