Joint Venture Accounting

Introduction

SAP for Oil & Gas Upstream

In the capital-intensive Upstream Oil and Gas Industry, operators
need the tools which enable them to make informed decisions in the
effective management of their operations.
SAP for Oil & Gas offers a comprehensive solution to meet these
demanding challenges, providing a premier enterprise solution that
has been enhanced and refined for upstream businesses.
The SAP for Oil & Gas Upstream solution
components are specifically designed to meet the
demanding needs of upstream businesses,
providing integrated processes and tools so you
can manage your business better.

SAP AG 2003

SAP for Oil & Gas - Upstream Solution Components

SAP Upstream includes the following industry-specific solution
components:
Production & Revenue Accounting
SAP PRA

Production Sharing Accounting

SAP PSA

Joint Venture Accounting

SAP JVA
Gross
Operating
Exp / Rev
100

Production Sharing
Agreement

Cost Object
Venture A

Definitions

Venture A
ET1

Cutback

EG2

Company Code
50 %
Partner B
25 %
Partner D
25 %

Net

Operating
Exp / Rev
50

AR / AP

AR / AP

Partner B
25

Partner D
25

Offshore Logistics Management

SAP OLM
Shipping &
Container
Management

Purchase
Request
Purchase
Order
Container

Material
Request

Material
Holding
Supply Chain
Processing
Material
Tracking
Material
Reservation
Material
Receipt

Goods
Receipt

Outbound
Delivery

Outbound
Shipment

Transport
Request
Goods Receipt
Processing

SAP AG 2003

Transport
Order

Returns
Handling

Material
Issue

Oil & Gas Solution Map

Edition 2003
Strategic Enterprise
Business Analytics
Enterprise Management
Management

Upstream

Supply

Manufacturing

Sales, Service &

Marketing
Service Station &
Convenience Retailing
Enterprise Asset
Management

Business Support

SAP AG 2003

Exploration & Appraisal

Supply Chain
Planning &
Optimization

Business
Intelligence &
Decision Support

Development

Acquire, Trade &

Sell

Production

Exchange &
Throughput
Handling

Manufacturing Planning
Manufacturing Process
& Optimization

Accounting

Scheduling

Employee
Relationship
Management &
Workforce
Analytics
Marketing

Inventory
Management

Batch Manufacturing

Joint Venture
Management

Disposal

Primary
Distribution &
Transport

Blending & Packaging

Secondary
Distribution &
Transportation
Product Quality
Management

Marketing

Contracts, Sales & Pricing

Service

Analytics

Convenience Retailing

Fuels Management

Site & Headquarter

Accounting

Business Analysis &

Reporting

Specify & Design

Procure & Build

Operate & Maintain

Decommission & Dispose

Employee Life-Cycle &

Transaction Management

Procurement

Financial Supply Chain

Management

Environment, Health and

Safety

Oil & Gas Solution Map 2003 (Upstream) - 1

Exploration & Appraisal

Development

Portfolio Risk Analysis

Field Development Concept

Identification

Funding & Budgeting (Partner

Determination) (S12)

Joint Venture Development

(S81)

Project Planning (S8)

Undeveloped Leasehold
Acquisition

Development Drilling

Surveying, Positioning &

Evaluation

Development Logistics (S79,

S8)

Appraisal Drilling & Boundary

Determination

Facility Construction (S8)

Production
Reservoir Modeling
Depletion Planning
Well Servicing
Surface Facilities Maintenance (S8)
Production Management & Reporting
(S79)
Secondary/Tertiary Recovery
Planning and Management
Remote Logistics (S83)
Production/Revenue Accounting (S79)

Marketing
First Purchaser (S79)

Asset Transfer (S12)

Crude, Gas & NGL

Marketing (S79)

Environmental Compliance

Production Sharing Agreement Handling

(S81)
Lease/License Administration (S79)
Reserves Accounting & Reporting
Portfolio Business Performance Analysis
(S79)
Production Sharing Government Contracts
(S82, S81)
Production Sharing Cost Recovery (S82, S81)
Production Sharing Reporting (S82, S81)
Upstream Graphics (S79)
Gas Plant Accounting (S79)
Lease Fuel Valuation Process (S79)
Material Supply Capabilities (S83)
Remote Logistics Goods Receipt Processes
(S83)
Container Management Capabilities (S83)
Remote Logistics Temporary Holding
Processes (S83)
Goods returns Facilities (S83)
Goods Tracking Capabilities (S83)
Interfaces to Data Capture
System (S79)

