sap jva workshop unit 2

SAP AG 2003

Joint Venture Accounting (JVA)

SAP AG 2003

JVA Workshop

Day 1 Basics1. Introduction2. Accounting Principles3. Master Data4. Integration

Day 2 Day-to-Day Processes1. Data Entry2. Payments3. Operated Accounting4. Non-Operated Accounting

Day 3 Periodic Processes1. Cutback2. Foreign Currency Valuation3. Month End Processing

Day 4 (half day) Reporting1. Billing2. Reporting3. Planning4. 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 Entry2. Payments3. Operated Accounting4. Non-Operated Accounting

SAP AG 2003

JVA 2.1

Data Entry

This section describes how a joint venture document is prepared and posted to the JVA database.

SAP AG 2003

Joint Venture Interface

Accounting Interface

Special Ledger

Interface

AMMMFI

PS

COSD

HR

PM

Accounting Document

Itm Account Cost Obj. Amount

11

VendorVendor

-117.50-117.50

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

44

TaxTax

17.5017.50

JV Interface

Joint Venture DocumentJoint Venture Document

Itm Account Cost Obj. AmountVenture EqG RI

11

VendorVendor

CC-1 CC-1

- 70.50- 70.50

JVI001 JVI001

A01 A01

BI BI

11

VendorVendor

CC-2CC-2

- 47.00- 47.00

JVI002 JVI002

A01 A01

BI BI

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

JVI001 JVI001

A01 A01

BI BI

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

JVI002 JVI002

A01 A01

BI BI

44

TaxTax

CC-1 CC-1

10.5010.50

JVI001 JVI001

A01 A01

BI BI

44

TaxTax

CC-2 CC-2

7.00 7.00

JVI002 JVI002

A01 A01

BI BI

JV DATAJVT01

BILLINGJVT02

CUSTOMDATABASE

FI DATAGLT0

SAP AG 2003

RBUKRS Company Code

RJVNAM Joint venture

REGROU Equity group

RACCT Account number

RBUSA Business Area

RCNTR Cost centre

RORDNR Order Number

RPROJK WBS Element

RPRCTR Profit centre

RANLN1 Main Asset Number

RANLN2 Asset Sub-Number

RANBWA Asset Trans.Type

RRECIN Recovery Indicator

RPARTN Partner Number

RKOKRS Controlling Area

NPLNR Network Number

VORNR Operation Number

Special Purpose Ledger

Actual Items Plan Items

S/L OBJECT

Balances

TSLnn Trans. Curr. Bals.

HSLnn Local Curr. Bals.

KSLnn Group Curr. Bals.

MSLnn Quantity Balances

… …

Coding Block

Balances

AMMMFI

PSCO

SD

HRPM

Information SystemReport Painter

SAP AG 2003

Joint Venture Activities for Special Ledger


Special Ledger

InterfaceCustom

Database

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

JVFI FI Joint Venture

JVIU JV Actual Assessment

JVIV JV Actual Distribution

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

Joint Venture Activities

SAP AG 2003

Coding in the Joint Venture Interface

• Direct Coding

• Splitting

• Clearing

SAP AG 2003

JV InterfaceJV Interface

Cost ObjectCost Object

Venture Derivation

Joint Venture

Equity Type

Recovery Indicator

JV Object Type

JIB/JIBE Class

JIB/JIBE Subclass A

JVI001

A

BI

Joint Venture

Equity Group

Recovery Indicator

JVI001JVI001

A01A01

NBNB

JV Database

Recovery Indicator Determination

Equity Group Determination

SAP AG 2003

Equity Group Determination

March April May

Equity Group A01 Equity Group A02

Equity Group B01

Equity Group A01 Equity Group C01

Equity Type A

Equity Type B

Equity Type C

FI/CO DOCUMENT

Joint Venture

Equity Type

JVI001JVI001

AA

Document Date March 23rdMarch 23rd

SAP AG 2003


• 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


Default (Corporate)

