About Overhead Methods

Set up overhead methods to calculate overhead amounts to distribute to joint venture partners.

As a managing partner of a joint venture, you might employ different methods to determine the overhead costs that you want to recoup from the joint venture partners. You might periodically bill a fixed amount, or you might calculate the overhead amount using a percentage of costs, a percentage with a sliding scale, a rate, a rate with a sliding scale, or other methods.

In Oracle Joint Venture Management, you can set up overhead methods to base the overhead calculation on any of these factors:

• Percentage of costs

• Percentage of costs with a sliding scale

• Rate

• Rate with a sliding scale

You can also apply periodic adjustments to overhead methods to adjust the percentage or rate used in the overhead calculation at different intervals.

Joint venture accountants and joint venture application administrators can create and manage overhead methods.