About Payables Invoices to Pay Partners for Joint Venture Revenue
Oracle Joint Venture Management enables you to create payables invoices from revenue distributions to pay the partners' share of revenue generated by the joint venture.
Run the following modes of the “Create Joint Venture Invoices and Journal Entries” process to create payables invoices for joint ventures:
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Create Invoices for Joint Venture Distributions
You can use this mode to create payables invoice, receivables invoice, or both. To create payables invoice, you must specify the invoice type to create in the process option.
After the invoices are created, an accounts payable manager must post the invoices to Oracle General Ledger.
- Update Accounting for Invoices
This mode stores information to retrieve the accounts on the posted invoices back to the joint venture distributions.
Remember that the distributions process calculates the split of both the accounted amount and entered amount in a transaction. Each distribution includes both the resulting distributed accounted amount and the distributed entered amount. Currently, Joint Venture Management uses only the distributed accounted amount for invoicing and other downstream processes. It creates payables invoices for distributions that meet the following criteria:
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Associated with revenue and recorded as account type Revenue in the Joint Venture Distributions work area.
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Generated for stakeholders with “Create invoices” defined as their invoicing preference, unless the distributions are marked as Distribution Only in the Joint Venture Distributions work area.
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The accounted amount in the distribution is equal to or greater than the minimum amount required to create a payables invoice
The minimum payables invoice amount is specified in the joint venture definition. For example, if $500 is specified as the minimum amount, the process will create invoices only when the distributed revenue for a stakeholder reaches $500.
Invoicing Currency
By default, the process creates invoices in the primary ledger currency of the business unit associated with the joint venture.
When a joint venture involves partners from different countries, the partners might request invoices in their currencies. In this case, the managing partner can specify the overriding invoice currency at the invoicing partner or stakeholder level. When the Create Joint Venture Invoices and Journal Entries process is run, it will then generate payables invoices for stakeholders in the overriding invoice currencies.
Invoice Liability Account
The process creates the liability accounting entry for each invoice using a default liability account. If the managing partner has set up a liability account override on the joint venture definition or through subledger accounting rules, the posting process will use the liability account override when posting the invoice. If you have set up the account override in both, the joint venture definition and subledger accounting rules, the account specified in the subledger accounting rules will be used for the joint venture payables invoice.
Joint Venture Information in Payables Invoices
The payables invoice includes the following joint venture information:
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The joint venture name, business unit, account type, and distribution ID associated with each distribution.
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If the line description isn't available in the original transaction, the invoice lines associated with the transaction use the description sent by Joint Venture Management, which is in the format "<joint venture name> – AP Invoice."
Distribution Statuses Associated with Invoicing
In the Joint Venture Distributions work area, the status of the distribution indicates the stage and the result of the invoicing process.
| Status | Description |
|---|---|
| Invoicing in progress | Indicates that the invoicing process has started but is not complete. |
| Accounting in progress | Indicates that the distribution has been invoiced but the “Create Accounting” and “Update Accounting for Invoices” processes haven’t completed. |
| Process complete | Indicates that the distribution has been invoiced and fully accounted. |
| Error | Indicates that the distribution wasn't invoiced due to an error. |
Manage Distributions in Error
The process generates logs that the joint venture accountant can use to review the details of any errors and take corrective action. After you correct the error, you can make the distribution available for processing in the next scheduled run of the process.
Or after you review the error, you might need to take one of the following actions:
- Change the distribution status from “Error” to “On hold” if the error can’t be resolved sooner, for example, the distribution is pending analysis and approval.
- Mark the distribution as “Distribution Only” if after analysis, you found that the distribution must not be included in the invoicing process.