Cost Object

G/L Account & Cost Element

Document Type

User Entry

MMCOFI

SAP AG 2003

Joint Venture Interface: Direct Coding

Accounting DocumentAccounting Document


11

O'headO'head

AdminAdmin

- 50.00- 50.00

22

O'headO'head

CC-1CC-1

50.0050.00



11

O'HeadO'Head

AdminAdmin

- 50.00- 50.00

C00001C00001

A01 A01

NB NB

22

O'HeadO'Head

CC-1CC-1

50.0050.00

JVI001 JVI001

A01 A01

BI BI

Example: Cost Allocation

Cost centre: CC-1

Joint Venture

Equity Type

Recovery Indicator

JVI001

A

BI

Cost centre: Admin

Joint Venture

Equity Type

Recovery Indicator

C00001

A

NB

SAP AG 2003

Joint Venture Interface: inter-venture



11

O'headO'head

AdminAdmin

- 50.00- 50.00

22

O'headO'head

CC-1CC-1

50.0050.00

Example: Cost Allocation



11

O'HeadO'Head

AdminAdmin

- 50.00- 50.00

C00001C00001

A01 A01

NB NB

22

O'HeadO'Head

CC-1CC-1

50.0050.00

JVI001 JVI001

A01 A01

BI BI

00

Int.VentInt.Vent

50.00 50.00

C00001C00001

A01 A01

NB NB

00

Int.VentInt.Vent

- 50.00- 50.00

JVI001 JVI001

A01 A01

NB NB

Balanced Ventures

Venture C0001Venture C0001Overhead

50

50

inter-venture

50

50

Venture JVI001Venture JVI001Overhead

50

50

inter-venture

50

50

SAP AG 2003

Joint Venture Interface: Splitting



11

VendorVendor

-117.50-117.50

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

44

TaxTax

17.5017.50



11

VendorVendor

CC-1 CC-1

- 70.50- 70.50

JVI001 JVI001

A01 A01

BI BI

11

VendorVendor

CC-2CC-2

- 47.00- 47.00

JVI002 JVI002

A01 A01

BI BI

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

JVI001 JVI001

A01 A01

BI BI

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

JVI002 JVI002

A01 A01

BI BI

44

TaxTax

CC-1 CC-1

10.5010.50

JVI001 JVI001

A01 A01

BI BI

44

TaxTax

CC-2 CC-2

7.00 7.00

JVI002 JVI002

A01 A01

BI BI

Example: Payable Invoice

Cost centre: CC-2

Joint Venture

Equity Type

Recovery Indicator

JVI002

A

BI

Cost centre: CC-1

Joint Venture

Equity Type

Recovery Indicator

JVI001

A

BI

SAP AG 2003

Joint Venture Interface: Clearing

Accounting PaymentAccounting Payment


11

BankBank

-117.50-117.50

22

VendorVendor

117.50117.50



11

VendorVendor

CC-1 CC-1

- 70.50- 70.50

JVI001 JVI001

A01 A01

BI BI

11

VendorVendor

CC-2CC-2

- 47.00- 47.00

JVI002 JVI002

A01 A01

BI BI

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

JVI001 JVI001

A01 A01

BI BI

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

JVI002 JVI002

A01 A01

BI BI

44

TaxTax

CC-1 CC-1

10.5010.50

JVI001 JVI001

A01 A01

BI BI

44

TaxTax

CC-2 CC-2

7.00 7.00

JVI002 JVI002

A01 A01

BI BI

Example: Invoice Payment



11

BankBank

CC-1 CC-1

- 70.50- 70.50

JVI001 JVI001

A01 A01

NB NB

11

BankBank

CC-2CC-2

- 47.00- 47.00

JVI002 JVI002

A01 A01

NB NB

22

VendorVendor

CC-1CC-1

70.5070.50

JVI001 JVI001

A01 A01

BI BI

22

VendorVendor

CC-2CC-2

47.0047.00

JVI002 JVI002

A01 A01

BI BI

Original Invoice

Accounting InvoiceAccounting Invoice


11

VendorVendor

-117.50-117.50

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

44

TaxTax

17.5017.50

Payment

SAP AG 2003

Joint Venture Interface: Clearing

Coding and Splitting occurs throughout the expenditure chain based on Matching and Clearance

P&L GR/IR APBankClear

BankAcct.

FI

P&L GR/IR APBankClear

BankAcct.

JV

JV1 60JV2 40

JV1 60JV2 40

60 JV140 JV2

100

100 100

100 100

100 100

GR

INVOICE

PAYMENT

BANK STAT

GR

INVOICE

PAYMENT

BANK STAT

JV1 60JV2 40

JV1 60JV2 40

60 JV140 JV2

60 JV140 JV2

JV1 60JV2 40

60 JV140 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 Documents2. Post Controlling Documents3. Post Material Movements