SAP AG 2003

Disposal

Site Remediation (S8)

Property Marketing & Due
Diligence Preparation (S12)
Plug & Abandon Wells &
Reporting to State

Oil & Gas Solution Map 2003 (Upstream) - 2

Strategic Enterprise
Management

Business Analytics

Business Intelligence &

Decision Support

Accounting

Employee Relationship
Management &
Workforce Analytics

Joint Venture
Management

Stakeholder
Relationship
Management (S11)

Customer Relationship
Analytics (S1, S13)

Flexible Reporting
(S13)

Financial Statements
(S12, S11)

Information
Collaboration (S9)

Assessment &
Distributions (S81)

E-Analytics (S13)

Strategy Management
(S11)

Supply Chain Analytics

(S3, S13)

Decision Automation &

Tracking (S13, S1, S3,
S7, S11, S9, S5)

General Ledger &

Subledgers (S12, S11)

Manager Self-Service
(S9)

Overhead Splitting
(S81)

Performance
Measurement (S11)

Financial Analytics
(S12, S13)

Revenue & Cost

Accounting (S12, S11)

Employee Self-Service
(S10)

Suspense Processing
(S81)

Strategic Planning &

Simulation (S11)

Human Resource
Analytics (S10, S13)

Order & Project

Accounting (S12, S11)

Employee Collaboration
(S9)

Equity Change
Processing (S81)

Business Consolidation
(S11)

Product Lifecycle
Analytics (S7, S13)

Product & Service Cost

Calculation (S12, S11)

Strategic Alignment
(S10)

Cut Back Processing

(S81)

Reporting &
Benchmarking (S10)

Cash Call
Reclassification (S81)

Information
Dissemination &
Sharing (S13, S99)
Performance Monitoring
(S13, S11)
Planning & Simulation
(S11, S13)
Ad hoc Analysis (S13)
Collaborative Decision
Support (S13, S99)
Data Collection &
Integration (S13)
Content Management &
Collaboration (S13,
S99)

Partner Netting (S81)

Joint Asset/Inventory
Management (S81)
JV Partner Auditing
(S81)
Non-operating
Properties (S81)
Equity Adjustment
(S81)

SAP AG 2003

Why SAP JVA?

SAP JVA is the only SAP solution that allows you to track venture
expenditures on a venture by venture and partner by partner basis.
SAP JVA is fully integrated with:
Financial Accounting (SAP FI)
Controlling (SAP CO)
Asset Management (SAP AM)
Materials Management (SAP MM)
Production Planning (SAP PP)
Plant Maintenance (SAP PM)
Project System (SAP PS)
allowing you to capture all joint venture transactions by using
standard SAP functions.
The result is a streamlined workflow and reductions in errors.
SAP AG 2003

Why SAP JVA?

Using proven SAP FI-Special Ledger functionality as its basis, SAP
JVA ensures accurate calculations and reporting of venture activities
on a venture-by-venture basis.
SAP JVA supports joint audit data exchange (JADE) reports, online
and in real time, reducing audit headcount, time, and expense.
SAP JVA ensures full compliance with all standard overhead
methods and calculations (US and international).
SAP JVA provides complete drill down capabilities for reporting all
ventures, all authorization for expenditures (AFEs) tied to JOA's,
overhead analysis, cutback, and billing.

SAP AG 2003

SAP JVA Features and Benefits

Detailed joint venture data capture in real time
Cash calls from partners
Partner billing for venture expenses and revenues
Overhead calculation, based on the Joint Operating Agreement
Allocations of billable and non-billable costs
Multi-currency processing
Farm-in/Farm-out and Equity Changes

SAP AG 2003

JVA Business Objects: Venture

Venture A
EQTYPE 1
Engineering
Design

EQTYPE 2

EQTYPE 3

Construction

Production

2002

33 1/3 B
C
33 1/333 1/3
33 1/3

EG1
A

50 %

25%
D

2003

50 %

25%

Ventures associate
Equity Types and Equity
Groups to define a specific
joint operation or purpose

