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Former Member
Jun 11, 2011 at 03:43 PM

Upstream Accounting: JVA Overhead Costs (PCO)


Hi all,

Iu2019m working in a Project where my client belongs to Upstream Industry.

This client has a setup where we have 2 company codes in a European country that are the owners of 3 licences but itu2019s their African branch that operates those licenses.

We work with JVA and PSA and the African branch operates the 3 Joint Ventures.

The European entities were settled has partners on those ventures so, at the month end, after the cutback the P/L accounts of the African branch have the amount down to zero (since all will be billable and so all the costs will be transferred to the partners).

Iu2019m quit new to JVA and my client has a requirement regarding the Overhead Costs (PCO).

The requirement is that they need, for each JV two calculations (2 operator fee calculations running in SAP)

One for the normal Operators overhead which will be a debit in JV books and a credit in the operators books (ie European entity).

The other calculation will have both legs in the JV books. A debit to a BR WBS and a credit to a BN WBS.

Can you guys help me on understanding how the overhead costs calculation process ? The postings that it generates in FI and how it is customized ?

Is this requirement possible with standard customization ?

I think that the PCO just considers the billable part and not the recover part..but I donu2019t know this process very well 😔

Help will be truly appreciated.

Many thanks in advance.