SAP Central Finance & Joint Venture Accounting (JVA)

[nitin_gupta10]

Introduction to Joint Venture Accounting (JVA)

Several Customers in the Oil & Gas business generally use a combination of mature SAP systems or non-SAP systems to manage their ventures in the different company codes and regions. Companies typically form joint venture partnerships to minimize risks involved in capital intensive operations that require a long payback period. A joint venture partnership consists of an operating partner (operator) and one or more non-operating partners who combine monetary or personnel resources to share a project’s expenses and revenues. The operator manages the venture, arranges venture activities, and maintains accounting records. The operator remits venture expenses, collects revenues, and distributes these to the partners, according to their ownership shares.

Scenarios with source system

• Scenario 1: SAP ECC (as of EhP6) classic G/L + classic Joint Venture Accounting


• Scenario 2: SAP ECC (as of EhP6) New G/L with G/L splitter + New G/L-integrated classic Joint Venture


• Scenario 3: S/4HANA (as of version 101) G/L splitter on + New G/L-integrated classic Joint Venture

SAP Central Finance supports JVA integration and have below core features:

• Integration of the Joint Venture Accounting split results in the FI document replication.


• Replication functionality for the internal Joint Venture Accounting documents posted by several Joint Venture Accounting month-end processes.


• Replication functionality for the main Joint Venture Accounting master data (joint operating agreements, ventures, equity groups, venture partners).


• Functionality for initial load of historic data (documents and master data).


• Reports for data comparison between source systems and Central Finance system (documents and master data).

Restrictions

• The network cost object is not supported in Central Finance systems. Therefore, any FI or CO documents with networks require special handling in the Central Finance system via enhancement


• Only the currencies defined in Financial Accounting are supported. If an extra currency is defined for the Joint Venture Accounting ledger that is not defined in FI for the affected company code, the amounts in this currency are not transferred to the Central Finance system.

Activation

• Refer SAP Note 2941357 to activate the integration between Joint Venture Accounting and Central Finance

Master Data Initial Load

To ensure accurate document replication and correct reporting of your postings, it is necessary to carry out an initial load of master data. However before master data I would like to list out the core JVA configuration which is needs in S/4HANA system

Now we will talk about the master data. This process can be carried out by using transaction DRFOUT in the source system. This transaction uses DRF framework to transmit the data into the target system and hand it over to the target AIF framework.

Sequence has to be followed and for steps 2-5 initial load has to be activated for relevant company codes by maintaining database view V_JVA_MDR_COA via transaction SM30

To maintain cost object replication rules, in this database view, enter following data:

• Business system


• Company Code


• Indicator: X = ignore cost overhead assignments

Company Code is an optional field and can be empty

Here are the list of fields which are not replicated during step 2-5

Data Mappings

For Joint Venture Accounting, the following master data needs to be mapped:

• Company code


• Equity group


• Joint operating agreement


• Venture


• WBS elements


• Cost Centre

Initial Load of Transaction data

Once master data is loaded the next step is to complete the Initial Load of transaction data using transaction GJCFIL. For the integration of Joint Venture Accounting with Central Finance, the initial load and replication of documents refers to internal documents of Joint Venture Accounting. Internal documents for Joint Venture Accounting, such as equity change, equity adjustment, suspense, un-suspense, farm in/out, and cutback documents are replicated during the initial load.

Note - The balances transfer from sender systems is not yet supported for the initial load.

Reconciliation for Replicated transaction data

Following reports are available in standard SAP for reconciliation of replicated data

Reconciliation for Replicated master data

The comparison reports evaluate if all master data have been replicated correctly from the source system to the Central Finance system

do share your experiences with cFIN & JVA and i hope you like this.