D
25 %

25 %

EG4

EG2

A
25 %

A
A
75 %

2004
EG3

SAP AG 2003

C
25%

33 1/3 B
C
33 1/3
33 1/3

EG5

25 %

25%
C
25 %

EG6

JVA Ventures and Cost Objects

Venture A

New Processing Plant

EQTYPE 1

Design
Cost centre

EQTYPE 2

EQTYPE 3

Construction

Production

A
33 1/3 B
C
33 1/3

33 1/333 1/3

EG1

Valid

A
50 %

A
33 1/3 B
50 %
25%
3
D

B
25%

25 %

25 %

EG2

EG4
A
25 %

A
A
75 %

B
C

25%

33 1/

33 1/3

EG3

Construction Project

EG5

Venture A

Project

EQTYPE 1
Engineering
Design

EQTYPE 2

EQTYPE 3

Construction

Production

A
33 1/3 B
C
33 1/333 1/3
33 1/3

EG1

Valid
A

50 %

25%

25 %

EG2

75 %

C
25%

EG3

SAP AG 2003

25%
3
D
25 %

EG4
A

A
50 %

A
25 %

A
33 1/3 B
C
33 1/
33 1/3

EG5

D
25 %

B
25%
C
25 %

EG6

D
25 %

25%
C
25 %

EG6

JVA Ventures and Cost Objects

Cost Center

Asset

Internal Order

Plant

Venture
1

Project

Prod Order
PM Order

SAP AG 2003

Joint Venture Coding for Cost Object

Cost
CostObject
Object
Project

Cost centre

Internal Order
Joint Venture
Equity Type
Recovery Indicator
JV Object Type

Plant
Maintenance
Order

Production
Order

Network
Order

JIB/JIBE Class
JIB/JIBE Subclass A

SAP AG 2003

Joint venture coding is derived from Cost Objects in Controlling (CO). Examples include Cost Centers
and Orders.

Each Cost Object includes the following joint venture fields in the master data:
y Joint Venture
y Equity Type
y Recovery Indicator
y Joint Venture Object Type
y JIB/JIBE Class
y JIB/JIBE Sub-Class A

Recovery Indicator
Identifies category of a joint venture transaction

Indicates whether a particular revenue or expense is shared by

venture partners
Used to select data for reporting to venture partners
Used to distinguish between joint and own revenues and
expenditures

Recovery indicator assignment & determination:

FI
User Entry
Document Type
G/L Account &
Cost Element
Cost Object
Default
(Corporate)
SAP AG 2003

Recovery indicators include the following:

y Billable (BI)
y Corporate (CP)
y Non-billable (NB)
y Cutback (CB)

CO

MM

Joint Venture Interface

Joint
JointVenture
VentureDocument
Document

MM

FI

SD

CO

Itm Account Cost Obj. Venture EqG RI

PM
Accounting
Interface

PS

PP

HR
AM

Accounting Document

Amount

Vendor

CC-1

JVI001

A01

BI

- 70.50

Vendor

CC-2

JVI002

A01

BI

- 47.00

Cost 1

CC-1

JVI001

A01

BI

60.00

Cost 2

CC-2

JVI002

A01

BI

40.00

Tax

CC-1

JVI001

A01

BI

10.50

Tax

CC-2

JVI002

A01

BI

7.00

JV Interface

Itm Account Cost Obj. Amount

1
2

Vendor

Cost 1
Cost 2

Tax

CC-1

-117.50
60.00

CC-2

40.00
17.50

FI DATA
GLT0

SAP AG 2003

Special
Ledger
Interface

JV DATA
JVT01

BILLING
JVT02

CUSTOM
DATABASE

Joint Venture Asset Posting - Example

JVA derives venture coding for an asset using the cost
centre entered on the asset master record

Asset Master

Vendor Invoice

JV Document
JV Document

Asset Document

SAP AG 2003

In this example, an invoice is posted for the direct acquisition of a joint venture asset.

The asset is assigned to the cost centre JV00-B in the time-dependent parameters, and this cost centre is
assigned to venture JV1001, so the asset transaction is coded against venture JV1001.

The venture coding is copied from the asset entry to the vendor entry.

Joint Venture Material Posting - Example

JVA derives venture coding for material movements from a special stock cost object that is assigned to
a plant and a valuation type (which is optional) associated with the plant.
Goods Receipt

MM Assignments

Material Document

JV Document
Accounting Doc

JV Document

SAP AG 2003

In this example, a goods receipt document is posted to receive stock worth GBP 500 into plant JA01.

Plant JA01 is assigned to cost centre JV00-S01.

Cost centre JV00-S01 has the following joint venture coding:

y Venture

JV1001

y Equity Type

y Recovery Ind.

BI

The resulting joint venture document is coded with cost centre JV00-S01 and all the joint venture coding
on that cost centre.

