Creating a Division of Interest

Before You Begin

This 10-minute tutorial shows you how to create division of interest (DOI) records for a joint venture.

Scenario

Division of interest (DOI) identifies the partners and their percent of interest within a joint venture. You will create two DOIs. The first DOI, GREENACRESDOI, will be used to distribute the majority of the transactions for the joint venture A-GREENACREHOLDINGS. By using this DOI, the expenses and cost are split across all the partners. The partners participating in the joint venture are: Thomson Company (7500010), Dunn Company (7500013), Jones Company (7500021), and Managing Green Acre Holdings (business unit 981). The second DOI, OVERHEADEXPENSES, is specific for overhead expenses where the partner Dunn Company (7500013) will be excluded as this partner is exempted from overhead expenses.

What Do You Need?

You must have created a joint venture.

Setting Up Division of Interest (DOI) Records

The first DOI that you will create will be the primary DOI for the joint venture. The second DOI will be for overhead expenses.

1. Navigate to EnterpriseOne Menus, Financials, Joint Venture Management (G09J), Joint Venture Setup, DOI Master (P09J20). 
2. On the Work With Division of Interest form, click Add.
3. On the Create Division of Interest form, complete these fields:
   
   
   • Name: GREENACRESDOI
   • Description: DOI for transactions within Joint Venture A-GREENACREHOLDINGS
   •  Effective Date: 01/01/2016

Your Create Division of Interest form should look like this:



4. Click Save.
5. On the Edit Division of Interest form, complete these grid fields for an outside partner:
   
   
   • Outside Partner: 7500010
   • Percent of Interest: 20.00000000
   • Entity Type: Joint Venture Owner

   Leave these check boxes unselected: Rounding Partner, Invoice/Voucher Insider, and Distribution Only.

   The Distribution Only check box is left unselected so that invoices and vouchers are generated for the partner.

6. Add two more rows for outside partners with the information in the table below. Leave these check boxes unselected: Rounding Partner, Invoice/Voucher Insider, and Distribution Only.

   Outside Partner	Percent of Interest	Entity Type
   7500013	10.00000000	Joint Venture Owner
   7500021	10.00000000	Joint Venture Owner

7. Add another row for the managing partner and complete the fields using the information below:
• Insider Business Unit: 981
• Percent of Interest: 60.00000000
• Entity Type: Joint Venture Owner
• Rounding Partner: Select this check box.

Any rounding difference that occurs when splitting transactions between the partners is netted out to the rounding partner and the rounding partner receives the extra cost or revenue.

Leave the following check boxes unselected:

• Invoice/Voucher Insider

The Invoice/Voucher Insider check box is left unselected so that journal entries are created.

• Distribution Only

The Distribution Only check box is left unselected so that journal entries are created for the managing partner.

8. Change the Status field to Active. Only DOIs that have a Total Percent of Interest of 100.00000000 can be set to Active status.
9. Click OK.

Your division of interest record should look like this:



10. On the Work With Division of Interest form, click Add to add another division of interest to the joint venture. This DOI is specifically for overhead expenses where the partner Dunn Company (7500013) will be excluded as this partner is exempted from overhead expenses.
    
    
    • Name: OVERHEADEXPENSES
    • Description: DOI for Overhead Expenses within Joint Venture A-GREENACREHOLDINGS.
    • Effective Date: 01/01/2016
    • Rounding Partner: Select this check box.
11. Click OK.
12. On the Edit Division of Interest form, complete these grid fields for an outside partner:
    
    
    • Outside Partner: 7500010

    When you enter a value in this field, the system automatically populates the Outside Partner or the Business Unit Name field.

    • Percent of Interest: 20.00000000
    • Entity Type: Joint Venture Owner

    Leave these check boxes unselected: Rounding Partner, Invoice/Voucher Insider, and Distribution Only.

    The Distribution Only check box is left unselected so that invoices and vouchers are generated for the partner.

13. Add one more row for one more outside partner with the information in the table below.
    

    Leave these check boxes unselected: Rounding Partner, Invoice/Voucher Insider, and Distribution Only.

    Outside Partner	Percent of Interest	Entity Type
    7500021	20.00000000	Joint Venture Owner

14. Add another row for the managing partner and complete the following fields:
    
    
    • Insider Business Unit: 981

    When you enter a value in this field, the system automatically populates the Outside Partner or Business Unit Name field.

    • Percent of Interest: 60.00000000
    • Entity Type: Joint Venture Owner
    • Rounding Partner: Select this check box.

    Any rounding difference that occurs when splitting transactions between the partners is netted out to the rounding partner and the rounding partner receives receive the extra cost or revenue.

    Leave the following check boxes unselected:

• Invoice/Voucher Insider

Leave the Invoice/Voucher Insider check box unselected so that journal entries are created.

• Distribution Only

The Distribution Only check box is left unselected so that journal entries are created for the managing partner.

15. Change the Status to Active. Only DOIs that have a Total Percent of Interest of 100.00000000 can be set to Active status.
16. Click OK.

    Your division of interest record should look like this: