my SAP ERP
Joint Venture Accounting(JVA)
Oil & Gas Industry – Upstream solution
Oil & Gas
© SAP 2008 / Page 2
Why SAP JVA?
 SAP JVA is the only SAP solution that allows you to track venture
expenditures on a venture by venture and ...
Why SAP JVA?
 Using proven SAP FI-Special Ledger functionality as its basis, SAP
JVA ensures accurate calculations and re...
SAP JVA Features and Benefits
 Detailed joint venture data capture in real time
 Cash calls to/from partners
 Partner b...
JVA Business Objects: Venture
Venture A
EQTYPE 1
Engineering
Design
EQTYPE 2 EQTYPE 3
Construction Production
A
2002
2003
...
Joint Venture Integration with Cost Objects
New Processing Plant
Cost centre
Valid
EQTYPE 1
Design
A
33 1/3 B
C 33 1/3 33 ...
Joint Venture Integration with Cost Objects
Cost Center Internal Order
Asset
Project
Venture
PM Order
Plant
1 2
Prod Order
Joint Venture Coding for Cost Object
Cost Object
Project Cost centre Internal Order
Plant Production Network
Maintenance O...
Recovery Indicator
Identifies category of a joint venture transaction
Indicates whether a particular revenue or expense i...
Joint Venture Integration and Interface
Joint Venture Document
CO
PS
HR
FI MM
Accounting
Interface
AM
SD Itm Account Cost ...
Joint Venture Asset Posting - Example
JVA derives venture coding for an asset using the cost
centre entered on the asset m...
Joint Venture Material Posting - Example
JVA derives venture coding for material movements from a special stock cost objec...
Joint Venture Vendor Invoice Posting - Example
The expenses are assigned to the JV partners via the cost centre assigned t...
Periodic Processes
Foreign Currency Valuation
Cost Transfers
Cost Allocation & Settlement
Overhead Calculations (PCO)
Equi...
Assessments & Distributions
Cost allocations are based on R/3 CO functions with JVA required enhancements,
including:
 Su...
Equity Changes & Adjustments
Farm-In / Farm-Out
A partner joins or leaves a venture
Redetermination
 Partner shares ar...
Suspense Processing
Suspense functionality supported for:
Partner Suspense
Equity Group Suspense
Project/WBS Element S...
Cutback Processing
Gross
The cutback process
allocates JV partners'
expenses or revenues
Operating
Exp / Rev
100
Cost Obje...
Cash Call Processing
Equivalent to down payments or pre payments
Can be issued for future months (Reclassification)
Req...
Joint Venture Billing
Vendor
Invoices
Internal
Allocations
Accounts
Receivable
…
Cash Calls
Payroll
Orders
Costs
JV Integr...
Inter-Company Ventures
Affiliated Inter-Company Setup
FI
Document
Cutback
To Affiliate:
INVOICE
Intercompany
Processing
Ca...
JV Partner Auditing
Standard JVA Reports:
Gross billable/all by venture/account
Gross billable/all by cost object
Gros...
Non-Operating Ventures
Online transaction for incoming invoices for non-operated ventures
 Input forms, defined in JVA c...
SAP JVA Business Benefits
Provides an accurate accounting and reporting tool, with real-
time information on any partner ...
© SAP 2007 / Page 27
Customer Success Stories
Questions?
THANK YOU
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SAP JVA ( Joint Venture Accounting )

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Overview of Joint venture accounting solution in SAP Oil & Gas

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Transcript of "SAP JVA ( Joint Venture Accounting )"

  1. 1. my SAP ERP Joint Venture Accounting(JVA) Oil & Gas Industry – Upstream solution
  2. 2. Oil & Gas © SAP 2008 / Page 2
  3. 3. Why SAP JVA?  SAP JVA is the only SAP solution that allows you to track venture expenditures on a venture by venture and partner by partner basis.  SAP JVA is fully integrated with: Financial Accounting (SAP FI) Controlling (SAP CO) Asset Management (SAP AM) Materials Management (SAP MM) Production Planning (SAP PP) Plant Maintenance (SAP PM) Project System (SAP PS) allowing you to capture all joint venture transactions by using standard SAP functions.  The result is a streamlined workflow and reductions in errors.
  4. 4. Why SAP JVA?  Using proven SAP FI-Special Ledger functionality as its basis, SAP JVA ensures accurate calculations and reporting of venture activities on a venture-by-venture basis.  SAP JVA supports joint audit data exchange (JADE) reports, online and in real time, reducing audit headcount, time, and expense.  SAP JVA ensures full compliance with all standard overhead methods and calculations (US and international).  SAP JVA provides complete drill down capabilities for reporting all ventures, all authorization for expenditures (AFEs) tied to JOA's, overhead analysis, cutback, and billing.
