FI Checklist for Joint venture between two companies

[Former Member]

Hello SAP Guru's

My client ABC is going for Joint venture with another company DEF.

Is it required to create a new company code.

Can you please describe the checklist from FICO prespective.

Your inputs in this regard is highly appreciated.

Thanks

LN

[praveen_jagadeesan]

Hi,

There are so many factors involved in a Joint Venture agreement.

1. Primary consideration , whether they gonna form a legal entity to run the JV business, if so you have to create a new company code neutral to ABC and DEF.

2. If the step 1 is not the scenario, which company is going to take the ownership of the project, for that you need to go for Joint Venture Accounting configuration.

My suggestion is creating a new company will be a better idea to maintain the books seperately and make the neccessary transaction. If you are planning to implement JVA then maintianing in the same company might be helpful.

thanks and regards

Praveen.J

[Former Member]

Thanks Praveen for your reply.

Yes as you rightly said they are going to create a new company code .

Then what other implication will take place.For eg.do I need to create a new COA.

Please advice.

Thank you.