Management Cloud Oracle Joint Venture

Oracle Joint VentureManagement Cloud

Using Joint Venture Management

21A

Oracle Joint Venture Management CloudUsing Joint Venture Management

21A

Part Number: F36394-02

Copyright © 2020, 2021, Oracle and/or its affiliates.

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 permitted 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 find 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 modifications 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 to theapplicable Federal Acquisition Regulation and agency-specific supplemental regulations. As such, the use, reproduction, duplication, release, display,disclosure, modification, preparation of derivative works, and/or adaptation of i) Oracle programs (including any operating system, integratedsoftware, any programs embedded, installed or activated on delivered hardware, and modifications of such programs), ii) Oracle computerdocumentation and/or iii) other Oracle data, is subject to the rights and limitations specified in the license contained in the applicable contract. Theterms governing the U.S. Government’s use of Oracle cloud services are defined 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 affiliates 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 affiliates. 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 affiliates 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 affiliates 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 fictitious, 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

How Joint Venture Management Works ................................................................................................................................... 2

2 Create Distributions from Joint Venture Transactions 5Create Distributions from Joint Venture Transactions ........................................................................................................... 5

Manage Joint Venture Transactions .......................................................................................................................................... 9

Manage Joint Venture Distributions ......................................................................................................................................... 13

3 Set Up and Draw from Partner Contributions 21Set Up and Draw from Partner Contributions ........................................................................................................................ 21

About the Process to Set Up and Draw from Partner Contributions ................................................................................. 21

Set Up Partner Contributions .................................................................................................................................................... 23

Draw from Partner Contributions ............................................................................................................................................. 25

Manage Partner Contributions ................................................................................................................................................. 26

4 Create Invoices to Bill Partners for Joint Venture Costs 29Create Invoices to Bill Partners for Joint Venture Costs ...................................................................................................... 29

Correcting Issues with Creating Joint Venture Invoices ...................................................................................................... 34

Frequently Asked Question When Creating Joint Venture Receivables Invoices ........................................................... 35

5 Create Billing Adjustments and Redistribute Joint Venture Transactionsto Rebill

37

Create Billing Adjustments and Redistribute Joint Venture Transactions to Rebill ....................................................... 37

Identify Distributions to Reverse .............................................................................................................................................. 40

Create Reversed Distributions in Joint Venture Management ........................................................................................... 42

Send the Reversed Distributions to Create Credit Memos ................................................................................................. 46

Create Credit Memos for Joint Venture Invoices .................................................................................................................. 47


Update Credit Memo Information in Joint Venture Management .................................................................................... 50

Reverse Distributions Associated with Partner Contributions ............................................................................................ 51

Reverse Cost Adjustments in Project Costing ....................................................................................................................... 53

Reversal and Redistribution: When a Joint Venture Uses Partner Contributions and Invoices to Reimburse Costs, and

Also Creates Cost Adjustments in Project Costing .............................................................................................................. 54

Manage Reversed and Redistributed Records ...................................................................................................................... 58

6 Create Cost Adjustments for Project Costing 59Create and Send Cost Adjustments to Project Costing ....................................................................................................... 59

7 Manage the Life Cycle of Joint Venture Definitions 71Manage the Life Cycle of Joint Venture Definitions ............................................................................................................. 71

8 Monitor Joint Venture Data in the Joint Venture Accounting ManagerDashboard

77

About the Joint Venture Accounting Manager Dashboard ................................................................................................ 77


Preface

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

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

HelpUse help icons to access help in the application. If you don't see any help icons on your page, click your user imageor name in the global header and select Show Help Icons. Not all pages have help icons. You can also access the OracleHelp Center to find guides and videos.

Watch: This video tutorial shows you how to find help and use help.

You can also read about it instead.

Additional Resources• Community: Use Oracle Cloud Customer Connect to get information from experts at Oracle, the partner

community, and other users.

• Training: Take courses on Oracle Cloud from Oracle University.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at http://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 http://www.oracle.com/pls/topic/lookup?ctx=acc&id=info or visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs if you are hearing impaired.

i

http://docs.oracle.com/

https://docs.oracle.com/en/cloud/saas/applications-help/

https://docs.oracle.com/en/cloud/saas/applications-help/

https://youtu.be/WWvGnL7H9kc

http://www.oracle.com/pls/topic/lookup?ctx=cloud&id=OACPR158049

https://appsconnect.custhelp.com/

http://education.oracle.com/pls/web_prod-plq-dad/db_pages.getpage?page_id=906

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 Oracle Joint Venture Management Cloud enables a managing partner of a single joint venture or thousands of jointventures to manage the distribution of costs and revenue among joint venture partners. It enables you to manageamounts to invoice to partners, both external partners to the managing partner’s organization and any internal partnersthat operate as a separate business entity within the organization.

After the initial setup, Joint Venture Management automatically:

• Identifies joint venture transactions in Oracle Financials Cloud.

• 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.

• Creates accounts receivable invoices for each partner using the distribution records that are associated withcosts.

Joint Venture Management gives you the flexibility 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.

• Invoice information including the invoice number and date that was assigned to the joint venture invoice whenit was created.

Joint Venture Management also provides:

• A Joint Venture Accounting Manager Dashboard that displays charts with metrics about your joint ventures andtheir associated transactions and distributions.

• 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.

• Minimum amount threshold for creating invoices to ensure that a partner is invoiced only when theaccumulated distribution amount is substantial to be billed.

1



Capabilities for Billing Retroactive Adjustments and Managing CashAdvancesIt's common for a managing partner in a joint venture to renegotiate the terms of a joint operating agreement, inparticular the percentages of costs and revenue shared among joint venture partners. If the new terms impact jointventure transactions that have already been distributed, Joint Venture Management enables you to redistributetransactions retroactively according to the retroactive dates in the joint operating agreement. The process automaticallycredits any partner invoices generated prior to the new percentages being put into place.

Partner contributions are cash advances that joint venture partners give to the managing partner to cover up-frontand continuing costs related to a joint venture. In Joint Venture Management, you can associate cash advances to thepartners in a joint venture. You can then configure the system to automatically draw from the contributions to pay foreach partner's share of costs. With automatic draw from partner contributions, you can ensure that payments are onlyrequested from partners which are not covered by partner contributions.

Integration with Project CostingWith the “Project Capitalization and Progress Management” feature, you can set up Joint Venture Managementto create cost adjustments from joint venture distributions that originate from project-related transactions. Aproject manager can then import the cost adjustments to Project Costing. When imported into Project Costing, costadjustments are negative amounts that get subtracted from the gross amount, enabling the project manager to realizethe accurate capitalized cost. In addition, project details are included in the invoices generated from Joint VentureManagement to recoup the partners' share of expenses. This provides traceability to a specific project and task for anindividual joint venture partner’s share of costs.

How Joint Venture Management Works Joint Venture Management processes transactions from Oracle Financials Cloud. It also supports processingtransactions from third-party financial systems, as long as those transactions are first imported into Financials throughOracle 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:

Create Joint Venture DefinitionsA joint venture accountant or accounting manager sets up a joint venture definition for each joint venture. A jointventure definition contains the information Joint Venture Management uses to identify joint venture expenses and

2



revenue in Financials. It also includes an ownership definition for identifying the partners in a joint venture and eachpartner's percentage of ownership. Joint Venture Management uses the information in the ownership definition 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 definition 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 previouslyidentified and processed by Joint Venture Management aren't processed again.

The Joint Venture Transactions work area enables you to review transactions identified by the Identify Joint VentureTransactions process. You can review transaction details, such as the default ownership definition that will be applied totransactions to calculate the split. The Transactions work area gives you the option to associate a different ownershipdefinition 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 definition, specifically stakeholderownership percentages in the ownership definition, to calculate the split and create distributions.

An ownership definition has two requirements: the ownership percentages of all stakeholders must total 100 percentand it must have an effective date range. The effective date range enables you to set up multiple ownership definitionswith 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 effective dates in the ownership definitions to determine which ownershipdefinition to use to calculate the split.

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.

Automatically Create Invoices of the Distributed CostsThe Create Joint Venture Invoices ESS process is a scheduled process that creates accounts receivable invoices for eachstakeholder's share of costs in the joint venture. It uses the distributions associated with costs and which belong to thetransactions in the primary ledger. The costs can be operating expenses or capital expenditures.

The invoices include information from the joint venture, such as the business unit, joint venture name, invoicing partnername, customer information associated with the invoicing partner, distribution amount, currency, and account type forthe distribution. These details enable you to identify the distribution for an invoice in the Accounts Receivable system.

The Joint Venture Distributions work area also includes invoice information for the distribution records that have beeninvoiced by the Create Joint Venture Invoices ESS process. This includes the invoice transaction number and invoicetransaction date. You use this information to review the associated invoice in the Accounts Receivable system.

3



Related information:

• What You Need to Know About Oracle Financials

• Enable Joint Venture Management

4

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&ID=FAJVIjvprep_about_oracle_financials_enterprise_structure

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&ID=setup_enable_joint_venture_management


Chapter 2Create Distributions from Joint Venture Transactions

2 Create Distributions from Joint VentureTransactions

Create Distributions from Joint Venture Transactions Joint Venture Management uses Enterprise Scheduler Service (ESS) processes to identify joint venture transactionsand create distributions from 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 these work areas:

• Joint Venture Transactions work area

This work area gives you the option to review transactions identified by the Identify Joint Venture TransactionsESS process. This work area doesn’t contain the actual transactions, but references transactions in subledgeraccounting 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.

• Joint Venture Distributions work area

This work area enables you to review distributions generated by the Create Joint Venture Distributions ESSprocess.

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

• Override how transactions are processed.

A default ownership definition, 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 different ownership definition thatcontains a different 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 definition 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 identified 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 definition and ensure the correcttransactions are identified 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 venturedefinition as needed to correct the issue. For example, you might have to add a new stakeholder or adjust thestakeholder percentages in the ownership definition, or identify another account that contains transactions todistribute. After revising the joint venture definition, you can rerun the ESS processes to identify and distribute the

5



transactions again. For more information about possible scenarios in which you would need to reprocess transactions,see Correcting Issues with Joint Venture Transactions and Distributions.

Run Processes to Identify Joint Venture Transactions and CreateDistributions Use Oracle Enterprise Scheduler, also referred to as the Enterprise Scheduler Service (ESS), to schedule the followingprocesses to create distributions from joint venture transactions:

• Identify Joint Venture Transactions

This process uses the details in joint venture definitions, specifically the distributable segment values, toidentify transactions for processing. The process ensures transactions previously identified and processed byJoint Venture Management aren't processed again.

• Create Joint Venture Distributions

This process calculates the split of transactions and generates distribution records. It uses the details in jointventure definitions, specifically the stakeholder ownership percentages, to calculate the split and createdistributions.

You schedule the processes to run in this order:

After running these processes, you can schedule the Create Joint Venture Invoices process to generate invoices fromdistributions to recoup costs from joint venture partners. You can also schedule or run additional processes to coverjoint venture costs with advanced contributions from partners, rebill partners due to retroactive changes in a jointoperating agreement, and with an optional integration with Project Costing, send cost adjustments to Project Costing.See the following topics for details:

• Draw from Partner Contributions

• Create Invoices to Bill Partners for Joint Venture Costs

• Create Billing Adjustments and Redistribute Joint Venture Transactions to Rebill

• Create and Send Cost Adjustments to Project Costing

You can run processes on demand if you need to reprocess transactions to resolve disputes over distributed amountsor correct other issues. See Correcting Issues with Joint Venture Transactions and Distributions for some examplescenarios.

Schedule or Manually Run the Processes

6



You must be set up as a joint venture accountant user to run these processes. A joint venture accountant user has theseroles:

• ORA_JV_JOINT_VENTURE_ACCOUNTANT_JOB

• ORA_PER_EMPLOYEE_ABSTRACT

If Data Security for Joint Venture Management is enabled, the processes will identify joint venture transactions andcreate distributions only for the joint ventures that are associated with the business units you are authorized to manage.

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

Only joint venture definitions with an Active status are recognized by the ESS processes.

To schedule or manually run the Identify Joint Venture Transactions and Create Joint Venture Distributions processes:

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter the process you want to run:

◦ Identify Joint Venture Transactions

or

◦ Create Joint Venture Distributions

5. Press Enter, and then click OK.6. On Process Details, determine when you want to run the process:

◦ As soon as possible. This is the default.

◦ On a schedule. Click Advanced to set up a schedule for running the process. This displays the AdvancedOptions, where you can create a schedule and set up a notification so you or another user are notifiedabout the process.

7. In the Basic Options Parameters section, complete these fields:

Note: Both processes use the same parameters.

◦ Joint Venture. Select a particular joint venture or leave this field blank if you want the process to processall joint ventures. Only joint ventures in an Active status will be processed.

If data security is enabled, this drop-down list displays only the joint ventures associated with thebusiness units you are authorized to manage.

