How can Infor SunSystems be configured to cater for Joint Venture Accounting?
If the company is the manager of a Joint Venture (JV) then primarily the JV would be configured in exactly the same way as a ‘corporate entity’. In that sense it can be defined in its own business unit or could be defined in a common business unit with a JV transaction analysis dimension defined to capture the particular JV name/code. Business logic would be defined to ensure that JV maintains a set of balanced accounts. This would capture all the accounting transactions for the JV.
From a reporting perspective you can report the JV from its own unique JV transaction code. For reporting to the JV partners you can either use the reporting tools available to split the data within the report or you can make use of one of the available budget ledgers in Infor SunSystems to record the partner splits of the JV activities. This would then give you an historical record of the periodic splits and make reporting simpler and easier.
To aid in this process the Corporate Allocations module can be used to automate the splitting and posting of the partner split transactions into the applicable budget ledger. Partner percentages are stored in memorandum accounts and used as the basis for splitting the actual costs. The percentages can be changed at any time and any future splits would apply the new percentage.
If the partner company wants to apply the ‘proportionate consolidation’ of the JV activities into its own accounts it is very easy to transfer the data from the partner split ledger to the partner companies accounts for their share. The Corporate Allocations module can be used to automate this process.