Cash Calls 2e235i
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SAP t Venture ing - JVA 1- to configure the JVA functionality:
Cash Calls Purpose Cash calls are requests for payment for anticipated future capital and operating expenditures, sent by t venture operators to non-operating partners. Most t operating agreements (JOAs) include a provision that allows the operator to issue cash calls to non-operating partners. When the company running SAP t Venture ing (JVA) operates a venture, that company issues operated cash calls to its non-operating partners. When the company running SAP JVA is a non-operating partner in a venture, that company receives non-operated cash calls from the operator of the venture. Operated Cash Calls Operated cash calls are requests to the non-operating partners of t ventures for payment of expenses before they are incurred. The transactions are posted as two equal and opposite open items to a partner . The items are posted with two different Special G/L Entry Indicators ( SEI). Although the items update the same partner , they update different general ledger s which are identified via the SEI. The open item is cleared when cash is received from the partner. An operator can also post a cash call to itself. The entries produced by this type of cash call are posted as memo entries (representing both cash requested and cash received) directly to the billing ledger. The cash received is posted on the assumption that an appropriate transfer will be made from the operator bank to the t venture bank. Non-Operated Cash Calls Non-operated cash calls are requests for payment of prospective expenses received from an operator of a venture in which the company running SAP JVA is a non-operating partner. The transactions are posted as two open items to an operator vendor . Like operated cash calls, the items are posted with two different SEIs, which update the same partner , but different general ledger s. One open item is cleared with a cash payment to the operator. The other item is cleared manually in the non-operating company’s system with actual expenditures received in a non-operated bill from the operator. Reclassification Cash calls are often issued by the operator and paid by partners several months before expenditures are incurred. When this occurs, a reclassification process takes place. Reclassification is an SAP JVA process that has the following two major functions: ● It creates an ing record of cash call payments in the month when they are received ● It applies cash call payments in the month when expenditures are incurred The reclassification process accomplishes these two tasks by connecting the ing entries related to the steps in the cash call process to two time values: ● Billing month ( the month the expense appears on the bill to the customer)
● Operations month (the month the payment is matched against the expenditure) By using the billing and operations month, the SAP JVA reclassification process identifies the cash call payments that should be included in the partner’s current month bill.
Process Flow A typical cash call transaction proceeds through the following sequence of steps: 1. A cash call is issued. 2. A cash call payment is posted. 3. An expense for which the cash call was issued is then posted. 4. The cash call is reclassified for clearing. Cash Call Transactions Occur in SAP JVA and FI Not all cash call steps are executed within SAP JVA itself. Some steps are executed within SAP JVA, and the results are posted to standard SAP components through FI. Conversely, other steps are executed within FI, and the results are transferred to SAP JVA for further processing. FI and SAP JVA documents are produced as a result of each transaction. The following table indicates the major steps in the sequence of processing cash calls. Processes Executed in JVA or FI Process
JVA
Issue cash call request
X
FI
Post cash call payment
X
Post expense
X
Reclassify cash call
X
Methods of Posting Cash Calls Cash calls can be posted net or gross. Net cash calls are requests made to a single partner. Gross cash calls are requests made to all partners in an equity group. In addition, cash calls can be posted by venture or by project. Possible Cash Call Options Type of Cash Call
Operated
Non-operated
Venture / Net
by venture for a single partner
by venture or equity group for various currencies
Venture / Gross
by venture for all partners in an equity group
Project / Net
by project for a single partner
Project / Gross
by project for all partners in an equity group
by project for various currencies
Cash Call Reclassification: Splitting by Billing and Operational Month You can clear multiple cash calls issued in different months (with different billing months) against expenditures in the same operational month through a single reclassification posting. You can also clear multiple cash calls, intended to be matched against expenditures in different months, (cash calls with different operational months) within the same operational month. The operational month is stored in the XREF1 and the billing month in the XREF2 field of the original cash call document, as well as in the final clearing document posted by the reclassification process.
