Joint Venture

Accounting (JVA)

 SAP AG 2003
JVA Workshop

Day 1 Basics
1. Introduction
2. Accounting Principles
3. Master Data
4. Integration

Day 2 Day-to-Day Processes

1. Data Entry
2. Payments
3. Operated Accounting
4. Non-Operated Accounting

Day 3 Periodic Processes

1. Cutback
2. Foreign Currency Valuation
3. Month End Processing

Day 4 (half day) Reporting

1. Billing
2. Reporting
3. Planning
4. Year End

 SAP AG 2003
Unit 2 Objectives

At the end of this unit, you will be able to:

 Understand how a joint venture document is

prepared and posted to the JVA database
 Understand how JVA handles payment transactions
 Describe operated accounting
 Describe non-operated accounting

 SAP AG 2003
JVA Unit 2

Day-to-Day Processes

1. Data Entry
2. Payments
3. Operated Accounting
4. Non-Operated Accounting

 SAP AG 2003
JVA 2.1

This section describes how

a joint venture document is
prepared and posted to the
JVA database.

Data Entry

 SAP AG 2003
Joint Venture Interface

AM Joint
JointVenture
VentureDocument
Document
FI MM PM
SD Itm Account Cost Obj. Venture EqG RI Amount
CO 1 Vendor CC-1 JVI001 A01 BI - 70.50
1 Vendor CC-1 JVI001 A01 BI - 70.50
1 Vendor CC-2 JVI002 A01 BI - 47.00
Accounting 1 Vendor CC-2 JVI002 A01 BI - 47.00
PS 2 Cost 1 CC-1 JVI001 A01 BI 60.00
Interface 2 Cost 1 CC-1 JVI001 A01 BI 60.00
3 Cost 2 CC-2 JVI002 A01 BI 40.00
3 Cost 2 CC-2 JVI002 A01 BI 40.00
HR 4
4
Tax
Tax
CC-1
CC-1
JVI001
JVI001
A01 BI
A01 BI
10.50
10.50
4 Tax CC-2 JVI002 A01 BI 7.00
4 Tax CC-2 JVI002 A01 BI 7.00

Accounting Document JV Interface

Itm Account Cost Obj. Amount

1 Vendor -117.50 Special
1
Vendor -117.50 Ledger
2 Cost 1 CC-1 60.00
2 Cost 1 CC-1 60.00 Interface
3 Cost 2 CC-2 40.00
3 Cost 2 CC-2 40.00
4 Tax 17.50
4 Tax 17.50

FI DATA JV DATA BILLING CUSTOM

GLT0 JVT01 JVT02 DATABASE

 SAP AG 2003
Special Purpose Ledger

AM SD Coding Block
FI MM HR RBUKRS Company Code
CO PM RJVNAM Joint venture
PS REGROU Equity group
RACCT Account number
RBUSA Business Area
RCNTR Cost centre
RORDNR Order Number
RPROJK WBS Element
RPRCTR Profit centre
Balances
RANLN1 Main Asset Number
RANLN2 Asset Sub-Number
RANBWA Asset Trans.Type
RRECIN Recovery Indicator
RPARTN Partner Number
RKOKRS Controlling Area
Actual Items Plan Items NPLNR Network Number
VORNR Operation Number

Balances
S/L OBJECT
TSLnn Trans. Curr. Bals.
HSLnn Local Curr. Bals.
KSLnn Group Curr. Bals.
Information System MSLnn Quantity Balances
Report Painter … …

 SAP AG 2003
Joint Venture Activities for Special Ledger

Joint
Venture Joint Venture Activities
Interface JVA0 Joint Venture Accounting
JVCB Joint Venture Cutback
JVCO CO Joint Venture
JVE1 JV Equity Adjustment Reverse
JVE2 JV Equity Adjustment Rebook
JVEC JVA Equity Change
Special JVFI FI Joint Venture
Ledger JVIU JV Actual Assessment Custom
Interface JVIV JV Actual Distribution Database
JVMM MM Joint Venture
JVPL JV Plan Data From CO
JVPM JV Production Month
JVS1 JVA Suspense
JVS2 JVA Unsuspense
JVU1 JV act. Primary Cost Transfer

 SAP AG 2003
Coding in the Joint Venture Interface

• Direct Coding
• Splitting
• Clearing

 SAP AG 2003
Venture Derivation

JV
JVInterface
Interface

Cost
CostObject
Object JV Database

Joint Venture JVI001 JVI001 Joint Venture

JVI001
Equity Type A A01 Equity Group
Equity Group A01
Recovery Indicator BI Determination NB Recovery Indicator
NB
JV Object Type
Recovery Indicator
JIB/JIBE Class Determination

JIB/JIBE Subclass A

 SAP AG 2003
Equity Group Determination
FI/CO DOCUMENT

Document Date March 23rd

March 23rd

Joint Venture JVI001

JVI001
Equity Type A
A

March April May

Equity Type A Equity Group A01 Equity Group A02

Equity Type B Equity Group B01

Equity Type C Equity Group A01 Equity Group C01

 SAP AG 2003
Recovery Indicator Determination

• User Entry
• Document Type
• G/L Account & Cost Element
• Cost Object
• Company Code Default (Non-Billable)

 SAP AG 2003
Recovery Indicator: User Entry

User can enter recovery indicator directly into code block

 SAP AG 2003
Recovery Indicator: Document Type

Recovery indicator can be determined for a document type

 SAP AG 2003
Recovery Indicator: Account

You can define a recovery

indicator for a G/L account
or a cost element.

 SAP AG 2003
Recovery Indicator: Cost Object

A recovery indicator is
usually assigned to CO
cost objects, such as cost
centers and work
breakdown structure
(WBS) elements.

 SAP AG 2003
Recovery Indicator: Default

A default (non-billable) recovery indicator is usually assigned to

each joint venture company code.

