Rounding Partner
You must designate one stakeholder in an ownership definition as the rounding partner.
When Oracle Joint Venture Management calculates the split of a transaction, any amount that remains is added to or subtracted from the rounding partner's amount. This helps to ensure that the split amounts total the gross amount in the transaction. Typically, the managing partner is the rounding partner, but you can make any stakeholder the rounding partner.
If you don’t select a rounding partner, the system automatically designates the internal stakeholder with the largest percentage of ownership as the rounding partner. If there are no internal stakeholders, the system designates the external stakeholder with the largest percentage as the rounding partner.
Joint venture ABC has four stakeholders, each with an equal 25% interest. An expense of 301.50 USD must be distributed among the stakeholders. When you divide 301.50 USD equally among the four stakeholders, you get 75.375 USD. The system uses the rounding partner to be able to split the amounts as evenly as possible, while still being able to create distributions with valid amounts. In this scenario, the system would create distributions to three of the partners for 75.38 USD, and create an invoice to the rounding partner for 75.36 USD. The total of these four invoices is 301.50 USD.
| Partners | Calculation | Distribution Amount |
|---|---|---|
| Partner 1 | 301.50 x .25 = 75.375 | 75.38 |
| Partner 2 | 301.50 x .25 = 75.375 | 75.38 |
| Partner 3 | 301.50 x .25 = 75.375 | 75.38 |
| Partner 4 | 301.50 x .25 = 75.375 = 75.38 - .02 (rounding adjustment) | 75.36 |
| NA | NA | Total = 301.50 |