When you select multiple cash calls with different operational or billing months for inclusion in a single execution of the reclassification process, the cash call clearing document posted by that process can be split according to operational and billing months. This handling may be selected through FI configuration. The setting is independent of company client, so it applies to the entire SAP system. To make this setting, follow this menu path in the IMG: 1. On the Display structure menu, choose Financial ing → General Ledger ing → Business Transactions → Open Item Clearing. 2. Select Define clearing rules. On the FI Clearing Rules table, enter the name and description of the new clearing rule to be used to split cash call reclassification documents by billing and operational months. 3. Select the radio button Clearing rule fields. On the Definition of FI Clearing Rules table, enter the item numbers and the field names by which the documents controlled by this rule will be sorted (XREF1 for operational month and XREF2 for billing month). 4. After you define the new clearing rule, return to the Open Item Clearing heading on the IMG and select Assign clearing rules to types. On the Maintenance View for Asg FI Clearing Rules screen, enter a D for customer s in the AcTyp field and the name of the clearing rule that will ensure that reclassification documents are split by operational and billing months in the Clearing rule field. Posting Cash Calls to Intercompany Partners You can send cash calls from one company that uses SAP to another company that uses SAP within the same client. Both companies must be configured for SAP JVA to enable this process. Batch and Online Processing Cash calls can be submitted online or batch. From the online screens, you can enter the venture or project cash call information and immediately post the cash call. Alternatively, you can hold the online information in a batch file for processing later. Cash Call Direct Print Cash call direct print functions within the cash call transactions allow you to create a separate hardcopy output for cash call requests.
Example Partner ABC and the Operator agree to construct a building. Two months before the project starts, the operator issues a cash call to Partner ABC on the March bill for Partner ABC's portion of the project expenses expected in May. March is the Billing Month when the cash call appears on the bill. May is the Operations Month when the actual expenditures will be incurred. Partner ABC pays the operator for the cash call in April. In May, the building is completed and actual expenditures are incurred. The cash call payment is applied against the actual expenditures incurred in May. When a cash call is issued, identifiers for the billing and operational month of the posting are stored in the SAP JVA billing ledger (JVTO2). However, the values for the billing and operational month are not stored in the SAP JVA ledger. Instead, a value that reflects the delta between the billing or operational month and the posting month of the cash call is stored in the ledger. If a cash call is posted in 2/02 with a billing month of 6/02 and an operational month of 12/02, the values stored for billing month (BiM) and operational month (POM) would be calculated as follows: BiM = 4 (6/02 - 2/02) and POM = 10 (12/02 - 2/02). The delta values (representing the difference between the billing month and the posting month on the one hand, and the operational month and the posting month on the other), rather than the values for the months themselves, are stored in JVTO2.
JV Billing Cutback Overhead Cost Calculation WBS and Project System Partner Netting Equity Adjustment Asset and Material Transfers Controlling Net Profit and Carried Interest Profit Partners Non-Operated Functions Inter-Company Transactions Balanced Books by Venture Bank Switching Audit Reports and JADE 2- to develop the interfaces and communication 3- to set the ledgers
4- to customize the report details 5- to report by block and in different levels 6- to process royalties, taxes, and equities Due to the complexity of the JVA setup, SafSoft will assist your company on using the standard JVA or a customized JVA solution SafSoft Consulting http://safsoft.com/en Powered by Joomla! Generated: 23 July, 2013, 13:04 according to your company business needs. SafSoft can integrate your company JVA module with other SAP modules including Assets, Controlling, Materials, Services, Contracts, Customer and Vendor Master data, Logistics, and Production Revenue ing. We can assist you, do an assessment of your implemented JVA solution to fine tuning it to meet your business needs and to produce the required reports in short lead time.
SAP designed SAP JVA for t venture partnerships. SAP JVA is a component of the mySAP Oil & Gas industry solution. SAP JVA uses functions from the components Financial ing (SAP FI), Controlling (SAP CO), Asset Management (SAP AM), Materials Management (SAP MM), Plant Maintenance (SAP PM), and Project System (SAP PS). SAP JVA includes the following features and benefits:
u2022 t Venture Data Capture captures and codes all transactions, including vendor invoices, inventory movements and allocations, with an option to produce balanced venture books. u2022 Cash Calls request cash payments from partners for future venture operations. u2022 Partner Billing calculates partner shares for venture expenses and revenue, monitors partner cash calls and receivables, and produces a partner bill containing all relevant information. u2022 Overhead calculates different types of overhead as agreed in the t Operating Agreement (JOA). u2022 Allocations distribute billable and non-billable costs (such as facility, payroll, and related expenses) to cost centers or projects throughout the allocation cycle. u2022 Multi-Currency Processing s the multi-currency requirements of typical venture activities.
