SAP JVA integrates with various other modules such as FI, CO, MM, SD, PS, and PM. The solution allows businesses to track venture costs on both a venture and partner basis. SAP JVA also automates cost allocation calculations during joint venture activities.
Purpose:
Joint venture partnerships are typically formed to reduce the risks involved in capital-intensive operations that require long payback periods. A joint venture involves an operating partner (the operator) and one or more non-operating partners who contribute monetary or personnel resources to share the project’s expenses and revenues. The operator is responsible for managing the venture, arranging activities, and maintaining accounting records. They remit venture expenses, collect revenues, and distribute them to the partners based on their ownership shares.
SAP JVA serves as a comprehensive accounting system for joint ventures, enabling efficient management and reporting of joint venture transactions.
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