Management Cloud Oracle Joint Venture · Joint Venture Management also supports direct billing, which gives you the option to apply a full transaction amount to an individual partner

Oracle Joint VentureManagement Cloud

Using Joint Venture Management

20B

Oracle Joint Venture Management CloudUsing Joint Venture Management

20B

Part Number: F26227-02

Copyright © 2020, Oracle and/or its aliates.

Authors: Joint Venture Management Information Development

This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protectedby intellectual property laws. Except as expressly permied in your license agreement or allowed by law, you may not use, copy, reproduce, translate,broadcast, modify, license, transmit, distribute, exhibit, perform, publish, or display any part, in any form, or by any means. Reverse engineering,disassembly, or decompilation of this software, unless required by law for interoperability, is prohibited.

The information contained herein is subject to change without notice and is not warranted to be error-free. If you nd any errors, please reportthem to us in writing.

If this is software or related documentation that is delivered to the U.S. Government or anyone licensing it on behalf of the U.S. Government, thenthe following notice is applicable:

U.S. GOVERNMENT END USERS: Oracle programs (including any operating system, integrated software, any programs embedded, installed oractivated on delivered hardware, and modications of such programs) and Oracle computer documentation or other Oracle data delivered to oraccessed by U.S. Government end users are "commercial computer software" or “commercial computer software documentation” pursuant tothe applicable Federal Acquisition Regulation and agency-specic supplemental regulations. As such, the use, reproduction, duplication, release,display, disclosure, modication, preparation of derivative works, and/or adaptation of i) Oracle programs (including any operating system,integrated software, any programs embedded, installed or activated on delivered hardware, and modications of such programs), ii) Oracle computerdocumentation and/or iii) other Oracle data, is subject to the rights and limitations specied in the license contained in the applicable contract. Theterms governing the U.S. Government’s use of Oracle cloud services are dened by the applicable contract for such services. No other rights aregranted to the U.S. Government.

This software or hardware is developed for general use in a variety of information management applications. It is not developed or intended foruse in any inherently dangerous applications, including applications that may create a risk of personal injury. If you use this software or hardwarein dangerous applications, then you shall be responsible to take all appropriate fail-safe, backup, redundancy, and other measures to ensure its safeuse. Oracle Corporation and its aliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications.

Oracle and Java are registered trademarks of Oracle Corporation and/or its aliates. Other names may be trademarks of their respective owners.

Intel and Intel Inside are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and are trademarksor registered trademarks of SPARC International, Inc. AMD, Epyc, and the AMD logo are trademarks or registered trademarks of Advanced MicroDevices. UNIX is a registered trademark of The Open Group.

This software or hardware and documentation may provide access to or information about content, products, and services from third parties. OracleCorporation and its aliates are not responsible for and expressly disclaim all warranties of any kind with respect to third-party content, products, andservices unless otherwise set forth in an applicable agreement between you and Oracle. Oracle Corporation and its aliates will not be responsiblefor any loss, costs, or damages incurred due to your access to or use of third-party content, products, or services, except as set forth in an applicableagreement between you and Oracle.

The business names used in this documentation are ctitious, and are not intended to identify any real companies currently or previously in existence.


Contents

Preface .................................................................................................................................. i

1 Introduction to Joint Venture Management 1Introduction to Joint Venture Management ............................................................................................................................. 1

2 Manage Joint Venture Transactions and Distributions 5Manage Joint Venture Transactions and Distributions ......................................................................................................... 5

3 Manage the Life Cycle of Joint Venture Denitions 15Manage the Life Cycle of Joint Venture Denitions ............................................................................................................. 15



Preface

PrefaceThis preface introduces information sources that can help you use the application and this guide.

Oracle Cloud Applications GuidesTo nd guides for Oracle Applications, go to the Oracle Help Center at hp://docs.oracle.com/.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at hp://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.

Oracle customers that have purchased support have access to electronic support through My Oracle Support. Forinformation, visit hp://www.oracle.com/pls/topic/lookup?ctx=acc&id=info or visit hp://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs if you are hearing impaired.

i

http://docs.oracle.com/

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=info

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs


Preface

ii


Chapter 1Introduction to Joint Venture Management

1 Introduction to Joint Venture Management

Introduction to Joint Venture Management Joint Venture Management enables a managing partner of a single joint venture or thousands of joint ventures tomanage the distribution of costs and revenue among joint venture partners. It enables you to manage amounts toinvoice to partners, both external partners to the managing partner’s organization and any internal partners thatoperate as a separate business entity within the organization. It also supports posting journals with the managingpartner’s share to the managing partner’s ledger.

Joint Venture Management automatically:

• Identies joint venture transactions in Oracle Financials.

• Splits transactions based on each partner's percentage of ownership in the joint venture.