◦ Ledger. Enter a ledger in which the transactions to be processed by Joint Venture Managementwere originally recorded. If you leave this blank, the primary ledger associated with the business unitassociated with the joint venture will be used.

◦ Period. Enter the period in which the transactions to be processed by Joint Venture Management wereoriginally recorded. If you leave this blank, the latest open period for the ledger will be used.

8. Click Submit.9. Back on the Scheduled Processes Overview page, you can view a list of submitted processes and their statuses.

Click a process in the table to view additional details about the process.Related information:

• Scheduled Processes

7

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIset_up_jvm_users_and_security

https://docs.oracle.com/pls/topic/lookup?ctx=fa-latest&ID=OACPR191899



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 venturedefinition to correct the issue. For example, you might have to add a new stakeholder or adjust the stakeholderpercentages in the ownership definition, or identify another account that contains transactions to distribute. Afterrevising the joint venture definition, you can rerun the Joint Venture ESS processes to identify and distribute thetransactions again.

This section describes some of the different 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 definition that's associated with it and verify that the ownership percentages are correct.4. If a different version of the ownership definition exists that contains the correct ownership percentages, you

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

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

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

Note: The system prevents you from updating an ownership definition if distributions exist that weregenerated using the ownership definition.

◦ In the joint venture definition, create a new ownership definition 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 definition to adjust for this change.

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

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

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

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

8



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 definition with the direct billed stakeholder.4. Reset the status to “Available to process.”5. Manually run the Create Joint Venture Definitions 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 Identified 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 identified as distributable in the joint venture definition. To correct this issue, you needto:

1. Suspend the joint venture definition 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 defined status such as “Onhold” or "Suspended."

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

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

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

Transactions Not Identified or Transactions Split IncorrectlyIf the source of the transaction date is a free-form text field, the user must enter the transaction date in this format:YYYY/MM/DD. If this format isn't used, then unpredictable results will be encountered when running the Identify JointVenture Transactions process. The process could result in errors, transactions might not be processed, or in some cases,the transaction date could be mapped incorrectly, resulting in the transaction being split using the wrong ownershipdefinition.

Manage Joint Venture Transactions The Joint Venture Transactions work area displays transactions identified 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 identifies transactions in accounts defined as distributable in ajoint venture definition. For more information about how distributable accounts are identified for a joint venture, seeIdentify Distributable Accounts.

9

https://www.oracle.com/pls/topic/lookup?ctx=fa20d&ID=FAJVIjvdef_identify_distributable_accounts



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 definition, to change how a transaction is distributed if it hasn't already been processed by the Create JointVenture Definitions process. See Override Joint Venture Transaction Processing for more information.

Access the Joint Venture Transactions Work Area You must be a joint venture accountant user to access the Joint Venture Transactions work area to review and managethe records. A joint venture accounting manager can only view the joint venture transactions.

If Data Security for Joint Venture Management is enabled, both users can accessonly those records associated with thebusiness units authorized to them. A joint venture accountant might have view-only access to some joint ventures andmanage access to other joint ventures.

To access this work area, from the Navigator, select Joint Venture Management, and then click Transactions.

Search for Joint Venture Transactions In the Joint Venture Transactions work area, select a joint venture to view transactions identified for processing for thatjoint venture. Use the Search and the filters to narrow your results.

To display the transactions identified for joint venture:

1. In the Joint Venture Transactions work area, click the Select Joint Venture field 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 field.

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 field and select a

different ledger from the drop-down list.To filter your search results:

1. In the Search field, you can enter search criteria that includes any data that can be found in the grid.2. Click Show Filters to refine your search using one or more of the following filters.

Click Show Filters to refine your search using one or more of the available filters. For example, you can use thetoggles in the Transaction Status filter to display transaction in one or more statuses.

Also, you can use the Company, Department, Account, Sub-Account, and Product filters to filter transactionsby the segment values used to identify distributable accounts—the accounts that contain the transactions fora joint venture. The value in the Account column in the grid is made up of a combination of these segmentvalues. As an example, 01-600-1410-0000-000 is an account value where 01 represents the Company segment,600 represents the Department segment, 1410 represents the Account segment, and so forth. You can enter awhole or partial segment value in any of these filter fields to locate the applicable transactions.

See About Transaction Details if you need more information about the other column data you can filter yoursearch results on.

10



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 wasidentified for processing by the Identify Joint VentureTransactions ESS process.

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

Transaction Status The status of the joint venture transaction.

Ownership Definition The name of the ownership definition that will be usedto distribute the transaction. If you override the originalownership definition with a different ownership definition,the name of the ownership definition that you are usingas an override is displayed here.

Original Ownership Definition The original ownership definition associated with thetransaction.

Direct Billed Stakeholder The direct billed stakeholder assigned to the transaction,which overrides the default ownership definition. 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 The transaction debit amount in accounting currency.

Accounted Credit The transaction credit amount in accounting currency.

Account The account of the source transaction.

Journal Description The description of the accounting journal line.

Accounting Class The short name classification 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.

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

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

11



Column Description

Expenditure Type For Project Costing integration only. The expenditure typeof the transaction.

Project Name For Project Costing integration only. The project thetransaction is associated with.

Task Name For Project Costing integration only. The project task thetransaction is associated with.

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.

Override Joint Venture Transaction Processing In the Transactions work area, you can override settings 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 definition

All identified transactions displayed in the Transactions work area are associated with a default ownershipdefinition, which is displayed in the Original Ownership Definition column. This comes from the defaultownership definition defined for the joint venture in the joint venture definition. You can override the defaultownership definition associated with a transaction with a different ownership definition. See Example ofOverriding a Default Ownership Definition for more information.

• Direct billed stakeholder

Instead of using the ownership definition to create distributions, you can override an ownership definition 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 effective date in general ledgertransactions—is used to determine which ownership definition to use to distribute the transaction. You canhave multiple versions of a default ownership definition that are named the same, as long as the effective dateranges don't overlap. The unique effective date range is what establishes a version of the ownership definition.You can change the transaction date to coincide with the effective dates of the default ownership definitionthat you want to use to process the transaction. When the Create Joint Venture Distributions process is run, itcompares the transaction date to the effective dates in the available default ownership definitions to determinewhich one to use to create distributions for the transaction.

12

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIjvdef_example_overriding_default_ownership_definition

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIjvdef_example_overriding_default_ownership_definition



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 first row if you want to update all transactions based on yourfilter criteria.

CAUTION: When you use Select All, you are selecting all transactions based on the filter criteria, not just thetransactions displayed in the table.

2. Click the Edit Transactions button.

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 that have a status of "Available to process" or "On hold." 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 first row if you want to remove all transactions that match yourfilter criteria.

CAUTION: When you use Select All, you are selecting all transactions based on the filter criteria, not just thetransactions displayed in the grid.

2. Click Delete.

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

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 associated with transactions in the primary ledger that aregenerated by this ESS process have an initial status of “Available to process.” Here you can change the status ofdistributions to “On hold” for distributions that you are not ready to create invoices for. The distributions associated withtransactions in the secondary ledger that are generated by the ESS process have the status “Process complete” and aremarked as “Reporting only.” You can't process these distributions to create invoices or journals.

13



Access Joint Venture Distributions Work Area You must be a joint venture accountant user to access the Joint Venture Distributions work area to review and managethe records. A joint venture accounting manager can only view the joint venture distributions.

If Data Security for Joint Venture Management is enabled, both users can accessonly those records associated with thebusiness units authorized to them. A joint venture accountant might have view-only access to some joint ventures andmanage access to other joint ventures.

To access this work area, from the Navigator, select Joint Venture Management, and then click Distributions.

Search for Distributions You can search for distributions generated for your joint ventures. When opened, the Joint Venture Distributions workarea automatically searches for distributions for all your joint ventures. However, for performance purposes, a limitednumber of records is displayed in the grid.

You can search for distributions by a particular joint venture. Use the search and filter options to further refine 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 field.

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

the primary ledger.To refine your search results:

1. In the Search field, 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 refine your search using one or more of the filters.For a description of the data you can filter on, see About Distribution Details.The system displays distributions according to your filter criteria. The filters you are actively using are displayedabove the grid.

About Distribution Details The distributions in the Distributions work area provide details about the distributions and the types of distributions,including:

• The transaction from which the distribution was generated.

• Distributions generated to rebill partners.

• Distributions paid for by partner contributions.

14



• Distributions processed to send cost adjustments to Project Costing when the integration with Project Costingis enabled.

The columns in the Distributions work area provide the following distribution details:

Column Description

Creation Date The date the distribution was created.

Distribution Status The status of the joint venture distribution.

Ledger The name of the ledger of the source transaction.

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

Joint Venture Description The description of the joint venture.

Ownership Definition The name of the ownership definition that was used tosplit the transaction and generate the distribution.

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

Start Date The start date of the ownership definition.

End Date The end date of the ownership definition.

Transaction Date The date when the transaction occurred, which might bedifferent from the journal entry effective date or subledgeracccounting date.

Accounted Debit The transaction debit amount in accounting currency.

Accounted Credit The transaction credit amount in accounting currency.

Original Distributed Debit The amount of the original distributed debit.

Distributed Debit The distributed debit amount for the stakeholder.

Original Distributed Credit The amount of the original distributed credit.

Distributed Credit The distributed credit amount for the stakeholder.

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.

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

Account Type Indicates if the account is for assets, liabilities, and soforth. Account type E (Expense) is for operating expenses,A (Assets) is for capital expenditures, and R (Revenue) isfor revenue.

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

Invoice Number The value that identifies the invoice or a credit memo for ajoint venture distribution.

15



Column Description

Invoice Type The type of invoice generated for the joint venturedistribution.

Invoice Date The date that was assigned to the invoice or credit memowhen it was created.

Partner Contribution ID ID of the partner contribution if a partner contribution wasapplied to pay for the distribution.

Change Reason A user-defined value that indicates the reason the jointventure distribution was canceled.

Change Reason Details Additional details about the reason the joint venturedistribution was canceled, if entered by the joint ventureaccountant.

Distribution Line Type For a joint venture distribution that is split into multiplelines, this indicates the line type of the distribution line.

Distribution Line Number The distribution line number for a joint venturedistribution that is split into multiple lines.

Stakeholder The name of the stakeholder for 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.

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

Cost Center The cost center associated with the distributablestakeholder.

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

Supplier The name of the supplier associated with the stakeholder.

Customer The name of the customer associated with thestakeholder.

Line Description The description of the accounting journal line.

Account The account of the source transaction.

Partner Offset Account The account in Receivables where invoices generatedfrom joint venture distributions are recorded. If theintegration with Project Costing is enabled, the partneroffset account is included in cost adjustments sent toProject Costing.

Project Costing Status For Project Costing integration only. See Create and SendCost Adjustments to Project Costing for information aboutProject Costing statuses.

Project Name For Project Costing integration only. The project thetransaction is associated with.

16



Column Description

Task Name For Project Costing integration only. The project task thetransaction is associated with.

Expenditure Type For Project Costing integration only. The expenditure typeof the transaction.

Distribution ID The unique identifier for the distribution record.

Transaction ID The unique identifier of the transaction from which thedistribution was generated.

Units The statistical amount of the journal entry line.

Original Direct Billed Stakeholder The joint venture stakeholder that was originallyassociated with the joint venture transaction.

Original Ownership Definition The name of the default ownership definition associatedwith the transaction when initially identified forprocessing. If the transaction was overridden to use adifferent ownership definition, the name of the ownershipdefinition used to create the distribution is displayed inthe Ownership Definition column.

Created By The user who created the joint venture distribution.

Last Updated 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 associated with transactions in the primary ledger that are generated by the Create Joint VentureDistributions ESS process have an initial status of “Available to process.” You can change the status of distributions to“On hold” for distributions that you are not ready to create invoices or journals for. The distributions associated withtransactions in the secondary ledger that are generated by the ESS process have the status “Process complete.” Youcannot process these distributions to create invoices or journals.

Note: You can also update distributions for other purposes, such as to rebill partners due to changes in ownershippercentages, covering joint venture costs with partner contributions, or sending cost adjustments to Project Costing.See the following topics for details:


• Draw from Partner Contributions

• Create and Send Cost Adjustments to Project Costing

After searching for distributions:

1. Select the distributions you want to update:


17



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

CAUTION: When you use Select All, you are selecting all distributions based on the filter criteria, not just thedistributions displayed in the grid.

2. Click the Edit Distributions button.

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

Change the Distribution Only Setting You can override the “Distribution Only” setting for distributions from the Joint Venture Distributions work area. You canchange this setting only for distributions that have not been processed.

After searching for distributions:

1. Select the distributions you want to update:



CAUTION: When you use Select All, you are selecting all distributions based on the filter criteria, notjust the distributions displayed in the grid.

2. Click the Edit Joint Venture Distributions button.

The Edit Joint Venture Distributions dialog box displays the number of selected distributions that can beupdated.

3. On Edit Joint Venture Distributions, to change the “Distribution Only” setting for the distributions, click theDistribution Only drop-down list and select “Yes” or “No” as required.