 SAP AG 2003
Recovery Indicator Determination

FI CO MM

User Entry

Document Type

G/L Account &

Cost Element

Cost Object

Default
(Corporate)

 SAP AG 2003
Joint Venture Interface: Direct Coding

Example: Cost Allocation

Accounting
AccountingDocument
Document Joint
JointVenture
VentureDocument
Document
Itm Account Cost Obj. Venture EqG RI Amount
Itm Account Cost Obj. Amount
1 O'Head Admin C00001 A01 NB - 50.00
1 O'head Admin - 50.00 1
O'Head Admin C00001 A01 NB - 50.00
1 O'head Admin - 50.00 2 O'Head CC-1 JVI001 A01 BI 50.00
2 O'head CC-1 50.00 2 O'Head CC-1 JVI001 A01 BI 50.00
2 O'head CC-1 50.00

Cost centre: Admin

Cost centre: CC-1

Joint Venture C00001

Joint Venture JVI001
Equity Type A
Equity Type A
Recovery Indicator NB
Recovery Indicator BI

 SAP AG 2003
Joint Venture Interface: inter-venture

Example: Cost Allocation

Accounting
AccountingDocument
Document Joint
JointVenture
VentureDocument
Document
Itm Account Cost Obj. Venture EqG RI Amount
Itm Account Cost Obj. Amount
1 O'Head Admin C00001 A01 NB - 50.00
1 O'head Admin - 50.00 1
O'Head Admin C00001 A01 NB - 50.00
1 O'head Admin - 50.00 2 O'Head CC-1 JVI001 A01 BI 50.00
2 O'head CC-1 50.00 2 O'Head CC-1 JVI001 A01 BI 50.00
2 O'head CC-1 50.00 0 Int.Vent C00001 A01 NB 50.00
0 Int.Vent C00001 A01 NB 50.00
0 Int.Vent JVI001 A01 NB - 50.00
0 Int.Vent JVI001 A01 NB - 50.00

Venture
VentureC0001
C0001 Venture
VentureJVI001
JVI001
Overhead Overhead
50 50

Balanced
Ventures 50 50

inter-venture inter-venture
50 50

50 50

 SAP AG 2003
Joint Venture Interface: Splitting

Example: Payable Invoice

Accounting
AccountingDocument
Document Joint
JointVenture
VentureDocument
Document
Itm Account Cost Obj. Venture EqG RI Amount
Itm Account Cost Obj. Amount
1 Vendor CC-1 JVI001 A01 BI - 70.50
1 Vendor -117.50 1 Vendor CC-1 JVI001 A01 BI - 70.50
1 Vendor -117.50 1 Vendor CC-2 JVI002 A01 BI - 47.00
2 Cost 1 CC-1 60.00 1 Vendor CC-2 JVI002 A01 BI - 47.00
2 Cost 1 CC-1 60.00 2 Cost 1 CC-1 JVI001 A01 BI 60.00
3 Cost 2 CC-2 40.00 2 Cost 1 CC-1 JVI001 A01 BI 60.00
3 Cost 2 CC-2 40.00 3 Cost 2 CC-2 JVI002 A01 BI 40.00
4 Tax 17.50 3 Cost 2 CC-2 JVI002 A01 BI 40.00
4 Tax 17.50 4 Tax CC-1 JVI001 A01 BI 10.50
4 Tax CC-1 JVI001 A01 BI 10.50
4 Tax CC-2 JVI002 A01 BI 7.00
4 Tax CC-2 JVI002 A01 BI 7.00

Cost centre: CC-1

Cost centre: CC-2

Joint Venture JVI001

Joint Venture JVI002
Equity Type A
Equity Type A
Recovery Indicator BI
Recovery Indicator BI

 SAP AG 2003
Joint Venture Interface: Clearing

Example: Invoice Payment

Original Invoice
Accounting
AccountingInvoice Joint
Invoice JointVenture
VentureDocument
Document
Itm Account Cost Obj. Venture EqG RI Amount
Itm Account Cost Obj. Amount
1 Vendor CC-1 JVI001 A01 BI - 70.50
1 Vendor -117.50 1 Vendor CC-1 JVI001 A01 BI - 70.50
1 Vendor -117.50 1 Vendor CC-2 JVI002 A01 BI - 47.00
2 Cost 1 CC-1 60.00 1 Vendor CC-2 JVI002 A01 BI - 47.00
2 Cost 1 CC-1 60.00 2 Cost 1 CC-1 JVI001 A01 BI 60.00
3 Cost 2 CC-2 40.00 2 Cost 1 CC-1 JVI001 A01 BI 60.00
3 Cost 2 CC-2 40.00 3 Cost 2 CC-2 JVI002 A01 BI 40.00
4 Tax 17.50 3 Cost 2 CC-2 JVI002 A01 BI 40.00
4 Tax 17.50 4 Tax CC-1 JVI001 A01 BI 10.50
4 Tax CC-1 JVI001 A01 BI 10.50
4 Tax CC-2 JVI002 A01 BI 7.00
4 Tax CC-2 JVI002 A01 BI 7.00

Payment
Accounting
AccountingPayment
Payment Joint
JointVenture
VentureDocument
Document
Itm Account Cost Obj. Venture EqG RI Amount
Itm Account Cost Obj. Amount
1 Bank CC-1 JVI001 A01 NB - 70.50
1 Bank -117.50 1
Bank CC-1 JVI001 A01 NB - 70.50
1 Bank -117.50 1 Bank CC-2 JVI002 A01 NB - 47.00
2 Vendor 117.50 1 Bank CC-2 JVI002 A01 NB - 47.00
2 Vendor 117.50 2 Vendor CC-1 JVI001 A01 BI 70.50
2 Vendor CC-1 JVI001 A01 BI 70.50
2 Vendor CC-2 JVI002 A01 BI 47.00
2 Vendor CC-2 JVI002 A01 BI 47.00

 SAP AG 2003
Joint Venture Interface: Clearing

 Coding and Splitting occurs throughout the expenditure chain

based on Matching and Clearance
Bank Bank
P&L GR/IR AP Clear Acct.
JV1 60 GR 100
JV2 40
FI 100 INVOICE 100
100 PAYMENT 100
100 BANK STAT 100

Bank Bank
P&L GR/IR AP Clear Acct.
JV1 60 GR 60 JV1
JV2 40 40 JV2
JV1 60 60 JV1
JV JV2 40 INVOICE 40 JV2
JV1 60 60 JV1
JV2 40 PAYMENT 40 JV2
JV1 60 BANK STAT 60 JV1
JV2 40 40 JV2

 SAP AG 2003
Partner Direct Postings

Costs are charged directly

to the joint venture partner
instead of being shared by
equity group.

