About Joint Venture Partner Contributions

A managing partner of a joint venture can periodically request contributions from joint venture partners to raise funds for specific expenditures. These requests for contributions, sometimes referred to as cash calls, are created and managed as “partner contributions” in Oracle Joint Venture Management.

Use Joint Venture Management to automatically create partner contributions, generate invoices for the contribution amounts, and draw from partner contributions to cover a partner’s share of costs in a joint venture. Additionally, you can perform the following tasks:

• Add, track, cancel, transfer, and close partner contributions in Joint Venture Management.

• Add agreement default charges, as stipulated by the terms in a joint operating agreement, when closing partner contributions.

• Place partner contributions on hold for a particular circumstance, for example if you're renegotiating terms for a partner’s participation in a joint venture.

• If stakeholders have cost distributions with a credit amount, you can run a process to add the amount in their partner contributions.

• Add attachments to partner contributions as needed, such as supporting documents about changes in joint operating agreements.

Partner Contributions for Nonoperated Joint Ventures

If you're a partner in a joint venture you don’t operate, you pay the partner contributions requested by the managing partner (operator). You (nonoperator) can record the partner contribution you paid to the managing partner in Oracle Joint Venture Management and verify the amount drawn against your cost distributions. To do so, you must perform the following tasks:

1. Create a partner contribution with the requested amount.
2. Create a payables invoice or a journal entry to pay the contribution amount to the operator.
3. Draw from the partner contribution to cover your cost distributions.

Note: The information to create and draw from partner contributions as described in this chapter applies to operated and nonoperated joint ventures. However, for nonoperated joint ventures, instead of creating a receivables invoice that’s described in Create Partner Contribution Invoices Through a Scheduled Process, you must create a payables invoice or a journal entry outside of Joint Venture Management. You must then manually associate the payables invoice or journal entry with the partner contribution following the steps described in Associate the Receivables Invoice or Journal Entry to the Partner Contribution.