Overview of the Setup in Oracle Financials to Create Receivables Invoices for Joint Ventures

Joint venture accountants use Oracle Joint Venture Management to create the following invoices in Oracle Receivables: cost recovery invoices to bill partners for their share of costs in a joint venture and partner contribution invoices to receive advance payments for costs.

To enable accurate accounting of amounts in invoices, you must perform these setup tasks.

• Set up the following accounts in Receivables:
  • Receivable account. The account in your general ledger for posting receivable amounts, which are entered as a debit.
  • Partner account. The account in your general ledger for posting amounts billed to partners for their share of costs, which are entered as a credit. Partner accounts, referred to as cutback accounts in some industries, enable the managing partner of a joint venture to report on gross or net costs for a joint venture.

  • Partner contribution account. The account in your general ledger for posting amounts contributed by partners, to be used to cover their share of costs. In some industries these are called cash calls.

    Partner contribution accounts are required only if you plan to use partner contributions in Joint Venture Management to cover amounts in cost distributions. See About Joint Venture Partner Contributions for more information about managing partner contributions in Joint Venture Management.

• Set up Receivables for credit memos.

  If cost recovery invoices are generated with incorrect amounts, this setup enables you to create credit memos to adjust the amounts in Receivables. This also enables you to create credit memos to cancel a partner contribution that has been invoiced and is no longer needed.

• Perform basic setup tasks for tax exclusion, currency conversions, and logging.

Application implementation consultants can perform these setup tasks.