SAP AG 2003

Finance DocumentFinance Document

Parallel Currencies

1000.001000.00

Transaction CurrencyTransaction Currency

NOKNOK

77.9077.90

Local Currency 1Local Currency 1

GBPGBP

124.62124.62


EUREUR

112.59112.59


USDUSD

Controlling DocumentControlling Document

1000.001000.00


NOKNOK

77.9077.90

Object CurrencyObject Currency

GBPGBP

124.62124.62

Contr. Area CurrencyContr. Area Currency

EUREUR


1000.001000.00


NOKNOK

77.9077.90


GBPGBP

124.62124.62


EUREUR

112.59112.59


USDUSD

14 86414 864


JPYJPY

SAP AG 2003


1000.001000.00


NOKNOK

77.9077.90


GBPGBP

124.62124.62


EUREUR

112.59112.59


USDUSD

14 86414 864


JPYJPY

Parallel Currencies: Database

Joint Venture Balances

JVTO14A

JVTO14C

Joint Venture Documents

JVSO14A

JVSO14C

Sta

nd

ard

Ad

dit

ion

al

SAP AG 2003

Application

Validation & Substitution

Accounting Interface

Special Ledger

Interface

Accounting Document


1

1

Vendor

Vendor

-117.50

-117.50

2

2

Cost 1

Cost 1

CC-1

CC-1

60.00

60.00

3

3

Cost 2

Cost 2

CC-2

CC-2

40.00

40.00

4

4

Tax

Tax

17.50

17.50

Joint VentureData


JV DocumentItm Account Cost Obj. AmountVenture EqG RI

1

1

Vendor

Vendor

CC-1

CC-1

- 70.50

- 70.50

JVI001

JVI001

A01

A01

BI

BI

1

1

Vendor

Vendor

CC-2

CC-2

- 47.00

- 47.00

JVI002

JVI002

A01

A01

BI

BI

2

2

Cost 1

Cost 1

CC-1

CC-1

60.00

60.00

JVI001

JVI001

A01

A01

BI

BI

3

3

Cost 2

Cost 2

CC-2

CC-2

40.00

40.00

JVI002

JVI002

A01

A01

BI

BI

4

4

Tax

Tax

CC-1

CC-1

10.50

10.50

JVI001

JVI001

A01

A01

BI

BI

4

4

Tax

Tax

CC-2

CC-2

7.00

7.00

JVI002

JVI002

A01

A01

BI

BI

Prepare JV Document

Substitution

Validation

Message

InformationWarningError

SAP AG 2003

Joint Venture Validation

JVAP-RACCT >= '110000' AND JVAP-RACCT <= '119999'

Prerequisite

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

Check

Message

E ZJ 001Account &V1 cannot be posted with billable recovery indicator

Validation name JV00 JV Validation - group 00

Validation step 001 JV Banks Non-Billable

YES

NO

Issue message

Start validation

End validation

NO

YES

Is prerequisite

condition met?

Is check

condition met?

SAP AG 2003

Joint Venture Substitution

JVAP-RACCT >= '147000' AND JVAP-RACCT <= '147999'

Prerequisite

Substitution

Field is substituted by: Recovery indic. Constant value NB

Validation name JV00 JV Validation - group 00

Validation step 001 JV Banks Non-Billable

YES

Perform substitution

Start substitution

End substitution

NOIs

prerequisitecondition met?

SAP AG 2003

Exercise 2.2: Joint Venture Validation

1. Instructor shows joint venture validation2. Test joint venture validation

SAP AG 2003

JVA 2.2

Payments

This section describes how JVA handles payment transactions.

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


1000.001000.00


NOKNOK

77.9077.90


GBPGBP

124.62124.62


EUREUR

112.59112.59


USDUSD

14 86414 864


JPYJPY

Funding Currency Value

JVI001-A02

JVI001-A01

Funding Currency Determination

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.