• Generates distribution records that contain each partner's share in the transaction.

Joint Venture Management gives you the exibility to adjust for changes in a joint operating agreement (JOA) duringthe life cycle of a joint venture. You can add or remove partners and adjust for changes in their ownership percentages.Joint Venture Management also supports direct billing, which gives you the option to apply a full transaction amount toan individual partner.

For auditing and tracking purposes, Joint Venture Management retains important information about processedtransactions to help you resolve any partner disputes over distributed amounts. It enables you to readily accessimportant details, such as:

• Original transaction information including the transaction date, amount, and the account in which thetransaction was initially recorded.

• Partner information including all partners with distributions and each partner’s percentage of ownership.

• The date the split was calculated and distribution amounts were generated.

Joint Venture Management also provides:

• Visual indicators to alert users if the setup of a joint venture isn't complete.

• The ability to set up partners once in the system and add them to multiple joint ventures.

• Rounding support to handle the distribution of costs or revenue that remain to ensure the total of the splitcalculations equals the original transaction amount.

How Joint Venture Management Works Joint Venture Management processes transactions from Oracle Financials Cloud. It also supports processingtransactions from third-party nancial systems, as long as those transactions are rst imported into Oracle Financialsthrough Oracle Accounting Hub.

This illustration and the details that follow describe each part of the process to identify and distribute joint venturetransactions in Joint Venture Management:

1



Create Joint Venture DenitionsA joint venture accountant or accounting manager sets up a joint venture denition for each joint venture. A jointventure denition contains the information Joint Venture Management uses to identify joint venture expenses andrevenue in Oracle Financials. It also includes an ownership denition for identifying the partners in a joint venture andeach partner's percentage of ownership. Joint Venture Management uses the information in the ownership denition tocalculate the split of transactions and create distributions with each partner's share of the transaction.

Automatically Identify Joint Venture TransactionsThe Identify Joint Venture Transactions process in the Enterprise Scheduler Service (ESS) is a scheduled process thatuses the details in a joint venture denition to identify transactions for processing. You can schedule this processto identify transactions for one or all of your active joint ventures. This ESS process ensures transactions previouslyidentied and processed by Joint Venture Management aren't processed again.

The Joint Venture Transactions work area enables you to review transactions identied by the Identify Joint VentureTransactions process. You can review transaction details, such as the default ownership denition that will be applied totransactions to calculate the split. The Transactions work area gives you the option to associate a dierent ownershipdenition to a transaction. Or you can associate a direct billed partner to a transaction to distribute an entire transactionamount to a single partner.

Automatically Calculate Splits and Create DistributionsThe Create Joint Venture Distributions ESS process is a scheduled process that calculates the split of transactions andgenerates distribution records. This ESS process uses details in the joint venture denition, specically stakeholderownership percentages in the ownership denition, to calculate the split and create distributions.

An ownership denition has two requirements: the ownership percentages of all stakeholders must total 100 percentand it must have an eective date range. The eective date range enables you to set up multiple ownership denitionswith successive date ranges to account for any changes in the joint operating agreement over the life cycle of a jointventure. When processing transactions, the Create Joint Venture Distributions ESS process compares the transactiondate in each transaction against the eective dates in the ownership denitions to determine which ownershipdenition to use to calculate the split.

2



Review DistributionsThe Joint Venture Distributions work area displays distribution records generated from the Create Joint VentureDistributions ESS process. Each record contains a partner's share of costs or revenue to be invoiced. Distribution recordsalso include partner information, the original transaction amount, and the transaction date that represents the date ofservice for which the transaction was originally created. It also includes other important details to help you troubleshootany issues or resolve any disputes over distribution amounts.

3



4


Chapter 2Manage Joint Venture Transactions and Distributions

2 Manage Joint Venture Transactions andDistributions

Manage Joint Venture Transactions and Distributions Joint Venture Management uses Enterprise Scheduler Service (ESS) processes to identify joint venture transactionsand create distributions for the transactions. You don’t have to perform any steps in between these processes togenerate distributions. This touchless processing enables you to manage joint venture transactions and distributions byexception using the Joint Venture Transactions and Joint Venture Distributions work areas.

In the Joint Venture Transactions work area, you have the option to review transactions identied by the Identify JointVenture Transactions ESS process. This work area doesn’t contain the actual transactions, but references transactions insubledger accounting and the general ledger. If you remove transactions from the Joint Venture Transactions work area,the transactions will remain in subledger accounting and the general ledger.

The Joint Venture Distributions work area enables you to review distributions generated by the Create Joint VentureDistributions ESS process.

In addition to reviewing transaction and distribution details, you can use these work areas to:

• Override how transactions are processed.