4. Click OK.

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

1. Select the distributions you want to remove:


◦ Or click the Select All check box above the first row if you want to remove all distributions that matchyour filter criteria.

CAUTION: When you use Select All, you are selecting all distributions based on the filter criteria, not just thedistributions displayed in the grid.

18



2. Click Delete.

19



20


Chapter 3Set Up and Draw from Partner Contributions

3 Set Up and Draw from Partner Contributions

Set Up and Draw from Partner Contributions A managing partner of a joint venture can periodically request contributions from joint venture partners to coveranticipated overhead costs and other expenses. These requests for contributions are sometimes referred to as cashcalls. Joint Venture Management enables you to manage and automatically draw from partner contributions to cover apartner’s share of costs in a joint venture.

Managing partner contributions in Joint Venture Management enables you to:

• Add, track, and close partner contributions in Joint Venture Management.

• Set a start date for a partner contribution to be drawn from if a partner’s participation starts in a later phase ofthe joint venture.

• Add agreement default charges when closing partner contributions as stipulated by the terms in a jointoperating agreement.

• Place partner contributions on hold for a particular circumstance, for example if you are renegotiating terms fora partner’s participation in a joint venture.

About the Process to Set Up and Draw from PartnerContributions In Joint Venture Management, partners are assigned to a joint venture as stakeholders. Therefore, when you add apartner contribution, you assign it to a stakeholder in a particular joint venture.

21



This illustration and the steps that follow provide an overview of the process for setting up and drawing from partnercontributions:

Step 1: Create a Receivables Invoice with the Partner Contribution Amount

Before you set up a partner contribution, create an invoice in Receivables for the amount the partner agreed tocontribute to help fund the joint venture.

Step 2: Assign the Partner Contribution Amount to a Stakeholder in Joint Venture Management

In the Partner Contributions work area in Joint Venture Management, create a partner contribution to assign theinvoiced amount to the stakeholder in the joint venture. You set the partner contribution to “Available to draw” afteradding the following details to it:

• The invoiced amount.

• The transaction number and transaction date of the invoiced amount entered in Receivables.

• A start date.

When set to “Available to draw,” the invoiced amount in the partner contribution becomes the open amount that isavailable to draw from at the specified start date.

Step 3: Draw from the Partner Contribution to Cover the Partner’s Cost-Related Distributions

Prior to running the Create Joint Venture Invoices process, run the “Process Joint Venture Partner Contributions”process. You can run this process for a particular joint venture and stakeholder or over all joint ventures. The process:

1. Checks for stakeholders that have an associated partner contribution for a joint venture.2. Identifies cost-related distributions for the stakeholders and draws from open amounts in partner contributions

to pay for the distributed costs.3. Updates distributions with the ID of the partner contribution that was used to pay for distributed costs.4. If the open amount in the partner contribution isn't enough to cover the distribution amount, the distribution is

split into two separate distributions:

◦ A distribution with the amount covered by the partner contribution.

◦ A distribution with the remaining amount. If there is another partner contribution available for thepartner, the open amount in the partner contribution is applied to the distribution. If there isn't another

22



partner contribution available with an open amount, then an invoice will be created to recoup the amountfrom the partner as part of the invoicing process.

Note: Invoices created for cost-related distributions paid in part or in full by partner contributions include a credit linewith the partner contribution amount. The invoice could result in a zero balance or with an amount to be recoupedfrom the partner.

Step 4: Close the Partner Contribution

When the open amount in a partner contribution reaches zero, you can close the partner contribution. You can alsoclose partner contributions for other reasons, such as when a joint venture comes to an end or if a partner exits a jointventure.

As part of the close, you need to enter an Accounts Payable invoice if the partner contribution was associated with anexternal stakeholder. Add a journal entry if the partner contribution was associated with an internal stakeholder. In theinvoice or journal entry, you include any open amount that needs to be refunded.

When you close a partner contribution in Joint Venture Management, you have to enter information about the invoiceor journal entry entered for the close.

Considerations for Invoice Reversal and Rebill Scenarios In Joint Venture Management, you can reverse an invoice if needed, for example if a partner was billed incorrectly orif a change to a partner’s ownership percentage was made retroactive. If a partner contribution was used to pay for aninvoice that was reversed, the reversal process automatically adds the amount back to the partner contribution. If thepartner is rebilled with a different amount according to the partner’s adjusted ownership percentage, then the availablepartner contribution amount can be used to cover the rebilled amount.

Also, although you can close a partner contribution after its open amount reaches 0, it’s recommended that you leave itopen for the aforementioned reversal scenarios.

Related information:


Set Up Partner Contributions

PrerequisiteAs part of the setup to generate invoices in Receivables for cost-related distributions in Joint Venture Management, anadministrator must modify the offset to Receivables for this type of invoice. To generate invoices with credit lines forapplied partner contribution amounts, your administrator must perform an additional configuration to override thisoffset. See the following topics for more information:

• The "Partner Contribution Invoice Lines" topic in About Offset to Receivable Accounts for Joint Venture Invoices

• Replace the Offset to Receivable Accounts for Joint Venture Invoices with Partner Contribution Credits

23

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIsetup_about_offset_to_receivables_jv_invoices

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIsetup_offset_head2_accnt_for_partner_contributions



Create a Receivables Invoice for a Partner Contribution Create an invoice in Receivables for the partner contribution amount. When you create the invoice, note the transactionnumber and transaction date of the invoice. You will enter these values when you set up the partner contributionin Joint Venture Management. See Create and Process Transactions for instructions on how to enter an invoice inReceivables.

Add a Partner Contribution to a Stakeholder You can add one or more partner contributions to a stakeholder in Joint Venture Management.

You must be a user with the Joint Venture Accountant role to add, manage, and close partner contributions in thePartner Contributions work area.

If Data Security for Joint Venture Management is enabled, you can perform these tasks only for the joint ventures thatare associated with the business units you are authorized to manage.

To add a partner contribution to a stakeholder:

1. On the home page, click Joint Venture Management, Partner Contributions.2. On Partner Contributions, click Create Partner Contribution (+ icon).3. Select the joint venture applicable to the partner contribution.4. Select the stakeholder to assign the partner contribution to.5. Enter a start date and a description.

If you don’t enter a start date, the current date will be used when you save the partner contribution. Thedescription is optional.

6. In the Invoiced Amount field, enter the amount of the partner contribution. Make sure the amount matches theamount entered or to be entered in the Receivables invoice.

7. At this point, you can perform one of these actions:

◦ Save the partner contribution. This saves it in the Pending status.

Note: In the Pending status, you can still modify the invoiced amount if needed. After changing thestatus to Invoiced, you can’t modify the amount.

◦ Click “Save and New” if you want to add another partner contribution.

This gives you the option to set up multiple partner contributions with amounts first, and then updatethem with the associated invoice at a later time.

◦ Complete the partner contribution by associating the Receivables invoice to it.

8. To associate the Receivables invoice to the partner contribution:

a. Change the status to Invoiced.b. In the fields provided, enter the transaction number and transaction date of the invoice.

9. Click Save.

Upon saving, the Invoice tab appears with information about the invoiced amount in Receivables. There is alsoa Close tab, which is used to display details about the partner contribution after it’s closed.

24

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAOFC1479506



Set a Partner Contribution to Available to Draw After you set up a partner contribution with the required details, set it to “Available to draw” to make it available to the“Process Joint Venture Partner Contributions” process.

1. In the Partner Contributions work area, click the stakeholder name to access the partner contribution for thestakeholder.

2. On Edit Partner Contribution, change the status to “Available to draw.”3. Click Submit.

Draw from Partner Contributions The Process Joint Venture Partner Contributions process checks for cost-related distributions for a specified jointventure and stakeholder. It then draws from the open amount in partner contributions set up for the stakeholder to payfor the amounts in the stakeholder’s distributions.

Each distribution covered by a partner contribution is updated with the ID of the partner contribution. This enables youto search for and review distributions paid with partner contributions in the Joint Venture Distributions work area.

If the open amount in a partner contribution for a stakeholder doesn’t cover the amount in a distribution, thedistribution is split into two separate distributions:

• A distribution with the amount covered by the open amount in the partner contribution.

• A distribution with the remaining amount to be invoiced when the Create Joint Venture Invoices process isrun. However, if there is another partner contribution available for the partner, the open amount in the partnercontribution is applied to the distribution.

Make sure to run or schedule the Process Joint Venture Partner Contributions process to run before the Create JointVenture Invoices process. The following illustration shows the flow of running the partner contributions process with theother Joint Venture Management processes:

25



To run the Process Joint Venture Partner Contributions process:

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. Select Job as the Type, and then search for the process by entering “Process Joint Venture Partner

Contributions” in the Name field.4. Select the process and then click OK.5. In the Basic Options section, you have two options:

◦ Run the process for a particular joint venture and stakeholder that has a partner contribution associatedwith it.

◦ Leave the fields blank to run the process over all joint ventures and stakeholders. The process draws fromany stakeholders that have partner contributions set to “Available to draw.”

If data security is enabled, the drop-down lists for Joint Venture and Stakeholder display only the valuesassociated with the business units you are authorized to manage. If you leave these fields blank, the processdraws only from the joint ventures you can manage.

6. Click Submit.7. When the process completes, click OK in the confirmation.8. Click the log file in the Log and Output section to view the details about the draw, including:

◦ The open amount before the draw.

◦ The contribution amounts applied to distributions.

◦ Other details, including information about any issues the process might have encountered.

Manage Partner Contributions In the Partner Contributions area, you can review existing partner contributions and their available open amounts. Youcan also add, edit, or close partner contributions.

You must be a joint venture accountant user to manage partner contributions. A joint venture accounting managercan only review partner contributions. If Data Security for Joint Venture Management is enabled, users can access onlythose partner contributions for joint ventures that are associated with the business units authorized to them. A jointventure accountant might have view-only access to some joint ventures and manage access to other joint ventures.

Use the Search to find a particular partner contribution. Use the filter fields to search for partner contributions by jointventure, stakeholder, or by the partner contribution status or start date.

The Partner Contributions work area displays details about each partner contribution, including the original invoicedamount and the remaining open amount.

Click the stakeholder name in the partner contribution row to open it in the Edit Partner Contribution page. Theinformation you can modify depends on its status. Here are the actions you can perform depending on the status:

Status Action

Pending This is the initial status when you create a partner contribution. After saving a partner contribution inthis status, you can still modify the invoice amount, start date, stakeholder, and the joint venture.

26



Invoiced Change the partner contribution to this status to associate the invoiced amount in Receivables to thepartner contribution. After you save a partner contribution in this status, you can only modify thedescription, transaction number, and transaction date.

Available to draw This status enables the partner contribution to be drawn from. In this status, you can update thedescription, but not the transaction number and date.

On hold Use this status to place a partner contribution on hold.

Closed Use this to close a partner contribution. Close a partner contribution when the open amount reacheszero. You can also close a partner contribution when a partner exits a joint venture or when a jointventure comes to an end.

Close a Partner Contribution You can close a partner contribution when:

• The open amount in the partner contribution is zero.

• A joint venture or a partner’s participation in a joint venture has ended.

Though you can close a partner contribution when the balance reaches zero, it’s recommended that you leave it open incase an invoice is reversed and a partner has to be rebilled. See Considerations for Invoice Reversal and Rebill Scenariosfor more information.

As part of the close, you first need to enter an Accounts Payable invoice if the partner contribution was associated withan external stakeholder. Add a journal entry if the partner contribution was associated with an internal stakeholder.In the invoice or journal entry, you include any open amount in the partner contribution that needs to be refunded. Ifthe terms in the joint operating agreement include a default agreement charge for closing a partner contribution, theamount refunded is the open amount less this charge.

Note the transaction number of the invoice or journal entry, as you will need to enter it when you close the partnercontribution.

To close a partner contribution in Joint Venture Management:

1. In the Manager Partner Contributions work area, click the stakeholder with the partner contribution that youwant to close.

2. On Edit Partner Contribution, change the status to Closed.3. Complete the fields that appear for closing a contribution:

◦ Transaction Number. Enter the transaction number of the invoice or journal entry you created to closethe open amount.

◦ Transaction Date.

◦ Close Type. Select “AP invoice” or “Journal entry.”

◦ Close Date. Leave blank to default in today’s date, or you can enter a different date.

◦ Agreement Default Charge. If the terms in the joint operating agreement include an assessment forclosing a partner contribution, enter the amount of the charge.

4. Click Save.

The Close tab displays the details of the closed contribution, including the agreement default charge and therefund amount. The amount refunded is the open amount less the agreement default charge, if applied.

If you incorrectly entered either value, you can update the transaction number and transaction date and clickSubmit to save the changes.

