Description
Joint venture expenditures can be funded from dedicated venture bankaccounts (VBAs). The operator of a venture funds the venture'sexpenditures from the appropriate VBA. The VBA is then reimbursed bythe non-operating partners' payments. Multiple VBAs may be set up for asingle venture.
All payments for venture expenditures can either be made from a singlecentral disbursement account or directly from the appropriate venturebank accounts (VBAs). These two methods may be used in combination.
Payments for invoices that include costs for multiple ventures are madefrom the VBA belonging to the venture with the highest expenditure.

Precondition
To run the venture bank account switching program, you must establishthe following prerequisites for your company in the standard SAPmodules:

• In FI, you must set up the venture house bank, G/L bank sub-accounts,
automatic payments.

• In CO, you must set up cost objects for the G/L sub-accounts.

In JVA configuration, you must activate venture bank account processingon the company Detailed Data screen.
At least one bank account must be set up for each venture to disbursefunds to pay for venture expenditures. These VBA’s must in turn beassigned to funding groups, which consist of groups of venture bankaccounts. Funding groups are in turn assigned to ventures.

Output
The venture bank account switching program:
Reads all documents posted during a particular period
Identifies those that involve net movements of expenditures betweenventures
RESET N1
Each document that is identified is used to calculate a transfer offunds between the bank accounts associated with the imbalancedventures.
Cash and non-cash switches are summarized and reported separately. Theeffective date of the summarized switches is calculated as a weightedaverage of the individual switches.
The venture bank account selection function updates invoice lines sothat they are paid from the appropriate bank account. House banks areidentified by company code, venture and funding currency, so it ispossible to select a house bank based on the funding currency of theinvoice. If ventures whose expenditures are included in one invoicehave different house banks, then the bank account for the venture fromwhich payment is made is reimbursed by the bank accounts of the otherventures who benefit from this payment.
An invoice can only be paid from a single bank account. Whenexpenditures covered in an invoice apply to more than one venture,payment is made from the venture bank account for the venture that owesthe highest amount for the invoice. The VBAs for the other ventureswhose charges are included in the invoice reimburse this bank accountthrough a transfer of funds.
You can execute the program to do the posting directly (using directinput). Alternatively, the program will generate letters requesting atransfer of funds that will be sent to banks. When letters are used,you must post the results of switches manually when you receiveconfirmation of the transfers from the banks. You may execute theprogram any number of times during the period.
You must execute the program at the end of each period followingallocations in CO and before Cutback, if interest charges are involved.
The bank switching program generates four reports:
Listing of all switches giving details of cash and non-cash switches,interest charges, and mean effective date (where applicable)
Formatted letters to the managers of venture bank accounts, requestinga transfer of funds to other venture bank accounts (It is possible toadjust the format and content of the switch letters using SAPscript.)
Direct input posting summary
List of errors and warnings encountered during the program run