Upstream Accounting: JVA Overhead Costs (PCO)
Iu2019m working in a Project where my client belongs to Upstream Industry.
This client has a setup where we have 2 company codes in a European country that are the owners of 3 licences but itu2019s their African branch that operates those licenses.
We work with JVA and PSA and the African branch operates the 3 Joint Ventures.
The European entities were settled has partners on those ventures so, at the month end, after the cutback the P/L accounts of the African branch have the amount down to zero (since all will be billable and so all the costs will be transferred to the partners).
Iu2019m quit new to JVA and my client has a requirement regarding the Overhead Costs (PCO).
The requirement is that they need, for each JV two calculations (2 operator fee calculations running in SAP)
One for the normal Operators overhead which will be a debit in JV books and a credit in the operators books (ie European entity).
The other calculation will have both legs in the JV books. A debit to a BR WBS and a credit to a BN WBS.
Can you guys help me on understanding how the overhead costs calculation process ? The postings that it generates in FI and how it is customized ?
Is this requirement possible with standard customization ?
I think that the PCO just considers the billable part and not the recover part..but I donu2019t know this process very well
Help will be truly appreciated.
Many thanks in advance.
Kalpesh Chavda replied
PCO customisation can be done using transaction code GJ85 for the transaction key JIE and JIO, in here you can specify the overhead expense account and offset account. at the time of PCO system should pass following accounting entry
JV PCO overhead expense account Dr
JV PCO overhead offset acccount Cr
(This can be charged to cost object if specified in JV master, if cost object is left blank in the JV master above entry will be charged to original cost object. Recovery indicator for the debit will be BI and credit will be NB. However same can be manipulated using substitution rule.
PCO inclusion of cost objects and GL will be done using Set and should be specified in the JOA master.
I hope this helps you in terms of configuration.
Thanks & Regards