A joint venture is an agreement between two or more partners. It is a subordinate of a Joint operating agreement. The JOA has to be created before the JV.
A JV is assigned to a cost object, e.g., a cost center or a wbs element and serves as the relationship between the ownership interest and the equity groups.
Create a Joint venture using the menu path below or via the tcode GJVV.
Enter the company code for which you are creating the Joint venture and click on the Create icon.
The screen below appears. Enter the following information
1- Joint Venture– Enter a joint venture number if you are using an external number range. Usually, an internal number range is used, so would leave this field blank.
2- Description– Enter a description for the Joint Venture.
3-Venture Class– Enter the class for this venture, i.e., is it operated, non operated or corporate.
4-Joint Operating Agreement- Enter the Joint operating agreement that this JV will be created under.
5- Venture type– Specify the type of venture it is. E.g. operated(no tax).
6- Reference Joint venture- Enter the reference joint venture if you want to copy this venture from another venture.
Note- This will only work if the venture you are copying from uses the same Joint Operating Agreement.
On the next screen, enter a posting method. Check the box for venture active and enter the billing information and funding group.
The billing information specifies if the billing extract will be for the current month date, year to date data and the Inception to date data.
A funding group is used if you are going to pay your venture charges with specific bank accounts.
Next- click on the equity types tab. Here you will see the Equity types created at a particular time period.
The equity type is entered in the cost object master, and this determines which equity group the costs are booked against.
Double click on an equity type and the screen on the right opens up.
Enter the valid from date for the equity group you are assigning this equity type to and click on the activate button.
Next- Click on the Equity groups tab.
This will show you information about the equity group. The operator share shows up on the left, and if you click on the partner shares on the right, you can see which partner is part of this equity group and what their share is as well.
Once you enter this information, click on save and the joint venture is created.
The next step is to enter this joint venture in a cost object, and you can start posting to the joint venture.
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