Solutions
for the
Joint Venture
Accounting Process

Joint Venture / Owner Accounting - business process

Manage investments, expenses and revenues related to joint ventures

Large capital requirements and long payback periods lead many energy companies into joint venture (JV) arrangements to minimize risk. Typical joint ventures involve an operating partner to develop and manage the project and non-operating partners who contribute investment and share in expenses and proceeds. The Joint Venture (JV) / Owner Accounting process involves managing investments, expenses and revenues related to the joint venture, including allocation, collection, and distribution of funds among the owners. A joint operating agreement (JOA), the contract between the joint venture partners, governs all operations including how expenses and revenues are allocated and distributed. Sub-processes in this category include joint venture accounting (JVA), joint interest billing (JIB), division order (DO), and division order and disbursements (DO&D).

Joint Venture / Owner Accounting Processes and Systems

Processes and systems to efficiently manage joint venture (JV) / owner accounting are critical to success. Key elements include:

Joint venture accounting (JVA)
Joint interest billing (JIB)
Division order (DO)
Division order and disbursements (DO&D)
Capture all varieties of joint venture ownership interests
Capture and code all transactions relevant to the joint venture, including appropriate allocation to joint venture partners in compliance with the provisions of the joint operating agreement (JOA)
Associate expenses with ventures and their partners
Capture, code, allocate and distribute relevant indirect expenses and overheads
Suspense
Adjustments
Netting
Asset and materials transfers
Cutback
Audit support
Balanced books by venture
COPAS compliance including allowances
Inter-company transactions for affiliates
Reporting
Integration into other relevant ERP systems, including financial accounting (GL , AP, AR)

Joint Venture / Owner Accounting Software Solutions

Quorum has experience in the Joint Venture (JV) / Owner Accounting process in design, implementation and support of configurable, sustainable, scalable information technology solutions to manage business activities efficiently and cost effectively. In addition to consulting services, we provide a full range of software solutions specific to the Joint Venture (JV) / Owner Accounting process, including: