A recent JD Edwards tutorial showed how to create and assign overhead rules to a joint venture. The video aimed to help users:
- Understand the overhead costs of a joint venture
- Create an overhead rule and add an overhead method to the rule
- Assign overhead rules
Overhead Calculation Methods
When you manage a joint venture, you may be able to task the overhead costs to the partners in order to cover the indirect costs you have incurred by managing the joint venture. To calculate the monthly overhead cost for a joint venture, you must create an overhead rule using the appropriate overhead methods. The system provides six overhead methods for creating an overhead rule.
- Fixed amount
- Fixed amount with escalations
- Fixed percent
- Fixed percent with sliding scale
- Day rate
- User defined overhead
Each method has an effective start date and end date for calculating the overhead amount. This tutorial showcased the fixed amount and user defined overhead methods. For more detailed information about the other methods, check out the JD Edwards EnterpriseOne Joint Venture Management Implementation Guide.
Creating an Overhead Rule
The tutorial started with how to create an overhead rule for a joint venture in JD Edwards EnterpriseOne and add the fixed amount and user defined overhead methods to the rule.
Fixed Amount Overhead Calculation Method
Access the Overhead Rules program (P09J50). On the Create Overhead Rule form, enter a name and description of the overhead rule and save the form. On the Edit Overhead Rule form, add an overhead method to the rule. The first method that the tutorial showed was the fixed amount method.
The fixed amount method enables you to charge a fixed amount per month as the overhead cost. The amount is based on the operational status of the joint venture or the business units.
On the Fixed Amount sub-form, enter the base amount. This is the fixed amount that will be charged as the overhead cost for all of the operational statuses of the joint venture or the business units. If some operational statuses are exceptions to this setup, use the “Exception Operational Status By” section whether the exception operation status is for the joint venture or the business unit.
In the grid below, enter the exception operational status and the chargeable months. Chargeable months is the number of months that overhead is charged to a partner when the joint venture or the business unit is at the specified operational status.
If you do not want to calculate overhead for a particular operational status, you need to set the operational status as the exception status and the corresponding chargeable months as zero.
User Defined Overhead Calculation Method
If you do not want to use any of the other five delivered overhead calculation methods to calculate overhead costs, you have the option to create your own method. This method enables you to attach a custom business function that performs the overhead calculation.
On the Edit Overhead Rule form, select “User Defined Method” from the overhead method drop-down list.
Then, on the User Defined Method sub-form, specify the business function name.
Assigning Overhead Rules
The tutorial also covered how to assign overhead rules to a joint venture, a project within a joint venture, or to individual business units within the joint venture.
Access the Overhead Rule Assignments program (P09J57). On the Edit Overhead Rule Assignments form, enter a value in one or more of the following fields:
- Business unit
- Project number
- Joint venture
- Company
Then, enter the overhead rule that you created to complete the assignment.
To learn more about creating and assigning overhead rules and what else you can do within Joint Venture Management, check out the video and additional Quest resources attached below. You can also review the “Setting Up Overhead” task-based tutorial in the “Creating and Managing Joint Ventures in JD Edwards EnterpriseOne” learning path.