A default ownership denition, which contains each stakeholder’s ownership percentage, is associated witheach transaction in the Joint Venture Transactions work area. Before the Create Joint Venture Distributionsprocess in ESS processes transactions, you can override a transaction with a dierent ownership denition thatcontains a dierent breakdown of ownership percentages. Or you can override a transaction with a direct billedstakeholder to distribute the entire transaction amount to a single stakeholder.

• Resolve disputes over distributed amounts.

Transaction and distribution records provide important details such as the original transaction amount,distribution amounts, transaction account information, the ownership denition used to apply the split, and soon. You can use this information to verify that transactions were distributed correctly or to determine how totake corrective actions.

• Troubleshoot other issues, such as transactions falsely identied for processing.

Transactions in the Joint Venture Transactions work area include information about the account in whichthey originate. You can use this information to correct the joint venture denition and ensure the correcttransactions are identied and distributed.

To resolve any issues or disputes, you can delete joint venture distributions and remove their associated joint venturetransactions from the Distributions and Transactions work areas respectively. Then you can update the joint venturedenition as needed to correct the issue. For example, you might have to add a new stakeholder or adjust thestakeholder percentages in the ownership denition, or identify another account that contains transactions todistribute. After revising the joint venture denition, you can rerun the ESS processes to identify and distribute thetransactions again. For more information about possible scenarios in which you would need to reprocess transactions,see Correcting Issues with Joint Venture Transactions and Distributions.

5



Access Joint Venture Transactions and Joint Venture DistributionsWork Areas To use the Joint Venture Transactions and Joint Venture Distributions work areas, you must be set up as a joint ventureaccountant user. A joint venture accountant has these roles:

• ORA_JV_JOINT_VENTURE_ACCOUNTANT_JOB

• ORA_PER_EMPLOYEE_ABSTRACT

See Set Up Joint Venture Management Users and Security for more information.

To access these work areas, from the Navigator, select Joint Venture Management, and then click Transactions orDistributions.

Manage Joint Venture Transactions The Joint Venture Transactions work area displays transactions identied by the Identify Joint Venture TransactionsESS process. Initially, all transactions are in the “Available to process” status. After the Create Joint Venture Distributionsprocess creates distributions from the transactions, this status automatically changes to “Process Complete.”

Note: The Identify Joint Venture Transactions process identies transactions in accounts dened asdistributable in a joint venture denition. A combination of segment values, including a required cost centersegment value, is used to identify distributable accounts. If any segment values are left blank, the ESS processwill identify all transactions from accounts in which the segment value is blank. These transactions aredisplayed in the Joint Venture Transactions work area. However, the Create Joint Venture Distributions processin ESS processes only the transactions from the accounts identied as distributable accounts. You can use thelter elds in the Transactions work area to display only the transactions to be distributed.

In the Joint Venture Transactions work area, you can view details about each transaction, such as the debit amount,credit amount, and the original account of the transaction. You can also override certain values, such as the defaultownership denition, to change how a transaction is distributed if it hasn't already been processed by the Create JointVenture Denitions process. See Override Joint Venture Transaction Processing for more information.

Search for Joint Venture Transactions To search for joint venture transactions:

1. In the Joint Venture Transactions work area, click the Select Joint Venture eld at the top and select a jointventure from the drop-down list.By default, the system displays joint venture transactions from the primary ledger, which is displayed in theadjacent eld.

2. Select either the Subledger or General Ledger option to display transactions from either source.3. To display transactions from a ledger other than the primary ledger, click in the ledger eld and select a

dierent ledger from the drop-down list.To lter your search results:

1. In the Search eld, you can enter search criteria that includes any data that can be found in the grid.The system displays transactions that include the data you entered.

6

https://www.oracle.com/pls/topic/lookup?ctx=cloud&id=FAJVIset_up_jvm_users_and_security



2. Click Show Filters to rene your search using one or more of these lters:

◦ Transaction Status. Use the status toggles to display transactions in one or more statuses.

◦ Ownership Denition. Display transactions associated with a particular ownership denition.

◦ Direct Billed Stakeholder. Display transactions for a particular direct billed stakeholder.

◦ Created By. Display transactions by the user who created the joint venture transactions.

◦ Creation Date. Enter a date range to nd transactions based on the date they were identied for the jointventure by the Identify Joint Venture Transactions ESS process.

◦ Last Updated By. Display transactions by the user who last updated the joint venture transaction.

◦ Last Update Date. Display transactions based on a date range that transactions were last updated.

The lters you are actively using are displayed above the grid.

About Transaction Details The Transactions work area displays the following details for each transaction:

Column Description

Creation Date The date and time the joint venture transaction wasidentied for processing by the Identify Joint VentureTransactions ESS process.

