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 configurable nodes in configuration. This is
one of the prerequisite functions before starting 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 Accounting(New)-Financial Accounting Global Settings (

path new)-Global Parameters for a Company Code-Enter Global 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 Client

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 necessary JV Specific tables in a client.
The following are the important JVA ledgers 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 objects 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 or 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 activated for JVA in Activated check box

Give the Region from standard regions 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 the 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 capture process. If
balanced books by venture are required, and a venture is not balanced within a document, offsetting
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 correct 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. In 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 scree

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 operating authority, who is responsible for the costs incurred. At the
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 the 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 scree

Continue
The Detailed data discuss with the following processes

 Processing expense postings

 JVA processes Cutback and Billing

 Asset and material management for JVA

 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

 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 4A as the summary ledger (JVTO1) and 4B as the billing ledger (JVT02). 4A
contains expense postings to joint venture/ equity groups, 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 Special Purpose Ledger. Version numbers are used to
manage different plans. The plan integration from CO into JVA is only 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