GJEC is used for equity adjustments prior to cutback. E.g., if there was a $100 charge to equity group 1 in January 2018 and we later created equity group 2 in which there are new partners or perhaps the working interest changed. If the corrections are after cutback has been run, then refer to GJ19.
The Cost of $100 was initially booked to equity group 1, but it should have been posted to equity group 2.
GJEC is run to move these costs to the right equity group so that these costs are cutback to the right partners and uses the correct percentage.
This tcode is for current month charges. This needs to be run before cutback.
E.g., Equity group 1 has exon as the partner with a 30% share.
And the partnership changed and a new partner was added. The invoices were booked to the original equity group which had a 70/30 share, but these should have been posted to equity group 2 with a 60/25/15 share.
The invoice date determines which equity group a posting is booked against.
E.g., in this case, the posting was made on 3/5
and it posted to equity group 1
Postings on that date should have been posted to Equity group 2. The equity group 2 was setup in SAP after the initial posting. Hence it posted to equity group 1.
If you ran cutback before running GJEC( running it in the test run), it would use the wrong percentage and would only bill the partners in equity group 1.
The output screen shows us that it only posted to equity group 1 which shows us that this is incorrect.
Click on the print spool to see which partners it will post to.
It is only posting to exon which had a 30% share. We know that this should have posted using a 60/25/15% share.
Run current month equity change using the menu path below or through tcode GJEC.
Enter the following
company code for which you are running equity change.
Joint venture- Enter this if you are restricting it to one venture. Usually, you would leave this blank as you would need to run equity change for the entire company code.
Fiscal year and posting period- Enter the fiscal year and posting period. Leave the test run on and click on execute.
There should be no errors. Click on view spool.
At the bottom of your screen, you will see the original entry and its reversal.
And a new entry which will book costs to the new equity group.
you can run GJ97N and view those documents.
and you will get a better picture of what financial impact running this tcode had.
Once GJEC is run, the costs should now move to the new equity group.
The next step after this is to run cutback.
Run cutback using tcode GJCB.
Enter the company code, period and venture for which you want to run cutback.
Keep the test run on.
The expected result is that cutback will now use the Working interest specified in the new equity group.
When you click on execute, you will see that the equity group that the system posts to now are equity group 2 i.e. the new equity group and not the initial equity group 1.
This shows that GJEC did its job.
Remove the test run and execute the tcode again.
Click on the spool list and you can see that the $100 charge was distributed in the 60/25/15 Working interest specified in the new equity group.