In order to set up a joint operating agreement and a joint venture, we need to set up who is taking part in this venture.
Any party with a working interest will need to be created as a business partner.
The partner should first exist as a customer in the system.
Once the customer is created, we can create this customer as a business partner.
Use the menu path below or use the tcode GJ2b to create a partner.
enter the company code for which you want to create this JV partner.
On the next screen, click on new entries
Here, you will see a lot of fields for the business partner.
Partner– Here is where you enter the customer number that will become a business partner that you can use in a Joint Operating Agreement.
Cash Call-If you enter a value in here, then a cash call is only done once this threshhold is reached.
Billing-Here is where you specify how you want to bill the partner. You can send them a pdf copy of their JIB( bill) or you can send an EDI file to them. This is typically uploaded to jiblink from where the partner downloads the bill. You can also send them a paper bill as well as en eloctronic bill by checking both the options.
Once you enter all the info in here, you can save and this customer is created as a partner and ready for use in a JV.
For additional info, read this post to learn JVA