Changing Ownership Allocations for Existing Joint Ventures

You must define and run a mass transaction 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 transaction 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 transaction 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 transaction three times: between business units 1 and 4, 2 and 4, and 3 and 4.