Joint Venture Vendor Invoice Posting - Example

The expenses are assigned to the JV partners via the cost centre assigned to the expense line items
Post Vendor Invoice
Cost Centre Assignment

JV Document
Accounting Doc

SAP AG 2003

In this example, a goods receipt document is posted to receive stock worth GBP 500 into plant JA01.

Plant JA01 is assigned to cost centre JV00-S01.

Cost centre JV00-S01 has the following joint venture coding:

y Venture

JV1001

y Equity Type

y Recovery Ind.

BI

The resulting joint venture document is coded with cost centre JV00-S01 and all the joint venture coding
on that cost centre.

Cutback Processing

Gross

The cutback process

allocates JV partners'
expenses or revenues
according to their
working interest ownership.

Net

Operating
Exp / Rev
50

Operating
Exp / Rev
100

Cost Object
RI = Bill
Venture A

Venture A
Company Code
50 %
Partner B
EG2
25 %
ET1

Cutback

Partner D
25 %

AR / AP

AR / AP

Partner B
25

Partner D
25

SAP AG 2003

You use cutback to recover costs from joint venture partners. Cutback posts credits against joint venture
costs and charges these costs to venture partners.

Joint Venture Billing

Payroll
Vendor
Invoices

Orders

Internal
Allocations
Accounts
Receivable

Costs
JV Integration
Integration Mgr.
Mgr.
JV

JV Summary
Ledger

JV Billing creates
various customized
billing documents to
send to your JV
partners
Billing
Statement

Cutback

Exp. Suppl
JV Billing
Ledger
Partner
Adjustments

JV Integration Mgr.

Paid Cash
Calls

SAP AG 2003

Invoice
Cutback
Invoice

Cash Calls
Partner
Payments

Expenditure
Detail
Inv. Suppl
Detail

Cash Call Processing

Equivalent to down payments or pre payments
Can be issued for future months (Reclassification)
Request and cash receipts carried forward to billing process
Integrated with Accounts Receivable and Accounts Payable
Cash Call Request:
Gross to venture/project
Net to venture/project/partner

FI
Document

Partner Shares

Venture

Partner

JV0001

EqG

FCurr Amt

A01

FCurr

Accounts
Rec.- Cash
Calls

NOK

Lcurr Amt

JVGBU1

600.00

46.74

JV5001

300.00

23.37

JV5101

100.00

7.79

Cash Call

Accounts
Rec.- Cash
Calls

Partner C
Partner A
100
600
Accounts
Rec.- Cash
Calls
Partner B
300

SAP AG 2003

Inter-Company Ventures

Affiliated Inter-Company Setup

FI
Document

Cutback

CO
To Affiliate:
INVOICE

Intercompany
Processing

FI
A/P

Cash Call

Cash Calls

Cutback creates A/P entries

to operator on the books of
the affiliated partner as
configured in SAP JVA and
SAP FI

Gross cash calls create A/P

entries on the books of the
affiliated partner, as
defined in configuring SAP
JVA and SAP FI

SAP AG 2003

Inter-company functions allow you to book inter-company entries on the books of the operating partner
and any of its affiliated businesses. By identifying these relationships, through inter-company mappings of
accounts and other relevant objects, SAP JVA automates processing of inter-company joint venture
transactions.

Assessments & Distributions

Cost allocations with SAP Controlling and JVA allow you to:

Configure allocation rules

Substitute the recovery indicator (recovery indicator manipulation)
Allocate secondary costs
Re-run settlement
Transfer costs to operating units

Distribution (through original cost element)

Internal CO only

Allocation (via secondary cost element)

Internal CO only

Unallocated Costs

Cost Object B

Cost Object A

Materials

Cost Object B

Materials

Materials

Internal Labour

40

Internal Labour

100

Internal Labour

External Labour

80

External Labour

200

External Labour

Staff Salaries

Staff Salaries

Staff Salaries

Rent & Rates

Rent & Rates

Rent & Rates

Light & Heating

Light & Heating

Vehicles

Vehicles

Vehicles

Repairs & Servicing

Repairs & Servicing

40%

Light & Heating

Travelling
Hotels

8
12

Repairs & Servicing

Travelling

20

Travelling

Hotels

30

Hotels

Entertaining

Entertaining

Entertaining

Telecoms

Telecoms

Telecoms

Mail & Carriage

Mail & Carriage

Mail & Carriage

Assessment A
Total

SAP AG 2003

140

Total

- 350
0

40%

Assessment A

140

Total

140

Suspense Processing
Suspense functionality supported for:
Partner Suspense
Equity Group Suspense
Project/WBS Element Suspense

