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SIMG_GJ85_J4E - CFR Drilling (U.S) Overhead Expense

SIMG_GJ85_J4E - CFR Drilling (U.S) Overhead Expense

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When executed as part of periodic processing, JVA cost calculations produce automatic postings of additional overhead and payroll burden costs based on the actual expenses booked to joint ventures.

In this step of configuring JVA, you should specify posting rule, keys, and G/L accounts for the types of overhead cost calculations and payroll burden calculations used by your company. Availability of a specific type of cost calculation is determined by region. These posting rules, keys, and accounts will be applied during the automatic postings produced by cost calculations processing.

Before defining posting parameters for the automatic postings that may be produced by JVA cost calculations, you must fully configure FI for your company. In particular, posting keys and G/L accounts must be created in FI for all relevant JVA postings.

Each of the three regions (international, Canada, US) supported in JVA apply different types of overhead and payroll burden cost calculations to joint venture expenses.

International region companies generally apply a single overhead rate to venture expenses.

Depending on the specific provisions of the joint operating agreement governing a joint venture, Canadian and US companies may apply any of an extensive range of different overhead cost calculations to venture expenses.

There are also some differences between Canadian and US cost calculations. Canadian payroll burden calculations include compulsory as well as non-compulsory items.






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