Changing Ownership Allocations for Existing Joint Ventures

You must define and run a mass change to change the ownership allocation of assets in an existing joint venture. The Joint Venture Allocation table affects only newly added assets, which means that changes made to the allocation table do not affect existing joint venture assets.

Additions and deletions of participants and reallocations of equity percentages are recorded as sales transactions. This results in either a gain or a loss on the part of the selling participant. The value of the sale proceeds for the selling participants is recorded as the capital cost incurred by the buying participants.

PeopleSoft Asset Management processes these changes by retiring some portion of the equity percentage from the selling participant (to calculate gain/loss) and then transferring percentages between business units until the desired ownership ratio is achieved. The mass change transfers an established amount of the asset cost and quantity from one business unit to another (a one-to-one transfer). Because of this, you may need to run the mass change multiple times (up to the number of participating business units minus 1) to effect the desired change. For instance, if you have three original participants and want to add another, you might run the mass change three times: between business units 1 and 4, 2 and 4, and 3 and 4.

Defining a Mass Change for Joint Venture Processing

To change the ownership allocation of assets in an existing joint venture, PeopleSoft Asset Management is delivered with these joint venture mass change templates:

Mass Change Template	Description
`JVA-Joint Venture BU Addition`	Adds a joint venture participant.
`JVP-Joint Vent BU Add (w/Prof)`	Adds a joint venture participant using book values from the new business unit's profile ID.
`JVR-Joint Venture BU Removal`	Removes a joint venture participant.
`JVT-JV Allocation Change`	Transfers the allocation percentages for a joint venture from one business unit to another.

Note: After you run these changes, it is a good idea to update the allocation table to reflect the new equity percentages. Joint venture mass changes do not affect Joint Venture Allocation tables, and you must change these tables to reflect the updated joint ventures.

In addition to selecting the appropriate mass change template, make other selections that are specific to joint venture processing. PeopleSoft Asset Management requires a Transaction Date and an Accounting Date.

Depending on the joint venture mass change template you select, you may also need to select a set of default values for some or all of these fields:

Joint Venture Business Unit to Add to

Value is inserted into INTFC_FIN table.

Percentage of Cost

Enter a decimal value—for example, enter 0.50 for 50 percent.

Disposal Code

Choose a disposal code from the available options. Disposal codes are fully described in Retiring Assets.

Total Proceeds

Enter 0 if there are none.

Percentage of Quantity

Enter a decimal value—for example, enter 0.50 for 50 percent.

Total Removal Cost

Enter 0 if there is none.

Retirement Type

Enter either Extraordinary or Ordinary to indicate how the gain or loss that results from a retirement should be reported. This is for information only.

Retirement Convention

Select a retirement convention. This indicates how depreciation will be calculated through retirement.

Voluntary/Involuntary

Enter either Voluntary or Involuntary to indicate the reason for a retirement. This is for information only.

See Understanding Mass Changes in Asset Management.

Adding a Joint Venture Participant

The Mass Change application engine program adds a joint venture participant business unit to an existing joint venture and performs these additional functions:

Retires an established percentage of cost and quantity from one business unit and its books by using the defaults you specify for the retirement.
Adds the same percentage of cost and quantity to the new business unit and its books by using the proceeds you specify for the retirement.

When defining the mass change, select JVA-Joint Venture BU Addition as the Mass Change Template used to add a joint venture participant. If you want to use book values from the profile ID of the new participant business unit, select the JVP-Joint Vent BU Add (w/Prof) mass change template.

In Execution Sequence 1, select the book or books from which you want to retire a portion of assets. Specify the Joint Venture Business Unit from which you want to retire assets so that these values can be applied to the new participant business unit.

In Execution Sequence 2, enter default values for the mass change.

Note: Before adding a business unit to an existing joint venture, that business unit must be fully established.

Removing a Joint Venture Participant

When Mass Change removes a joint venture participant business unit from an existing joint venture, it also performs these functions:

Retires the total cost and quantity from one business unit and its books, using the defaults you specify for the retirement.
Adds that cost and quantity to another business unit and its books, using the proceeds you specify for the retirement.

When defining the mass change, select JVA-Joint Venture BU Removal as the Mass Change Template used to remove a joint venture participant.

In Execution Sequence 1, select the book or books that you want to remove. Specify the Joint Venture Participant Business Unit you want to remove.

In Execution Sequence 2, enter default values for the mass change.

Changing Joint Venture Ownership Allocations

When the Mass Change process changes ownership allocations for an existing joint venture, it also performs these functions:

Retires a percentage of the cost and quantity from one business unit and its books, using the defaults specified for the retirement.
Adds that same percentage of cost and quantity to another business unit and its books, using the proceeds specified for the retirement.

When defining the mass change, select JVT-JV Allocation Change as the Mass Change Template used to change joint venture ownership allocations.

In Execution Sequence 1, select the department or departments from which you want to transfer joint venture assets. Specify the Joint Venture Business Unit from which you want to transfer assets.

In Execution Sequence 2, enter default values for the mass change.

Loading Joint Venture Transactions

After you run a joint venture mass change, use the Transaction Loader to load results of the mass change into the PeopleSoft Asset Management tables.

See Running the Transaction Loader.