27



5. Click Cancel to exit and return to the Partner Contributions page.

28


Chapter 4Create Invoices to Bill Partners for Joint Venture Costs

4 Create Invoices to Bill Partners for JointVenture Costs

Create Invoices to Bill Partners for Joint Venture Costs

About Joint Venture Invoices After distributions are generated by the Create Joint Venture Distributions ESS process, Joint Venture Managementuses the Create Joint Venture Invoices ESS process to create receivables invoices for cost-related distributions. Thistouchless processing ensures that you don’t have to perform any steps between generating distributions and creatinginvoices other than using the Joint Venture Distributions work area to review and update information if required.

After creating invoices, a user with the Accounts Receivable Manager role must run the standard processes to createaccounting entries in Receivables and post the invoices to General Ledger. To ensure consistent accounting across allsystems that integrate with Joint Venture Management, the joint venture accountant then runs the Update GL Referencein Joint Venture Distributions mode of the Create Joint Venture Invoices process. This mode updates the partner offsetaccount from General Ledger to the joint venture distributions.

The following illustration shows the flow of running the aforementioned processes with the other Joint VentureManagement processes:

The system includes options that enable you to select the distributions to process, such as distributions for a specificjoint venture, business unit, transaction date range, and customer.

The process creates invoices for only those selected distributions that are:

• Associated with costs, specifically operating expenses and capital expenditures. These are recorded in accounttype E (Expense) and A (Assets) respectively in the Joint Venture Distributions work area.

• Associated with transactions in the primary ledger for the joint venture business unit.

29



• Marked for creating invoices, but are not marked as Distribution Only in the Joint Venture Distributions workarea.

• Recorded with a distribution amount equal to or greater than the minimum amount required to create aninvoice. The minimum receivables invoice amount is specified in the joint venture definition. For example, if$500 is specified as the invoice minimum amount, the ESS process will create invoices only when the unbilleddistribution amount reaches $500.

The invoice includes joint venture distribution details such as, the joint venture name, business unit, invoicing partnername, customer information associated with the invoicing partner, distribution amount, currency, account type, anddistribution ID. You can click the Invoice Number link in the Joint Venture Distributions work area to view the details ofan invoice in Receivables.

The process generates logs that you can use to review the details of any errors and take corrective action. For example,if the error is due to a bill-to site not specified for the customer, you might need to enter a bill-to site in the customerdata or the Invoicing Partner page. After you complete this setup, you can make the distribution available for processingin the next scheduled run of the ESS process. For more information about possible errors that you can encounter whencreating invoices, see Correcting Issues with Creating Joint Venture Invoices.

Manage Distributions in Error

You can review invoice-related information for invoiced distributions in the Joint Venture Distributions work area.In addition to reviewing invoice information, you can use this work area to update the following information for thedistributions that weren’t invoiced due to errors:

• Change the distribution status from “Error” to “Available to process” or “On hold” if you are not ready to includethe distributions in the next scheduled run of the Create Joint Venture Invoices ESS process.

• Override the “Distribution Only” setting for these distributions so the stakeholders are not billed for thesedistributed costs.

• Delete distributions that can't be invoiced due to errors. When you delete a distribution at "Error" status, thesystem deletes all distributions at status "Error", "Available to process", or "On hold" that originate from thesame transaction, provided the distributions are not invoiced and do not have Project Costing information.

It also automatically changes the status of the transaction back to “Available to process” in the Joint VentureTransactions work area.

For details on how to manage distributions, see Manage Joint Venture Distributions.

Prerequisites to Creating Receivables Invoices Before the joint venture accountant can create receivables invoices to bill the partners for joint venture costs, a user withthe Application Implementation Consultant role must complete the following tasks:

• Set up accounts to override the offset to receivable in joint venture invoices and credit memos.

The account that offsets the receivable is typically a revenue account. Because the invoices created from JointVenture Management are used to reimburse the managing partner for costs incurred, the offset to receivablefor these invoices must be recorded in an account that reflects this type of reimbursement transaction.

See Set Up Offset to Receivable Accounts for Joint Venture Invoices.

• Set up Oracle Financials to:

30

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIsetup_about_offset_to_receivables_jv_invoices



◦ Define AutoAccounting rules for each account class (receivable, revenue, and so on) of joint ventureinvoices.

◦ Exclude tax from joint venture invoices and credit memos.

◦ Create accounting entries for invoices with zero amount.

See Set Up Oracle Financials to Create Receivables Invoices for Joint Ventures.

Run the Process to Create Receivables Invoices to Bill Partners You must be a user with the Joint Venture Accountant role to run this process.

If Data Security for Joint Venture Management is enabled, you can run the process and create invoices only for the jointventures that are associated with the business units you are authorized to manage.

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Create Joint Venture Invoices, press Enter, and then click OK.5. In the Basic Options section, you can specify values in the following fields to filter joint venture distributions to

process:

◦ Business Unit. Select a particular business unit or leave it blank to process joint venture distributions forall the business units in your joint ventures.

◦ Joint Venture. Select a particular joint venture or leave it blank to process joint venture distributions for allyour joint ventures. The process selects only those joint ventures at an Active status.

If data security is enabled, the drop-down lists display only the business units and the associated jointventures you are authorized to manage. If you leave these fields blank, the process creates invoices onlyfor the business units you can manage.

◦ From Date.

◦ To Date.

You can use a transaction date range to select joint venture distributions to process.

◦ Customer. Enter a particular customer number or leave it blank to process joint venture distributions forall the customers included in your joint ventures.

6. In the Basic Options section, you can also specify default values that the process will assign when creating jointventure invoices:

◦ Invoice Date. Enter a date that the system assigns as the invoice date to joint venture invoices when theyare created for the selected joint venture distributions. If you leave this field blank, the system date isused.

◦ Accounting Date. Enter a date that the system assigns as the general ledger date in Receivables for jointventure invoices when they are created for the selected joint venture distributions. If you leave this fieldblank, the system assigns the last day of the current open period.

7. Click Submit.

The Create Joint Venture Invoices process uses a combination of a parent process and subprocesses to createinvoices. The subprocesses associated with a parent process have the same name. Both parent process andsubprocesses generate logs.

31

https://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIconfigure_the_transaction_type_and_source_for_jv_receivable_invoices



The following example shows a parent process and a subprocess that ran successfully.

8. Click your instance of the Create Joint Venture Invoices parent process in the Search Results section Then, clickthe attachment in the Log and Output section to view the following details:

◦ Number of joint ventures and business units processed.

◦ Number of customers billed.

◦ Number of invoices created.

◦ Number of distribution records that are not invoiced due to errors.

9. Click an instance of the Create Joint Venture Invoices subprocess in the Search Results section Then, clickthe attachment in the Log and Output section to view the details of any processing errors due to which somedistributions are not invoiced.

Similarly, you can view the logs of all the subprocesses for your instance.

Update Accounting Information for Posted Receivables Invoices After posting the invoices to General Ledger, you run the Update GL Reference in Joint Venture Distributions modeof the Create Joint Venture Invoices process. This mode uses the unique reference of each invoice line to retrieve andupdate the partner offset account from General Ledger to the joint venture distributions. The invoiced distributions areaccounted in Joint Venture Management and are available for reporting or subsequent processing.

For example, to create project cost adjustments for your joint venture costs, you send the accounted invoiced amountsto Project Costing. This facilitates a streamlined General Ledger to Project Costing reconciliation.

See Run Processes to Create and Send Cost Adjustments to Project Costing.

Credit memos that you create to adjust invoice amounts must also be accounted in Joint Venture Management. Theprocess selects only those receivables joint venture invoices and credit memos that are posted.

32



Run the Process to Update the General Ledger Reference for Posted ReceivablesInvoicesYou must be a user with the Joint Venture Accountant role to run this process.

If Data Security for Joint Venture Management is enabled, you can run the process for the joint ventures that areassociated with the business units you are authorized to manage.

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Create Joint Venture Invoices, press Enter, and then click OK.5. For the Processing Mode, select Update GL Reference in Joint Venture Distributions.6. In the Basic Options section, you can specify values in the following fields to filter invoiced distributions to

process:

◦ Business Unit. Select a particular business unit or leave it blank to process invoiced distributions for allthe business units in your joint ventures.

◦ Joint Venture. Select a particular joint venture or leave it blank to process invoiced distributions for allyour joint ventures. The process selects only those joint ventures at an Active status.

If data security is enabled, the drop-down lists display only the business units and the associated jointventures you are authorized to manage. If you leave these fields blank, the process updates the GLreference for only the business units you can manage.

◦ From Date.

◦ To Date.

You can use a transaction date range to select invoiced distributions to process.

◦ Customer. Enter a particular customer number or leave it blank to process invoiced distributions for allthe customers included in your joint ventures.

7. Click Submit.

Search for Invoiced Distributions Use the Joint Venture Distributions work area to search for and review invoiced distributions generated by the CreateJoint Venture Invoices ESS process. These distributions have the intermediate status of “Invoicing in progress”, whichthen changes to “Process complete” after the invoices are created. If the process doesn't create an invoice due to error,the status of that distribution changes to “Error”.

You must be a joint venture accountant user or a joint venture accounting manager to review distributions. A jointventure accountant can also manage distributions, such as change the distribution status from “Error” to “On Hold”.

If Data Security for Joint Venture Management is enabled, users can access only those records associated with thebusiness units authorized to them. A joint venture accountant might have view-only access to some joint ventures andmanage access to other joint ventures.

To search for distributions that have been invoiced, you can use the search and filter options.

1. At the top of the Joint Venture Distributions work area, you can select your joint venture from the Select JointVenture drop-down list.

33



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

2. In the Search field, you can enter search criteria that contain any data that can be found in the table.To refine your search results:

1. Click Show Filters to refine your search using one or more of the filters.2. To search for all processed distributions, in the Distribution Status filter, select Process complete.

The results include all invoiced distributions.3. To search for distributions associated with a specific invoice, in the Invoice Number filter, enter the invoice

number for the invoice.

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

Correcting Issues with Creating Joint Venture Invoices You might not be able to create invoices for some distributions included in your scheduled run of the Create JointVenture Invoices ESS process. This might be due to incomplete or incorrect setup required to create receivables invoices.After taking corrective action, you can rerun the Create Joint Venture Invoices ESS process to create invoices again.

Incorrect or Incomplete Customer Data• Payment terms is not set up for the customer for whom the invoice is created.

• Bill-to site is not set up for the customer for whom the invoice is created.

Joint venture Management requires a customer bill-to site to create receivables invoices. If the bill-to site thatyou want to specify in the Invoicing Partners page is not set up for the customer, you will not see this bill-to sitein the Customer Site drop-down list for the invoicing partner. If you leave this field blank, the system uses theprimary site of the customer when creating invoices. If the primary site is not available for the customer, theinvoice creation ends in error.

Incorrect or Incomplete Invoicing Partner Data• Bill-to site is not specified for the customer in the Invoicing Partners page and the primary bill-site is not

available for the customer.

Incorrect or Incomplete Invoice Distributions Setup• Incorrect or incomplete account is used in the offset to receivable (revenue) distribution lines.

The Receivables system records the offset to receivable amount in a default revenue account. You must replacethis default account with a specific joint venture account that’s not distributable.

34



Frequently Asked Question When Creating Joint VentureReceivables Invoices I've invoiced the partners for a cost transaction incurred in operating the joint venture. Why has this transactioncircled back into Joint Venture Management and invoiced again?

Check if you've used a distributable account as the offset to receivable (revenue) account to create your joint venturereceivables invoices. Accounts set up as distributable for your joint venture will pull in corresponding cost transactionsinto Joint Venture Management regardless of whether a transaction was already processed and invoiced to the partners.To prevent processed transactions from coming back into Joint Venture Management, you must use a non-distributableaccount as your offset to receivable account.

35



36


Chapter 5Create Billing Adjustments and Redistribute Joint Venture

Transactions to Rebill

5 Create Billing Adjustments and RedistributeJoint Venture Transactions to Rebill

Create Billing Adjustments and Redistribute JointVenture Transactions to Rebill The joint venture accountant might need to change an active ownership definition in certain cases. For example,the company made an acquisition and the partners have renegotiated the joint venture terms and conditions. Or adistributable account that shouldn’t have been made distributable brought in incorrect transactions into Joint VentureManagement.

The requirement might be to:

• Change only the percentages of ownership.

• Add or remove stakeholders and define new ownership percentages.

With the resulting change in the ownership definition effective dates, corresponding distributions that originate fromtransactions having transaction dates outside the new effective date range will no longer be valid. You must reversethese distributions and create credit memos if they were already invoiced. Then, you redistribute the transaction usingthe new ownership definition and reimburse the costs either through partner contributions or invoices.

Example: Reversing Joint Venture Invoices and Redistributing theTransactions Consider an active ownership definition named VENTUREOD1 that has the following information.

Ownership Definition Name Effective Dates Stakeholders Ownership Percentages

VENTUREOD1 1/01/2019 - 12/31/2019 S1, S2 2 stakeholders, 50% each

Transactions T1 and T2 were distributed using this ownership definition.

