About Manual Joint Venture Source Transactions

Create manual joint venture source transactions in Oracle Joint Venture Management to process joint venture costs and revenue that aren’t recorded in Oracle Subledger Accounting or Oracle General Ledger.

You might need to create manual joint venture source transactions in these instances:

• When the joint operating agreement provides for the billing of partners for a subset of costs that aren’t associated with a cost account or capital work in progress account. These can include costs, typically recorded in an asset account, which need to be billed to joint venture partners—costs related to inventory, right of use, and prepaid expenses such as prepayments for insurance.

  Note: Cost and capital work in progress accounts are the only types of expense accounts in Subledger Accounting and General Ledger that are eligible for processing by Joint Venture Management.
• When you need to pay partners for revenue that isn’t recorded in Subledger Accounting or General Ledger.

You create manual joint venture source transactions in the Joint Venture Source Transactions work area. You use this work area to manage both manual transactions as well as overhead transactions that are calculated and generated by Joint Venture Management. Both manual transactions and overhead transactions are considered joint venture source transactions. Joint venture source transactions are another source of transactions, along with transactions in Subledger Accounting and General Ledger, that you can process through Joint Venture Management.

You can add multiple manual transactions at once using a Microsoft Excel spreadsheet, which you can download from the Joint Venture Source Transactions work area. The spreadsheet includes instructions on how to add, update, and upload manual transactions to the work area.

Manual transactions are eligible for processing by all applicable Joint Venture Management processes. These include the processes for identifying, distributing, and invoicing transaction amounts, as well as processes that support these scenarios:

• Reversal of distributions generated from joint venture transactions.
• Partner contribution draws to cover their cost distributions.
• Carried interest agreement setup in which a partner’s share of costs and revenue are carried by other partners in the joint venture.
• Creation of internal transfer journals instead of invoices.

Creating manual transactions in Joint Venture Management provides these benefits:

• Provides an easier way to record miscellaneous costs and revenue for a joint venture than creating journal entries in Subledger Accounting.
• Enables you to process expenses that don’t belong in a cost or capital work in progress account.
• Provides automatic processing of manual transactions along with other joint venture transactions to help ensure proper accounting for your joint ventures.
• For audit purposes, maintains the integrity of costs and revenue distributed to partners and amounts in partner contribution accounts by managing these amounts in the same application.