Joint VentureJVI001

JVI001

Funding Currencies

NOKNOK

GBPGBP

USDUSD

Equity GroupA02

A02

Joint VentureJVI001

JVI001

Funding Currencies

GBPGBP

USDUSD

Equity GroupA01

A01

1000.00 NOK

77.90 GBP

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

Funding Group

FG1

Funding Group

FG2

Venture JV1 Venture JV2

Venture JV3

G/L JV1 Bank Acct: EUR

G/L JV1 Bank Acct: GBP

G/L JV1 Bank Acct: USD

G/L JV1 Bank Acct: NOK

G/L Shared Bank: EUR

G/L Shared Bank: GBP

G/L Shared Bank: USD

G/L Shared Bank: NOK

Company Code

SAP AG 2003

Outgoing Payment: Dedicated Bank

PaymentPayment

Itm Account AmountVenture RI

11

VendorVendor

100.00 100.00

JVI001 JVI001

BI BI

22

BankBank

- 100.00 - 100.00

JVI001 JVI001

NBNB

InvoiceInvoice


11

GRNIGRNI

100.00100.00

JVI001 JVI001

BI BI

22

VendorVendor

-100.00 -100.00

JVI001 JVI001

BI BI

3

2

Goods/Service ReceiptGoods/Service Receipt


11

CostCost

100.00100.00

JVI001 JVI001

BI BI

22

GRNIGRNI

-100.00 -100.00

JVI001 JVI001

BI BI

1

Venture

Expenditure

1 100

100

Vendor

100 2

3 100

Venture Bank

100 3

100

GRNI Accruals

100 1

2 100

Bil

lab

leN

on

-Bil

lab

le

SAP AG 2003

Venture JVI002

Outgoing Payment: Shared Bank

Payment


11

VendorVendor

100100

JVI001 JVI001

BI BI

11

VendorVendor

150150

JVI002 JVI002

BI BI

22

BankBank

- 100- 100

JVI001 JVI001

NB NB

22

BankBank

- 150- 150

JVI002 JVI002

NB NB

Venture JVI001

Expenditure

1 100

100

Vendor

100 2

3 100

Venture Bank

100 3

150 6

250

GRNI Accruals

100 1

2 100

Bil

lab

leN

on

-Bil

lab

le

Expenditure

4 150

150

Vendor

150 5

6 150

GRNI Accruals

150 4

5 150

Bil

lab

le Invoice


11

GRNIGRNI

100 100

JVI001 JVI001

BI BI

11

GRNIGRNI

150 150

JVI002 JVI002

BI BI

22

VendorVendor

- 100- 100

JVI001 JVI001

BI BI

22

VendorVendor

- 150- 150

JVI002 JVI002

BI BI

Goods/Service Receipt


11

CostCost

100 100

JVI001 JVI001

BI BI

11

CostCost

150 150

JVI002 JVI002

BI BI

22

GRNIGRNI

- 100- 100

JVI001 JVI001

BI BI

22

GRNIGRNI

- 150- 150

JVI002 JVI002

BI BI

3

2

1

6

5

4

SAP AG 2003

Corporate

Outgoing Payment: Corporate Bank

Payment


11

VendorVendor

100100

JVI001 JVI001

BI BI

22

BankBank

- 100- 100

C00001C00001

NB NB

22

Int.VentInt.Vent

- 100- 100

JVI001 JVI001

NB NB

22

Int.VentInt.Vent

100100

C00001C00001

NB NB

Venture JVI001

Expenditure

1 100

100

Vendor

100 2

3 100

GRNI Accruals

100 1

2 100

Bil

lab

leN

on

-Bil

lab

le inter-venture

100 3

100

Common Bank

100 3

100

No

n-B

illa

ble

No

n-B

illa

ble

inter-venture

3 100

100

Invoice


11

GRNIGRNI

100.00100.00

JVI001 JVI001

BI BI

22

VendorVendor

-100.00 -100.00

JVI001 JVI001

BI BI

Goods/Service Receipt


11

CostCost

100.00100.00

JVI001 JVI001

BI BI

22

GRNIGRNI

-100.00 -100.00

JVI001 JVI001

BI BI

3

2

1

SAP AG 2003

Joint VentureJVI001

JVI001

HB-3GBP

HB-2USD

HB-1GBP

House Bank

Fund.Curr.

