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How to Create a Joint Venture Master

A recent JD Edwards video walked through how to create a Joint Venture Master record. The video aimed to help users:

  • Understand what a joint venture is
  • Understand how to define a joint venture and its hierarchy
  • Create a Joint Venture Master record
  • Review the hierarchy of the joint venture

What Is A Joint Venture?

A joint venture is a type of partnership between multiple entities where those entities share the cost and revenue associated with the joint venture. One member of the joint venture serves as the managing partner and is responsible for paying bills, receiving revenue, and distributing it to the partners.

Within JD Edwards EnterpriseOne, a joint venture is defined by the business units, projects, and/or properties participating in it. Depending on your business requirements, you can create a very simple, single-level joint venture or a more complex hierarchy of business units, projects, and/or properties.

How to Define A Joint Venture

Before you can create a Joint Venture Master record, you must define the structure of the joint venture by completing the following tasks:

  1. Set up the participating business units, projects, and/or properties in the system
  2. Establish the parent-child relationships of these business units using the Project Number field in the Business Unit Master program (P0006)

How to Create a Joint Venture Master Record

To create a Joint Venture Master record, access the Joint Venture Master program (P09J30). The Joint Venture Master includes the name and description of the joint venture, management information, and other attributes.

The joint venture business unit that you specify in Joint Venture Master is the highest level of business units included in the joint venture based on the hierarchy. This business unit is responsible for the financial transactions of the joint venture, such as distributing expenses and revenue to the partners. For example, if your joint venture includes a single, main project with multiple projects and/or subprojects under it, you must enter the parent project or business unit in the Joint Venture Business Unit field.

business-unit

The joint venture company is the company of the joint venture business unit. When invoices, vouchers, or journal entries are created, the managing company will be used on the document.

company

The managing business unit is the business unit associated with the managing partner of the joint venture. The managing business unit will be on most of the division of interest (DOI) assignments for the joint venture.

managing-business-unit

The system populates the managing company that is associated with the managing business unit. However, you can choose to assign a different managing company.

In the Assigned To field, you can enter the address number of the person responsible for the joint venture. This could be the joint venture manager, joint venture accountant, or any other role responsible for the joint venture.

assigned-to-field

The inception date indicates when the joint venture becomes effective.

inception-date

If you select the Calculate Overhead checkbox, the system can calculate the overhead for indirect costs associated with the joint venture.

calculate-overhead

In the Joint Venture Category Codes section of the form, you can set up category codes as required by your organization.

category-codes

Review the Joint Venture Hierarchy

Access the Joint Venture Hierarchy program (P09J06X). Enter the name of the joint venture and click “Refresh.” The joint venture structure will be displayed in a hierarchy chart. The first level shows the joint venture information. Swipe to the left of the card to get information about the primary contact. You can click the email link to send an email to the primary contact. The second level shows the joint venture business unit information. Subsequent levels show the additional business units used to define the joint venture structure. Joint ventures and their structures can be set up as simple or complex based on your business requirements.

To learn more about how to create a joint venture master, check out the video below or check out the task-based tutorials in the Creating and Managing Joint Ventures in JD Edwards EnterpriseOne learning path.

Additional Resources

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