Hierarchy
EA-FIN (Software Component) EA-FIN⤷
CA-JVA (Application Component) Joint Venture und Production Sharing Accounting⤷
GJV2 (Package) Joint Venture Development
IMG Activity
| ID | SIMG_PRO_0001 | Processes |
| Transaction Code | S_KK4_66000125 | IMG-Aktivität: SIMG_PRO_0001 |
| Created on | 19991013 | |
| Customizing Attributes | SIMG_PRO_0001 | Processes |
| Customizing Activity | SIMG_PRO_0001 | Processes |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | SIMG_PRO_0001 |
Each JVA process consists of a function and its dependent set of function items. The function and its function items control execution of the JVA process. A set of posting rules is contingent upon each function item. This set of posting rules determines the characteristics of the posting lines that result from execution of the process (See Posting Rules).
Example
Requirements
Execution of a specific JVA process for a company is affected by the settings in JVA company configuration. The following company global data settings affect these functions (See Company Global Data):
Company Global JVA Function Description
Data Field
Operations & Billing CCOP Cash call operated
Month Active CCNP Cash call Non-operated
Balanced Ventures BNKS Bank switching postings
Inception to Date CUTB Cutback
CUTI Cutback intercompany
The Default Tax Codes fields on the Company Corporate Data screen affect execution of the Tax functions.
The following settings on the Company Detailed Data screen affect execution of these functions:
Company Detailed JVA Function Description
Data Field
AM/MM Settings AMMM Asset postings
Tax on Expense Detail TAXC,E,I Post Tax to Next Period
CI/NPI Posting in FI NETT CI/NPI netting
Cost Calculations OVER Overhead calculations
Standard settings
A complete set of functions for all JVA processes (along with their dependent function items) is preconfigured in JVA as a group of company independent objects.
Some JVA processes represent essential functionality that will be used by every company that runs JVA. This is especially true of the period-end processes. These essential period-end processes consist of:
- Applying overhead and payroll burden to venture expenses
- Cutting back expenditures that are posted gross to ventures and equity groups to net postings to partners
International region companies use only payroll burden calculations.
The functions that control these essential period-end processes are:
Function Description
OVER Calculation of overhead expenses
PAYB Calculation of payroll burden
CUTB Cutback
CUTI Cutback for intercompany ventures
Other JVA processes represent functionality that is necessary to most companies using JVA whatever their region. The set of functions that control these processes includes:
Function Description
CCOP Posting cash calls for operated ventures
CCNP Posting cash calls for non-operated ventures
AMMM Posting asset acquisitions, transfers,
and retirements
EQAD Postings to account for equity changes during
the period
SUSP Postings to equity groups or ventures that are in
suspense
NBIL Non-operated billing
Companies in some regions do not generally use the functionality provided by certain processes. Because they deal almost exclusively with single currencies, Canadian and US region companies do not use the functions related to accounting for gains and losses from currency exchanges. Similarly, they do not use the bank account switching process (function: BNK) because they do not practice balancing by venture.
The functions related to accounting for currency exchange differences are:
Function Description
RXD Realized Exchange Differences
UXD Unrealized Exchange Differences
Automatic posting lines that lack venture and equity group information (discounts, taxes, bank charges) are received in JVA from FI. The JVA integration manager splits these lines among ventures and equity groups in accord with the proportion of the total amount of the original invoice assigned to each venture and equity group. It is then necessary to update the record in CO to assign these costs to the ventures' cost objects. This is executed by the function COAC.
On the other hand, international region companies do not usually have joint operating agreements that include special provisions for carrying non-operating partners' interests under certain circumstances. The functions related to carried interest and net profit interest netting are:
Function Description
NETT CI/NPI netting process
REVI Revenue postings to be included in netting
Use of some processes and the functions that enact them is determined by the business practices of the company using JVA rather than by the provisions of specific joint operating agreements. Some companies that issue cash calls (function: CCOP) do not match the cash call payment to the expenditure in the month in which it is incurred (assuming this is a different period from when the payment is booked). As a result, these companies do not use cash call reclassification (function: CASH).
Some companies do not execute the JVA netting processes, which are controlled by the following functions:
Function Description
PNET Netting all expense postings to a
partner to one posting
CNET Netting all expense and credit prostings
to a partner to one posting if there is a credit balance
Companies that do not calculate taxes on venture expenses will not use the following tax-related functions:
Function Description
TAXC Tax on A/R postings to JVA partners
TAXE Tax on G/L postings
TAXI Tax on intercompany postings
Recommendation
The pre-configured set of functions is intended to provide the full functionality any company would need from JVA. You can make some changes to these functions and the dependent function items, but it is strongly recommended that you use the standard set-up.
You may add your own functions and function items to the delivered pre-configured set. If you choose to do so, you should be extremely careful that these objects control JVA processes as required by your company's business needs and that the resulting postings are properly produced.
Activities
For some of the pre-configured set of functions and functions items, certain selection criteria have been pre-set. When the function is executed, these selection criteria will be used to select postings for inclusion in execution of the process. These criteria consist of the following:
If the PostM indicator is selected, posting method will be used to select postings for inclusion in execution of the function.
If the RecId indicator is selected, recovery indicator will be used to select postings for inclusion in execution of the function.
If the FI post indicator is selected, postings from FI will be selected for inclusion in execution of the function.
If the GLX post indicator is selected, postings from GLX will be selected for inclusion in execution of the function.
For some functions, you can change the pre-set criteria. For some, you can choose to add criteria to those that are preset. Some preset criteria cannot be altered. For example, whenever posting method is preset as a selection criterion for a function, you cannot change this setting. This ensures that posting method is available to be used to screen expenses to selected ventures for inclusion in execution of the process.
Further notes
Business Attributes
| ASAP Roadmap ID | 105 | Define functions and processes |
| Mandatory / Optional | 1 | Mandatory activity |
| Critical / Non-Critical | 1 | Critical |
| Country-Dependency | A | Valid for all countries |
Maintenance Objects
| Maintenance object type | C | Customizing Object |
| Assigned objects | ||||||
|---|---|---|---|---|---|---|
| Customizing Object | Object Type | Transaction Code | Sub-object | Do not Summarize | Skip Subset Dialog Box | Description for multiple selections |
| VC_T8J0A | C - View cluster | GJ45 | PRO_0001 | JVA functions / function item types |
History
| Last changed by/on | SAP | 20010306 |
| SAP Release Created in |