Transaction Transaction Date Distributions

2/01/2019 T1D1T1

2/01/2019 T1D2

6/01/2019 T2D1T2

6/01/2019 T2D2

There’s a change in the joint operating agreement. A new stakeholder is added to the joint venture and ownershippercentages are renegotiated, effective from 6/01/2019 to 12/31/2019. Now, the distributions that have the transaction

37



Transactions to Rebilldates on or within this new effective date range are no longer valid. These distributions need to be reversed andredistributed using the revised ownership percentages.

To dissociate these invalid distributions from the ownership definition, the joint venture accountant changes theownership definition effective end date to 5/31/2019. This triggers the reversal process. The first row in the followingtable shows the original ownership definition and the second row, the changed ownership definition.




The distributions associated with transaction T2 are no longer valid because the transaction date, 6/01/2019, is afterthe new effective end date, 5/31/2019. If the distributions were invoiced, you must reverse them in the Joint VentureManagement system and create credit memos to back out the amounts in the invoices. If they were not processed, thesystem will delete them from the Joint Venture Distributions page during the reversal process. There is no impact ondistributions T1D1 and T1D2 because the associated transaction date is within the effective date range.

When you reverse joint venture distributions, the system cancels the original distributions and creates reverseddistributions as illustrated in the following table:

Transaction Transaction Date Distributions Stakeholders OwnershipPercentages

Distribution LineType

T2D1 S1 50% Canceled (originaldistribution line)

T2D1RV S1 50% Reversed


T2 6/01/2019


To create credit memos, you send the reversed distributions to Receivables. The Import AutoInvoice process createscredit memos. Then, you retrieve the credit memo details from Receivables and update these details to the reverseddistributions in Joint Venture Management. You redistribute transaction T2 using the new ownership percentages asshown in the following table. You can redistribute even before the credit memo creation is complete.


VENTUREOD1 6/01/2019 - 12/31/2019 S1, S2, S3 3 stakeholders, 25%, 25%, and 50%

When you redistribute joint venture transactions, the system creates a redistributed entry for each stakeholder includedin the ownership definition. This is illustrated in the following table.

38




Transaction Transaction Date Distributions Stakeholders OwnershipPercentages

Distribution LineType



T2D1RD S1 25% Redistributed




T2 6/01/2019


You can review the redistributed entries before you create invoices or assign them to partner contributions, if applicable.

You use the Process Joint Venture Invoicing Adjustments ESS process to:

• Reverse the distributions.

• Redistribute associated transactions.

• Send the reversed distributions to create credit memos in Receivables.

• Update the credit memo information back into the Joint Venture Management system.

You must be a user with the Joint Venture Accountant role to run this process and complete these tasks.

If Data Security for Joint Venture Management is enabled, you can run the process only for the joint ventures that areassociated with the business units you are authorized to manage.

This ESS process has three modes that you must run in the order illustrated in the following graphic:

39




After you complete the processes illustrated in the above graphic, an Accounts Receivable Manager must run thestandard processes to create accounting entries in Receivables and post the credit memos to General Ledger. To ensureconsistent accounting across all systems that integrate with Joint Venture Management, the joint venture accountantthen runs the Update GL Reference in Joint Venture Distributions mode of the Create Joint Venture Invoices process.This mode updates the partner offset account from General Ledger to the reversed distributions. Only accounted creditmemos are available for reporting or subsequent processing, for example, to create reverse cost adjustments in ProjectCosting.

Identify Distributions to Reverse When you change an ownership definition, distributions associated with this ownership definition that have transactiondates outside the new effective date range will no longer be valid. You must identify the invalid distributions andreverse them. You trigger the system to identify the invalid distributions by changing the effective dates of the originalownership definition. The system updates the existing ownership definition with the new effective dates.

For example:

The effective date range of an active ownership definition is from 1/01/2020 to 12/31/2020. Due to a change in thejoint operating agreement, a new ownership definition will be effective from 8/01/2020 to 12/31/2020. To identifythe corresponding distributions that need to be reversed due to this change, you update the effective end date of theoriginal ownership definition to 7/31/2020 as shown in the following image. The distributions that have transactiondates from 8/01/2020 to 12/31/2020 will be identified for reversal.

40




To change the effective dates of an ownership definition:

1. On the Joint Ventures page, click the joint venture that has the ownership definition you want to update.2. On Edit Joint Venture, click the Ownership Definitions tab.3. Search for and click the ownership definition.4. Update the effective dates as required in the Effective Start Date and Effective End Date fields.

Note: Distributions that were originally associated with this ownership definition but no longer fall within theupdated effective date range will need to be reversed and reprocessed with a different ownership definition.

When you update the effective dates, the system displays the following fields:

◦ Change Reason. You must select a reason for changing the effective dates from the drop-down list.

◦ Additional Information. Enter additional information to describe the reason for changing the effectivedates.

Note: If this ownership definition was updated before and the billing adjustment process is notcomplete, the system displays the last specified values in the Change Reason and AdditionalInformation fields.

5. Click Save and Close.

41




Create Reversed Distributions in Joint VentureManagement After you update the ownership definition, you run the Process Joint Venture Invoicing Adjustments ESS processin the default mode “Create Joint Venture Distribution Reversals” to reverse the distributions in the Joint VentureManagement system. You can choose to run the process over a specific joint venture and ownership definition.

The system processes only those distributions associated with ownership definition having changed effective dates,and updates the distributions in the Joint Venture Distributions page as follows:

• Marks the original invoiced distribution as Canceled in the Distribution Line Type column.

• Creates a reversed distribution for every canceled distribution.

Reversed distributions cancel out the original distribution amount.

• Deletes distributions that are not invoiced.

The system does not leave an audit trail for deleted distributions.

• Updates the transaction status to “Available to process” so that it can be redistributed using a new ownershipdefinition.

• Populates the reason for changing the ownership definition in the reversed distribution line. You entered thisreason when you changed the effective dates of the ownership definition.

The following example shows a distribution that has been reversed. The original distribution has a distributeddebit of $100.00. This original distribution is marked as canceled in the Distribution Line Type column and areversed distribution was created for it with a distributed credit of $100.

After the process creates the reversed distributions, you can use the Joint Venture Distributions work area to review andupdate the reversed distributions before you process them to create credit memos. For example, you can change thedistribution status to “On hold” to hold off creating the credit memo for a reversed distribution.

See Manage Reversed and Redistributed Records.

Run the Process to Create Reversed Distributions1. From the Navigator, select Tools, Scheduled Processes.

42



Transactions to Rebill2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Process Joint Venture Invoicing Adjustments, press Enter, and then click OK.5. For the Processing Mode, select Create Joint Venture Distribution Reversals.6. On Process Details, determine when you want to run the process:


◦ On a schedule. Click Advanced to set up a schedule for running the process. In the Advanced Options,you can create a schedule and set up a notification so you or another user are notified about the process.

7. In the Basic Options section, specify values in the following fields as required:

◦ Joint Venture. Select a particular joint venture or leave it blank to run the process over all your jointventures. The process selects only those joint ventures at an Active status.

If data security is enabled, this list displays only the joint ventures associated with the business units youare authorized to manage. If you leave this field blank, the process creates reversed distributions only forthe joint ventures you can manage.

◦ Ownership Definition. You can select an ownership definition that’s associated with the joint ventureyou specified. If you haven’t specified a joint venture, the Ownership Definition drop-down list doesn’tdisplay any values. You can leave this field blank if you want to process joint venture distributions for allthe ownership definitions associated with the joint venture you specified.

◦ Run Joint Venture Distributions Process. Select Yes to launch the Create Joint Venture Distributionsprocess to create distributions for transactions that are at “Available to process” status. This optionenables you to redistribute the transactions immediately after reversing the distributions that werecreated from the transactions. If you select No, you can include the transactions in the next scheduledrun of the Create Joint Venture Distributions process.

8. Click Submit.

Create Redistributions The “Create Joint Venture Distribution Reversals” mode includes an option to automatically redistribute the transactionsafter creating the reversed distributions.

To use this option, you must create and activate the new ownership definition before you run the ESS process in thismode. Or, you can distribute these transactions in the next scheduled run of the Create Joint Venture Distributions ESSprocess. The new ownership definition must have the same name as the original ownership definition.

Redistributed records are created with the following information:

• Distribution status = Available to process

• Distribution line type = Redistributed

If the process doesn’t find an active ownership definition that matches the original ownership definition name, thetransaction status is updated to “Error”.

The following example shows a redistributed record for a stakeholder named DIGGITLLC. This record was created usingthe new ownership definition with effective dates from 03/01/2020 to 12/31/2199. You can also see a canceled andreversed distribution for stakeholder CEMENTINC.

43




You can review the redistributed records and update them, if required, before you process them to bill stakeholders. Forexample, you can update a redistributed record as “Distribution Only” if you do not want to bill the stakeholder for thiscost.

See Manage Reversed and Redistributed Records.

Scenario: Reversal and Redistribution for Stakeholders with NoChange in Ownership Percentages This example discusses the reversal and redistribution process when the new ownership definition doesn’t state anychange in the ownership percentages for some stakeholders.

Consider the ownership definition illustrated in the following table.


VENTUREOD1 1/01/2019 - 12/31/2019 S1, S2, S3, S4 4 stakeholders, 25% each

Transaction T1 was distributed using this ownership definition. Distributions T1D1, T1D2, and T1D3 were invoiced.

Transactions Transaction Date Distributions Stakeholders Percentages ofOwnership

Invoice Number

T1D1 S1 25% T1D1inv

T1D2 S2 25% T1D2inv

T1D3 S3 25% T1D3inv

T1 6/30/2019

T1D4 S4 25%

Stakeholder S1 repeatedly fails to make payment for invoices by the due date. The managing partner, S2, decidesto absorb a portion of this stakeholder’s percentage of ownership, effective 6/01/2019. There is no change in theownership percentages for stakeholders S3 and S4.

44




To trigger the reversal process, you change the effective end date of the ownership definition to 5/31/2019 as illustratedin the following table.


VENTUREOD1 1/01/2019 - 5/31/2019 S1, S2, S3, S4 4 stakeholders, 25% each

The following table illustrates the new ownership definition with the revised ownership percentages that the process willuse to redistribute.


VENTUREOD1 6/01/2019 - 12/31/2019 S1, S2, S3, S4 4 stakeholders, 10% , 40%, 25%, 25% respectively

You activate the option to immediately redistribute the transaction after reversing the distributions.

The reversal process cancels the original distributions T1D1 and T1D2, and creates corresponding reversed distributions.Because you opted to automatically redistribute after reversing, the process creates redistributed records forstakeholders S1 and S2 using the new ownership percentages.

Distributions Stakeholders Ownership Percentages Ownership DefinitionEffective Dates

Distribution Line Type

T1D1 S1 25% 1/01/2019 - 12/31/2019 Canceled (originaldistribution line)

T1D1RV S1 25% 1/01/2019 - 12/31/2019 Reversed

T1D1RD S1 10% 6/01/2019 - 12/31/2019 Redistributed


T1D2RV S2 25% 1/01/2019 - 12/31/2019 Reversed


T1D3 S3 25% 6/01/2019 - 12/31/2019 Redistributed (original/canceled distribution line)

T1D4 S4 25% 6/01/2019 - 12/31/2019 Redistributed

Distribution T1D3 isn’t reversed because stakeholder S3 was already billed for this distribution and the invoice amountis still valid as there’s no change in the ownership percentage. In this case, the system changes the line type of theoriginal distribution to Redistributed. However, if you ran only the reversal process without activating the redistributeoption, a reversed distribution would have been created, which will eventually be deleted by the Create Joint VentureDistributions process.

Distribution T1D4 would have been deleted if you ran only the reversal process because this distribution is yet tobe invoiced. Because you activated the option to redistribute immediately after reversing, the system changes thedistribution line type of the original distribution to “Redistributed”. This is because it’s an unprocessed distribution thatneeds to be billed to the stakeholder.

45




Scenario: Reversal and Redistribution for a Stakeholder Who'sUpdated as Not Billable and Is Distribution Only In the preceding example, distribution T1D3 was invoiced and the invoice was sent to stakeholder S3. The ownershippercentage for S3 is 25% as illustrated in the following table.

Distribution Stakeholder Ownership Percentage Invoice Number

T1D3 S3 25% T2D3inv

In the new ownership definition, suppose you mark stakeholder S3 as “Distribution Only” without changing theownership percentage. Now, the stakeholder cannot be billed for this distributed cost and you must back out theamount in the invoice. Therefore, the process creates a reversed distribution, enabling you to create a credit memo forthe invoice. The process also creates a redistributed record marked as “Distribution Only”.

Distributions Stakeholders Percentages of Ownership Ownership DefinitionEffective Dates

Distribution Line Type


T1D3RV S3 25% 1/01/2019 - 12/31/2019 Reversed


Send the Reversed Distributions to Create Credit Memos

For invoiced distributions that were reversed, you must create credit memos in Receivables to back out the amounts inthe invoices. This involves sending information back and forth between Joint Venture Management and Receivables.

