1. Joint Venture Management Implementation Guide
  2. Creating a Division of Interest for a Joint Venture

Creating a Division of Interest for a Joint Venture

To create a DOI:

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

  2. On the Work with Division of Interest form, click Add.

  3. On the Create Division of Interest form, complete the required Name and Description fields.

    You must enter a name that has not already been used for an approval list or for a DOI with the same effective date.

  4. Optionally, complete these fields:

    • Purpose

    • Effective Date

      The system populates the system date as the effective date by default. Update the date as required.

  5. Click Save on the form.

    A DOI record is created with the header information that you entered.

    When you click Save on the Create Division of Interest form, the system displays the Edit Division of Interest form. The header fields are populated with the values that you entered.

  6. If you have not specified a value for the Purpose field when you created the header record, you can complete this field on the Edit Division of Interest form.

  7. Verify that the status is set to In Progress.

  8. In the detail area of the form, enter the insider business unit or the address number of the outside partner included in the joint venture.

  9. Complete the following information for the partner (outside partner or the insider business unit):

    • Entity Type

      If a Legal Entity record exists for this partner, the default entity type is displayed. You can override this value.

    • Percent of Interest

      Specify the partner's percentage of ownership in the joint venture.

    • Rounding Partner

      Specify whether the partner is the rounding partner. This partner receives any rounding difference that occurs when splitting transactions between the partners.

    • Invoice/Voucher Insider

      Specify whether to create invoices and vouchers for the partner. If this option is not selected, the system creates only journal entries for the partner. The Invoice/Voucher Insider option is enabled only for partners that have a value specified in the Insider Business Unit field.

    • Distribution Only

      Select this option to use this partner and the associated percent of interest when calculating distributions for the joint venture, but to also suppress billing and payment for this entity.

  10. To continue adding parties, click in a new row in the detail area, and repeat steps 8 and 9.

  11. If the value in the Total Percent of Interest field is equal to 100, you can change the status of the DOI to Active if you are ready to activate the DOI. Otherwise, leave the status of the DOI as In Progress.

  12. Click OK to save your changes.