Professional Documents
Culture Documents
JVA - Practice Set
JVA - Practice Set
We have to drill the oil under the sea, it is very tough task, hence they
team up like BP,SHELL & Exxon
I am going to be a operator and partners. I will sent bill every month to you.
Chesapeake says partnership with guys, I will send you inovices everymonth
Joint Operating Agreement - Highest Level
Venture starts A 1/1/2016
Chesapeak share is 70% BP share is 30%
Joint Operating Agreement - Highest Level ( Partners are nothing Equity Group
Joint Venture
Cost Object is assigned to Joint Venture - JV is linked equity group
Master Data
There is program is called Cutback it takes the all information bills the BP 30%
70% to Chesapeake
Create an operator
Set up Vendor
Set up Customer - Chesapeake Operator
Business function
Recovery Indictors
Billing Indicators Corporate data Billing Basis
JVA - Globle Data - Table - T8JZA Billing Basis - Expenses based
Dr Expenses 100
Cr GR/IR 100
70/30 Share
Cash Based
Dr Vendor 100
Cr Vendor 100
70/30 Share
Billing Basis Billing Basis
Billing Basis - Expenses based (1)
Dr Expenses 100 The Billing basis determines the point within the procurement cycle at which expenditu
Cr GR/IR 100
70/30 Share 1) Expenditure based: where expenditure can be billed as soon as goods
or services are received.
Invoice Based Billing (2)
Dr GR/IR 100 Cutback 30% 2) Invoice based: where expenditure can be billed once the operator
Cr Vendor 100 has received a vendor invoice for goods or services.
70/30 Share
3) Cash Based: where expenditure on goods and services can only be
Cash Based billed once payment has been made.
Dr Vendor 100
Cr Vendor 100
70/30 Share
m
e procurement cycle at which expenditure incurred against Joint Venture objects can be 'Cutback' and billed by the JOA operator to the other partners. The
Recovery Indicator are assigned to a cost object ( cost center, internal order
WBS element or GL Account or manual enter it. )
BI - Billable