You run the Process Joint Venture Invoicing Adjustments ESS process in the “Send Distribution Reversals to Receivablesfor Credit Memo” mode to send the reversed distributions to Receivables in preparation for credit memo creation. Youcan also send a specific accounting date and credit memo transaction date to assign to the credit memos through theoptions available for this mode.

The other options of this mode enable you to send distributions for a specific joint venture, business unit, customer, andtransaction date range.

The process selects only those reversed distributions for which credit memos have not been created and sends them tothe Receivables interface table. In the Joint Venture Distributions page, the system updates the status of these reverseddistributions to “Credit memo in progress”.

46




Run the Process to Send Reversed Distributions to Create Credit Memos1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Process Joint Venture Invoicing Adjustments, press Enter, and then click OK.5. For the Processing Mode, select Send Distribution Reversals to Receivables for Credit Memo.6. On Process Details, determine when you want to run the process:



7. In the Basic Options section, you can specify values in the following fields to filter reversed distributions toprocess:

◦ Business Unit. Select a particular business unit or leave it blank to process reversed distributions for allthe business units in the joint ventures.

◦ Joint Venture. Select a particular joint venture or leave it blank to process reversed distributions for allyour joint ventures. The process selects only those joint ventures at an Active status.

If data security is enabled, the drop-down lists display only the business units and the associated jointventures you are authorized to manage. If you leave these fields blank, the process sends the reverseddistributions only for the joint ventures you can manage.

◦ Customer. Enter a particular customer number or leave it blank to process reversed distributions for allthe customers in your joint ventures.

◦ Transaction from Date.

◦ Transaction to Date.

You can use a transaction date range to select reversed distributions to process.8. In the Basic Options section, you can also specify default values that the Import AutoInvoice process will assign

when creating joint venture credit memos. You can specify default values for:

◦ Accounting Date. Enter a date that the system assigns as the general ledger date in Receivables for jointventure credit memos when they are created for the selected reversed distributions. If you leave this fieldblank, the system searches the Receivables setup to assign this date.

◦ Credit Memo Transaction Date. Enter a date that the system assigns as the credit memo transaction dateto joint venture credit memos when they are created for the selected reversed distributions. If you leavethis field blank, the system searches the Receivables setup to assign this date.

9. Click Submit.

Create Credit Memos for Joint Venture Invoices Run the Oracle Financials Import AutoInvoice ESS process to create credit memos for the reversed distributions thatwere sent to the Receivables Interface table.

47




Note: If you have both credit and debit amounts in your cost-related distributions, deselect the “Natural applicationonly” check box for the joint venture transaction type “JV Credit Memo” before you run the Import AutoInvoiceprocess. This check box is selected by default. This option only lets you apply a payment to a transaction that bringsthe balance close to or equal to zero. When you have both debit and credit distributed costs, creating a credit memocan increase the invoice balance rather than reducing it. For an example of this scenario, see Example of When aCredit Memo Increases the Invoice Balance.

If the process does not create credit memos for some distributions due to issues encountered during processing, thespecifics of the errors are logged in Receivables. The user must resolve the errors and rerun the process for theserecords.

See AutoInvoice.

Example of When a Credit Memo Increases the Invoice Balance Typically, costs are debit in nature. However, there might be cases when you have costs in both credit and debit. Forexample, you create a payables invoice of $10000 to pay the equipment cost of an oil well. That’s a debit amount. If thesupplier gives a discount by issuing a credit of $1000 on the payables invoice, you have both a debit and credit for thiscost transaction that you bring into Joint Venture Management. Then, you create a receivables invoice to reimburse theactual cost, which is $9000.

The following example also shows a joint venture receivables invoice that has both debit and credit invoice lines.The invoice amount is $2339.87. Due to a change in the ownership definition, you must reverse the joint venturedistributions associated with invoice lines 2 and 7 and create a partial credit memo.

The original and reversed distributions for invoice lines 2 and 7 are as below:

Debit Credit

Original Distribution D1 (invoice line 2) 2500

Original Distribution D2 (invoice line 7) 2000

48

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAIRP1476400




Debit Credit

Reversed Distribution D1RV (invoice line 2) 2500

Reversed Distribution D2RV (invoice line 7) 2000

The credit memo is created for $500 (2500-2000=500). Because this amount is a credit (negative in sign), it shouldincrease the invoice amount instead of reducing it. The invoice amount after applying the credit memo is $2839.87{2339.87-(-500)=2839.87}.

You can create such a credit memo in Receivables only if the “Natural application only” check box is not activated for thetransaction type. If you activate this option, the system issues an error and does not create the credit memo.

Run the Process to Create Credit Memos for ReversedDistributions You must be a user with the Accounts Receivable Specialist role and Billing Management duty to run this ESS process.

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Import AutoInvoice, press Enter, and then click OK.5. On Process Details, determine when you want to run the process:



6. In the Basic Options section, complete the following required fields:

◦ Business Unit. Select your joint venture business unit from the drop-down list. The process will createcredit memos for the reversed distributions associated with this business unit.

◦ Transaction Source. Search for and select "Oracle Joint Ventures" from the drop-down list. This is theseeded transaction source for joint venture receivables invoice and credit memo. The system will processonly those reversed records that are associated with this transaction source.

◦ Default Date. Enter a date that the system assigns as the accounting date and credit memo transactiondate to credit memos if the process can't derive these dates from Joint Venture Management or fromReceivables setup. You must enter a date that is on or after the accounting date in the receivables invoicethat was created to bill the partners for joint venture costs.

For joint venture credit memos, the Import AutoInvoice process will first search if these dates arespecified in the options of the “Send Distribution Reversals to Receivables for Credit Memo” mode of the"Process Joint Venture Invoicing Adjustments" process. If it doesn't find the dates in the options, it willcheck the Receivables setup. If the process can't derive the dates from the Receivables setup, it will usethe default date that you enter in this field.

49




7. Optionally, specify values in the other fields to filter reversed joint venture distributions that you want toprocess.

8. Click Submit.

Update Credit Memo Information in Joint VentureManagement After the Import AutoInvoice process creates the credit memos, you must run the Process Joint Venture InvoicingAdjustments ESS process in the “Update Credit Memo Information in Distribution Reversals” mode to update the creditmemo information back into Joint Venture Management. This process also updates the distribution status to “Error” forreversed distributions that the Import AutoInvoice process couldn’t create credit memos for due to issues encounteredduring processing. By default, the process updates the credit memo information to all the reversed distributions thatare at status “Credit memo in progress”. But you can also include those at “Error” status through an option of this ESSmode. The option enables you to update the credit memo details for reversed distributions that initially ran into errorsbut were resolved and credit memos were created.

The process updates the following information for the reversed distributions in the Joint Venture Distributions page:

• Adds the credit memo number and date in the Invoice Number and Invoice Date fields, respectively.

These fields are used for both invoice and credit memo.

• Populates “Credit Memo” in the Invoice Type field.

• Updates the distribution status to “Process complete”.

The following example shows a reversed distribution for which a credit memo was created:

50




Run the Process to Update Credit Memo Information for ReversedDistributions

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Process Joint Venture Invoicing Adjustments, press Enter, and then click OK.5. For the Processing Mode, select Update Credit Memo Information in Distribution Reversals.6. On Process Details, determine when you want to run the process:



7. In the Basic Options section, you have the following option:

◦ Process Distributions in Error. Select Yes if you want to process all reversed distributions, including thosedistributions that have the status “Error”. The AutoInvoice Import ESS process didn’t create credit memosfor these distributions because of issues encountered during processing. This option enables you toupdate the credit memo details for reversed distributions that initially ran into errors but were resolvedand credit memos were created.

8. Click Submit.

Reverse Distributions Associated with PartnerContributions

Note: This section is applicable only if your joint venture uses partner contributions to meet the costs incurred by themanaging partner.

Partner Contributions are cash advances that the managing partner requests from the stakeholders to meet theup-front and continuing costs of joint ventures. When the ownership percentages change due to any reason, thedistributed costs covered by partner contributions that have associated transaction dates outside the new effective date

51



Transactions to Rebillrange are no longer valid. You must reverse these invalid distributions and redistribute the transactions. Then, you canreimburse the redistributed costs either through partner contributions or invoices.

Reversing the amounts drawn from partner contributions involves two stages:

1. Create reversed distributions for modified ownership definitions.

Regardless of whether a distribution is covered by a partner contribution or an invoice, the “Create JointVenture Distribution Reversals” ESS mode creates reversed records for associated distributions that originatefrom transactions having transaction dates outside the new ownership definition effective date range. Theoriginal distributions are marked as “Canceled”.

2. Process the reversed distributions to return the amounts drawn from partner contributions.

The reversed distributions are automatically included in the next scheduled run of the Process JointVenture Partner Contributions ESS process. The process returns the amounts that were drawn from partnercontributions, resulting in an increase of the open amount in the Joint Venture Partner Contributions page.

Scenario: Reversing the Amounts for Split Distribution Lines When a stakeholder’s partner contribution cannot cover the entire amount for a distributed cost, the system splits thedistribution into two distribution lines:

• A distribution line that’s covered by the partner contribution.

• A distribution line for the remaining amount that still needs to be recouped from the stakeholder.

In such a case, the “Create Joint Venture Distribution Reversals” ESS mode creates reversed distribution lines forboth the split lines. The original distribution lines are canceled and moved to the status “Process complete” while thereversed distribution lines are created with the status “Available to process”. The partner contribution number of theoriginal split line is carried over to the associated reversed distribution line.

For detailed information on partner contributions, see Set Up and Draw from Partner Contributions.

52




Reverse Cost Adjustments in Project Costing

Note: This section is applicable only if your joint venture creates cost adjustments in Project Costing for eachstakeholder’s distributed costs.

Joint Venture Management uses each stakeholder’s distributed costs and creates cost adjustment transactions inProject Costing. The cost adjustments get subtracted from the gross amount, enabling the project accountant to realizethe capitalized cost.

When the ownership percentages change, the cost adjustments created from distributions that have transaction datesoutside the new effective date range are no longer valid. These cost adjustments need to be reversed from ProjectCosting. Then, you can redistribute the transaction and create new cost adjustments for the redistributed costs.

Reversing the cost adjustments from Project Costing involves two stages:

• Create reversed distributions for modified ownership definitions.

The “Create Joint Venture Distribution Reversals” mode creates reversed records for all applicable distributions.If the original distributions were invoiced and accounted, the mode creates corresponding reverseddistributions with the Project Costing status "Awaiting Accounting". The line type of the original distributions ismarked as "Canceled". After you create credit memos for the reversed distributions and account them in JointVenture Management, the system updates the Project Costing status of the reversed distributions to "Availableto process" and the distribution status to "Process complete".

• Process the reversed distributions to negate the cost adjustments in Project Costing.

Only the reversed distributions at “Process complete” distribution status and "Available to process" ProjectCosting status are automatically included in the scheduled run of the “Create Project Costing Adjustments”mode of the Create Joint Venture Distributions ESS process. The process sends the distributions to astaging table. Then, when the project accountant runs the Import Costs ESS process, it creates reverse costadjustments in Project Costing using the information from the reversed distributions. The reverse costadjustments cancel out the original cost adjustments.

53




For detailed information on creating cost adjustments for joint ventures, see Create and Send Cost Adjustments toProject Costing.

Reversal and Redistribution: When a Joint Venture UsesPartner Contributions and Invoices to Reimburse Costs,and Also Creates Cost Adjustments in Project Costing A joint venture might use partner contributions to manage the upfront and continuing costs of the joint venture,and create invoices for costs that are not covered by partner contributions. The joint venture might also create costadjustments of the distributed costs in Project Costing to account for the managing partner’s share of the joint venturecosts.

In such a case, you perform the following processes for the cost-related distributions:

• Create and assign partner contributions to the distributions and draw funds to cover the costs.

• Create invoices for distributions not covered by partner contributions.

All distributions partially or completely covered by partner contributions are also invoiced. This providesvisibility to the stakeholder of the amount billed through invoices and partner contributions. A distributionthat’s fully covered by a partner contribution is billed to the stakeholder as a zero amount invoice. The invoiceincludes the partner contribution amount paid by the stakeholder.

• Send information of the distributed costs to Project Costing to create cost adjustments. Update the ProjectCosting information back to the distributions.

If you need to reverse such distributions, you must execute the reversal processes for partner contributions, invoices,and project cost adjustments.

54




Oracle recommends you to execute the reversal processes in the order shown in the following graphic:

Scenarios and Recommended Actions After you create reversed distributions in Joint Venture Management, it’s recommended that you complete the reversalprocesses in the following order:

1. Reverse partner contributions.2. Create credit memos for invoices and update the accounting for posted credit memos in the reversed

distributions.3. Reverse cost adjustments.

This section includes scenarios for various combinations of the processes, based on the processing stage, and therecommended order of actions you can take.

Note: The tables show the distribution status and Project Costing status of the original distributions, reverseddistributions, and redistributed records when they are created (updated in the case of original distributions) for eachscenario.

