Description
The JVA equity change management program applies changes in ownershipof ventures to expenses posted to ventures and cost objects during thecurrent period before final period-end processing (i.e., Cutback)assigns these expenses to partners.

Example
For example, at the beginning of the period, JV1 is owned by equitygroup EG1. During the period, an expense of $1,000 is booked to costobject JV1_CC1 with a document date of 1/15/97.
Expenses booked to JVA-related cost objects are assigned to the ventureidentified on the cost object (in the case of JV1_CC1, JV1) and to theequity group that owns the venture as of the document date. The equitygroup is identified by the combination of the JV and the equity type,which is also assigned to the cost object.
In this example, equity type ET1 is specified on cost object JV1_CC1.The combination of joint venture JV1 and equity type ET1 associate theexpense with equity group EG1.
In this example, however, EG2 (also associated with equity type ET1)takes over ownership of JV1 on 1/20/97. If equity change management isnot run before Cutback, the original JVA record associating the expensewith EG1 will remain intact, and Cutback will assign the expense bookedto JV1_CC1 to the partners in equity group EG1. But If equity changemanagement is run before Cutback, the original record will be reversed,the expense will be rebooked with the new venture and equity groupassignment, and Cutback will assign the expense booked to JV1_CC1 tothe partners of equity group EG2.

Processing
Equity change management can be run for individual ventures or for allventures within the company for the period. If the venture and equitygroup associated with the expense record in JVA is the same as theventure and equity group identified via the cost object at period end,no equity change is executed.
When an equity group is derived via the cost object that is differentthan the equity group associated with the expense in the JVA record,the original expense record is reversed and a new record is posted withthe new equity group as owner.
If a venture is inactive or if no valid equity group is found for aventure, the next JV record is processed. Equity groups for whichCI/NPI processing is involved are excluded from processing.

Selection Criteria
The following additional selection criteria are provided:
Selection of the With recs processed by cutback will includerecords created by intermediate runs of Cutback in the processing.
On default, all expenses posted to the selected venture with billablerecovery indicators are included in processing.
Expenses with non-billable recovery indicators (such as suspenserecords) may also be included via the All non-billableindicator.
Alternatively, a range of recovery indicators may be selected, andexpenses booked to the selected venture during the current period withrecovery indicators within the range will be included in processing.

Output
When run in update,equity change management directly updates the JVA summary ledger (4A),but Cutback must be run after equity change management to updateFI.