Transaction Date The date when the transaction occurred, which may bedierent from the journal entry eective date or subledgeraccounting date.

Transaction Status The status of the joint venture transaction.

Ownership Denition The name of the ownership denition that will be usedto distribute the transaction. If you override the originalownership denition with a dierent ownership denition,the name of the ownership denition that you are using asan override is displayed here.

Original Ownership Denition The original ownership denition associated with thetransaction.

Direct Billed Stakeholder The direct billed stakeholder assigned to the transaction,which overrides the default ownership denition. Whena stakeholder is entered here, the system creates adistribution for the stakeholder that contains the entiretransaction amount.

Original Direct Billed Stakeholder This column is not currently used.

Accounted Debit Amount The transaction debit amount in accounting currency.

Accounted Credit Amount The transaction credit amount in accounting currency.

Currency The accounting currency code of the source joint venturetransaction.

Account The account of the source transaction.

7



Column Description

Journal Description The description of the accounting journal line.

Accounting Class The short name classication of the journal entry lines.Applicable only to subledger transactions.

Units The statistical amount of the journal entry line.

Party Number The number of the party participating in the businessrelationship. Party information is applicable only tosubledger transactions.

Party Site Number The site number of the party participating in the businessrelationship. Party information is applicable only tosubledger transactions.

Third-Party Type The type of the additional third party. Party information isapplicable only to subledger transactions.

Accounting Date The date used to determine the accounting period for thetransaction. Applicable only to subledger transactions.

Eective Date The accounting date of the journal. Applicable only togeneral ledger transactions.

Source Table The name of the source table. Applicable only tosubledger transactions.

Created By The user who scheduled or ran the Identify Joint VentureTransactions ESS process to identify joint venturetransactions.

Last Updated Date The date and time when the joint venture transaction waslast updated.

Last Updated By The user who last updated the joint venture transaction.

Line Status The journal entry status. Applicable only to general ledgertransactions.

Override Joint Venture Transaction Processing In the Transactions work area, you can override seings associated with a joint venture transaction to change how thetransaction is processed. You can only override transactions that haven't already been processed by the Create JointVenture Distributions process. Here’s what you can override:

• Transactions status

You can change the “Available to process” status to “On hold” for transactions that you don't want distributedyet. You might need to do this for any transactions that have been called into question. When you determine ifand how to process the transactions, you can reset the status to “Available to process.”

• Ownership denition

All identied transactions displayed in the Transactions work area are associated with a default ownershipdenition, which is displayed in the Original Ownership Denition column. This comes from the defaultownership denition dened for the joint venture in the joint venture denition. You can override the default

8



ownership denition associated with a transaction with a dierent ownership denition. See Example ofOverriding a Default Ownership Denition for more information.

• Direct billed stakeholder

Instead of using the ownership denition to create distributions, you can override an ownership denition witha direct billed stakeholder to apply an entire transaction amount to a stakeholder.

• Transaction date

The transaction date—the accounting date in subledger transactions and the eective date in general ledgertransactions—is used to determine which ownership denition to use to distribute the transaction. You canhave multiple versions of a default ownership denition that are named the same, as long as the eective dateranges don't overlap. The unique eective date range is what establishes a version of the ownership denition.You can change the transaction date to coincide with the eective dates of the default ownership denitionthat you want to use to process the transaction. When the Create Joint Venture Distributions process is run, itcompares the transaction date to the eective dates in the available default ownership denitions to determinewhich one to use to create distributions for the transaction.

To override joint venture transaction processing:

1. Select the transactions you want to override:

◦ Select one or more rows manually.

◦ Or click the Select All check box above the rst row if you want to update all transactions based on yourlter criteria.

Important! When you use Select All, you are selecting all transactions based on the lter criteria, not just thetransactions displayed in the table.

2. Click the Edit Transactions buon.

The Edit Joint Venture Transactions dialog box displays the count of selected transactions.3. On Edit Joint Venture Transactions, select the new values as appropriate.4. Click OK.

Remove Joint Venture Transactions You can remove joint venture transactions only if they have a status of "Available to process." Transactions in the"Process complete" status can't be removed.

1. Select the transactions you want to remove:


◦ Or click the Select All check box above the rst row if you want to remove all transactions that match yourlter criteria.

Important! When you use Select All, you are selecting all transactions based on the lter criteria, not just thetransactions displayed in the grid.

2. Click Delete.

Note: Transactions removed from the Joint Venture Transactions work area are not removed fromsubledger accounting or the general ledger.