  5. 5. SAP JVA Features and Benefits  Detailed joint venture data capture in real time  Cash calls to/from partners  Partner billing for venture expenses and revenues  Overhead calculation, based on the Joint Operating Agreement Allocations of billable and non-billable costs  Multi-currency processing  Farm-in/farm-out and equity changes  Real-time gross/net venture reporting
  6. 6. JVA Business Objects: Venture Venture A EQTYPE 1 Engineering Design EQTYPE 2 EQTYPE 3 Construction Production A 2002 2003 33 1/3 B C 33 1/3 33 1/3 33 1/3 EG1 A B A B 50 % 25% 50 % 25% D C 25 % 25 % EG2 EG4 Ventures associate Equity Types and Equity Groups to define a specific joint operation or purpose 2004 A 75 % EG3 C 25% A A 25 % 33 1/3 B D B C 25% 33 1/3 25 % 33 1/3 C 25 % EG5 EG6
  7. 7. Joint Venture Integration with Cost Objects New Processing Plant Cost centre Valid EQTYPE 1 Design A 33 1/3 B C 33 1/3 33 1/3 33 1/3 EG1 A B Venture A EQTYPE 2 EQTYPE 3 Construction Production A Construction Project Project EQTYPE 1 Engineering Design A 33 1/3 B 50 % 33 1/350 % B D 25% D 25%3 25 % 25 % EG2 EG4 A A A25 % A C B D B 75 % 25% C 33 1/ 25 % 25% 33 1/3 C25 % EG3 EG5 EG6 Venture A EQTYPE 2 EQTYPE 3 Construction Production C 33 1/333 1/3 33 1/3 EG1 Valid A 50 % D B 25% A B 50 % 25% C 3 25 % EG2 A A C 75 % 25% EG3 25 % EG4 A A25 % 33 1/3 B D B C 25 % 25% 33 1/3 33 1/ C25 % EG5 EG6
  8. 8. Joint Venture Integration with Cost Objects Cost Center Internal Order Asset Project Venture PM Order Plant 1 2 Prod Order
  9. 9. Joint Venture Coding for Cost Object Cost Object Project Cost centre Internal Order Plant Production Network Maintenance Order Order Order Joint Venture Equity Type Recovery Indicator JV Object Type JIB/JIBE Class JIB/JIBE Subclass A
  10. 10. Recovery Indicator Identifies category of a joint venture transaction Indicates whether a particular revenue or expense is shared by venture partners Used to select data for reporting to venture partners Used to distinguish between joint and own revenues and expenditures Recovery indicator assignment & determination: FI CO MM User Entry Document Type G/L Account & Cost Element Cost Object Default (Corporate)
  11. 11. Joint Venture Integration and Interface Joint Venture Document CO PS HR FI MM Accounting Interface AM SD Itm Account Cost Obj. Venture EqG RI Amount PM 1 Vendor CC-1 JVI001 A01 BI - 70.50 1 Vendor CC-2 JVI002 A01 BI - 47.00 2 Cost 1 CC-1 JVI001 A01 BI 60.00 PP 3 Cost 2 CC-2 JVI002 A01 BI 40.00 4 Tax CC-1 JVI001 A01 BI 10.50 4 Tax CC-2 JVI002 A01 BI 7.00 Accounting Document Itm Account Cost Obj. Amount 1 Vendor -117.50 2 Cost 1 CC-1 60.00 3 Cost 2 CC-2 40.00 4 Tax 17.50 FI DATA GLT0 JV Interface JV DATA JVT01 Special Ledger Interface BILLING CUSTOM JVT02 DATABASE
  12. 12. Joint Venture Asset Posting - Example JVA derives venture coding for an asset using the cost centre entered on the asset master record Asset Master Vendor Invoice JV Document Asset Document
  13. 13. Joint Venture Material Posting - Example JVA derives venture coding for material movements from a special stock cost object that is assigned to a plant and a valuation type (which is optional) associated with the plant. Goods Receipt MM Assignments Material Document JV Document Accounting Doc JV Document
  14. 14. Joint Venture Vendor Invoice Posting - Example The expenses are assigned to the JV partners via the cost centre assigned to the expense line items Post Vendor Invoice Accounting Doc Cost Centre Assignment JV Document
  15. 15. Periodic Processes Foreign Currency Valuation Cost Transfers Cost Allocation & Settlement Overhead Calculations (PCO) Equity Adjustments Cutback Joint Venture Close Partner Netting Final Settlement Billing Corporate Close
  16. 16. Assessments & Distributions Cost allocations are based on R/3 CO functions with JVA required enhancements, including:  Substitution of the recovery indicator (recovery indicator manipulation)  Allocation of secondary costs  Re-run of settlement Distribution (through original cost element) Internal CO only Cost Object B Materials Internal Labour 40 External Labour 80 Staff Salaries Rent & Rates Unallocated Costs Cost Object A Materials Internal Labour External Labour Staff Salaries Rent & Rates 100 200 Allocation (via secondary cost element) Internal CO only Cost Object B Materials Internal Labour External Labour Staff Salaries Rent & Rates Light & Heating Vehicles Repairs & Servicing Travelling 8 Hotels 12 Entertaining Telecoms Mail & Carriage Total 140 40% Light & Heating Vehicles Repairs & Servicing Travelling Hotels Entertaining Telecoms Mail & Carriage Assessment A Total 20 30 - 350 40% 0 Light & Heating Vehicles Repairs & Servicing Travelling Hotels Entertaining Telecoms Mail & Carriage Assessment A 140 Total 140
