About Processing Transactions for Carried Interest Agreements
Use Oracle Joint Venture Management to process joint ventures that have been configured with a carried interest agreement. A carried interest agreement enables you to distribute transactions for costs and revenue to the consenting stakeholders in a joint venture and track the amounts that consenting stakeholders carry for nonconsenting stakeholders.
You run the same processes for a joint venture with a carried interest agreement as you would for one without a carried interest agreement. The only difference is that Joint Venture Management uses carried interest ownership definitions instead of standard ownership definitions to process the joint venture transactions.
Carried interest ownership definitions are generated from carried interest agreements. They contain the ownership percentages for the consenting stakeholders in a carried interest agreement. They can be assigned to the following joint venture configurations:
- Joint venture definition, as the default ownership definition
- Ownership definition assignment rule
- Overhead method
- Partner contribution request
When you distribute transactions according to a carried interest agreement, in addition to the standard distribution details, the distributions include the following information:
- The name and description of the carried interest agreement associated with the distribution
- The source ownership definition that the carried interest ownership definition for the carried interest agreement is based on