 SAP AG 2003
Exercise 2.1: Post Accounting Documents

1. Post Finance Documents

2. Post Controlling Documents
3. Post Material Movements

 SAP AG 2003
Parallel Currencies

Finance
FinanceDocument
Document
Transaction Currency 1000.00 NOK
Transaction Currency 1000.00 NOK
Local Currency 1 77.90 GBP
Local Currency 1 77.90 GBP
Local Currency 2 124.62 EUR
Local Currency 2 124.62 EUR
Local Currency 3 112.59 USD Joint
Local Currency 3 112.59 USD JointVenture
VentureDocument
Document
Transaction Currency 1000.00 NOK
Transaction Currency 1000.00 NOK
Local Currency 1 77.90 GBP
Local Currency 1 77.90 GBP
Local Currency 2 124.62 EUR
Local Currency 2 124.62 EUR
Controlling Local Currency 3 112.59 USD
ControllingDocument
Document Local Currency 3 112.59 USD
Local Currency 4 14 864 JPY
Transaction Currency 1000.00 NOK Local Currency 4 14 864 JPY
Transaction Currency 1000.00 NOK
Object Currency 77.90 GBP
Object Currency 77.90 GBP
Contr. Area Currency 124.62 EUR
Contr. Area Currency 124.62 EUR

 SAP AG 2003
Parallel Currencies: Database

Joint Venture Joint Venture

Balances Documents

Joint
JointVenture
VentureDocument

Standard
Document
Transaction Currency 1000.00 NOK JVTO1 JVSO1
Transaction Currency 1000.00 NOK 4A 4A
Local Currency 1 77.90 GBP
Local Currency 1 77.90 GBP
Local Currency 2 124.62 EUR
Local Currency 2 124.62 EUR
Local Currency 3 112.59 USD
Local Currency 3 112.59 USD

Additional
Local Currency 4 14 864 JPY
Local Currency 4 14 864 JPY
JVTO1 JVSO1
4C 4C

 SAP AG 2003
Validation & Substitution

Application

Joint Venture Interface

Accounting
Interface
Prepare JV
Document

Accounting Document JV Document

Itm Account Cost Obj. Venture EqG RI Amount
Itm Account 1 Vendor CC-1 JVI001 A01 BI - 70.50
Cost Obj. Amount
1 1Vendor
VendorCC-2
CC-1 JVI002
JVI001A01
A01BI BI - 47.00
- 70.50
1 Vendor -117.50
2 1Cost
Vendor
1 CC-1CC-2 JVI001
JVI002A01A01BI BI 60.00
- 47.00
2 1 Cost
Vendor
1 CC-1 -117.50
60.00 3 2Cost
Cost
2 1CC-2
CC-1 JVI002
JVI001A01A01BI BI 40.0060.00
3 2 Cost
Cost 2 1 CC-2
CC-1 60.00
40.00 4 3TaxCost 2CC-1
CC-2 JVI001
JVI002A01A01
BI BI 10.50 40.00
Special
4 3 TaxCost 2 CC-2 40.00
17.50 4 4TaxTax CC-2CC-1 JVI002
JVI001A01A01BI BI 7.00 10.50
4 Tax 17.50 4 Tax CC-2 JVI002 A01 BI 7.00 Ledger
Interface

Message Substitution

Information
Warning Validation
Error
Joint Venture
Data

 SAP AG 2003
Joint Venture Validation

Start validation

Validation name JV00 JV Validation - group 00

Validation step 001 JV Banks Non-Billable

Prerequisite Is
NO
prerequisite
JVAP-RACCT >= '110000' AND JVAP-RACCT <= condition met?
'119999'

YES
Check

JVAP-RRECIN = 'NB' OR JVAP-RRECIN = 'CP'

Is
check YES
condition met?

Message
E ZJ 001
Account &V1 cannot be posted with billable recovery
NO
indicator

Issue message End validation

 SAP AG 2003
Joint Venture Substitution

Validation name JV00 JV Validation - group 00

Start substitution
Validation step 001 JV Banks Non-Billable
Prerequisite

JVAP-RACCT >= '147000' AND JVAP-RACCT <=

'147999'
Is
prerequisite NO
condition met?

Substitution
Field is substituted by: YES

Recovery indic. Constant value NB

Perform substitution End substitution

 SAP AG 2003
Exercise 2.2: Joint Venture Validation

1. Instructor shows joint venture validation

2. Test joint venture validation

 SAP AG 2003
JVA 2.2

This section describes how

JVA handles payment
transactions.

Payments

 SAP AG 2003
Funding Currency

Funding
Currency

Currency used to fund a venture

• Each venture and equity group has one
or more funding currencies
• Used by cutback program to recover
partner shares
• Joint venture billings issue in funding
currencies
 SAP AG 2003
Funding Currency Determination

Joint Venture JVI001 Funding Currency

JVI001 Value
Equity Group A02
A02
Funding Currencies JVI001-A02
Joint
JointVenture
VentureDocument
Document NOK 1000.00 NOK
NOK
Transaction Currency 1000.00 NOK GBP
Transaction Currency 1000.00 NOK GBP
Local Currency 1 77.90 GBP USD Joint Venture JVI001
Local Currency 1 77.90 GBP USD JVI001
Local Currency 2 124.62 EUR Equity Group A01
Local Currency 2 124.62 EUR A01
Local Currency 3 112.59 USD JVI001-A01
Local Currency 3 112.59 USD Funding Currencies
Local Currency 4 14 864 JPY
Local Currency 4 14 864 JPY GBP 77.90 GBP
GBP
USD
USD

Joint costs are funded in transaction currency or one of the parallel

local currencies. The choice depends on the funding currencies
defined for a particular venture and equity group.