Read the document "t venture ing with mySapOil and gas " I think it will help you in deciding ... besides that why dont you refer the Release notes .. these will surely guide you ...
FI/CO Intercompany Reconciliation in SAP JVA Use SAP FI postings are recorded by company, business area, and functional area. SAP CO postings occur within a CO area. Multiple SAP FI companies and business areas may be included in a single CO area. Also, SAP CO postings are assigned to cost objects, which are themselves assigned to SAP FI companies and business areas. Usually during posting in an ing period, expenses are posted from one cost object to another. For example, when SAP CO allocations are made from a cost center in one SAP FI company or business area to a cost center in a different SAP FI company or business area, this creates a different balance by company, business area, or functional area in SAP CO than in SAP FI. The FI/CO Reconciliation Ledger process is executed in SAP CO during period end processing to reconcile SAP CO and SAP FI at the company, business area, and functional area levels. Essentially, this process posts the results of SAP CO postings back into SAP FI at the appropriate level so that SAP FI and SAP CO agree.
Default Handling of FI/CO Reconciliation in SAP JVA
The SAP JVA ledger is organized by company (like the SAP FI company) and t venture. Therefore, SAP JVA must maintain agreement with SAP FI at the company and levels. Since SAP CO postings are also entered in SAP JVA, the default handling in SAP JVA of intercompany SAP CO postings causes a lack of synchronization at the company level between SAP FI and SAP JVA just as SAP CO and SAP FI are at the end of the period. With default SAP JVA configuration settings for SAP CO processing, the results of the FI/CO Reconciliation Ledger process are not posted in SAP JVA, because these postings would produce duplicate entries of the original SAP CO postings. As a result, after the FI/CO Reconciliation Ledger process, SAP JVA is not synchronized with SAP FI at the company level. Moreover, if BBbyV is active for the SAP JVA company, there will be a balance in SAP JVA for the company in the interventure suspense (I/S) .
SAP JVA Configuration Settings for FI/CO Intercompany Reconciliation Two tables in JVA configuration allow you to customize SAP CO processing to address the following requirements:
Ensure period-end synchronization between SAP JVA and SAP FI at the company level Eliminate the balance on the I/S created by intercompany SAP CO postings
Enable posting of the results of FI/CO Reconciliation
Cash Calls Purpose Cash calls are requests for payment for anticipated future capital and operating expenditures, sent by t venture operators to non-operating partners. Most t operating agreements (JOAs) include a provision that allows the operator to issue cash calls to non-operating partners. When the company running SAP t Venture ing (JVA) operates a venture, that company issues operated cash calls to its non-operating partners. When the company running SAP JVA is a non-operating partner in a venture, that company receives non-operated cash calls from the operator of the venture. Operated Cash Calls Operated cash calls are requests to the non-operating partners of t ventures for payment of expenses before they are incurred. The transactions are posted as two equal and opposite open items to a partner . The items are posted with two different Special G/L Entry Indicators ( SEI). Although the items update the same partner , they update different general ledger s which are identified via the SEI. The open item is cleared when cash is received from the partner. An operator can also post a cash call to itself. The entries produced by this type of cash call are posted as memo entries (representing both cash requested and cash received) directly to the billing ledger. The cash received is posted on the assumption that an appropriate transfer will be made from the operator bank to the t venture bank. Non-Operated Cash Calls Non-operated cash calls are requests for payment of prospective expenses received from an operator of a venture in which the company running SAP JVA is a non-operating partner. The transactions are posted as two open items to an operator vendor . Like operated cash calls, the items are posted with two different SEIs, which update the same partner , but different general ledger s. One open item is cleared with a cash payment to the operator. The other item is cleared manually in the non-operating company’s system with actual expenditures received in a non-operated bill from the operator. Reclassification Cash calls are often issued by the operator and paid by partners several months before expenditures are incurred. When this occurs, a reclassification process takes place. Reclassification is an SAP JVA process that has the following two major functions: ● It creates an ing record of cash call payments in the month when they are received ● It applies cash call payments in the month when expenditures are incurred The reclassification process accomplishes these two tasks by connecting the ing entries related to the steps in the cash call process to two time values: ● Billing month ( the month the expense appears on the bill to the customer)
● Operations month (the month the payment is matched against the expenditure) By using the billing and operations month, the SAP JVA reclassification process identifies the cash call payments that should be included in the partner’s current month bill.
