8 Setting Up Division of Interest Assignment Rules

This chapter discusses:

8.1 Understanding Division of Interest (DOI) Assignment Rules

You set up DOI assignment rules for the system to determine which DOI to use for each financial transaction associated with a joint venture. The DOI is used during the distribution process and determines how the transaction amount is distributed between a list of joint venture partners. If you do not want the transaction amount to be distributed among the partners using a DOI, you can specify that you want the entire amount to be directly billed to a single partner. The partner can be an insider or an outsider. You use the Division of Interest Assignment Rules program (P09J22) to create the rules. The system stores the rules in the Division of Interest Assignment Rules table (F09J22).

You can set up a DOI assignment rule for any level in the hierarchy below:

  1. Company

  2. Joint Venture

  3. Project Number

  4. Business Unit

Depending on the complexity of your joint venture, you might require several assignment rules to determine which DOIs or direct billed partners to use for financial transactions. For example, the majority of your transactions might use one DOI. You can set up a rule to make this DOI the default DOI for the joint venture. However, there might be some transactions, for example, those associated with a specific G/L account, that require the transaction amount to be distributed differently among the partners. To ensure that the correct DOI or direct billed partner is assigned to these transactions, you can create a more specific rule that identifies the DOI or direct billed partner to use for the joint venture and that specific account. The system allows you to create as many rules as needed so that the correct DOI or direct billed partner is assigned to each transaction.

When attempting to assign DOIs or direct billed partners to financial transactions, the system uses the joint venture business unit hierarchy and the DOI assignment rules. The system assigns the rules starting with the most specific to the least specific.

DOI Assignment Rule Sequence

This list is in order from the least specific to the most specific:

  • Company

  • Joint Venture

  • Project Number

  • Business Unit

Note that each level of the DOI assignment rule sequence can have Object Account From and Thru as well as Subsidiary From and Thru information. For a particular level (for example, business unit), the system will first assign the DOI to the business unit that has the object account and subsidiary information before assigning the DOIs to the business units that do not have the account information.

To enter a generic rule that is used for all transactions in a company, you simply enter the Company number, and specify the DOI or direct billed partner to use for transactions associated with that company.

From there, you can make more specific rules. For example, you might have a company that has multiple joint ventures. Therefore, you can create rules that specify the joint venture name, and assign the appropriate DOI or direct billed partner to each of those rules.

Note:

You can access the Division of Interest and the Joint Venture Master programs from the form menu on the Division of Interest Assignment Rules form.

8.2 Entering Division of Interest Assignment Rules

You use the Division of Interest Assignment Rules program (P09J22) program to create division of interest assignment rules.

8.2.1 Prerequisites

Before you create DOI assignment rules:

  • Set up your joint venture master record, and complete all prerequisites associated with creating the joint venture master.

    See Chapter 4, "Entering Joint Venture Master Records".

  • Enter DOI records for your joint venture and complete all prerequisites associated with entering DOI records.

    See Chapter 7, "Setting Up Division of Interest Records".

  • Set up the processing options for the P09J22 program.

    On the Defaults tab, you use the Display DOI Assignment Rules processing option to specify whether the system displays all DOI assignment rules, or displays only the active rules when you enter the Division of Interest Assignment Rules form. You can change the display settings directly on the form.

    On the Versions tab, you set up the following processing options:

    • Division of Interest/Approval List (P09J20): Specify the version of the P09J20 program to use when accessing the program from the Form or Row menu of the P09J22 program.

      This menu option enable you to review DOI information when you enter or update assignment rules. Therefore, you are recommended to use a version of the P09J20 program where the Partner List Type processing option is set to the division of interest. If you leave this option blank, the system uses version ZJDE0001.

    • Joint Venture Master (P09J30): Specify the version of the P09J30 program to use when accessing the program from the Form or Row menu of the P09J22 program. If you leave this option blank, the system uses version ZJDE0001.

8.2.2 Entering Division of Interest Assignment Rules

To enter DOI assignment rules:

  1. From the Joint Venture Management module (G09J), click Joint Venture Setup, and then DOI Rules.

  2. On the Revise Division of Interest Assignment Rules form, click in a blank line in the detail area, and complete one or more of these fields. You must enter a value in at least one of these fields to create a valid DOI assignment rule.

    • Company

    • Joint Venture Name

    • Project Number

    • Business Unit

      Note:

      In the Business Unit field, you can enter a parent, child, or individual business unit. When you save the rule, the system determines whether the business unit is a child of another business unit and determines the joint venture the business unit belongs to.
  3. Optionally, you can complete these fields to further define your DOI assignment rule:

    • Object Account From

    • Object Account Thru

    • Subsidiary From

    • Subsidiary Thru

    Note:

    • When creating a rule to assign a DOI or a direct billed to partner based on an account, you must enter a value in one of these fields: Company, Joint Venture Name, Project Number, or Business Unit. You cannot create a rule that contains only an object and subsidiary.

    • When the system evaluates account numbers, it evaluates the object account from and through values separately from the subsidiary from and through values.

    • You are not required to enter both a from and a through value for either object account or subsidiary. You can create a rule based on the from values or the through values only.

  4. Complete the DOI Name field. This field represents the DOI that will be assigned to the financial transactions that match the rule criteria you entered in steps 2 and 3.

    If you want the entire amount to be billed directly to a single partner, you can specify the partner instead of specifying a DOI. If the partner is an outside partner, enter the address number of the partner in the Direct Billed To Outside Partner. If the partner is an insider, enter the business unit of the insider in the Direct Billed To Insider BU field.

    Note that you can have a value in only one of these fields: DOI Name, Direct Billed To Outside Partner, or the Direct Billed To Insider BU.

    Note:

    When you enter a value in any one of these fields (Company, Joint Venture, Project, or Business Unit), the system retrieves the values for the other fields in the hierarchy after you enter a DOI or a direct billed partner.
  5. To mark the rule as inactive, select the Inactive option. You might choose to use this feature if you are creating rules that will be used in the future.

  6. To add an attachment to the rule, select the row, and then select Attachment from the Row menu. Alternatively, you can double-click in the Attachment field on the selected row. Select the attachment, and then click OK to save the attachment.

  7. To enter an additional rule, click in the next blank line in the detail area of the form, and complete the steps listed above.

  8. When you have finished entering your rules, click OK to save your changes, and then click the Cancel button to exit the form.