9

https://www.oracle.com/pls/topic/lookup?ctx=cloud&id=FAJVIjvdef_example_overriding_default_ownership_definition

https://www.oracle.com/pls/topic/lookup?ctx=cloud&id=FAJVIjvdef_example_overriding_default_ownership_definition



Manage Joint Venture Distributions Use the Joint Venture Distributions work area to search for and review distributions generated by the Create JointVenture Distributions ESS process. All distributions generated by this ESS process have an initial status of “Available toprocess.” Here you can change the status of distributions to “On hold” for distributions that you are not ready to createinvoices for.

Search for Distributions You can search for distributions generated for your joint ventures. When opened, the Joint Venture Distributionswork area automatically searches for distributions for all your joint ventures. However, a limited number of records isdisplayed in the grid for performance purposes.

You can search for distributions by a particular joint venture. Use the search and lter options to further rene yoursearch results.

To search for distributions for a particular joint venture:

1. At the top of the Joint Venture Distributions work area, select a joint venture from the Select Joint Venturedrop-down list.

The search results contain distributions generated from transactions in the primary ledger, which is displayedin the adjacent eld.

2. Select either the Subledger or General Ledger option to display distributions from either source.3. You can select a dierent ledger in the ledger drop-down list to search for distributions from a ledger other than

the primary ledger.To rene your search results:

1. In the Search eld, you can enter search criteria that contains any data that can be found in the table.

The results include the distributions that match the data you entered.2. Click Show Filters to rene your search using one or more of the lters.

For a description of the data you can lter on, see About Distribution Details.

The system displays distributions according to your lter criteria. The lters you are actively using are displayedabove the grid.

About Distribution Details The Distributions work area displays information about the distributions, including the transactions from which thedistributions were created.

Column Description

Creation Date The date the distribution was created.

Distribution Status The status of the joint venture distribution.

Joint Venture The name of the joint venture of the source transaction.

Joint Venture Description The description of the joint venture.

Ledger The name of the ledger of the source transaction.

10



Column Description

Ownership Denition The name of the ownership denition that was used tosplit the transaction and generate the distribution.

Direct Billed Stakeholder This column displays the name of the direct billedstakeholder if the entire amount of the transaction wasapplied to a stakeholder.

Accounted Debit Amount The transaction debit amount in accounting currency.

Accounted Credit Amount The transaction credit amount in accounting currency.

Distributed Debit Amount The distributed debit amount for the stakeholder.

Distributed Credit Amount The distributed credit amount for the stakeholder.

Currency Code The accounting currency code of the amount.

Ownership Percentage The percentage of ownership the stakeholder has in thejoint venture transaction.

Account The account of the source transaction.

Line Description The description of the accounting journal line.

Units The statistical amount of the journal entry line.

Transaction Date The date when the transaction occurred, which may bedierent from the journal entry eective date or subledgeraccounting date.

Stakeholder The name of the stakeholder for the distribution.

Invoicing Partner The name of the partner associated with the stakeholderthat will be invoiced for the distributed amount.

Cost Center The cost center associated with the distributablestakeholder.

Rounding Applied If the stakeholder is a rounding partner, this indicatesif the transaction amount could not be divided evenlyamong stakeholders and the remaining amount wasapplied to the stakeholder’s distribution.

Invoicing Preference Indicates whether an invoice or a general ledgertransaction will be created.

Account Type Indicates if the account is for assets, liabilities, and soforth.

Business Unit The name of the business unit on the joint venture.

Distribution Only Indicates whether the joint venture stakeholder isparticipating in the transaction distribution only or is alsobeing invoiced.

Customer The name of the customer associated with thestakeholder.

Supplier The name of the supplier associated with the stakeholder.

11



Column Description

Original Ownership Denition The name of the default ownership denition associatedwith the transaction when initially identied forprocessing. If the transaction was overridden to use adierent ownership denition, the name of the ownershipdenition used to create the distribution is displayed inthe Ownership Denition column.

Eective Start Date The start date of the eective date range of the ownershipdenition.

Eective End Date The end date of the eective date range of the ownershipdenition.

Original Stakeholder This column is not currently used.

Created By The user who created the joint venture distribution.

Last Update By The user who last updated the joint venture distribution.

Last Updated Date The date and time when the joint venture distribution waslast updated.

Change the Status of Distributions All distributions generated by the Create Joint Venture Distributions ESS process have an initial status of “Availableto process.” You can change the status of distributions to “On hold” for distributions that you are not ready to createinvoices or journals for.

After searching for distributions:

1. Select the distributions you want to update:


◦ Or click the Select All check box above the rst row if you want to update all distributions based on yourlter criteria.

Important! When you use Select All, you are selecting all distributions based on the lter criteria, not just thedistributions displayed in the grid.

2. Click the Edit Distributions buon.

The Distributions dialog box displays the number of selected distributions.3. On Edit Distributions, you can change the status from “Available to process” to “On hold” or the reverse.4. Click OK.

