JVA: Allocation of Depreciation Amounts

[Former Member]

Hey guys.

We have a business requirement where the depreciations of assets may need to be allocated for other ventures:

Example:

The depreciation was of 1000$ to Cost Center 1 (and JV A ) and they want to allocate 50% to WBS Element 2 (from JV B).

So, the depreciation is posted to a Cost Center and they may want to alocate it to a WBS from another JV.

Issue

Now, i think that using Distribution Cycles (GJG5/GJG1) we can alocate the amounts but, since as far i understood, this process only creates documents in CO mudule (not in FI or JV module).

Impacts

This means that, in terms of cutback, this allocation will not be considered and so the only the information from orignal cost object (Cost Center 1) will be considered for charging the partners.

Thanks in advance for your help.

[Former Member]

Hi There,

Using CO assessment and distribution cycle is one of the option. CO cycles have been used by many customers

Kalpesh Chavda

[Former Member]

Hi,

But CO Allocation Cycles (Assessment and Distribution) will have no postings in Financial side am i correct ?

Many thanks in advance,

[Former Member]

Hello there,

CO documents will also trigger JV document and will allow u to cutback.

If cost received in the WBS element, needs to be cutback i guess it should be possible with the cost center to WBS distribution or assessment cycle.

you have to create assign manipulation rule correctly in the cycles.

I hope this helps

Thanks & Regards

Kalpesh Chavda

[Former Member]

Hi,

When you do Distribution in CO, system would create a debit and credit entry in the same G/L Account in Finance apart from CO module. However in case of Assessment no financial entry gets created.

Regards,

Sanjay barnwal

[Former Member · Accepted solution]

Hello All,

Cutback is not calculated based on FI postings, but on JVA postings.

In other words, CO postings not reflected in FI (like assesment cycles) will be correctly processed by Cutback because they have a corresponding document in JVA ledger.

Hope this clears your doubts

Regards,

Patrick