An Introduction to SAP Joint Venture Accounting, Part I
A joint venture (JV) is an arrangement in which two or more parties come together and agree to pool their resources for a specific task. This task can be a new project or any other business activity. In a joint venture, each partner is responsible for profits, losses, and costs associated with the venture. Joint venture accounting (JVA) is becoming a more relevant concept as the number of partner-oriented business models increase and new avenues of business combinations are taken. SAP Joint Venture Accounting provides a complete accounting system for JVs.
This article will assist business process owners, IT functional consultants, process owners, financial accountants, and aspirants in SAP consulting obtain a high-level understanding of SAP Joint Venture Accounting. It will also explain the application’s integration capabilities with various types of accounting in JVA.
After reading this article you will be able to:
- Understand the benefits of forming a joint venture;
- Recall the business structure in a joint venture;
- Summarize the capabilities of SAP Joint Venture Accounting; and
- Integrate SAP Joint Venture Accounting with other SAP modules, such as Financial Accounting (SAP FI), Controlling (SAP CO), Asset Management (SAP AM), Materials Management (SAP MM), Plant Maintenance (SAP PP), and Project System (SAP PS)