Specific costs are not charged to a venture but instead posted to

suspense accounts for the duration (year & period) a project remains
in suspense
Set project in suspense
Project Suspense

Post Costs

JVA Project Suspense

Accounting Document
Accounting Document

Selection
Company Code

GBU1

Venture

JV0001

to JV9999

Itm Account
1
O'head
2
O'head

Cost Obj. Amount

Admin
- 50.00
CC-1
50.00

Itm Account Cost Obj. Venture EqG RI

Amount
1
O'Head Admin
C00001 A01 NB - 50.00
2
O'Head CC-1
JVI001
A01 BI
50.00
3
O'Head CC-1
JVI001
A01 BS
0

Posting
Fiscal Year

2002
12

Period
Posting Date

Options

31.12.2002

Joint Venture Document

Joint Venture Document

Joint Venture Document

Joint Venture Document
Itm Account Cost Obj. Venture EqG RI
Amount
1
O'Head Admin
C00001 A01 NB - 50.00
2
O'Head CC-1
JVI001
A01 BI
50.00

Test run

SAP AG 2003

JVA supports two types of postings to account for changes in venture ownership.

An ownership change may occur (i.e., a new equity group is assigned as owner of the JV) in the current
period after postings have already been assigned to the old equity group but before Cutback has been run
to assign JV/equity group expenses to partners. JVA provides a process that automatically posts a reversal
of the debit to the original equity group and reposts the expense to the new equity group. Running this
process ensures that all postings to the JV for the period will be assigned to the equity group that owns the
venture as of the end of the period. This posting is executed in JVA because the JVA process Cutback
will access this new expense posting and post appropriate portions to the partners in the new equity group
in FI A/R.

An ownership change may be recorded after the close of a previous accounting period. JVA also offers a
process to handle the accounting impact of this change in ownership. In this case, the posting is made in
FI to the affected partners because processing for the period has already been completed.

Overheads
International Parent company overhead
US/Canada Well related allocations

Overhead

Cost
Stepped Rate Rule
GBP 140 000

1%

GBP

2 800

GBP

500

GBP 250 000

2%
GBP 10 000

GBP 10 000

5%
GBP

SAP AG 2003

PCO calculates overhead charges for a venture. These charges are uncalculated benefits received from the
operator and the operator's group of companies (the parent company).

PCO rules are defined for a joint venture company in JVA configuration. They are defined as uplift
percentages to be applied to joint costs, based on thresholds. They are called stepped rate rules.

Stepped rate rules are defined in JVA configuration with a name, timeframe, description, and steps. Each
step has a threshold amount and a rate. The rules are assigned to a JOA on the Overhead tab in the JOA
master.

Partner Netting
Partner netting allows you to clear open items from partner accounts,
leaving a single net open item to carry forward to the next accounting
period or fiscal year.
Partner netting postings are fully customizable
Partner A

Venture V1
J - Cutback
5

K Cash Due

4,400

L Cash Called

4,000

4,000 1
4,000 3

400

4,400 6

Joint Costs

4,000

4,000

A/P

2 11,000

Cash Call
Invoice
Cash Call Payment
Invoice Payment
Joint Venture Cutback
Partner Netting

Bank

11,000 2
4,400 5

1.
2.
3.
4.
5.
6.

4 11,000

11,000 4

Venture V1
Partner Netting
Itm SEI Account.
1

Amount

Partner A

400

J
J

Partner A

-4,400

Partner A

4,000

JV Bank
JV Rec. under CC (J,L)
JV Cash Calls Out (K)
Accounts Payable
Joint Costs

- 7,000
400
0
0
6,600

SAP AG 2003

Partner netting is optional. You use partner netting to clear open items from partner accounts, leaving a
single net open item to carry forward to the next accounting period or fiscal year. Partner netting selects
open items by venture, equity group, partner, and (if active) operations month. These are cleared and
replaced by a single net open item.

Rule, for which open items are netted and how the net item is posted, are defined in posting rules in JVA
configuration.

Partner netting selects open items by venture, equity group, partner, and (if active) operations month.
These are cleared and replaced by a single net open item.
Posting rules define which open items are netted and how the net item is posted.