  17. 17. Equity Changes & Adjustments Farm-In / Farm-Out A partner joins or leaves a venture Redetermination  Partner shares are adjusted to reflect changes in business conditions, such as reserves Funding Currency Change A funding currency is added or removed from a venture Current and prior period equity adjustments handled
  18. 18. Suspense Processing Suspense functionality supported for: Partner Suspense Equity Group Suspense Project/WBS Element Suspense Specific costs are not charged to a venture but instead posted to suspense accounts for the duration (year & period) a project remains in suspense Set project in suspense Project Suspense Selection Company Code GBU1 Venture JV0001 to JV9999 Posting Fiscal Year 2002 Period 12 Posting Date 31.12.2002 Options Test run Post Costs Accounting Document Itm Account Cost Obj. Amount 1 O'head Admin - 50.00 2 O'head CC-1 50.00 Joint Venture Document Itm Account Cost Obj. Venture EqG RI Amount 1 O'Head Admin C00001 A01 NB - 50.00 2 O'Head CC-1 JVI001 A01 BI 50.00 JVA Project Suspense Joint Venture Document Itm Account Cost Obj. Venture EqG RI Amount 1 O'Head Admin C00001 A01 NB - 50.00 2 O'Head CC-1 JVI001 A01 BI 50.00 3 O'Head CC-1 JVI001 A01 BS 0
  19. 19. Cutback Processing Gross The cutback process allocates JV partners' expenses or revenues Operating Exp / Rev 100 Cost Object RI = Bill Venture A Venture A ET1 Company Code according to their working interest ownership. Cutback EG2 50 % Partner B 25 % Partner D 25 % Net Operating Exp / Rev 50 AR / AP Partner B 25 AR / AP Partner D 25
  20. 20. Cash Call Processing Equivalent to down payments or pre payments Can be issued for future months (Reclassification) Request and cash receipts carried forward to billing process Integrated with Accounts Receivable and Accounts Payable Cash Call Request: Gross to venture/project FI Net to venture/project/partner Partner Shares Venture JV0001 EqG A01 FCurr NOK Partner FCurr Amt Lcurr Amt JVGBU1 600.00 46.74 JV5001 300.00 23.37 JV5101 100.00 7.79 Document Cash Call Accounts Accounts Rec.- Cash Rec.- Cash Calls Calls Partner C Partner A 100 600 Accounts Rec.- Cash Calls Partner B 300
  21. 21. Joint Venture Billing Vendor Invoices Internal Allocations Accounts Receivable … Cash Calls Payroll Orders Costs JV Integration Mgr. … JV Summary Ledger Cutback JV Billing Ledger Partner Adjustments JV Integration Mgr. Cutback Invoice JV Billing creates various customized billing documents to send to your JV partners Billing Statement Exp. Suppl Expenditure Detail Inv. Suppl Detail Invoice Paid Cash Partner Calls Payments
  22. 22. Inter-Company Ventures Affiliated Inter-Company Setup FI Document Cutback To Affiliate: INVOICE Intercompany Processing Cash Call Cash Calls CO FI A/P Cutback creates A/P entries to operator on the books of the affiliated partner as configured in SAP JVA and SAP FI Gross cash calls create A/P entries on the books of the affiliated partner, as defined in configuring SAP JVA and SAP FI
  23. 23. JV Partner Auditing Standard JVA Reports: Gross billable/all by venture/account Gross billable/all by cost object Gross billable/partner net by cost object Gross billable/all by cost object foreign currency Gross billable/partner net for JIB Billing Reconciliation Extract: Remaining cutback by cost object Posted suspense overview Gross non-operated by cost object Venture/equity group/billing indicator Partner/billing indicator Reconciliation Statement Exp. Suppl Expenditure Detail Inv. Suppl Detail Invoice Ledger 4B and 4D JVA Billing Balances Ledger 4A and 4C JVA Balances
  24. 24. Non-Operating Ventures Online transaction for incoming invoices for non-operated ventures  Input forms, defined in JVA configuration, control the layout of the input screens  Input form includes the SAP coding block information (account, cost object, asset) Incoming cash calls are handled with the cash call functions Non-operated venture processing is fully integrated with SAP accounts payable functions Invoice Accounts R/3 Cash Call Payable Non- operating net share
  25. 25. SAP JVA Business Benefits Provides an accurate accounting and reporting tool, with real- time information on any partner or venture Flexibility to handle business changes - retroactive equity change handling, flexible master data and customizing Full integration with SAP core processes provides: highly automated JVA processing ease of use for users full document drill-down & tracking, historical data and audit trail End-to-end integrated business process coverage ensures: streamlined cash call and joint interest billing processes greater efficiency in billing partners- shortening the cash flow cycle faster month end closing and financial reporting at lower cost
  26. 26. © SAP 2007 / Page 27 Customer Success Stories
  27. 27. Questions?
  28. 28. THANK YOU

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