 SAP AG 2003
Funding Group

Funding Group

Defines funding rules for joint ventures

• Assign to venture to define common

funding requirements
• Assign to G/L bank sub-accounts to
define venture banks

 SAP AG 2003
Funding Group Assignments

Company Code

Funding Funding
Group Group
FG1 FG2

Venture JV1 G/L JV1 Bank Acct: EUR Venture JV2 G/L Shared Bank: EUR

G/L JV1 Bank Acct: GBP G/L Shared Bank: GBP

G/L JV1 Bank Acct: USD Venture JV3 G/L Shared Bank: USD

G/L JV1 Bank Acct: NOK G/L Shared Bank: NOK

 SAP AG 2003
Outgoing Payment: Dedicated Bank

Venture
Expenditure
1 Goods/Service
Goods/ServiceReceipt
Receipt
1 100 Itm Account Venture RI Amount
1 Cost JVI001 BI 100.00
1
Cost JVI001 BI 100.00
2 GRNI JVI001 BI -100.00
100 2 GRNI JVI001 BI -100.00

GRNI Accruals
Billable

100 1 2 Invoice
2 100 Invoice
Itm Account Venture RI Amount
1 GRNI JVI001 BI 100.00
1
GRNI JVI001 BI 100.00
2 Vendor JVI001 BI -100.00
Vendor 2 Vendor JVI001 BI -100.00
100 2
3 100
3 Payment
Payment
Itm Account Venture RI Amount
1 Vendor JVI001 BI 100.00
Non-Billable

Venture Bank 1
Vendor JVI001 BI 100.00
100 3 2 Bank JVI001 NB - 100.00
2 Bank JVI001 NB - 100.00

100

 SAP AG 2003
Outgoing Payment: Shared Bank

1 4 Goods/Service Receipt
Venture JVI001 Venture JVI002 Itm Account Venture RI Amount
Expenditure Expenditure 1 Cost JVI001 BI 100
1
Cost JVI001 BI 100
1 100 4 150 1 Cost JVI002 BI 150
1 Cost JVI002 BI 150
2 GRNI JVI001 BI - 100
2 GRNI JVI001 BI - 100
2 GRNI JVI002 BI - 150
100 150 2 GRNI JVI002 BI - 150

GRNI Accruals GRNI Accruals

Invoice

Billable
Billable

2 5
100 1 150 4
2 100 5 150 Itm Account Venture RI Amount
1 GRNI JVI001 BI 100
1
GRNI JVI001 BI 100
1 GRNI JVI002 BI 150
1 GRNI JVI002 BI 150
Vendor 2 Vendor JVI001 BI - 100
Vendor 2 Vendor JVI001 BI - 100
100 2 150 5 2 Vendor JVI002 BI - 150
2 Vendor JVI002 BI - 150
3 100 6 150

3 6 Payment
Itm Account Venture RI Amount
Non-Billable

Venture Bank
1 Vendor JVI001 BI 100
100 3 1
Vendor JVI001 BI 100
150 6 1 Vendor JVI002 BI 150
1 Vendor JVI002 BI 150
2 Bank JVI001 NB - 100
2 Bank JVI001 NB - 100
250 2 Bank JVI002 NB - 150
2 Bank JVI002 NB - 150

 SAP AG 2003
Outgoing Payment: Corporate Bank

Venture JVI001 Corporate 1 Goods/Service Receipt

Expenditure Common Bank Itm Account Venture RI Amount
1 100 100 3 1 Cost JVI001 BI 100.00
1
Cost JVI001 BI 100.00
2 GRNI JVI001 BI -100.00
2 GRNI JVI001 BI -100.00
100 100

GRNI Accruals 2 Invoice

Billable

100 1
Itm Account Venture RI Amount
2 100
1 GRNI JVI001 BI 100.00
Non-Billable 1
GRNI JVI001
2 Vendor JVI001
BI
BI
100.00
-100.00
2 Vendor JVI001 BI -100.00

Vendor
100 2
3 100 3 Payment
Itm Account Venture RI Amount
1 Vendor JVI001 BI 100
1
Vendor JVI001 BI 100
2 Bank C00001 NB - 100
Non-Billable

inter-venture inter-venture 2 Bank C00001 NB - 100

Non-Billable

100 3 3 100
2 Int.Vent JVI001 NB - 100
2 Int.Vent JVI001 NB - 100
2 Int.Vent C00001 NB 100
2 Int.Vent C00001 NB 100

100 100

 SAP AG 2003
Outgoing Payment: House Bank Determination

Accounting
AccountingInvoice
Invoice Joint
JointVenture
VentureInvoice
Invoice
Invoice Curr. EUR Itm Account Cost Obj. Venture EqG RI Amount
EUR
1 Vendor CC-1 JVI001 A01 BI - 70.50
House bank HB-1 1 Vendor CC-1 JVI001 A01 BI - 70.50
HB-1 1 Vendor CC-2 JVI002 A01 BI - 47.00
1 Vendor CC-2 JVI002 A01 BI - 47.00
Itm Account Cost Obj. Amount 2 Cost 1 CC-1 JVI001 A01 BI 60.00
2 Cost 1 CC-1 JVI001 A01 BI 60.00
1 Vendor -117.50 3 Cost 2 CC-2 JVI002 A01 BI 40.00
1
Vendor -117.50 3 Cost 2 CC-2 JVI002 A01 BI 40.00
2 Cost 1 CC-1 60.00 4 Tax CC-1 JVI001 A01 BI 10.50
2 Cost 1 CC-1 60.00 4 Tax CC-1 JVI001 A01 BI 10.50
3 Cost 2 CC-2 40.00 4 Tax CC-2 JVI002 A01 BI 7.00
3 Cost 2 CC-2 40.00 4 Tax CC-2 JVI002 A01 BI 7.00
4 Tax 17.50 1
4 Tax 17.50 2

Determine
3 Funding Joint Venture JVI001
Currency JVI001
2
Equity Group A01
A01
Joint Venture JVI001
JVI001
Joint Venture JVI002
Fund. House JVI002
Curr. Bank
GBP HB-1 Equity Group A01
A01
USD HB-2
GBP HB-3

 SAP AG 2003
Bank Switching

Bank
Switch
Process
Table
Joint
Venture
Balances

Cash Switch

Bank
Funding Group Assignments Switching
Funding Funding
Group Group
FG1 FG2

Venture JV1 G/L JV1 Bank Acct: EUR Venture JV2 G/L Shared Bank: EUR
Non-Cash Switch
G/L JV1 Bank Acct: GBP G/L Shared Bank: GBP

Venture JV3
G/L JV1 Bank Acct: USD G/L Shared Bank: USD

G/L JV1 Bank Acct: NOK G/L Shared Bank: NOK

 SAP AG 2003
Bank Switching: Cash

Venture V1 Venture V2 1 3 Invoice

Itm Account Venture RI Amount
GRNI Accruals GRNI Accruals
1 GRNI V1 BI 200
200 150 1
GRNI V1 BI 200
1 200 3 150 1 GRNI V2 BI 150
1 GRNI V2 BI 150
2 Vendor V1 BI - 200
2 Vendor V1 BI - 200
Billable

Billable
2 Vendor V2 BI - 150
2 Vendor V2 BI - 150
Vendor Vendor
200 1 150 3
2 200 4 150 2 4 Payment
Itm Account Venture RI Amount
1 Vendor V1 BI 200
1
Vendor V1 BI 200
V1 Bank V1 Bank 1 Vendor V2 BI 150
1 Vendor V2 BI 150
200 2 150 4 2 V1 Bank V1 NB - 200
5 150
2 V1 Bank V1 NB - 200
2 V1 Bank V2 NB - 150
Non-Billable
Non-Billable

2 V1 Bank V2 NB - 150
200

V2 Bank 5 Cash Switch

150 5
Itm Account Venture RI Amount
1 V1 Bank V2 NB 200
1
V1 Bank V2 NB 200
150 2 V2 Bank V2 NB 150
2 V2 Bank V2 NB 150

 SAP AG 2003
Bank Switching: Non-Cash

Venture V1 Venture V2 1 Cost Allocation

Itm Account Venture RI Amount
Overhead Overhead
1 O'Head V1 BI - 100
Billable

Billable
100 1 1 100 1
O'Head V1 BI - 100
1 O'Head V2 BI 100
1 O'Head V2 BI 100
2 Int.Vent V1 NB 100
2 Int.Vent V1 NB 100
100 100 2 Int.Vent V2 NB - 100
2 Int.Vent V2 NB - 100
Inter-Venture Inter-Venture
1 100 100 1
100 2 2 100
2 Non-Cash Switch
Non-Billable

Non-Billable

Itm Account Venture RI Amount

1 V1 Bank V1 NB 100
1
V1 Bank V1 NB 100
V1 Bank V2 Bank 1 V2 Bank V2 NB - 100
1 V2 Bank V2 NB - 100
2 100 100 2 2 Int.Vent V1 NB - 100
2 Int.Vent V1 NB - 100
2 Int.Vent V2 NB 100
2 Int.Vent V2 NB 100
100 100

 SAP AG 2003
Bank Switch: Process Table

FI Payment Joint Venture Payment

Joint Venture Itm Account Venture RI Amount
Itm Account Cost Obj. Amount Interface
1 Vendor V1 BI 200
1 Vendor - 350 1
Vendor V1 BI 200
1 Vendor - 350 1 Vendor V2 BI 150
2 Bank 350 1 Vendor V2 BI 150
2 Bank 350 2 V1 Bank V1 NB - 200
2 V1 Bank V1 NB - 200
2 V1 Bank V2 NB - 150
2 V1 Bank V2 NB - 150

FI Allocation Joint Venture Allocation

Itm Account Venture RI Amount
Itm Account Cost Obj. Amount
1 O'Head V1 BI - 100
1 O'Head - 100 1
O'Head V1 BI - 100
1 O'Head - 100 1 O'Head V2 BI 100
2 O'Head 100 1 O'Head V2 BI 100
2 O'Head 100 2 Int.Vent V1 NB 100
2 Int.Vent V1 NB 100
2 Int.Vent V2 NB - 100
2 Int.Vent V2 NB - 100

Typ
Status JV Doc. Itm Year Type Period Ind. Orig. Doc. Year Bank
e
Switch
10001008 002 2001 2 12
Process
10001009 2001 1 12 Table

 SAP AG 2003
Bank Switching: Switch Letters

Funding Funding
Switch GBP 10,000
Group Group
FG1 FG2
House Bank HB1 House Bank HB2

Sort Code 30-21-02 Sort Code 67-54-01

Address Address
32 High Street 12 Main Street
Milton Keynes Penzance
M34 1HB PZ12 1GF
GB Oil Company Account 001
Account 001
22b Baker Street
London W1 Acct No. 75967536
Acct No. 74857465
Currency GBP Dear Sir or Madam, Currency GBP

Account 74857465

Please transfer the sum of

GBP 10 000.00
from the above account to the Royal
Bank of Cornwall account shown below.
Sort Code 67-54-01
Account 75967536

 SAP AG 2003
Bank Switching: Output

1.1.Switch Summary
1.Switch
SwitchSummary
Summary
2. Alt. Summary
1.
1.Switch
SwitchSummary
Summary
Bank
Switch
Process
Table
Joint
Venture
Balances

3.2.Switch Letters
2.Switch
SwitchLetters
Letters
Bank 4. Switch
Input Summary
1.
1. SwitchSummary
Switching Summary

5.1.Errors & Warnings

1.Switch
SwitchSummary
Summary

 SAP AG 2003
Bank Switching: Execution

There is no database
Cutback
update during the test run.

Selection
Read switch details from the VBA process Company Code GBU1
table, rather than direct selection from the Fiscal Year
GBU1
2001
joint venture database. 2001
Period 12
12
Full netting minimizes all bank Options
switches. Two-way netting minimizes
Period 12
switches between two particular banks, 12
to maintain an audit trail. Posting Date 31.12.2001
31.12.2001
Cutback item text Cutback
Cutback
You can prepare switch documents X Test run
with original venture, equity group, X
X Input from VBA process table
and cost object, depending on the X
Full Netting
level at which balanced books are
X Two-way netting
prepared. X
X Venture
X
X Equity group
Keep value date on switches to X
Cost object
allow subsequent interest
Value date
calculation.
No event check
Suppress event check to allow a re-run. X Reconciliation report
X

An additional report allows reconciliation to

the VBA process table.