Delete Distributions When you delete a distribution, the system deletes all distributions that are associated with the same transaction. It alsoautomatically changes the status of the transaction back to “Available to process” in the Joint Venture Transactions workarea.

1. Select the distributions you want to remove:


◦ Or click the Select All check box above the rst row if you want to remove all distributions that match yourlter criteria.

12



Important! When you use Select All, you are selecting all distributions based on the lter criteria, not just thedistributions displayed in the grid.

2. Click Delete.

Correcting Issues with Joint Venture Transactions andDistributions To resolve any issues or disputes, you can delete joint venture distributions and remove their associated joint venturetransactions from the Distributions and Transactions work areas respectively. You can then update the joint venturedenition to correct the issue. For example, you might have to add a new stakeholder or adjust the stakeholderpercentages in the ownership denition, or identify another account that contains transactions to distribute. Afterrevising the joint venture denition, you can rerun the Joint Venture ESS processes to identify and distribute thetransactions again.

This section describes some of the dierent types of issues you might encounter and the general process for resolvingthem.

Distributions with Incorrect AmountsTo resolve distributions with incorrect amounts:

1. In the Joint Venture Distributions work area, delete the distributions created for the transaction.

Deleting distributions automatically resets the status of the associated transaction from “Process Complete” to“Available to process” in the Joint Venture Transactions work area.

2. In the Joint Venture Transactions work area, locate the transaction and change the status to “On hold” so thescheduled Create Joint Venture Distributions ESS process doesn’t process the transaction again.

3. Identify the ownership denition that's associated with it and verify that the ownership percentages are correct.4. If a dierent version of the ownership denition exists that contains the correct ownership percentages, you

can override the transaction date in the transaction by entering a date that aligns with the eective dates in theappropriate ownership denition version.

5. If there isn't an ownership denition with correct ownership percentages, you have two possible actions:

◦ In the joint venture denition, correct the ownership percentages in the ownership denition that wasused to calculate the split.

Note: The system prevents you from updating an ownership denition if distributions exist thatwere generated using the ownership denition.

◦ In the joint venture denition, create a new ownership denition with the proper ownership percentages.It could be that there was a change to the joint operating agreement that calls for a change in the splitcalculation for transactions from a particular account, which includes the transaction in dispute. You cancreate a new ownership denition to adjust for this change.

6. Access the Joint Ventures work area, and open the joint venture denition.7. Either update the existing ownership denition with the correct percentages or create a new ownership

denition with a dierent breakdown of ownership percentages.8. If you created a new ownership denition, in the Joint Venture Transactions work area, override the transaction

with the new ownership denition.9. Change the status of the transaction to “Available to process.”

13



10. Manually run the Create Joint Venture Denitions ESS process, or wait for it to run on its schedule, to generatedistributions for the transaction again.

Transaction Split When Entire Transaction Amount Should Be Applied to a DirectBilled StakeholderA transaction should have been distributed to a direct billed stakeholder but instead was mistakenly split and distributedamong stakeholders. To correct this issue, you need to:

1. In the Joint Venture Distributions work area, delete the distributions created for the transaction.

This resets the status of the associated transaction from “Process complete” to “Available to process” in theJoint Venture Transactions work area.

2. In the Joint Venture Transactions work area, locate the transaction and change the status to “On hold” so thescheduled Create Joint Venture Distributions process doesn’t process the transaction again.

3. Override the ownership denition with the direct billed stakeholder.4. Reset the status to “Available to process.”5. Manually run the Create Joint Venture Denitions ESS process, or wait for it to run on its schedule to create a

distribution for the stakeholder that contains the entire transaction amount.

Incorrectly Identied TransactionsDistributions have been generated for transactions that are not associated with a joint venture. In this case, it's likelythat the wrong account has been identied as distributable in the joint venture denition. To correct this issue, you needto:

1. Suspend the joint venture denition so that it stops processing transactions from the wrong account. In theJoint Ventures work area, open the joint venture and change its status to a user dened status such as “Onhold” or "Suspended."

2. In the Joint Venture Distributions work area, delete distributions generated from the incorrectly identiedtransactions.

3. Remove the transactions from the Joint Venture Transactions work area.4. In the Joint Ventures work area, in the joint venture denition, remove the information used to identify the

incorrect distributable account.5. Reset the status of the joint venture denition to "Active."

14


Chapter 3Manage the Life Cycle of Joint Venture Denitions

3 Manage the Life Cycle of Joint VentureDenitions

Manage the Life Cycle of Joint Venture Denitions During the life cycle of an active joint venture that's processing joint venture transactions, you can update the jointventure denition to account for changes in the joint operating agreement. For example, you might need to addor remove stakeholders, change the ownership percentage of a stakeholder, or change the status of an ownershipdenition to ensure that it's no longer used.