Equity Changes & Adjustments

Farm-In / Farm-Out
A partner joins or leaves a venture

Redetermination
Partner shares are adjusted to reflect changes in business conditions, such as reserves

Funding Currency Change

A funding currency is added or removed from a venture

Current and prior period equity adjustments handled

SAP AG 2003

Changes in equity occur for the following two main reasons:

y Farm-In / Farm-Out
y A partner joins or leaves a venture
y Redetermination
y Partner shares are adjusted to reflect changes in business conditions, such as reserves

In each of these cases a new equity group is added to the venture to reflect the changes. The old equity
group is retained, so that adjustments to the old shares can be made and history of postings is always
available.

For similar reasons, a change in funding currency is affected by creating a new equity group, with the
funding currency added or removed.

When you create a new equity group, documents, which should have been posted to the new equity group,
may already have been posted to the old equity group. You could reverse all the incorrect postings and
post to the new equity group. However, SAP JVA provides the following two programs to handle these
changes:
y The current period program handles changes before cutback has been run for the old equity group
y The prior period program handles changes after cutback has been run for the old equity group

JV Partner Auditing
Standard JVA Reports:

Gross billable/all by venture/account

Remaining cutback by cost object

Gross billable/all by cost object

Posted suspense overview

Gross billable/partner net by cost object

Gross non-operated by cost object

Gross billable/all by cost object foreign currency

Venture/equity group/billing indicator

Gross billable/partner net for JIB

Partner/billing indicator

Billing Reconciliation Extract:

Reconciliation

Statement
Exp. Suppl
Expenditure
Detail
Inv. Suppl
Detail
Invoice
Ledger 4B and 4D
JVA Billing
Balances
Ledger 4A and 4C
JVA Balances

SAP AG 2003

Audit support allows you to give non-operating partners detailed accounting transaction records in an
electronic format to assist transaction audits. These records are based on operator-defined selection criteria
and can be restricted at multiple levels. JADE requirements are also supported.

Non-Operating Ventures
Online transaction for incoming invoices for non-operated ventures

Input forms, defined in JVA configuration, control the layout of the input screens

Input form includes the SAP coding block information (account, cost object,
asset)

Incoming cash calls are handled with the cash call functions
Non-operated venture processing is fully integrated with SAP
accounts payable functions
Invoice
Da
Tra ta En
nsa try
ctio
n

Cash Call

R/3

Accounts
Payable
Nonoperating
net share

all
h C ction
s
a
C nsa
Tra

SAP AG 2003

Non-operated venture processing facilitates integrated handling of incoming, non-operated invoices

with SAP accounts payable functions. You can record these invoices online. In addition, cash call
features are available for non-operated ventures at the venture and project level.

Cash and Banking

Main Features

Balanced books by venture

Venture specific bank accounts v. central disbursement account

Funding currency defined for each venture

Bank reconciliation and switching

Exchange differences for each venture

SAP AG 2003

Balanced Books By Venture

Balanced books by venture allows you to produce balanced financial statements on a venture by venture
basis. If a document without balancing-entries-by-venture is posted to the joint venture ledger, the data
capture process creates an inter-venture booking, to balance the document by venture.

Bank Account Switching

Bank account switching is common practice outside North America. Large ventures are funded from one
or more dedicated venture bank accounts. Depending on the venture, SAP JVA determines the bank
account from which an invoice is paid. SAP JVA also produces correspondence, notifying the bank to
make all required transactions for the movement of cash between accounts. In addition, bank account
switching produces all required settlement documents, and can calculate all applicable interest.

Other Functions: (mention if time permits):

Asset and Material Transfer

Asset and material transfer capabilities allow you transfer assets and materials to joint venture properties at
the current replacement price, rather than at historical cost.

Net Profit and Carried Interest Profit Partners

Net profit and carried interest profit partners allow you to allocate payments and a net profit interest to a
non-operating partner, and to set up a carried interest arrangement, if necessary.

mySAP JVA Key Benefits

Business Drivers: Maximize Assets, Minimize Overhead
Integration with financials, materials management and asset
management streamlines workflow and greatly reduces errors . . .
traditional packages have multiple charts of accounts, interface files that
are passed between modules via batch processing (weekly, monthly,
annually).
Supports industry-standard JADE (Joint Audit Data Exchange) reports,
on-line and in real time . . . reduces audit headcount, time and expense.
Full compliance with all standard overhead methods and calculations
(US and international)
Complete drill down capability for reporting: all ventures, all AFEs tied
to JOA, overhead analysis, cutback and billing.

SAP AG 2003