Set Up Ownership Definitions
An ownership definition provides the information Oracle Joint Venture Management uses to calculate the split of costs and revenue to distribute among joint venture partners. It contains a list of the stakeholders and each stakeholder’s percentage of ownership.
The ownership percentages for all stakeholders in an ownership definition must total 100% before you can change its status to Active. The Active status enables Joint Venture Management to use the ownership definition to process transactions for a joint venture.
An ownership definition includes an effective date range. For Joint Venture Management to process transactions, the date in the transactions must coincide with the effective dates in the ownership definition.
You can create multiple instances of an ownership definition with the same name, as long as the effective dates in each instance don't overlap. This enables you to specify different stakeholder percentages for different periods of time as agreed upon in the joint operating agreement.
You have the option to designate a default ownership definition. This default ownership definition is assigned to all transactions that are identified for the joint venture in the Joint Venture Transactions work area. In this work area, you can override the default ownership definition with a different ownership definition. This gives you the ability to set up a default ownership definition that covers most transactions, while having other ownership definitions to cover the split of other costs or revenue streams.
In addition to or instead of designating a default ownership definition, you can set up ownership definition assignment rules for a joint venture. Assignment rules enable you to assign an ownership definition or direct billed stakeholder to transactions in a specific account or set of accounts identified as distributable for a joint venture. See Overview of Ownership Definition Assignment Rules for more information:
The Joint Ventures page includes alerts to indicate when an ownership definition isn't complete. The alert describes the remaining tasks that you need to perform to complete the ownership definition.