For data integrity purposes, the system prevents you from modifying certain details. For example, you can't delete anownership denition that's been used to split transactions because it contains a record of the stakeholder ownershippercentages used to calculate the split.

The following topics describe how to manage your active joint ventures. It details what you can and can't change duringthe life cycle of a joint venture.

Search for Joint Ventures On the Joint Ventures tab, use the Search to nd one or more joint venture denitions. Search on a full or partial jointventure name, description, status, or on any data in the columns. The search results include all joint venture denitionsthat contain the text in your search criteria.

Click Show Filters to search on a particular joint venture name or joint venture description. The lters include togglesand check boxes to further narrow your search by a particular status, approval type, and so forth. You can also specifywhich lters to display in the Filters area. The lter criteria that you use is displayed across the top of the page.

Review Joint Ventures You can nd high-level information about your joint ventures in the Joint Ventures work area. In addition to the nameand description, you can review the status, approval information (if provided), and the business unit for the jointventure.

Click a joint venture name to access the Edit Joint Venture page, where you can review stakeholder, cost center,ownership denition, and other details.

Modify a Joint Venture Joint Venture Management places certain restrictions on the changes you can make to a joint venture denition. Thesystem prevents you from changing any details that could impact the integrity of data in distribution records alreadygenerated by the joint venture.

If a joint venture has not processed transactions, you can change any of its details.

15



See the topics in this section, including Frequently Asked Questions When Modifying a Joint Venture, for moreinformation about the updates you can make to a joint venture.

Change the Status of a Joint Venture All joint venture statuses except for Active are for information purposes only. The default status for all new jointventures is Initiated. Changing the status to Active enables the joint venture to process transactions.

Your administrator can set up additional statuses if your business process requires it. For example, you could create a“Suspended” status to indicate that activities for the joint venture have been halted.

To change the status of a joint venture:

1. On Joint Venture Management, locate and click the name of the joint venture denition for which you want tochange the status.

2. On Edit Joint Venture, click the Status drop-down list and change the status.

Remember that you can’t change a denition to Active until you complete all the required elds. See CreateJoint Venture Denitions for more information.

If you remove a denition from the Active status, make sure that you no longer need to process transactions forthe joint venture.

3. Save the joint venture denition.

Update Distributable Accounts You can make the following updates to the joint venture details that are used to identify distributable accounts:

• Change the business unit on the Details page.

If you already identied distributable accounts, you can change the business unit on the Details page only if thenew business unit is associated with the same chart of accounts (COA). When you select a business unit for ajoint venture, the COA and segments (including the cost center segment) for the business unit are automaticallyidentied by the joint venture. Joint Venture Management prevents you from changing the business unit if thenew business unit isn't associated to the same COA instance.

• Clear or disable a segment on the Distributable Segments page.

You can clear or disable a segment only if there are no distributable segment values associated with thesegment on the Distributable Segment Values page.

• Add or remove rows and distributable segment values from the Cost Centers page.

Add new rows if you need to identify additional cost center accounts that contain transactions you need toidentify for distribution. Remove any rows for accounts that no longer contain transactions for distributing. Youcan also click Edit to add or delete distributable segment values.

If you remove a row with distributable segment values to identify an account, you should check if Joint VentureManagement already identied transactions in the account for processing. It's possible to have unprocessedtransactions as well as processed transactions with distributions generated. Upon review, if you determine thatthese transactions shouldn't be distributed you need to:

a. Search for distributions for the account in the Distributions application and delete them.b. Search for transactions for the account in the Transactions application and remove them.

16

https://www.oracle.com/pls/topic/lookup?ctx=cloud&id=FAJVIjvdef_create_joint_venture_definitions

https://www.oracle.com/pls/topic/lookup?ctx=cloud&id=FAJVIjvdef_create_joint_venture_definitions



Note: This does not delete the transactions from the ledger in Oracle Financials. It only removesthem from being identied as transactions that need to be split.

Modify a Stakeholder You can make any changes to a stakeholder before associating it with an ownership denition. After associating itwith an ownership denition, you are limited as to the details you can change. If a stakeholder is associated with anownership denition, the system prevents you from changing the Stakeholder Type and certain partner information.However, you can change some of the Partner information, such as the invoicing preference, as long as the systemhasn't generated distributions for the joint venture that are associated to the stakeholder.

Instead of modifying a stakeholder, you might need to create a new one. For example, an internal stakeholder in themanaging partner’s organization could spin o and become an independent company. In this case, you would need toset up a new invoicing partner for the former internal stakeholder, and then create a new external stakeholder with thenew invoicing partner.