 SAP AG 2003
Demonstration: Payment Run & Switching

 SAP AG 2003
Exercise 2.3: Review Payment Documents

1. Display accounting document

2. Display joint venture document
3. Review bank switch log

 SAP AG 2003
JVA 2.3

This section describes

operated accounting, with
particular emphasis on cash
calling.

Operated Accounting

 SAP AG 2003
Customer Account and Special Entry Indicators

Notes
Notes
1 Cash Call 40
2 Receipt 40

3 Cutback 32

General Ledger Accounts Receivable Sub Ledger

Bank Cost Working Cap Cutback Cash Due Cash Called

40 40
40 40
320 1000 680

100 68 32

PARTNER BILLING

B
I Control by SEI

 SAP AG 2003
Customer Account and Special Entry Indicators

Notes
Notes
Receivable Ledger 1 Cash Call 40
2 Receipt 40

3 Cutback 32
JV Partner A
1 40 40 1 General Ledger
40 2
3 32 …
8 JV Bank
…
JV Receivables
JV Rec. under CC -8
JV Cash Calls Out 0
JV Partner A
…
Invoice J – Cutback JV Payables
JV Pay. under CC
JV Cash Calls In
3 32 …
32

K – Cash Due L – Cash Called

1 40 40 1
40 2

40

 SAP AG 2003
Operated Accounting: Operator Oriented

Operator Venture V1 1. Cash Call

2. Invoice
J - Cutback K – Cash Due
Partner A

L – Cash Called 3. Cash Call Payment

5 4,400 1 4,000 4,000 1 4. Invoice Payment
4,000 3 5. Joint Venture Cutback

Joint Costs A/P Bank

2 11,000 11,000 2 3 4,000
4,400 5 4 11,000 11,000 4

Venture V1

JV Bank - 7,000
JV Rec. under CC (J,L) 400
JV Cash Calls Out (K) 0
Accounts Payable 0
Joint Costs 6,600

 SAP AG 2003
Operated Accounting: Partner Oriented

Operator Venture V1 1. Cash Call

J - Cutback K – Cash Due L – Cash Called 2. Invoice
Operator

3. Cash Call Payment

6 6,600 1 6,000 6,000 1
AR

4. Cash Call Payment

6,000 3 5. Invoice Payment
6. Joint Venture Cutback
Partner A

J - Cutback K – Cash Due L – Cash Called

Operator Venture V1
AR

6 4,400 1 4,000 4,000 1

4,000 4 JV Bank - 1,000
JV Rec. under CC (J,L) 1,000
JV Cash Calls Out (K) 0
Joint Costs A/P Bank Accounts Payable 0
2 11,000 11,000 2 3 6,000 Joint Costs 0
11,000 6 5 11,000 4 4,000 11,000 5

Corporate or Mirror Operator Venture

J - Cutback K – Cash Due L – Cash Called
Operator

Corporate or Mirror Operator Venture

6,600 6 6,000 1 1 6,000
AP

3 6,000
JV Bank - 6,000
JV Rec. under CC (J,L) - 600
JV Cash Calls Out (K)
Accounts Payable Net Costs Net A/P Bank
Joint Costs 6,600 6 6,600 6,000 3

 SAP AG 2003
Operated Cash Calls: Net Request

Operated Cash Call - Net

Selection

Company Code GBU1

GBU1
Partner JV5100
JV5100 Cash Calls are in Funding currency
Posting

Posting Date 31.12.2001

31.12.2001
Effective Date 31.12.2001
31.12.2001
Posting period 12
12
Operations month
Operated Cash Call - Net

Company Code GBU1

Partner JV5100

JV EqG Due date FCurr FCurr Amt LCurr LCurr Amt OM

JV0001 A01 31.12.2001 GBP 1,000.00 GBP 1,000.00

JV0001 A01 31.12.2001 GBP 1,000.00 GBP 1,000.00
JV0001 A01 31.12.2001 NOK 1,000.00 GBP 77.90
JV0001 A01 31.12.2001 NOK 1,000.00 GBP 77.90

 SAP AG 2003
Operated Cash Calls: Gross Request

Operated Cash Call - Gross

Partner Shares
Selection

Company Code GBU1 Venture JV0001 EqG A01 FCurr NOK

GBU1

Posting
Partner FCurr Amt Lcurr Amt
Posting Date 31.12.2001
31.12.2001 JVGBU1 600.00 46.74
Effective Date 31.12.2001 600.00 46.74
31.12.2001 JV5001 300.00 23.37
Posting period 12 300.00 23.37
12 JV5101 100.00 7.79
Operations month
100.00 7.79

Operated Cash Call - Gross

Company Code GBU1

JV EqG Due date FCurr FCurr Amt LCurr Lcurr Amt OM

JV0001 A01 31.12.2001 GBP 1,000.00 GBP 1,000.00

JV0001 A01 31.12.2001 GBP 1,000.00 GBP 1,000.00
JV0001 A01 31.12.2001 NOK 1,000.00 GBP 77.90
JV0001 A01 31.12.2001 NOK 1,000.00 GBP 77.90

 SAP AG 2003
Cash Call Documents

Partner Shares Cash Due

Venture JV0001 EqG A01 FCurr NOK

Cash Called
Partner FCurr Amt Lcurr Amt

JVGBU1 600.00 46.74

600.00 46.74 FI
JV5001 300.00
300.00
23.37
23.37 Partner Cash Call Database
JV5101 100.00 7.79
100.00 7.79
Partner Cash Call

Itm SEI Account Amount

1 K JV5001 300.00
1
K JV5001 300.00
2 L JV5001 -300.00
2 L JV5001 -300.00
Cash Call
Posting
Joint
Venture
Database
Operator Cash Call
Itm Account Amount
1 JVGBU1 600.00
1
JVGBU1 600.00 Billing
Cash Due 2 JVGBU1 - 600.00 Database
2 JVGBU1 - 600.00

Cash Received

 SAP AG 2003
Inter-company Cash Call

1. Cash Call Company Code C1 - Operator

2. Invoice
3. Cash Call Payment Venture V1
4. Invoice Payment

Partner A
J - Cutback K – Cash Due L – Cash Called
5. Joint Venture Cutback

AR
6. Inter-Co Cutback 5 4,400 1 4,000 4,000 1
4,000 3

1 FI Cash Call Document

Itm SEI Account Amount Joint Costs A/P Bank

2 11,000 11,000 2 3 4,000
1 K Partner 4,400
1
K Partner 4,400 4,400 5 4 11,000 11,000 4
2 L Cutback - 4,400
2 L Cutback - 4,400

Company Code C2 – Partner A

1 FI Inter-Co Cash Call Venture V1

Operator

J - Cutback K – Cash Due L – Cash Called

Itm SEI Account Amount
AP

4,400 6 4,000 1 1 4,000

1 K Partner 4,400
1 K Partner 4,400 3 4,000
2 L Cutback - 4,400
2 L Cutback - 4,400

Net Costs Net A/P Bank

6 4,000 4,000 3

 SAP AG 2003
Operated Cash Calls: Payment

You use SEI K to select

unpaid cash calls from
the joint venture partner
account.

