Joint Venture Accounting, the need for the JVA Solution.

Increasingly Joint Ventures are used to tackle large complex projects especially in the oil & gas and construction industries but achieving real time transparency for all partners presents a real challenge. Consolidation of joint venture projects into each partner’s financial and management accounts adds to the challenge. Almost inevitably reporting and accounting is set up around the lead partner’s system and the other partners encounter difficulties in reprocessing information into their own system quickly enough to allow effective participation in decision making.

Joint Venture Accounting captures all transactions, including purchase orders, sales invoices, supplier invoices, inventory movements and allocations, costs and overheads producing balanced venture books.

Cash Calls : the request of cash payments from partners for future venture operations.

Partner Billing : calculates partner shares for venture expenses and revenue, monitors partner cash calls and receivables, and produces a partner bill containing all relevant information.

Overhead calculates different types of overhead as agreed in the Joint Operating Agreement.

Allocations distribute billable and non-billable costs (such as facility, payroll, and related expenses) to cost centres or projects throughout the allocation cycle.

Multi-Currency Processing allows effective management of exchange rate exposure.