How Ownership Definition Assignment Rules Are Applied to Joint Venture Transactions

Before you create ownership definition assignment rules for a joint venture, it's important to understand how assignment rules are applied to joint venture transactions.

Assignment rules are applied to joint venture transactions as part of the Identify Joint Venture Transactions process when set up to process assignment rules. When submitted, the process performs these steps to apply assignment rules to joint venture transactions.

1. It uses the period specified in the process to:
   • Determine which transactions are eligible for processing. Only transactions dated within the specified period are eligible.
   • Identify the assignment rules to process for a joint venture. Only assignment rules with an effective date range that overlaps the dates for the selected period are processed.

   The following illustration shows how assignment rules A, B, and C, but not D, will be processed for Period Jan 21. This is because the dates for the period are 1/1/21 through 1/31/21, and the dates for assignment rules A, B, and C overlap these dates. The dates for assignment rule D do not coincide with the dates for the period.

   
2. It checks each assignment rule for account information and then for project details to determine the order in which to process the assignment rules. It processes assignment rules in the order of the assignment rule with the most specific details to the assignment rule with the least specific details. Assignment rules with project details will be processed first, checking for project details in this order:
   • Project number, task number, expenditure type
   • Project number, expenditure type
   • Project number, task number
   • Project number
   • Expenditure type
     Note: It doesn't check for an individual task number because a task number can't exist without a project number.

   The assignment rule is applied to all transactions with matching project details.

   The process ignores transactions to which assignment rules have already been applied.

3. It then processes assignment rules that don't include project details, assignment rules that are defined with only an account or a joint venture account set. It applies those assignment rules to joint venture transactions with matching account information.

   When there is more than one assignment rule with account information only, it will process the assignment rule with the most current effective start date first.

Check for Conflicts

You need to make sure that there are no conflicts or redundancies within the assignment rules that you create for a joint venture. You want to avoid setting up two different assignment rules for the same account in a joint venture, with each assignment rule having a different ownership definition or direct billed stakeholder, for example:

• An assignment rule to assign an ownership definition to transactions in a joint venture account set.
• An assignment rule to assign a direct billed stakeholder to transactions in one of the accounts specified in the account set in the preceding assignment rule.

After the process applies one of the assignment rules to transactions, the other assignment rule can't be used for the same transactions because an assignment already exists.

To avoid this and other potential conflicts, it's recommended that you use a spreadsheet to plan or map out all of the accounts with joint venture transactions that you need to create assignment rules for. If applicable, include project details if you are creating assignment rules for the distribution of project-related transactions. Identify the ownership definition or direct billed stakeholder for each assignment rule. After reviewing the assignment rules and ensuring that there aren't any conflicts, gaps, or redundancies, create the assignment rules in Oracle Joint Venture Management.