 SAP AG 2003
Cash Call Error Handling

Partner Shares

Venture JV0001 EqG A01 FCurr NOK

Operator Cash Call
Partner FCurr Amt Lcurr Amt
Itm Account Amount
JVGBU1 600.00 46.74
600.00 46.74 1 JVGBU1 600.00
JV5001 300.00
300.00
23.37
23.37 Partner1Cash Call 600.00
JVGBU1
JV5101 100.00 7.79 2 JVGBU1 - 600.00
100.00 7.79 2 JVGBU1
Partner Cash Call - 600.00

ERROR
Itm SEI Account Amount
1 K JV5001 300.00
1
K JV5001 300.00
2 L JV5001 -300.00
2 L JV5001 -300.00
Cash Call
Posting

FI
Database

BDC
Session Joint
Venture
Database

 SAP AG 2003
Exercise 2.4: Cash Call Request & Payment

Post Cash Call Request & Payment

1. Gross Cash Call

2. Net Cash Call
3. Cash Call Receipt

 SAP AG 2003
Joint Venture Accounting 2.4

This section describes non-

operated accounting and
how it is supported by SAP
JVA.

Non-Operated Accounting

 SAP AG 2003
Non-Operated Accounting

Venture N1 1. Cash Call

2. Cash Call Payment
J - Cutback K – Cash Due
Operator

L – Cash Called 3. Billing

5,500 3 5,000 1 1 5,000
AP

2 5,000

Net Costs Net A/P Bank

3 5,500 5,000 2

Venture N1

JV Bank - 5,000
JV Rec. under CC (J,L) - 500
JV Cash Calls Out (K)
Accounts Payable
Joint Costs 5,500

 SAP AG 2003
Non-Operated Cash Calls: Request

Non-Operated Cash Call

Selection

Company Code GBU1

Non-Op Cash Call
GBU1

Posting Itm SEI Account. Amount

Posting Date 31.12.2001 1 K Operator 300.00
31.12.2001 1
K Operator 300.00
2 L Operator -300.00
Effective Date 31.12.2001 2 L Operator -300.00
31.12.2001
Posting period 12
12
Operations month

Non-Operated Cash Call

Company Code GBU1

JV EqG Due date FCurr FCurr Amt LCurr Lcurr Amt OM

JVN01 A01 31.12.2001 GBP 300.00 GBP 300.00

JVN01 A01 31.12.2001 GBP 300.00 GBP 300.00
JVN01 A01 31.12.2001 NOK 1,000.00 GBP 77.90
JVN01 A01 31.12.2001 NOK 1,000.00 GBP 77.90

 SAP AG 2003
Non-Operated Cash Calls: Payment

 SAP AG 2003
Non-Operated Billing Input

Non-Op Billing Header

Non-Operated Billing Input
Company code GBU1
Company Code GBU1 Non-Operated share 40%
Venture JV2001 Non-Operated Venture 01
JV Operator JV5001 Joint Venture JV2001
Funding currency USD
Equity Group A01 Non-Operated 40%
Exchange rate 0.6000
Funding Curr. USD Local Currency GBP
Translation date 31.12.2001
Posting date 31.12.2001 Fund Curr. Local Curr.
Posting period 12 Gross amount from summary 10,000 6,000
Reference JV2001-12 Gross amount from detail 10,000 6,000
Billing text Non-Op Billing – JV2001

Non-Op Billing Venture/EqG Overview Gross Data Entry Fund Curr. Local Curr.
Billing
Company Code GBU1
Capital Expenditure
JV Operator JV5001 Caledonian Oil
Total Capital Expenditure 0 0
Tax Amount 0.00 Funding currency USD
Operational Expenditure
Venture EqG EqG Name Gross Amount Gross Tax Exploration
JV2001 A01 Non-Op 40% 10,000.00 0.00 Field Evaluation
Operations 6,000 3,600
Revenue - 500 - 300
Abandonment
General Expenses 4,000 2,400
Administration 3,000 1,800
Total Operational Expenditure 12,500 7,500
Working Capital
Accounts Payable - 1,000 - 600
Accounts Receivable 500 300
Stock - 1,500 - 900
VAT - 500 - 300
Total Working Capital - 2,500 - 1,500
Total Billing 10,000 6,000

 SAP AG 2003
Non-Operated Billing Documents

Non-Operated Billing Input

Company Code GBU1 Non-Operated share 40% FI Non-Op Billing

JV Operator JV5001 Joint Venture JV2001 I Account Cost.Obj USD GBP
Equity Group A01 Non-Operated 40% 1 Operator - 4,000 - 2,400
Funding Curr. USD Local Currency GBP 2
1 Operator
Expense – Ops. CC-201
- 4,000
2,400
- 2,400
1,440
2 Expense – Ops. CC-201 2,400 1,440
3 Revenue CC-201 - 200 - 120
Fund Curr. Local Curr. 3 Revenue CC-201 - 200 - 120
4 Expense – Gen. CC-201 1,600 960
Gross amount from summary 10,000 6,000 4 Expense – Gen. CC-201 1,600 960
5 Expense – Adm. CC-201 1,200 720
Gross amount from detail 10,000 6,000 5 Expense – Adm. CC-201 1,200 720
6 A/P – Non-Op CC-201 - 400 - 240
40% 7
6 A/P – Non-Op
A/R – Non-Op
CC-201
CC-201
- 400
200
- 240
120
7 A/R – Non-Op CC-201 200 120
Gross Data Entry Fund Curr. Local Curr. 8 Stock – Non-Op CC-201 - 600 - 360
Billing 8 Stock – Non-Op CC-201 - 600 - 360
9 Vat – Non-Op CC-201 - 200 - 120
Capital Expenditure 9 Vat – Non-Op CC-201 - 200 - 120

