Identify Distributable Accounts for Joint Venture Processing
In a joint venture definition, you include criteria for identifying the accounts in Oracle Fusion Cloud Financials that contain the transactions for the joint venture. In Oracle Joint Venture Management, these accounts are referred to as distributable accounts because transactions associated with these accounts can be distributed among joint venture partners.
You can use either of the following options to identify distributable accounts for a joint venture:
- Create an account set to assign to the joint venture definition.
(Recommended)
Account sets provide an efficient and flexible method for identifying distributable accounts. You can enter filter criteria to identify single accounts, ranges of accounts, and the exclusion of accounts. Account maintenance is reduced because you can base an account set on a range so that dynamically created accounts in Oracle Financials are automatically included.
You also have the option to set up an account set by ledger instead of a particular joint venture, which enables you to use the same account set for multiple joint ventures.
When an account set is assigned to a joint venture, the accounts in the account set are used in combination with the primary segment values defined in the joint venture definition to identify distributable accounts. If the account filter in the account set includes a primary segment value that doesn’t match a primary segment value in the joint venture, the account will be ignored.
- Identify distributable accounts in the joint venture definition.
Use the Distributable Segments and Primary Segment Values tabs in the Account information page to identify each distributable account in the joint venture definition. Use this method if you only have a few accounts to identify as distributable for a joint venture.
About Account Combinations in Oracle Financials
In Oracle Financials, an account is identified by a completed set of segment values referred to as an account combination. This account combination uniquely identifies an account in a chart of accounts (COA). Here are some examples of account combinations:
- 01-100-1420-003
- 02-100-1420-005
- 01-100-1420-002
- 02-100-1420-004
One of the values in an account combination is the primary segment value. The primary segment value is the key value for identifying distributable accounts for a joint venture. This value is what differentiates transactions from one joint venture to the next. Distributable accounts for a joint venture might be represented by more than one primary segment value, but a primary segment value is unique to a joint venture. You can’t use the same primary segment value to identify distributable accounts for more than one joint venture.
The other values in an account combination represent accounts in one or more segments, such as an account in Payables for managing a certain category of expenses.