About Joint Venture Partner Contributions
A managing partner of a joint venture can periodically request contributions from joint venture partners to raise funds for specific expenditures. These requests for contributions, sometimes referred to as cash calls, are created and managed as “Partner Contributions” in Oracle Joint Venture Management.
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Add, track, cancel, and close partner contributions in Joint Venture Management.
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Add agreement default charges, as stipulated by the terms in a joint operating agreement, when closing partner contributions.
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Place partner contributions on hold for a particular circumstance, for example if you are renegotiating terms for a partner’s participation in a joint venture.
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Add attachments to partner contributions as needed, such as supporting documents about changes in joint operating agreements.
Partner Contributions for Nonoperated Joint Ventures
If you are a partner in a joint venture you don’t operate, you pay the partner contributions requested by the managing partner (operator). You (nonoperator) can record the partner contribution you paid to the managing partner in Oracle Joint Venture Management and verify the amount drawn against your cost distributions. To do so, you must perform the following tasks:
- Create a partner contribution with the requested amount.
- Create a payables invoice or a journal entry to pay the contribution amount to the operator.
- Draw from the partner contribution to cover your cost distributions.