1. Implementing Joint Venture Management
  2. Example of Identifying Distributable Accounts Using an Account Set

Example of Identifying Distributable Accounts Using an Account Set

A petroleum company is the managing partner of a joint venture for a drilling exploration project. For this project, a joint venture accountant created a joint venture definition named PERMIANALPHA.

This example shows the tasks the accountant performed to identify the distributable accounts for the joint venture definition using an account set.

The following image shows that the accountant, when creating the joint venture definition, selected HEPP Petroleum USA BU1 for the business unit. This is the business unit in Oracle Fusion Cloud Financials for managing the financials for the drilling exploration project. The primary ledger for this business unit has a COA named HEPPLedger, which was automatically identified when the accountant selected the business unit.

This image shows an example of a completed Basic properties page of a joint venture definition, with the pertinent values described in the surrounding text.

Next, the accountant accessed the Account information page, which shows an account set "EXP_CIP_REVS" selected in the Account Set for Distributable Accounts field. This account set has been set up to identify a range of accounts as distributable with few account exclusions.

This image shows an example of a completed Account information page of a joint venture definition, with the pertinent values described in the surrounding text.

On the Primary Segment Values tab, the accountant clicked Add and identified a cost center—6400 Permian Alpha Rig—in the HEPPCostcenter primary segment:

This image shows an example of the Primary Segment Values tab on the Account information page, with the pertinent details described in the surrounding text.

The accounts in the account set will be used in combination with this primary segment value to identify distributable accounts for the joint venture. If the account filter in the account set includes a primary segment value that doesn’t match the primary segment value in the joint venture, the account will be ignored.