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Processing Joint Ventures


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Hi,

Could you please provide any idea or document related to processing Joint Ventures through Acumatica construction edition. 

 

Thanks

Best answer by vkumar

Hi @dsenevirathne54 

I agree with the approach you have mentioned above, using Project to handle JV and use Customized reports to reflect Financial statement per JV. That looks like more suitable option here. 
Regards,

 

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  • Acumatica Support Team
  • 785 replies
  • January 3, 2022

Hi @dsenevirathne54 

Wish you happy new year!

Please elaborate your requirement with an example to check this further. 

Regards,


Chris Hackett
Community Manager
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  • Acumatica Community Manager
  • 2622 replies
  • January 7, 2022

@dsenevirathne54 were you able to find the information? If not please give @vkumar the information requested. Thanks!


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Hi @vkumar ,

Wishing you a Happy new year. 

I could find some information and I will elaborate the case. Please share your ideas. 

Joint Venture (JV) is an agreement between two or more parties to execute a agreed task. this is considered as a separate legal entity. most of the times the task is a construction project. 

The parent company (Participants to the JV and the company we are implementing Acumatica) contribute resources to the JV as agreed and will record in the company ledger. 

In Acumatica we can create a project and can perform project activities under cost budget for the contribution company made to the JV. and the revenue will be recognized under the revenue budget. 

The issue is we need to prepare Financial Statements(BS, P&L, Cash Flow) for the JV which shows the company profit and costs made out of this JV. This is bit complicated because the company uses the same ledger to record transactions. I don’t think opening branches for JVs will not be suitable because most of these projects are not longer than 3-4 years. and there will be several JVs at a time. 

Further company need to generate list of transactions for the JV, and a Trial Balance .

My solution being developing is to handled the JV through Projects form and generate a customized reports to prepare Financial statements and transaction details based on the project form not relaying on General Ledger.  

Appreciate your thoughts  and my apologies on delays due to busy schedules.  

Thanks,

Dulanjana


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  • Acumatica Support Team
  • 785 replies
  • Answer
  • January 11, 2022

Hi @dsenevirathne54 

I agree with the approach you have mentioned above, using Project to handle JV and use Customized reports to reflect Financial statement per JV. That looks like more suitable option here. 
Regards,

 


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Hi @vkumar ,

Thanks for the idea.

Regards,

@dsenevirathne54 


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