Scenario 1: Distribution is invoiced and accounted, not covered by partner contribution, not applicable to be sentto Project Costing

Original Reversed Redistributed

Distribution Status No change (from Processcomplete)

Available to process (to createcredit memo)

Available to process (to rebill)

Project Costing Status Not applicable Not applicable Not applicable

55




Recommendation:

1. Send reversed distributions to Receivables and create credit memos.2. Process redistributed costs to draw from partner contributions, if available. If partner contributions are not

available, create invoices.Scenario 2: Distribution is invoiced and accounted, covered by partner contribution, not applicable to to be sentto Project Costing



Available to process (to createcredit memo and partnercontribution reversal)


Project Costing Status Not applicable Not applicable Not applicable

Recommendation:

1. Process reversed distributions to return the amounts drawn from partner contributions. Concurrently, processredistributed costs to draw from partner contributions, if available.

2. Send reversed distributions to Receivables and create credit memos. Post the credit memos and update theaccounting in the reversed distributions.

3. Process redistributed costs to create invoices, if partner contributions are not available. Post the invoices andupdate the accounting in the redistributions.

Scenario 3: Distribution is invoiced and accounted, not covered by partner contribution, has Project Costinginformation



Available to process (to createcredit memo)


Project Costing Status No change (from Processcomplete)

Awaiting Accounting (changes to"Available to process" after thecredit memo is accounted.)

Awaiting Accounting (changesto "Available to process" afterthe invoice created from theredistribution is accounted.)

Recommendation:


2. Process redistributed costs to create invoices. Post the invoices and update the accounting in theredistributions.

3. Process reversed distributions that are at the "Available to process" Project Costing status to create reverse costadjustments in Project Costing. Concurrently, create new cost adjustments from the redistributed costs that areat the "Available to process" status.

Scenario 4: Distribution is invoiced and accounted, covered by partner contribution, has Project Costinginformation

56






Available to process (to createcredit memo and partnercontribution reversal)


Project Costing Status No change (from Processcomplete)

Awaiting Accounting (changes to"Available to process" after thecredit memo is accounted.)

Awaiting Accounting (changesto "Available to process" afterthe invoice created from theredistribution is accounted.)

Recommendation:

1. Process reversed distributions to return the amounts drawn from partner contributions. Concurrently, processredistributed costs to draw from partner contributions, if available.


3. Process redistributed costs to create invoices, if partner contributions are not available. Post the invoices andupdate the accounting in the redistributions.

4. Process reversed distributions that are at the "Available to process" Project Costing status to create reverse costadjustments in Project Costing. Concurrently, create new cost adjustments from the redistributed costs that areat the "Available to process" status.

Scenario 5: Distribution is not invoiced, not covered by partner contribution, yet to be sent to Project Costing


Deleted NA NA

Scenario 6: When a new stakeholder is added to the new ownership definition


Distribution Status NA NA Available to process (to rebill)

Project Costing Status NA NA Awaiting Accounting (changesto "Available to process" afterthe invoice created from theredistribution is accounted.)

Recommendation:

1. Process redistributed costs to draw from partner contributions, if available. If partner contributions are notavailable, create invoices. Post the invoices and update the accounting in the redistributions.

2. Create cost adjustments from the redistributed costs that are at the "Available to process" status.

57




Manage Reversed and Redistributed Records You can manage reversed and redistributed records from the Joint Venture Distributions work area.

You must be a joint venture accountant user to manage the records.

Note: If Data Security for Joint Venture Management is enabled, you can manage the records for only those jointventures that are associated with the business units authorized to you. Depending on your business unit access, youmight have view-only access to some joint ventures and manage access to other joint ventures.

Reversed distributions are created with the distribution status “Available to process” if the original distribution wasinvoiced. You can change the distribution status to “On hold” if you are not ready to process them to create creditmemos. You can also update the reason for changing the ownership definition and add additional details.

Redistributed records are created with the distribution status “Available to process”, indicating that these are availableto be billed. You can change the distribution status to “On hold” if you are not ready to process them yet. Or you canupdate them to “Distribution Only” if you do not want to bill the stakeholder for this cost.

To update reversed and redistributed records:

1. In the Joint Venture Distributions work area, search for and select the distributions you want to update:



Note: When you use Select All, you are selecting all distributions based on the filter criteria, not justthe distributions displayed in the grid.

2. Click the Edit Joint Venture Distributions button.

The Edit Joint Venture Distributions dialog box displays the number of selected distributions that can beupdated. This count does not include distributions that have the status “Process complete”, “Invoicing inprogress”, or “Credit memo in progress” even if you have selected them.

3. For reversed distributions, you can update the following information:

◦ Distribution Status: Change from “Available to process” to “On hold” or the reverse.

◦ Change Reason: Update the reason for changing the ownership definition.

◦ Additional Information: Describe the reason for changing the ownership definition.

For redistributed records, you can update the following information:

◦ Distribution Status: Change from “Available to process” to “On hold” or the reverse.

◦ Distribution Only: Click the Distribution Only drop-down list and select “Yes” if you do not want to createan invoice for this redistributed record.

4. Click OK.

58


Chapter 6Create Cost Adjustments for Project Costing

6 Create Cost Adjustments for Project Costing

Create and Send Cost Adjustments to Project Costing In Oracle Fusion Project Costing, a project accountant imports costs for a project from cost-related transactions inOracle Financials to capture the gross amount of costs for a project. A managing partner of a joint venture uses JointVenture Management to split cost-related transactions from Oracle Fusion Financials according to each partner’spercentage of ownership in a joint venture. Scheduled processes create distributions that contain each partner's share,and then generate invoices from the distributions to recoup costs from joint venture partners.

You can use both systems separately to process the same cost-related transactions from Financials. But by enablingthe “Project Capitalization and Progress Management” feature for Joint Venture Management, you can create costadjustments from joint venture distributions that originate from project-related cost transactions. A project accountantcan then import the cost adjustments to Project Costing. When imported into Project Costing from Joint VentureManagement, original distribution cost adjustments are negative amounts that get subtracted from the gross amount,enabling the project accountant to realize the accurate capitalized cost.

The following illustration shows how both systems work together:

In the preceding example, notice that the managing partner’s $700 share of the costs aren’t passed to Project Costingas cost adjustments. In Joint Venture Management, distributions are created for a managing partner’s internalstakeholder, but cost adjustments are not created for internal stakeholders.

59



Trace Project-Related Transactions from Joint Venture Management toProject Costing and ReceivablesWhen set up with Project Costing, project-related transactions and distributions in Joint Venture Management includethe following project details:

• Project

• Task

• Expenditure Item Type

• Expenditure Item Date

• Expenditure Organization

All of the preceding details are captured, but only project, task, and expenditure item type are displayed in the JointVenture Transactions and Joint Venture Distributions work areas.

Cost adjustments imported into Project Costing from Joint Venture Management include the ID of the associateddistribution in Joint Venture Management. This enables you to reference cost adjustment amounts between systems forauditing and troubleshooting purposes.

Also, Receivables invoices created from project-related distributions in Joint Venture Management include projectinformation. You can use this information to trace project-related invoices back to a particular project and project task inProject Costing.

In all, Joint Venture Management captures project details from the point of identifying transactions to creatingdistributions, invoices, and cost adjustments.

Cost Adjustments Sent to Project Costing as "Accounted"Joint Venture Management creates cost adjustments from distributions after they have been invoiced and posted tothe General Ledger. As a result, when you run the process to create cost adjustments from invoiced distributions, thecost adjustments are sent to Project Costing as “accounted.” This ensures that between the two systems, costs areaccounted only once.

Cost adjustments sent to Project Costing from Joint Venture Management include accounting information whichconsists of the code combination IDs of the partner offset account and Receivables account, accounted date, accountedamount, and accounted currency. This accounting information corresponds to the Receivables invoice that JointVenture Management generates from distributions. The partner offset account tracks costs covered by externalpartners in a joint venture. The Receivables account tracks outstanding payments owed by external partners to the jointventure managing partner.

Note: While the partner offset account can be categorized under the Revenue Accounting Class in OracleFusion Financials, the account serves as a cost recovery account and shares the same natural account as the CIP(construction in progress) account. The CIP account typically represents the gross costs that are brought into ProjectCosting through a separate process.

60



Project Costing Statuses and the Processing of Cost AdjustmentsIn the Joint Venture Distributions work area, the Project Costing Status indicates if a distribution is eligible for creatinga cost adjustment. It also indicates if a cost adjustment has been created for a distribution and imported into ProjectCosting. The Project Costing statuses include:

• Awaiting Accounting. Indicates that the distribution, which qualifies for processing as a cost adjustment, hasn'tbeen invoiced yet. The system can’t create a cost adjustment from a distribution until after the distribution hasbeen invoiced and posted.

• Not applicable. Indicates that the distribution doesn’t have project information or has invalid projectinformation. This status also applies to distributions that are marked for "Distribution only," associated with aninternal stakeholder, or not related to an asset or expense.

• Available to process. Indicates that the project-related distribution is ready to be processed for a costadjustment.

• Project Costing in progress. Indicates that a cost adjustment was created for the distribution and is in staging,awaiting to be imported into Project Costing.

• Process complete. Indicates that the cost adjustment for the distribution has been imported into ProjectCosting.

Example of Creating Cost Adjustments for Project Costing Before importing cost adjustments from Joint Venture Management to Project Costing, a project accountant importsproject costs from transactions in subledger accounting. In this example, the project accountant reviews costs importedinto Project Costing for the Operations-West expenditure organization.

Note: You can set up all of the processes mentioned in this example to run on a schedule.

Next, a joint venture accountant runs the Joint Venture Management processes to:

• Identify transactions for the joint venture.

• Create distributions that contain each partner’s share of the cost in the transactions.

At this point, project-related distributions have a Project Costing status of “Awaiting Accounting.”

61



• Create Receivables invoices from joint venture distributions, and then run the processes to post the invoices tothe General Ledger and reference the posted invoices from distributions. After these processes complete, in theJoint Venture Distributions work area, the Project Costing status of project-related distributions changes from“Awaiting Accounting” to “Available to process."

The joint venture accountant then runs the process to create cost adjustments for project-related distributions witha Project Costing Status of "Available to process." The following example shows 4 distributions in the "Available toprocess" status that the process will create cost adjustments for:

The project accountant then imports the cost adjustments into Project Costing and reviews the original (gross) costs,cost adjustments from Joint Venture Management, and the net cost. The total represents the capitalized amount, whichis $500 in the following example:

62



After cost adjustments are imported into Project Costing, the joint venture accountant runs a separate process toupdate the Project Costing status of the processed project-related distributions to “Process complete.”

Before You Can Create Cost Adjustments for Project Costing Before you can create cost adjustments for Project Costing, an administrator must first configure the Joint VentureManagement integration with Project Costing. See Set Up Joint Venture Management Integration with Project Costing.

Run Processes to Create and Send Cost Adjustments to ProjectCosting Run the following processes to create cost adjustments from cost-related distributions in Joint Venture Managementand import the cost adjustments into Project Costing:

• Create Joint Venture Distributions – Create Project Costing Adjustments mode

63

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIcost_adjustments_setup_overview



A joint venture accountant runs this process to create cost adjustments from project-related distributions in theJoint Venture Distributions work area. The process creates cost adjustments from distributions with a ProjectCosting Status of “Available to process” and copies the cost adjustments to a staging table for importing intoProject Costing. The process updates the Project Costing Status of the distributions to “In progress.”

Note: Project-related distributions are set to the "Available to process" status only after the processesto invoice, post, and reference posted invoices for distributions have been run. See Create Invoices to BillPartners for Joint Venture Costs for more information.

• Import Costs

A project accountant runs this process to import cost adjustments from the staging table to Project Costing.This is the same process for importing original costs from subledger accounting. Except the project accountantchanges the transaction source from subledger accounting to Joint Venture Management.

Note: To import cost adjustments into Project Costing, the originating transactions must have anexpenditure type with the "Miscellaneous Transaction" expenditure type class. For more information, seeExpenditure Categories and Types.

• Create Joint Venture Distributions – Update Project Costing Status mode

A joint venture accountant runs this process, which first checks for distributions that have a Project Costingstatus of "In progress” in Joint Venture Management. If project expenditure items have been created for thecost adjustments in Project Costing, it changes the Distribution Project Costing Status to "Process complete."

Notice the separation of duties between the joint venture accountant and project accountant. This ensures that only aproject accountant can manage costs and cost adjustments in Project Costing.

The following illustration shows the flow of running the cost adjustment processes with the other Joint VentureManagement processes:

64

https://www.oracle.com/pls/topic/lookup?ctx=cloud&id=OAPFM3094561



Create Cost Adjustments You must be a user with the Joint Venture Accountant role to run this process.


