A joint operating agreement represents the physical contract signed by all the partners. It defines the parties, working interest etc.
We create a Joint operating agreement in SAP using the menu path below or via the tcode GJAA.
Enter the company code for which you want to create the joint operating agreement and then click on Create.
The screen changes where you will need to enter the JOA class that this JOA will be created under, for e.g. enter OP for operated venture(depends on your configuration)
Enter the Description for the Joint operating agreement, the description for the equity group and the operated share. This is the share that we( the operator) is responsible for. E.g. if there was a $1000 expense for drilling, we would be responsible for $700 and we would bill the remaining $300 to our partners.
To define the partner(s) in the JOA, double click on the operated share line
The screen below appears.
Enter the partner(s) and their equity share(s) and click on the green arrow.
Click on save after that and the JOA will be created.
There are other tabs that are regularly used in a JOA. To go back into the JOA use the tcode GJA2 or you can use GJAA and click on the change icon.
Once a JOA is created, you can setup a JV.