Overview of Ownership Definition Assignment Rules

Ownership definition assignment rules provide the ability to assign an ownership definition or direct billed stakeholder to transactions in a specific account or set of accounts identified as distributable for a joint venture.

Assignment rules enable you to automatically process joint venture transactions according to the various stipulations for splitting revenue and expenses in a joint operating agreement. They enable you to assign different ownership definitions or direct billed stakeholders to different types of transactions in a joint venture. Some of the possible scenarios that you can address with assignment rules include:

• The revenue split is different than the split of expenses for a joint venture.

  As the managing partner, you might retain a larger share of revenue for a certain period of time in order to recoup extra costs incurred during the start-up phase of a joint venture.

• Only one partner or a subgroup of partners participate in a particular business activity of a joint venture, therefore only those partners partake in the sharing of revenue and expenses for the activity.

• One or more partners aren't responsible for the expenses related to a particular project in a joint venture.

• A single partner is responsible for all costs for a certain type of expense.

You can create additional assignment rules as needed throughout the life cycle of a joint venture. This enables you to adjust to revisions in a joint operating agreement, such as when a new partner joins a joint venture, for changes to partner ownership percentages, and so forth.

An assignment rule contains the following details:

• The joint venture that you are creating the assignment rule for.
• Account information to identify the joint venture transactions to which you want to apply the assignment rule.

  In addition to account information, if a joint venture has project-related transactions, you can include project details in an assignment rule to identify transactions with specific project details. This applies only to an Oracle Joint Venture Management integration with Oracle Project Costing.

• An effective date range, which is used by the process for applying assignment rules to determine whether to process the assignment rule. The process compares the effective date to the period selected for running the process. Only assignment rules with effective dates that coincide with the selected period are processed.
• An ownership definition or direct billed stakeholder to assign to transactions.

After you set up assignment rules, see Apply Ownership Definition Assignment Rules to Joint Venture Transactions for instructions on how to process assignment rules.