Accounting InvoiceAccounting Invoice


11

VendorVendor

-117.50-117.50

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

44

TaxTax

17.5017.50

Invoice Curr.EUR

EUR

House bankHB-1

HB-1

Outgoing Payment: House Bank Determination

Joint Venture InvoiceJoint Venture Invoice


11

VendorVendor

CC-1 CC-1

- 70.50- 70.50

JVI001 JVI001

A01 A01

BI BI

11

VendorVendor

CC-2CC-2

- 47.00- 47.00

JVI002 JVI002

A01 A01

BI BI

22

Cost 1Cost 1

CC-1CC-1

60.0060.00

JVI001 JVI001

A01 A01

BI BI

33

Cost 2Cost 2

CC-2CC-2

40.0040.00

JVI002 JVI002

A01 A01

BI BI

44

TaxTax

CC-1 CC-1

10.5010.50

JVI001 JVI001

A01 A01

BI BI

44

TaxTax

CC-2 CC-2

7.00 7.00

JVI002 JVI002

A01 A01

BI BI

Joint VentureJVI001

JVI001

Equity GroupA01

A01

Joint VentureJVI002

JVI002

Equity GroupA01

A01

12

3

2

Determine Funding Currency

SAP AG 2003

Bank Switching

Bank Switch

Process Table

Bank Switching

Joint Venture

Balances

Cash Switch

Non-Cash Switch

Funding Group Assignments

Funding Group FG1

Funding Group FG2

Venture JV1 Venture JV2

Venture JV3

G/L JV1 Bank Acct: EUR

G/L JV1 Bank Acct: GBP

G/L JV1 Bank Acct: USD

G/L JV1 Bank Acct: NOK

G/L Shared Bank: EUR

G/L Shared Bank: GBP

G/L Shared Bank: USD

G/L Shared Bank: NOK

SAP AG 2003

Bank Switching: Cash

Venture V2Venture V1

Vendor

200 1

2 200

V1 Bank

200 2

200

GRNI Accruals

200

1 200

Bil

lab

leN

on

-Bil

lab

le

Vendor

150 3

4 150

GRNI Accruals

150

3 150

Bil

lab

le

V1 Bank

150 4

5 150

No

n-B

illa

ble

V2 Bank

150 5

150

Cash Switch


11

V1 BankV1 Bank

200200

V2V2

NB NB

22

V2 BankV2 Bank

150150

V2V2

NB NB

5

Payment


11

VendorVendor

200200

V1V1

BI BI

11

VendorVendor

150150

V2 V2

BI BI

22

V1 BankV1 Bank

- 200- 200

V1V1

NB NB

22

V1 BankV1 Bank

- 150- 150

V2 V2

NB NB

2 4

Invoice


11

GRNIGRNI

200 200

V1 V1

BI BI

11

GRNIGRNI

150 150

V2 V2

BI BI

22

VendorVendor

- 200- 200

V1V1

BI BI

22

VendorVendor

- 150- 150

V2 V2

BI BI

1 3

SAP AG 2003

Venture V2

Bank Switching: Non-Cash

Venture V1

Inter-Venture

1 100

100 2

V1 Bank

2 100

100

Overhead

100 1

100

Bil

lab

leN

on

-Bil

lab

le

Inter-Venture

100 1

2 100

Overhead

1 100

100

Bil

lab

le

V2 Bank

100 2

100

No

n-B

illa

ble

Non-Cash Switch


11

V1 BankV1 Bank

100100

V1V1

NBNB

11

V2 BankV2 Bank

- 100- 100

V2 V2

NBNB

22

Int.VentInt.Vent

- 100- 100

V1V1

NB NB

22

Int.VentInt.Vent

100100

V2 V2

NB NB

2

Cost Allocation


11

O'HeadO'Head

- 100 - 100

V1 V1

BI BI

11

O'HeadO'Head

100100

V2 V2

BI BI

22

Int.VentInt.Vent

100100

V1V1

NBNB

22

Int.VentInt.Vent

- 100- 100

V2 V2

NBNB

1

SAP AG 2003

Bank Switch: Process Table

FI Payment


11

VendorVendor

- 350- 350

22

BankBank

350350

Joint Venture Payment


11

VendorVendor

200200

V1V1

BI BI

11

VendorVendor

150150

V2 V2

BI BI

22

V1 BankV1 Bank

- 200- 200

V1V1

NB NB

22

V1 BankV1 Bank

- 150- 150

V2 V2

NB NB

Joint Venture Allocation


11

O'HeadO'Head

- 100 - 100

V1 V1

BI BI

11

O'HeadO'Head

100100

V2 V2

BI BI

22

Int.VentInt.Vent

100100

V1V1

NBNB

22

Int.VentInt.Vent

- 100- 100

V2 V2

NBNB

FI Allocation


11

O'HeadO'Head

- 100- 100

22

O'HeadO'Head

100100

Joint VentureInterface

Bank Switch

Process Table

Status JV Doc. Itm Year Type PeriodType

Ind. Orig. Doc. Year

10001008 002 2001 2 12

10001009 2001 1 12

SAP AG 2003

Funding Group

FG1

Bank Switching: Switch Letters

Funding Group

FG2

Switch GBP 10,000

House Bank HB1

Sort Code 30-21-02

Address

32 High StreetMilton KeynesM34 1HB

Account 001

Acct No. 74857465

Currency GBP

House Bank HB2

Sort Code 67-54-01

Address

12 Main StreetPenzancePZ12 1GF

Account 001

Acct No. 75967536

Currency GBP

GB Oil Company22b Baker Street

London W1

Dear Sir or Madam,

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

Bank Switch

Process Table

Bank Switching

Joint Venture

Balances

1. Switch Summary1. Switch Summary4. Input Summary

1. Switch Summary1. Switch Summary2. Alt. Summary

1. Switch Summary1. Switch Summary5. Errors & Warnings

2. Switch Letters2. Switch Letters3. Switch Letters

1. Switch Summary1. Switch Summary1. Switch Summary

SAP AG 2003

Bank Switching: Execution

Selection

GBU1GBU1Company Code

Cutback

Options

Test run

Input from VBA process table

Full NettingTwo-way netting

20012001Fiscal Year

1212Period

VentureEquity group

1212Period

31.12.200131.12.2001Posting Date

CutbackCutbackCutback item text

XX

XX

XX

XX

XX

Cost objectValue date

No event checkReconciliation report

XX

There is no database update during the test run.

Read switch details from the VBA process table, rather than direct selection from the joint venture database.

Full netting minimizes all bank switches. Two-way netting minimizes switches between two particular banks, to maintain an audit trail.

You can prepare switch documents with original venture, equity group, and cost object, depending on the level at which balanced books are prepared.

Keep value date on switches to allow subsequent interest calculation.

Suppress event check to allow a re-run.

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 document2. Display joint venture document3. Review bank switch log

SAP AG 2003

JVA 2.3

Operated Accounting

This section describes operated accounting, with particular emphasis on cash calling.

