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How to Process Overhead for a Joint Venture in JD Edwards

A recent JD Edwards video walked through how to process overhead in JD Edwards. The objectives of the video were to review how to:

  • Calculate the overhead costs of a joint venture
  • Review overhead calculations
  • Create overhead journal entries
  • Review overhead journal entries

How to Process Overhead for a Joint Venture

Calculate Overhead Costs

On a monthly basis, you will calculate the overhead costs for the business units associated with a joint venture. You can only have one overhead entry for each month for the joint venture, business unit, rule, and method. When you calculate overhead, the system selects the methods from the rules you have assigned. It takes the effective dates of the methods and processes the methods that are effective for the calendar month.

To calculate overhead, access the Calculate Overhead program (R09J408). In the processing options for the program, set up the calendar month and year for which you want to calculate overhead. If you are calculating overhead for a specific business unit within a joint venture, you can specify that in the Business Unit field.

In the Data Selection form, specify the joint ventures for which you want to calculate the overhead cost. Then, run the R09J408 program. When the program completes processing, the system generates a report that displays a success message if the overhead calculations are processed successfully. Review the report for errors or warnings, if any.

Review Overhead Calculations

After you calculate the overhead amounts, you can review and recalculate the overhead amounts before you create journal entries.

Access the Review and Recalculate Overhead program (Po90100). Use a saved query, the filter fields in the header, or the QBE fields in the grid to search for your calculated overhead records. If you determine that you have an error in your overhead setup, you have the ability to make the necessary changes to create accurate overhead amounts. To perform this action, you must first mark the overhead record you want to recalculate through the row menu. The system updates the status of that record to “Available to Recalculate.”

Update the setup information as required and click “Recalculate All” from the form menu to process the recalculation.

Create and Review Overhead Journal Entries

Access the Create Overhead Journal Entries program (R09J409). In the Data Selection form, specify the joint venture for which you want to create the overhead journal entries. Then, run the program. You can review the overhead journal entries by using the Review and Recalculate Overhead program (Po90100).

Search for your calculated overhead records on the Review and Recalculate Overhead form. Then, select the record and select Overhead JE from the row menu to review the journal entries.

To learn more about how to process overhead for a joint venture in JD Edwards, check out the video below or visit the task-based tutorial “Processing Overhead” in the “Creating and Managing Joint Ventures in JD Edwards EnterpriseOne” learning path on LearnJDE.