Set Up Stakeholders

Set up a stakeholder for each partner in a joint venture. After you set up the stakeholders, you can add them to an ownership definition and specify their ownership percentages in the joint venture.

You can add the following stakeholders to a joint venture:

• External stakeholders. The partners that are external to the managing partner’s organization.

• Internal stakeholders. You can have two types of internal stakeholders:

  • An operator internal stakeholder that represents the managing partner of a joint venture.

  • A nonoperator internal stakeholder, which is a partner that’s part of the same enterprise as the managing partner. Their accounting is performed in Oracle Fusion Cloud Financials in the same ledger as the joint venture, but in a different cost center or primary segment value.

You can also set up an external or internal stakeholder as an interested stakeholder that participates in the joint venture for informational or oversight purposes only. An interested stakeholder doesn’t partake in the sharing of the joint venture costs and revenue.

When you set up a stakeholder, you determine whether you want to use invoices or journal entries to recoup costs from and distribute revenue to the stakeholder. Either option requires an additional setup that needs to be performed before you can generate invoices or journal entries. See Before You Set Up Stakeholders for more information.

Distribution Only Option

Set up external and internal stakeholders as "distribution only" if you don’t need to create invoices or journal entries for them. For example, internal stakeholders, such as the managing partner, might not want to be invoiced or have funds transferred internally. Or you might use this option for a partner that's disputing costs or isn't paying their portion of the joint venture. This setting helps to ensure that transaction amounts are still split correctly and that the calculated distribution amounts for the stakeholders balance to the amount on the original transaction.

Stakeholder Statuses

The following table describes the stakeholder statuses. You can also apply user defined statuses to stakeholders.

Status	Description
Pending	The initial status when you set up a stakeholder.
Active	Enables you to add the stakeholder to an ownership definition, where you define the stakeholder’s percentage of ownership in the joint venture.
Inactive	Use this status when the stakeholder is no longer a participant in the joint venture.