SAP AG 2003

Customer Account and Special Entry Indicators

General Ledger

CostBank Working Cap

Accounts Receivable Sub Ledger

Cash DueCutback Cash Called

NotesNotes

3 Cutback 32

2 Receipt 40 1 Cash Call 40

32

40 40

4040

1000320 680

100 68

Control by SEI

PARTNER BILLING

BI

SAP AG 2003

Customer Account and Special Entry Indicators

JV Partner A

1 40 40 1

40 2

3 32

8

Receivable Ledger

JV Partner A

J – Cutback

3 32

32

K – Cash Due

1 40

40 2

L – Cash Called

40 1

40

Invoice

…JV Bank…JV ReceivablesJV Rec. under CC - 8JV Cash Calls Out 0…JV PayablesJV Pay. under CCJV Cash Calls In…

General Ledger

NotesNotes

3 Cutback 32

2 Receipt 40 1 Cash Call 40

SAP AG 2003

Operated Accounting: Operator Oriented

Operator Venture V1

Par

tner

A J - Cutback

5 4,400

K – Cash Due

1 4,000

4,000 3

L – Cash Called

4,000 1

Bank

3 4,000

11,000 4

A/P

11,000 2

4 11,000

Joint Costs

2 11,000

4,400 5

1. Cash Call2. Invoice3. Cash Call Payment4. Invoice Payment5. Joint Venture Cutback

Venture V1

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

SAP AG 2003

Operated Accounting: Partner Oriented

JV Bank - 1,000JV Rec. under CC (J,L) 1,000JV Cash Calls Out (K) 0Accounts Payable 0Joint Costs 0

Operator Venture V1

Operator Venture V1

Op

erat

or

AR

J - Cutback

6 6,600

K – Cash Due

1 6,000

6,000 3

L – Cash Called

6,000 1

Bank

3 6,000

4 4,000 11,000 5

A/P

11,000 2

5 11,000

Joint Costs

2 11,000

11,000 6

Par

tner

A

AR

J - Cutback

6 4,400

K – Cash Due

1 4,000

4,000 4

L – Cash Called

4,000 1

Corporate or Mirror Operator Venture

Op

erat

or

AP

J - Cutback

6,600 6

K – Cash Due

6,000 1

3 6,000

L – Cash Called

1 6,000

Bank

6,000 3

Net A/PNet Costs

6 6,600

JV Bank - 6,000JV Rec. under CC (J,L) - 600JV Cash Calls Out (K)Accounts PayableJoint Costs 6,600