1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Create Joint Venture Distributions, press Enter, and then click OK.5. On Process Details, determine when you want to run the process:



6. For the Processing Mode, select Create Project Costing Adjustments.7. Complete the following required fields to identify the transaction source for which project-related distributions

were generated:

◦ Project Transaction Source = Oracle Fusion Joint Venture ManagementWhen running the process to import cost adjustments into Project Costing, a project accountant mustenter this same value for the Project Transaction Source.

◦ Project Transaction Document = JV Partner Reimbursements

◦ Distribution Document Entry = Distribution

65



◦ Distribution Reversal Document Entry = Distribution Reversal

◦ Document Entry to Rebill Distributions = Rebill

After cost adjustments are imported into Project Costing, you can use the preceding values for filteringpurposes in the application.

8. Complete these optional fields if needed:

◦ Business Unit

To process cost adjustments for joint ventures associated with a particular business unit, enter thebusiness unit here.

If you have multiple joint ventures managed under different business units, then leave this blank toprocess cost adjustments for all your joint ventures.

If data security is enabled, you can select only the business units you are authorized to manage. If youleave this field blank, the process creates cost adjustments only for the joint ventures associated with thebusiness units you can manage.

◦ Project Number From

◦ Project Number To

You can create cost adjustments based on a range of project numbers. Or you can enter the same valuein the preceding fields if you are creating adjustments for a single project.

◦ Expenditure from Date

◦ Expenditure to Date

Enter a date range in these fields to create cost adjustments on expenditure items based on anexpenditure date range.

66



9. Click Submit.The process creates cost adjustments for joint venture distributions with a Project Costing Status of “Availableto process.” After the process completes, the Project Costing Status for the distributions changes to “Inprogress.” In this status, cost adjustments are awaiting import into Project Costing.

Import Cost Adjustments into Project Costing You must be a user with the Project Accountant role to run this process.

Before you run the process to import cost adjustments from Joint Venture Management, make sure you run theImport Costs process to import cost-related transactions for your project or projects from Oracle Financials into ProjectCosting.

1. Navigate to the Projects work area.2. Click the Tasks menu and select Import Costs.3. Complete these fields:

◦ Business Unit

◦ Process Mode. Select “Importing and processing transactions.”

◦ Transaction Status. Select “Not previously imported.”

67



◦ Transaction Source. Select “Oracle Fusion Joint Venture Management.”

This is the same value that the joint venture accountant entered for the transaction source when runningthe “Create Project Costing Adjustments” process.

◦ From Project Number

◦ To Project Number

For the preceding From and To values, enter the project number or range of project numbers that youcreated cost adjustments for.

◦ Process Through Expenditure Item Date

4. Click Submit.

This imports the cost adjustments into Project Costing. After the process completes, the Project Costing Statusof the associated distributions in the Distributions work area changes to “Process complete.”

In the Manage Project Costs work area, you can search for cost adjustments imported for one or more projects.Cost adjustments are listed as negative amounts alongside project costs, and the amount remaining, or theTotal amount, represents the capitalized amount.

68



Update Project Costing Status to "Process complete" for ProcessedDistributions You must be a user with the Joint Venture Accountant role to run Create Joint Venture Distributions – Update ProjectCosting Status process.


This process first checks for distributions that have a Project Costing status of "In progress” in Joint VentureManagement. If project expenditure items have been created for the cost adjustments in Project Costing, it changes theDistribution Project Costing Status to "Process complete."

1. From the Navigator, select Tools, Scheduled Processes.2. Click Schedule New Process.3. On the Schedule New Process dialog box, select Job as the Type.4. In the Name field, enter Create Joint Venture Distributions, press Enter, and then click OK.5. On Process Details, determine when you want to run the process:


◦ On a schedule. Click Advanced to set up a schedule for running the process.

In the Advanced Options, you can create a schedule and set up a notification so you or another user arenotified about the process.

6. For the Processing Mode, select Update Project Costing Status.7. Click Submit.

Troubleshooting Issues with Cost Adjustments This topic describes how to resolve issues you might encounter when running the processes to generate and send costadjustments from Joint Venture Management to Project Costing.

Correct Issues with Creating Cost Adjustments from Joint Venture Distributions

When you run the Create Project Costing Adjustments process, check the log file for any errors. Correct any issuesand then rerun the process. In the Distributions work area, when processed successfully, the Project Costing Status ofdistributions changes from “Available to process" to “Project Costing in progress.”

Correct Issues with Importing Cost Adjustment into Project Costing

If you encounter errors running the Import Costs process, check the error report. Any records that the process failsto import into Project Costing are displayed in the Manage Unprocessed Costs work area. In the work area, you canaddress errors by updating fields and so forth, and then reprocess records through the import process.

Recover Cost Adjustments Not Sent to Project Costing

It’s possible for the Import Costs process to complete successfully, but not import cost adjustments into Project Costingwhen there’s an issue with the account. When this occurs, the process moves records from staging to a Cost Importspreadsheet. Review the records in the spreadsheet and then use the same Cost Import process to import the recordsfrom the spreadsheet into Project Costing.

69



This issue indicates a problem with the setup of the offset to receivables in the Joint Venture Managementimplementation with Oracle Financials. See “Verify Setup of Offset to Receivables for Proper Processing of CostAdjustments” for more information.

70


Chapter 7Manage the Life Cycle of Joint Venture Definitions

7 Manage the Life Cycle of Joint VentureDefinitions

Manage the Life Cycle of Joint Venture Definitions During the life cycle of an active joint venture that's processing joint venture transactions, you can update the jointventure definition 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 ownershipdefinition 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 definition 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.

You must be a user with one of the following roles to access the task to manage a joint venture.

• Joint Venture Accountant

• Joint Venture Administrator

If Data Security for Joint Venture Management is enabled, you can manage only the joint ventures that are associatedwith the business units you are authorized to manage. You might have view-only access to some joint ventures andmanage access to other joint ventures.

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

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

Review Joint Ventures You can find 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 stakeholders, primary segmentvalues, ownership definitions, and other details.

On the main page in the Joint Ventures work area, you can access a dashboard to view the approval status of your jointventures if your business process requires approvals before making joint ventures active. You can also enable alerts

71



that provide details about remaining setup tasks for joint venture definitions that aren't fully defined. See Monitor YourProgress with Alerts and Dashboards.

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

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

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 definition 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 definition to Active until you complete all the required fields. See CreateJoint Venture Definitions for more information.

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

3. Save the joint venture definition.

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 identified 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 primary segment) for the business unit are automaticallyidentified 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 Primary Segment Values tab.

72

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIjvdef_monitor_your_progress_with_alerts_and_dashboards

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIjvdef_monitor_your_progress_with_alerts_and_dashboards

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIjvdef_create_joint_venture_definitions

http://www.oracle.com/pls/topic/lookup?ctx=fa21a&id=FAJVIjvdef_create_joint_venture_definitions



Add new rows if you need to identify additional accounts in the primary segment that contain transactionsyou need to identify for distribution. Remove any rows for accounts that no longer contain transactions fordistributing. You can 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 identified 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 Joint Venture Distributions work area and delete them.b. Search for transactions for the account in the Joint Venture Transactions work area and remove them.

Note: This does not delete the transactions from the ledger in Oracle Financials. It only removes themfrom being identified as joint venture transactions that need to be split.

Update a Stakeholder To update 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.

The updates you can make to a stakeholder depend on its status. A stakeholder can be set to one of these statuses:

• Pending. The initial status when you create a stakeholder.

• Active. Enables a stakeholder to be added to an ownership definition in a joint venture.

• Inactive. Used when a stakeholder is no longer partaking in the joint venture.

Update a Stakeholder in the Pending StatusThe initial status of a stakeholder is Pending. You can update any of the details of a stakeholder in this status. After youset up a stakeholder, you can change its status from Pending to Active.

Update a Stakeholder in the Active StatusYou can make any changes to a stakeholder in the Active status if it’s not associated with an ownership definition.

If a stakeholder is associated with an ownership definition, you are limited to the details you can change. The systemprevents you from changing the Stakeholder Type and certain partner information. However, you can change some ofthe Partner information, such as the invoicing preference, as long as the system hasn't generated distributions for thejoint venture that are associated to the stakeholder.

Instead of modifying a stakeholder in the Active status, you might need to create a new one. For example, an internalstakeholder in the managing partner’s organization could spin off and become an independent company. In this case,you would need to set up a new invoicing partner for the former internal stakeholder, and then create a new externalstakeholder with the new invoicing partner.

Before you change the stakeholder status from Active to Inactive, verify that the stakeholder isn't associated withunprocessed transactions or distributions, or both. Because the system doesn’t check if unprocessed transactions ordistributions exist for inactive stakeholders and creates distributions and invoices for the inactive stakeholders.

73



Update a Stakeholder in the Inactive Status: Not AllowedYou can’t make any changes to a stakeholder in the Inactive status. To make changes, you must first change thestakeholder back to Active.

Update an Ownership Definition To update an ownership definition:

1. On the Ownership Definition page for the joint venture, click the ownership definition you want to modify.2. On Edit Ownership Definition, update the ownership definition as needed and save it.

The updates you can make to an ownership definition depend on its status and whether it has already been used tocalculate the split of transactions. An ownership definition can be set to one of these statuses:

• Pending. The initial status when you create an ownership definition.

• Active. Enables the joint venture to use the ownership definition to process transactions.

• Inactive. Use this status when you no longer want the joint venture to use the ownership definition to processtransactions.

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

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

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

If an ownership definition 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 Onlysetting for a stakeholder.

• You can modify the effective dates. The system compares the transaction date in transactions to the effectivedates in the ownership definitions to determine which ownership definition to use to calculate the split. Thetransaction date is also included in distribution records generated from the split. If the modified dates arenot inclusive of transactions dates in existing distribution records, the system triggers the reversal and rebillprocess. Distributions associated with the ownership definition but no longer fall within the updated effectivedate range will need to be reversed and reprocessed with a different ownership definition.

See Create Billing Adjustments and Redistribute Joint Venture Transactions to Rebill.

Update an Ownership Definition in the Inactive Status: Not AllowedThis status is used when you no longer want the joint venture to process transactions with the ownership definition.Because an ownership definition contains the ownership percentages of stakeholders, for auditing and trackingpurposes, you can’t change any details in an ownership definition in this status. And you can’t delete it or change it tothe Active status again.

74



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

You can change the effective dates. If the new date range excludes any transaction dates in distribution records alreadygenerated for the joint venture, you must reverse the applicable distributions and redistribute the transaction.

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

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

In the joint venture definition, I've already identified accounts in the primary segment that are distributable. CanI change 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 primary segment) for the business unitare automatically identified by the joint venture. Joint Venture Management prevents you from changing the businessunit 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 theDistributable Segment Values page. If you remove the associated distributable segment values, you can disable thesegment.

Can I change the status of an ownership definition from Active to Inactive?

Yes. But you must verify that the ownership definition is not associated with unprocessed distributions. When youupdate the status of an ownership definition to Inactive, the system doesn’t check if unprocessed joint venturedistributions are associated with the inactive ownership definition and creates invoices for these distributions.

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

• Association of primary segment and distributable segment values used to identify distributable accounts forthe joint venture.

• 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 definitions

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

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

75



76


Chapter 8Monitor Joint Venture Data in the Joint Venture Accounting

Manager Dashboard

8 Monitor Joint Venture Data in the JointVenture Accounting Manager Dashboard

About the Joint Venture Accounting Manager Dashboard The Joint Venture Accounting Manager Dashboard enables a joint venture accounting manager to monitor and viewvarious details about joint ventures in a single view. The dashboard provides charts that display metrics about your jointventures and their associated transactions and distributions.

The Joint Venture Management Dashboard includes analytics that you can use to analyze and resolve issues in jointventures. You can maximize the recovery of costs for each period by using the dashboard to get an overall view of wheretransactions are in the business process. The dashboard enables you to oversee the activities of the joint venture tominimize month-end processing and reduce the risk of manual errors.

To access the dashboard, on the Home page, click the Joint Venture Accounting Manager Dashboard iconunder Joint Venture Management. You must be a user with the Joint Venture Accounting Manager role(ORA_JV_JOINT_VENTURE_ACCOUNTING_MANAGER_JOB) to access the dashboard. If Data Security for Joint VentureManagement is enabled, the dashboard displays the details of only those joint ventures that are associated with thebusiness units you are authorized to view. The dashboard also includes the joint ventures that are not yet associatedwith business units.

When opened, the dashboard displays two charts:

• Joint Venture Approval – Displays number of approved verses unapproved joint ventures.

• Joint Venture Status – Displays number of active joint ventures verses non-active joint ventures.

77


Chapter 8Monitor Joint Venture Data in the Joint Venture Accounting

Manager Dashboard

Use the filter fields to display additional charts with details about transactions and distributions associated with aparticular joint venture. You can display charts with the following data:

• Transaction amounts by transaction status

• Transaction counts by transaction status

• Distribution amounts by distribution status

• Distribution counts by distribution status

Update the filter criteria to display data for transactions and distributions by subledger or general ledger and by costs orrevenue.

78

Documents

Management Cloud Oracle Joint Venture