What Is a Joint Venture Definition?

A joint venture definition contains the information Oracle Joint Venture Management uses to calculate the financial transactions to distribute among partners in a joint venture. You create a joint venture definition for each of your joint ventures.

A joint venture definition includes the following details:

• Identification of distributable accounts, the accounts that contain the joint venture transactions to be distributed among partners. These transactions are typically in subledger accounting, but can also reside in the general ledger.

  You can also set up a joint venture definition to distribute transactions related to specific projects. This capability requires opting in to additional features. See Identify Distributable Transactions by Project Information for more information.

• Identification of distribution only accounts. Distribution only accounts contain transactions that aren’t directly related to costs or revenue. These transactions are split to create distributions, but the distributions are not invoiced to stakeholders.

• Stakeholders. The partners in a joint venture that share in the joint venture costs and revenue. You can also include interested stakeholders, which are stakeholders that don't share in costs and revenue but participate for information or oversight purposes.

• An ownership definition that defines the percentage of ownership for each stakeholder in the joint venture. Joint Venture Management uses the ownership definition to calculate each stakeholder’s share of transactions. You can have multiple date-effective ownership definitions, and you have the option to designate one as the default.

• Classification of the joint venture. If you are the managing partner in the joint venture, you classify the joint venture as Operated. Else, you classify it as Nonoperated. This helps you identify your role in the joint venture and use this information for invoicing, reporting, and auditing purposes.

  Note: The setup described here pertains to the managing partner or operator of a joint venture. If you are not the managing partner, and you want to set up a joint venture definition to re-create and track your portion of the costs that you were billed for a joint venture, see Set Up a Nonoperated Joint Venture Definition.

• Optional approval information. You can enter an approval of the joint venture definition if your business process requires an approval before activation.

• Attachments to provide supplementary information at the joint venture, stakeholder, and ownership definition level. These can be supporting documents for joint operating agreements, such as signed contracts, emails, and statements of direction.