Prepare to Implement Joint Venture Management
What You Need to Know About Oracle Financials
Understanding the business process model in Oracle Fusion Applications will help you understand how to set up Joint Venture Management to identify the accounts that contain your joint venture transactions. The following table provides an overview of the parts of the business process model that pertain to the identification and processing of transactions through Joint Venture Management:
|Business Process Model Components||Relationship to Joint Venture Management|
|Business unit||In Oracle Fusion Applications, business units define many business functions that can be rolled up in a management hierarchy. A business unit can process transactions on behalf of many legal entities and has the responsibility for its profit and loss. In Joint Venture Management, you specify the business unit in Oracle Financials Cloud in which your joint venture financials are managed. Selecting a business unit automatically identifies the chart of accounts (COA) in the primary ledger of the business unit.|
|Chart of accounts||
The chart of accounts enables tracking of cost center, account, and other segment levels.
In the Joint Venture System Options, you specify the segment label associated to the primary segment in the Financials chart of accounts where the financial transactions of all your joint ventures are managed. By default, Joint Venture Management uses the segment associated with the Cost Center Segment label. But you can specify a different segment label in the system options if your joint venture transactions are managed under a segment with a different segment label.
Oracle Fusion Applications reflect the traditional segregation between the general ledger and associated subledgers. Transactions are captured in the subledgers and periodically posted in detail to the primary ledger in subledger accounting. Transactions are posted in summary or in detail from the primary ledger in subledger accounting to the general ledger.
As part of the day-to-day business of managing the operations of a joint venture, the managing partner pays expenses and receives revenue. These transactions are entered in the appropriate subledger such as Payable Invoices, Receivable Invoices, just to name a few. All transactions entered into these subledgers are eventually posted in detail to subledger accounting. Typically, these types of transactions are directly related to a specific joint venture.
The second source of transactions for Joint Venture Management is the general ledger. Joint Venture Management only identifies transactions in the general ledger that did not originate from subledger accounting. These transactions typically are indirect charges or allocated amounts to a joint venture.
Joint Venture Management uses the details that you enter in joint venture definitions to identify the accounts in Financials that contain the transactions for your joint ventures. The following illustration shows the flow of identifying and processing expenses and revenue from Financials through Joint Venture Management:
Prerequisites and Assumptions
Joint Venture Management is a functional area of Oracle Financials Cloud. As such, you must be using Financials to manage the financial accounts for your joint venture transactions before implementing Joint Venture Management. Each user of Joint Venture Management might require an additional subscription to Oracle ERP Cloud.
Use of Auditing and Other Common Cloud Features
Audience and Scope
These implementation instructions pertain to the following users with these responsibilities:
|Administrator with the IT Security Manager Role||Uses the Security Console to set up Joint Venture Management users with the proper security and roles to perform actions according to the privileges in each role.|
|Application Implementation Consultant (Cloud Administrator)||
|Joint Venture Administrator||
Note: The system options reference supporting references that an Application Implementation Consultant must set up in Oracle Financials to capture transaction date and project details.
|Joint Venture Accounting Manager||
Note: A joint venture accounting manager can also view, but not edit, joint venture setup details, transactions, distributions, and joint venture invoices in Receivables.
|Joint Venture Accountant||