Example of Processing Transactions with a Default Ownership Definition
A joint venture accountant created an ownership definition named VENTUREOD1 and assigned it as the default ownership definition for the joint venture. The accountant created three different instances of VENTUREOD1 and made sure that each instance has successive effective dates that don't overlap.
| Default Ownership Definition | Effective Dates | Ownership Percentages |
|---|---|---|
| VENTUREOD1 | 1/01/2019 - 1/31/2019 | 4 stakeholders, 25% each |
| VENTUREOD1 | 2/01/2019 - 2/28/2019 | 5 stakeholders, 20% each |
| VENTUREOD1 | 3/01/2019 - 3/31/2019 | 4 stakeholders, 25% each |
Over the course of three months, from 1/01/2019 to 3/31/2019, 10 transactions (T1-T10) are identified for the joint venture in Oracle Joint Venture Management. Based on the date in each transaction, Joint Venture Management associates the default ownership definitions to the transactions, as shown in the following table:
| Transaction | Transaction Date | Default Ownership Definition Instance |
|---|---|---|
| T1 | 1/11/2019 | VENTUREOD1 1/01/2019 - 1/31/2019 |
| T2 | 1/16/2019 | VENTUREOD1 1/01/2019 - 1/31/2019 |
| T3 | 1/31/2019 | VENTUREOD1 1/01/2019 - 1/31/2019 |
| T4 | 2/02/2019 | VENTUREOD1 2/01/2019 - 2/28/2019 |
| T5 | 2/13/2019 | VENTUREOD1 2/01/2019 - 2/28/2019 |
| T6 | 2/22/2019 | VENTUREOD1 2/01/2019 - 2/28/2019 |
| T7 | 2/22/2019 | VENTUREOD1 2/01/2019 - 2/28/2019 |
| T8 | 2/27/2019 | VENTUREOD1 3/01/2019 - 3/31/2019 |
| T9 | 3/14/2019 | VENTUREOD1 3/01/2019 - 3/31/2019 |
| T10 | 3/14/2019 | VENTUREOD1 3/01/2019 - 3/31/2019 |
After the transactions are identified, the process is run to calculate the split of each transaction. Joint Venture Management calculates the split of each transaction according to the ownership percentages defined in each ownership definition instance, as shown in the following table:
| Transaction | Default Ownership Definition Instance | Ownership Percentages Used for the Split |
|---|---|---|
| T1 - T3 | VENTUREOD1 1/01/2019 - 1/31/2019 | 4 stakeholders, 25% each |
| T4 - T8 | VENTUREOD1 2/01/2019 - 2/28/2019 | 5 stakeholders, 20% each |
| T9 - T10 | VENTUREOD1 3/01/2019 - 3/31/2019 | 4 stakeholders, 25% each |