Process Flow A typical cash call transaction proceeds through the following sequence of steps: 1. A cash call is issued. 2. A cash call payment is posted. 3. An expense for which the cash call was issued is then posted. 4. The cash call is reclassified for clearing. Cash Call Transactions Occur in SAP JVA and FI Not all cash call steps are executed within SAP JVA itself. Some steps are executed within SAP JVA, and the results are posted to standard SAP components through FI. Conversely, other steps are executed within FI, and the results are transferred to SAP JVA for further processing. FI and SAP JVA documents are produced as a result of each transaction. The following table indicates the major steps in the sequence of processing cash calls. Processes Executed in JVA or FI Process
JVA
Issue cash call request
X
FI
Post cash call payment
X
Post expense
X
Reclassify cash call
X
Methods of Posting Cash Calls Cash calls can be posted net or gross. Net cash calls are requests made to a single partner. Gross cash calls are requests made to all partners in an equity group. In addition, cash calls can be posted by venture or by project. Possible Cash Call Options Type of Cash Call
Operated
Non-operated
Venture / Net
by venture for a single partner
by venture or equity group for various currencies
Venture / Gross
by venture for all partners in an equity group
Project / Net
by project for a single partner
Project / Gross
by project for all partners in an equity group
by project for various currencies
Cash Call Reclassification: Splitting by Billing and Operational Month You can clear multiple cash calls issued in different months (with different billing months) against expenditures in the same operational month through a single reclassification posting. You can also clear multiple cash calls, intended to be matched against expenditures in different months, (cash calls with different operational months) within the same operational month. The operational month is stored in the XREF1 and the billing month in the XREF2 field of the original cash call document, as well as in the final clearing document posted by the reclassification process.
When you select multiple cash calls with different operational or billing months for inclusion in a single execution of the reclassification process, the cash call clearing document posted by that process can be split according to operational and billing months. This handling may be selected through FI configuration. The setting is independent of company client, so it applies to the entire SAP system. To make this setting, follow this menu path in the IMG: 1. On the Display structure menu, choose Financial ing → General Ledger ing → Business Transactions → Open Item Clearing. 2. Select Define clearing rules. On the FI Clearing Rules table, enter the name and description of the new clearing rule to be used to split cash call reclassification documents by billing and operational months. 3. Select the radio button Clearing rule fields. On the Definition of FI Clearing Rules table, enter the item numbers and the field names by which the documents controlled by this rule will be sorted (XREF1 for operational month and XREF2 for billing month). 4. After you define the new clearing rule, return to the Open Item Clearing heading on the IMG and select Assign clearing rules to types. On the Maintenance View for Asg FI Clearing Rules screen, enter a D for customer s in the AcTyp field and the name of the clearing rule that will ensure that reclassification documents are split by operational and billing months in the Clearing rule field. Posting Cash Calls to Intercompany Partners You can send cash calls from one company that uses SAP to another company that uses SAP within the same client. Both companies must be configured for SAP JVA to enable this process. Batch and Online Processing Cash calls can be submitted online or batch. From the online screens, you can enter the venture or project cash call information and immediately post the cash call. Alternatively, you can hold the online information in a batch file for processing later. Cash Call Direct Print Cash call direct print functions within the cash call transactions allow you to create a separate hardcopy output for cash call requests.
Example Partner ABC and the Operator agree to construct a building. Two months before the project starts, the operator issues a cash call to Partner ABC on the March bill for Partner ABC's portion of the project expenses expected in May. March is the Billing Month when the cash call appears on the bill. May is the Operations Month when the actual expenditures will be incurred. Partner ABC pays the operator for the cash call in April. In May, the building is completed and actual expenditures are incurred. The cash call payment is applied against the actual expenditures incurred in May. When a cash call is issued, identifiers for the billing and operational month of the posting are stored in the SAP JVA billing ledger (JVTO2). However, the values for the billing and operational month are not stored in the SAP JVA ledger. Instead, a value that reflects the delta between the billing or operational month and the posting month of the cash call is stored in the ledger. If a cash call is posted in 2/02 with a billing month of 6/02 and an operational month of 12/02, the values stored for billing month (BiM) and operational month (POM) would be calculated as follows: BiM = 4 (6/02 - 2/02) and POM = 10 (12/02 - 2/02). The delta values (representing the difference between the billing month and the posting month on the one hand, and the operational month and the posting month on the other), rather than the values for the months themselves, are stored in JVTO2.