To modify a stakeholder:

1. On the Stakeholders page for the joint venture, click the stakeholder you want to modify.2. On Edit Stakeholder, update the stakeholder as needed and save it.

Update an Ownership Denition The updates you can make to an ownership denition depend on its status and whether it has already been used tocalculate the split of transactions.

Update an Ownership Denition in the Pending StatusThis is the default status when you create an ownership denition. You can change any of the details in an ownershipdenition in this status. Or you can delete an ownership denition in this status if you determine it isn’t needed.

Update an Ownership Denition in the Active StatusThis status enables the joint venture to use the ownership denition to calculate the split of transactions.

If an ownership denition in the Active status hasn't been used to process transactions, you can still change itsdescription, status, eective dates, and stakeholder information. You can also delete it.

If an ownership denition in this status has been used to process transactions, for data integrity purposes, the followinglimitations apply to the changes you can make:

• You can't delete it.

• You can't change stakeholders or their ownership percentages, but you can change the Distribution Onlyseing for a stakeholder.

• You can modify the eective dates, but with limitations. The system uses the date in transactions to determinewhich ownership denition to use to calculate the split. The transaction date is also included in distributionrecords generated from the split. For tracking and auditing purposes, you can't change the eective dates if themodied dates are not inclusive of transactions dates in existing distribution records.

Update an Ownership Denition in the Inactive Status - Not AllowedThis status is used when you no longer want the joint venture to process transactions with the ownership denition.Because an ownership denition contains the ownership percentages of stakeholders, for auditing and tracking

17



purposes, you can’t change any details in an ownership denition in this status. And you can’t delete it or change it tothe Active status again.

Example of Updating an Ownership Denition An ownership denition with eective dates from 1/01/2020 to 3/31/2020 was used to calculate the split of severaltransactions dated as late as 3/02/2020. Due to a change in the joint operating agreement (JOA), the joint ventureaccountant has been asked to change stakeholder ownership percentages for transactions with dates from 3/01/2020to 3/31/2020. To adjust for this change, the accountant rst aempts to change the eective end date in the ownershipdenition to 2/28/2020. But the system doesn't allow the change because the ownership denition was already usedto process transactions dated 3/01/2020 and 3/02/2020. To resolve this issue and account for the change in ownershippercentages, the accountant will need to:

1. Delete the distribution records that were created from the processing of transactions dated 3/01/2020 and3/02/2020.

2. Change the eective end date in the original ownership denition from 3/31/2020 to 2/28/2020.3. Create a new ownership denition for the joint venture, entering eective dates from 3/01/2020 to 3/31/2020

and the new stakeholder ownership percentages.4. Change the status of the new ownership denition to Active.5. Run the process again over transactions dated 3/01/2020 and 3/02/2020 to generate new distribution records

according to the adjusted ownership percentages in the new ownership denition.

Frequently Asked Questions When Modifying a Joint Venture Can I change the eective dates in an ownership denition?

You can change the eective dates. But the system prevents you from changing them if the new date range excludesany transaction dates in distribution records already generated for the joint venture.

Why can't I change the status of an ownership denition from Inactive to Active?

The Inactive status is used when you no longer want the joint venture to process transactions with the ownershipdenition. For auditing and tracking purposes, you can’t change any details in an ownership denition in the Inactivestatus. And you can’t delete the ownership denition or change its status back to Active.

In the joint venture denition, I've already identied accounts in the cost center that are distributable. Can Ichange the business unit?

Yes. But only if the new business unit is associated with the same chart of accounts (COA) instance. When you select abusiness unit for a joint venture, the COA instance and segments (including the cost center segment) for the businessunit are automatically identied by the joint venture. Joint Venture Management prevents you from changing thebusiness unit if the new business unit isn't associated to the same COA instance.

Why can't I disable a segment?

You can't clear or disable a segment if there are distributable segment values associated with the segment on the CostCenters page. If you remove the associated distributable segment values, you can disable the segment.

Delete a Joint Venture If you delete a joint venture denition, the system deletes the following data associated with the joint venture denition:

• Association of cost centers and distributable segment values used to identify distributable accounts for thejoint venture.

18



• Stakeholders

Although stakeholders are deleted, invoicing partners associated with the stakeholders remain in the system.This is because invoicing partners are created separately so you can add a partner as a stakeholder to morethan one joint venture.

• Ownership denitions

If a joint venture denition has transactions and distributions associated with it, you can’t delete it unless you rst deleteits associated distributions and remove the identied transactions from the Distributions and Transactions work areasrespectively.

1. On the Joint Ventures tab, locate the joint venture denition that you want to delete.2. Select it and then click Delete.

19



20

Documents

Management Cloud Oracle Joint Venture · Joint Venture Management also supports direct billing, which gives you the option to apply a full transaction amount to an individual partner