Corporate or Mirror Operator Venture

1. Cash Call2. Invoice3. Cash Call Payment4. Cash Call Payment5. Invoice Payment6. Joint Venture Cutback

SAP AG 2003

Operated Cash Calls: Net Request

Selection


Operated Cash Call - Net

Posting

31.12.200131.12.2001Effective Date

1212Posting period

Operations month

31.12.200131.12.2001Posting Date

JV5100JV5100Partner

Company Code

Operated Cash Call - Net

GBU1

Due dateJV EqG FCurr FCurr Amt LCurr LCurr Amt OM

31.12.200131.12.2001

JV0001JV0001

A01A01

GBPGBP

1,000.001,000.00

GBPGBP

1,000.001,000.00

31.12.200131.12.2001

JV0001JV0001

A01A01

NOKNOK

1,000.001,000.00

GBPGBP

77.9077.90

Partner JV5100

Cash Calls are in Funding currency

SAP AG 2003

Operated Cash Calls: Gross Request

Selection


Operated Cash Call - Gross

Posting

31.12.200131.12.2001Effective Date

1212Posting period

Operations month

31.12.200131.12.2001Posting Date

Venture JV0001 EqG A01 FCurr NOK

Partner FCurr Amt Lcurr Amt

JVGBU1600.00

600.0046.74

46.74

JV5001300.00

300.0023.37

23.37

JV5101100.00

100.007.79

7.79

Partner Shares

Company Code

Operated Cash Call - Gross

GBU1

Due dateJV EqG FCurr FCurr Amt LCurr Lcurr Amt OM

31.12.200131.12.2001

JV0001JV0001

A01A01

GBPGBP

1,000.001,000.00

GBPGBP

1,000.001,000.00

31.12.200131.12.2001

JV0001JV0001

A01A01

NOKNOK

1,000.001,000.00

GBPGBP

77.9077.90

SAP AG 2003

Cash Call Documents



JVGBU1600.00

600.0046.74

46.74

JV5001300.00

300.0023.37

23.37

JV5101100.00

100.007.79

7.79

Partner Shares

Operator Cash Call

Itm Account Amount

11

JVGBU1JVGBU1

600.00600.00

FIDatabase

Billing Database

Joint Venture

Database

Partner Cash Call

Partner Cash Call

Itm SEI Account Amount

11

KK

JV5001JV5001

300.00300.00

22

LL

JV5001JV5001

-300.00-300.00

Cash CallPosting

22

JVGBU1JVGBU1

- 600.00- 600.00Cash Due

Cash Received

Cash Called

Cash Due

SAP AG 2003

Company Code C2 – Partner A

Company Code C1 - Operator

Inter-company Cash Call

Venture V1

Par

tner

A

AR

J - Cutback

5 4,400

K – Cash Due

1 4,000

4,000 3

L – Cash Called

4,000 1

Bank

3 4,000

11,000 4

A/P

11,000 2

4 11,000

Joint Costs

2 11,000

4,400 5

Venture V1

Op

erat

or

AP

J - Cutback

4,400 6

K – Cash Due

4,000 1

3 4,000

L – Cash Called

1 4,000

Bank

4,000 3

Net A/PNet Costs

6 4,000

1. Cash Call2. Invoice3. Cash Call Payment4. Invoice Payment5. Joint Venture Cutback6. Inter-Co Cutback

FI Cash Call Document

Itm AccountSEI Amount

11

PartnerPartner

K K

4,4004,400

22

Cutback Cutback

LL

- 4,400- 4,400

1

FI Inter-Co Cash Call

Itm AccountSEI Amount

11

PartnerPartner

K K

4,4004,400

22

Cutback Cutback

LL

- 4,400- 4,400

1

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

Operator Cash Call

Itm Account Amount

11

JVGBU1JVGBU1

600.00600.00

22

JVGBU1JVGBU1

- 600.00- 600.00

Cash Call Error Handling



JVGBU1600.00

600.0046.74

46.74

JV5001300.00

300.0023.37

23.37

JV5101100.00

100.007.79

7.79

Partner Shares

Partner Cash Call

Partner Cash Call

Itm SEI Account Amount

11

KK

JV5001JV5001

300.00300.00

22

LL

JV5001JV5001

-300.00-300.00

Cash CallPosting

ERROR

Joint Venture

Database

FIDatabase

BDC Session

SAP AG 2003

Exercise 2.4: Cash Call Request & Payment

Post Cash Call Request & Payment

1. Gross Cash Call2. Net Cash Call3. Cash Call Receipt

SAP AG 2003

Joint Venture Accounting 2.4

Non-Operated Accounting

This section describes non-operated accounting and how it is supported by SAP JVA.

SAP AG 2003

Non-Operated Accounting

Venture N1

Op

erat

or

AP

J - Cutback

5,500 3

K – Cash Due

5,000 1

2 5,000

L – Cash Called

1 5,000

Bank

5,000 2

Net A/PNet Costs

3 5,500

1. Cash Call2. Cash Call Payment3. Billing

Venture N1

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

SAP AG 2003

Non-Operated Cash Calls: Request

Selection


Non-Operated Cash Call

Posting

31.12.200131.12.2001Effective Date

1212Posting period

Operations month

31.12.200131.12.2001Posting Date

Company Code

Non-Operated Cash Call

GBU1

Due dateJV EqG FCurr FCurr Amt LCurr Lcurr Amt OM

31.12.200131.12.2001

JVN01JVN01

A01A01

GBPGBP

300.00300.00

GBPGBP

300.00300.00

31.12.200131.12.2001

JVN01JVN01

A01A01

NOKNOK

1,000.001,000.00

GBPGBP

77.9077.90

Non-Op Cash Call

Itm SEI Account. Amount

11

KK

OperatorOperator

300.00300.00

22

LL

OperatorOperator

-300.00-300.00

SAP AG 2003

Non-Operated Cash Calls: Payment

SAP AG 2003

Non-Operated Billing Input

Non-Operated Venture 01 JV2001Venture

GBU1Company code

Non-Op Billing – JV2001Billing text

JV2001-12Reference

12Posting period

31.12.2001Posting date

31.12.2001Translation date

0.6000Exchange rate

USDFunding currency

Non-Op Billing Header

USDFunding currency0.00Tax Amount

Caledonian OilJV5001JV Operator

GBU1Company Code

0.0010,000.00Non-Op 40%A01JV2001

Gross TaxGross AmountEqG NameEqGVenture

Non-Op Billing Venture/EqG Overview

Working Capital

6,00010,000Total Billing

- 1,500- 2,500Total Working Capital

- 300- 500VAT

- 900- 1,500Stock

300500Accounts Receivable

- 600- 1,000Accounts Payable

7,50012,500Total Operational Expenditure

1,8003,000Administration

2,4004,000General Expenses

Abandonment

- 300- 500Revenue

3,6006,000Operations

Field Evaluation

Exploration

Operational Expenditure

00Total Capital Expenditure

Capital Expenditure

Billing

Local Curr.Fund Curr.Gross Data Entry

6,00010,000Gross amount from detail

6,00010,000Gross amount from summary

Local Curr.Fund Curr.

GBPLocal CurrencyUSDFunding Curr.

Non-Operated 40%A01Equity Group

JV2001Joint VentureJV5001JV Operator

40%Non-Operated shareGBU1Company Code


SAP AG 2003

Non-Operated Billing Documents

Working Capital



- 300- 500VAT

- 900- 1,500Stock






Abandonment

- 300- 500Revenue


Field Evaluation

Exploration

Operational Expenditure

00Total Capital Expenditure

Capital Expenditure

Billing










Joint Venture Non-Op Billing

- 120- 120

- 200- 200

NBNB

A01A01

JV2001JV2001

CC-201CC-201

Vat – Non-OpVat – Non-Op

99

- 360- 360

- 600 - 600

NBNB

A01A01

JV2001JV2001

CC-201CC-201

Stock – Non-Op Stock – Non-Op

88

120120

200200

NBNB

A01A01

JV2001JV2001

CC-201CC-201

A/R – Non-OpA/R – Non-Op

77

- 240- 240

- 400- 400

NBNB

A01A01

JV2001JV2001

CC-201CC-201

A/P – Non-OpA/P – Non-Op

66

720720

1,2001,200

NBNB

A01A01

JV2001JV2001

CC-201CC-201

Expense – Adm.Expense – Adm.

55

960960

1,6001,600

NBNB

A01A01

JV2001JV2001

CC-201CC-201

Expense – Gen.Expense – Gen.

44

- 120- 120

- 200- 200

NBNB

A01A01

JV2001JV2001

CC-201CC-201

RevenueRevenue

33

1,4401,440

2,4002,400

NBNB

A01A01

JV2001JV2001

CC-201CC-201

Expense – Ops.Expense – Ops.

22

- 2,400- 2,400

- 4,000- 4,000

NBNB

A01A01

JV2001JV2001

OperatorOperator

11

GBPUSDRIEqGVentureCost.ObjAccountI

FI Non-Op Billing

- 120- 120

- 200- 200

CC-201CC-201

Vat – Non-OpVat – Non-Op

99

- 360- 360

- 600- 600

CC-201CC-201

Stock – Non-Op Stock – Non-Op

88

120120

200200

CC-201CC-201

A/R – Non-OpA/R – Non-Op

77

- 240- 240

- 400- 400

CC-201CC-201

A/P – Non-OpA/P – Non-Op

66

720720

1,2001,200

CC-201CC-201

Expense – Adm.Expense – Adm.

55

960960

1,6001,600

CC-201CC-201

Expense – Gen.Expense – Gen.

44

- 120- 120

- 200- 200

CC-201CC-201

RevenueRevenue

33

1,4401,440

2,4002,400

CC-201CC-201

Expense – Ops.Expense – Ops.

22

- 2,400- 2,400

- 4,000- 4,000

OperatorOperator

11

GBPUSDCost.ObjAccountI

40%

SAP AG 2003

FI Non-Op Billing

- 300

- 300

- 500

- 500

CC-201

CC-201

Vat – Non-Op

Vat – Non-Op

9

9 - 900

- 900

- 1,500

- 1,500

CC-201

CC-201

Stock – Non-Op

Stock – Non-Op

8

8 300

300

500

500

CC-201

CC-201

A/R – Non-Op

A/R – Non-Op

7

7 - 600

- 600

- 1,000

- 1,000

CC-201

CC-201

A/P – Non-Op

A/P – Non-Op

6

6 1,800

1,800

3,000

3,000

CC-201

CC-201

Expense – Adm.

Expense – Adm.

5

5 2,400

2,400

4,000

4,000

CC-201

CC-201

Expense – Gen.

Expense – Gen.

4

4 - 300

- 300

- 500

- 500

CC-201

CC-201

Revenue

Revenue

3

3 3,600

3,600

6,000

6,000

CC-201

CC-201

Expense – Ops.

Expense – Ops.

2

2 - 6,000

- 6,000

- 10,000

- 10,000

Operator

Operator

1

1

GBPUSDCost.ObjAccountI

Non-Operated Billing Error Handling

ERROR

Joint Venture

Database

FIDatabase

BDC Session

JV Non-Op Billing

- 300

- 300

- 500

- 500

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

Vat – Non-Op

Vat – Non-Op

9

9 - 900

- 900

- 1,500

- 1,500

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

Stock – Non-Op

Stock – Non-Op

8

8 300

300

500

500

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

A/R – Non-Op

A/R – Non-Op

7

7 - 600

- 600

- 1,000

- 1,000

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

A/P – Non-Op

A/P – Non-Op

6

6 1,800

1,800

3,000

3,000

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

Expense – Adm.

Expense – Adm.

5

5 2,400

2,400

4,000

4,000

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

Expense – Gen.

Expense – Gen.

4

4 - 300

- 300

- 500

- 500

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

Revenue

Revenue

3

3 3,600

3,600

6,000

6,000

NB

NB

A01

A01

JV2001

JV2001

CC-201

CC-201

Expense – Ops.

Expense – Ops.

2

2 - 6,000

- 6,000

- 10,000

- 10,000

NB

NB

A01

A01

JV2001

JV2001

Operator

Operator

1

1

GBPUSDRIEqGVentureCost.ObjAccountI

Working Capital



- 300- 500VAT

- 900- 1,500Stock






Abandonment

- 300- 500Revenue


Field Evaluation

Exploration

Operational expenditure

00Total Capital expenditure

Capital Expenditure

Billing










Non-OpBilling

SAP AG 2003

Demonstration: Non-Op Cash Call & Payment

SAP AG 2003

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

Unit 2 Summary