JVA Operated Cash call- GJ01/GJ02-SAPSHARKS

Cash Calls

Cash Calls are requests from joint venture operating partners to non-operating partners requesting payment for anticipated future capital and operating expenditures.  Posting method CCIN allows the operator to issue cash calls to non-operating partners.  Operated Cash calls-When the company running JVA operates a venture, that company issues operated cash calls to its non-operating partners.  Non-Operated Cash calls-When the company running JVA is a non-operating partner in a venture, the company receives non-operated cash calls from the operator of the venture.

Types of Cash calls

Cash calls can be posted into SAP either gross to all partners or net to a specific partner. For GROSS cash calls, the program uses the active equity group to calculate each partner's share of the cash call posting. All cash call postings make entries directly on the partner's A/R account; therefore, these entries do not go through cutback.

Operations  month and Billing month

Operations month: The period in which the actual expenditure happens. This is the period in which the actual cash call is matched against the expenditure.  E.g. If an operator issues a cash call in month 4, for expenses that it expects to incur in month 5, the operations month is month 5. Billing month- This is the month in which the cash call is raised.   Now that we know the terminology let's do Net cash call where we are cash calling a specific partner Enter the tcode GJ01 and enter the relevant info

 

1- Company code -The company code for which the cash call is being issued 2- Partner - The partner to whom the cash call is being issued 3-Effective Date -Date after which cash call is effective. 4- Posting Date -The financial posting date in the system.  5- Posting Period- The posting month of the cash call 6-Operations month- The month in which the expenses are expected.  Hit enter and in the next screen, enter the JV and cash call amount. 

 

The cash call was issued for $20 Click on Enter and skip the warnings Note- The Cost Center that is being substituted is being picked up from the sub cost center tab on the JV master.

 

Click on Enter and see the document that is posted.

 

The cash call posts to special G/L indicators K and L which are mapped to different recon accounts.  The billing indicators for these postings are 1 and 24(To get more info on what are billing indicators, click here)

 

The operations month 4 and the billing month 3 are captured on the reference key 1 and 2. 

 

T diagram of our posting

 

Step 2 is to get the payment for the cash call we made.  We issued a cash call for $20, and we are receiving 20$ from the partner. Enter the tcode F-28

 

Enter the posting details

 

Double click on the line with posting key 0A and ensure that the not assigned amount is 0. Click on Save

 

See the document that was posted. 

 

View the document in FB04

 

Check the JV document to see the Billing indicators in GJ97 The billing indicator 2 is populated on the document

 

Updated T diagram

 

The next step is cash call reclassification. In this step, we match the cash calls against the incoming payments. Enter the tcode GJRCN

 

Enter the details for cash call reclassification

 

Click on Execute and you will see the documents to be reclassified. Click on the save icon

 

Click on Yes

 

The status changes to green, red or yellow

 

Click on it to view the messages associated with it. You can view the document number that was posted

 

The cost center is being picked up from the JV master

 

View the details of the document in FB03/GJ97

 

Reference Key 1 has the Suffix RC to tell the system that reclassification has been performed for this document. 

 

The billing indicators for this document are 2 and 3. This can be viewed in GJ97

 

(Updated T diagram) Billing indicator 2 balances to 0 after the reclassification.

 

The next step is to run cutback.  Below is the cutback document that was posted

 

The billing indicator for this is 6. The partner's share is $10, but he paid us 20, so we went over by $10 Updated t diagram

 

The next step is to run partner netting.  What is the need for partner netting? 1-Cash calls keep accumulating 2-Difficulty in deriving the over and under call for the period. FBl5N before running partner netting. 

 

Compare the above screen after we run partner netting. Run tcode GJPN

 

Enter details for the screen below

 

The next screen will show which documents can be netted

 

Once this looks good, go back to the previous screen and check the boxes for a real run

 

Once you execute it, you will see a batch input session being created. 

 

Enter that session in SM35 and execute it

 

 

 

After execution, you can view the document it posted 

 

Run FBL5N again, and you will see that the open items have been reduced. The over call is not paid this month and is matched against next month's postings. Final view of the T diagram

 

 

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