1. Implementing Joint Venture Management
  2. Example of Processing Transactions with a Default Ownership Definition

Example of Processing Transactions with a Default Ownership Definition

A joint venture accountant created three instances of an ownership definition named VENTUREOD1 and assigned it as the default ownership definition for the joint venture. The three instances were necessary because for three consecutive months, the ownership percentages changed for each month.

The following table shows how each instance of the default ownership definition includes the effective dates and the ownership percentages for that month:

Default Ownership Definition Instance Effective Dates Ownership Percentages
VENTUREOD1 1/01/2019 - 1/31/2019 4 stakeholders, 25% each
VENTUREOD1 2/01/2019 - 2/28/2019 5 stakeholders, 20% each
VENTUREOD1 3/01/2019 - 3/31/2019 4 stakeholders, 25% each

From 1/01/2019 to 3/31/2019, the process to identify transactions for the joint venture assigns the default ownership definition of VENTUREOD1 to the transactions in Oracle Joint Venture Management.

When the process to distribute the transactions is run, it compares the transaction date in each transaction to the effective dates in each ownership definition instance to determine which instance to use to distribute the transactions.

The following table shows how the distribution process determines which ownership definition instance to use to distribute 10 transactions (T1-T10):

Note: For illustration purposes, this example shows only 10 transactions, but transactions could potentially be in the thousands.
Transaction Transaction Date Default Ownership Definition Instance
T1 1/11/2019 VENTUREOD1 1/01/2019 - 1/31/2019
T2 1/16/2019 VENTUREOD1 1/01/2019 - 1/31/2019
T3 1/31/2019 VENTUREOD1 1/01/2019 - 1/31/2019
T4 2/02/2019 VENTUREOD1 2/01/2019 - 2/28/2019
T5 2/13/2019 VENTUREOD1 2/01/2019 - 2/28/2019
T6 2/22/2019 VENTUREOD1 2/01/2019 - 2/28/2019
T7 2/22/2019 VENTUREOD1 2/01/2019 - 2/28/2019
T8 2/27/2019 VENTUREOD1 3/01/2019 - 3/31/2019
T9 3/14/2019 VENTUREOD1 3/01/2019 - 3/31/2019
T10 3/14/2019 VENTUREOD1 3/01/2019 - 3/31/2019

The following table shows the ownership percentages used for the split of each transaction based on the ownership definition instance assigned to each transaction:

Transaction Default Ownership Definition Instance Ownership Percentages Used for the Split
T1 - T3 VENTUREOD1 1/01/2019 - 1/31/2019 4 stakeholders, 25% each
T4 - T8 VENTUREOD1 2/01/2019 - 2/28/2019 5 stakeholders, 20% each
T9 - T10 VENTUREOD1 3/01/2019 - 3/31/2019 4 stakeholders, 25% each