Total Capital Expenditure 0 0

Operational Expenditure
Exploration
Field Evaluation Joint Venture Non-Op Billing
Operations 6,000 3,600
I Account Cost.Obj Venture EqG RI USD GBP
Revenue - 500 - 300
1 Operator JV2001 A01 NB - 4,000 - 2,400
Abandonment 1 Operator JV2001 A01 NB - 4,000 - 2,400
2 Expense – Ops. CC-201 JV2001 A01 NB 2,400 1,440
General Expenses 4,000 2,400 2 Expense – Ops. CC-201 JV2001 A01 NB 2,400 1,440
3 Revenue CC-201 JV2001 A01 NB - 200 - 120
Administration 3,000 1,800 3 Revenue CC-201 JV2001 A01 NB - 200 - 120
4 Expense – Gen. CC-201 JV2001 A01 NB 1,600 960
Total Operational Expenditure 12,500 7,500 4 Expense – Gen. CC-201 JV2001 A01 NB 1,600 960
5 Expense – Adm. CC-201 JV2001 A01 NB 1,200 720
Working Capital 5 Expense – Adm. CC-201 JV2001 A01 NB 1,200 720
6 A/P – Non-Op CC-201 JV2001 A01 NB - 400 - 240
Accounts Payable - 1,000 - 600 6 A/P – Non-Op CC-201 JV2001 A01 NB - 400 - 240
7 A/R – Non-Op CC-201 JV2001 A01 NB 200 120
Accounts Receivable 500 300 7 A/R – Non-Op CC-201 JV2001 A01 NB 200 120
Stock - 1,500 - 900 8 Stock – Non-Op CC-201 JV2001 A01 NB - 600 - 360
8 Stock – Non-Op CC-201 JV2001 A01 NB - 600 - 360
VAT - 500 - 300 9 Vat – Non-Op CC-201 JV2001 A01 NB - 200 - 120
9 Vat – Non-Op CC-201 JV2001 A01 NB - 200 - 120
Total Working Capital - 2,500 - 1,500
Total Billing 10,000 6,000

 SAP AG 2003
Non-Operated Billing Error Handling

Non-Operated Billing Input FI Non-Op Billing

Company Code GBU1 Non-Operated share 40% I Account Cost.Obj USD GBP
JV Operator JV5001 Joint Venture JV2001
1 Operator - 10,000 - 6,000
Equity Group A01 Non-Operated 40%
2 1 Expense – Ops.
Operator CC-201 6,000
- 10,000 3,600- 6,000
Funding Curr. USD Local Currency GBP
3 2 Revenue
Expense – Ops. CC-201
CC-201 - 500 6,000 - 300 3,600
Fund Curr. Local Curr.
4 3 Expense – Gen.
Revenue CC-201
CC-201 4,000 - 500 2,400 - 300
Gross amount from summary 10,000 6,000
5 4 Expense – Adm.– Gen.
Expense CC-201
CC-201 3,000 4,000 1,800 2,400
Gross amount from detail 10,000 6,000
6 5 A/P – Non-Op
Expense – Adm. CC-201
CC-201 - 1,000 3,000 - 600 1,800

7 6 A/R –A/P
Non-Op
– Non-Op CC-201
CC-201 500- 1,000 300 - 600
Gross Data Entry Fund Curr. Local Curr.
JV Non-Op
8
Billing
7 StockA/R – Non-Op
– Non-Op CC-201
CC-201 - 1,500 500 - 900 300
Billing

Capital Expenditure I Account Cost.Obj 8 Vat – Non-Op

9 Venture StockEqG
– Non-OpRI CC-201
CC-201 USD - 1,500
- 500
GBP - 300 - 900

Total Capital expenditure 0 0 9 Vat –A01

Non-Op CC-201 - 500 - 300
1 Operator JV2001 NB - 10,000 - 6,000
Operational expenditure
2 1 Expense – Ops.
Operator CC-201 JV2001
JV2001 A01 A01 NB NB 6,000
- 10,000 3,600- 6,000
Exploration
3 2 Revenue
Expense – Ops. CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB - 500 6,000 - 300 3,600
Field Evaluation

Operations 6,000 3,600 4 3 Expense – Gen.

Revenue CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB 4,000 - 500 2,400 - 300

ERROR
Revenue - 500 - 300 5 4 Expense – Adm.– Gen.
Expense CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB 3,000 4,000 1,800 2,400
Abandonment
6 5 A/P – Non-Op
Expense – Adm. CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB - 1,000 3,000 - 600 1,800
General Expenses 4,000 2,400
7 6 A/R –A/P
Non-Op
– Non-Op CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB 500- 1,000 300 - 600
Administration 3,000 1,800

Total Operational Expenditure 12,500 7,500 8 7 StockA/R – Non-Op

– Non-Op CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB - 1,500 500 - 900 300

Working Capital 9 8 Vat – Non-Op

Stock – Non-Op CC-201
CC-201 JV2001
JV2001 A01 A01 NB NB - 1,500
- 500 - 300 - 900
Accounts Payable - 1,000 - 600
9 Vat – Non-Op CC-201 JV2001 A01 NB - 500 - 300
Accounts Receivable 500 300
Stock - 1,500 - 900

VAT - 500 - 300

Non-Op
Total Working Capital - 2,500 - 1,500

Total Billing 10,000 6,000

Billing

FI
Database

BDC
Session Joint
Venture
Database

 SAP AG 2003
Demonstration: Non-Op Cash Call & Payment

 SAP AG 2003
Unit 2 Summary

You are now able to:

 Understand how a joint venture

document is prepared and
posted to the JVA database
 Understand how JVA handles
payment transactions
 Describe operated accounting
 Describe non-operated
accounting

 SAP AG 2003