JV Billing Cutback Overhead Cost Calculation WBS and Project System Partner Netting Equity Adjustment Asset and Material Transfers Controlling Net Profit and Carried Interest Profit Partners Non-Operated Functions Inter-Company Transactions Balanced Books by Venture Bank Switching Audit Reports and JADE 2- to develop the interfaces and communication 3- to set the ledgers
4- to customize the report details 5- to report by block and in different levels 6- to process royalties, taxes, and equities Due to the complexity of the JVA setup, SafSoft will assist your company on using the standard JVA or a customized JVA solution SafSoft Consulting http://safsoft.com/en Powered by Joomla! Generated: 23 July, 2013, 13:04 according to your company business needs. SafSoft can integrate your company JVA module with other SAP modules including Assets, Controlling, Materials, Services, Contracts, Customer and Vendor Master data, Logistics, and Production Revenue ing. We can assist you, do an assessment of your implemented JVA solution to fine tuning it to meet your business needs and to produce the required reports in short lead time.
SAP designed SAP JVA for t venture partnerships. SAP JVA is a component of the mySAP Oil & Gas industry solution. SAP JVA uses functions from the components Financial ing (SAP FI), Controlling (SAP CO), Asset Management (SAP AM), Materials Management (SAP MM), Plant Maintenance (SAP PM), and Project System (SAP PS). SAP JVA includes the following features and benefits:
u2022 t Venture Data Capture captures and codes all transactions, including vendor invoices, inventory movements and allocations, with an option to produce balanced venture books. u2022 Cash Calls request cash payments from partners for future venture operations. u2022 Partner Billing calculates partner shares for venture expenses and revenue, monitors partner cash calls and receivables, and produces a partner bill containing all relevant information. u2022 Overhead calculates different types of overhead as agreed in the t Operating Agreement (JOA). u2022 Allocations distribute billable and non-billable costs (such as facility, payroll, and related expenses) to cost centers or projects throughout the allocation cycle. u2022 Multi-Currency Processing s the multi-currency requirements of typical venture activities.
Read the document "t venture ing with mySapOil and gas " I think it will help you in deciding ... besides that why dont you refer the Release notes .. these will surely guide you ...
FI/CO Intercompany Reconciliation in SAP JVA Use SAP FI postings are recorded by company, business area, and functional area. SAP CO postings occur within a CO area. Multiple SAP FI companies and business areas may be included in a single CO area. Also, SAP CO postings are assigned to cost objects, which are themselves assigned to SAP FI companies and business areas. Usually during posting in an ing period, expenses are posted from one cost object to another. For example, when SAP CO allocations are made from a cost center in one SAP FI company or business area to a cost center in a different SAP FI company or business area, this creates a different balance by company, business area, or functional area in SAP CO than in SAP FI. The FI/CO Reconciliation Ledger process is executed in SAP CO during period end processing to reconcile SAP CO and SAP FI at the company, business area, and functional area levels. Essentially, this process posts the results of SAP CO postings back into SAP FI at the appropriate level so that SAP FI and SAP CO agree.
Default Handling of FI/CO Reconciliation in SAP JVA
The SAP JVA ledger is organized by company (like the SAP FI company) and t venture. Therefore, SAP JVA must maintain agreement with SAP FI at the company and levels. Since SAP CO postings are also entered in SAP JVA, the default handling in SAP JVA of intercompany SAP CO postings causes a lack of synchronization at the company level between SAP FI and SAP JVA just as SAP CO and SAP FI are at the end of the period. With default SAP JVA configuration settings for SAP CO processing, the results of the FI/CO Reconciliation Ledger process are not posted in SAP JVA, because these postings would produce duplicate entries of the original SAP CO postings. As a result, after the FI/CO Reconciliation Ledger process, SAP JVA is not synchronized with SAP FI at the company level. Moreover, if BBbyV is active for the SAP JVA company, there will be a balance in SAP JVA for the company in the interventure suspense (I/S) .
SAP JVA Configuration Settings for FI/CO Intercompany Reconciliation Two tables in JVA configuration allow you to customize SAP CO processing to address the following requirements:
Ensure period-end synchronization between SAP JVA and SAP FI at the company level Eliminate the balance on the I/S created by intercompany SAP CO postings
Enable posting of the results of FI/CO Reconciliation
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