Set Up Ownership Definitions

An ownership definition provides the information Oracle Joint Venture Management uses to calculate the split of financial transactions to distribute among joint venture partners. It contains a list of the stakeholders and each stakeholder’s percentage of ownership.

The ownership percentages for all stakeholders in an ownership definition must total 100% before you can change its status to Active. The Active status enables Joint Venture Management to use the ownership definition to process transactions for a joint venture.

An ownership definition includes an effective date range. For Joint Venture Management to process transactions, the transaction date in the transactions must coincide with the effective dates in the ownership definition.

Note: By default, for the transaction date, Joint Venture Management uses the accounting date in transactions originating from subledger accounting. It uses the effective date to process transactions originating from the general ledger. However, these dates might not capture the date the transaction took place or the date the service was performed, what some companies refer to as the service date or activity date. If the terms in a joint operating agreement require the processing of transactions by the date the transaction occurred, then you need to configure Joint Venture Management to capture this date. See About Identifying a Transaction Date for Processing Joint Venture Transactions for instructions on how to perform this one-time setup.

You can create multiple instances of an ownership definition with the same name, as long as the effective dates in each instance don't overlap. This enables you to specify different stakeholder percentages for different periods of time as agreed upon in the joint operating agreement.

You have the option to designate a default ownership definition. This default ownership definition is assigned to all transactions that are identified for the joint venture in the Joint Venture Transactions work area. If you need to change the ownership definition or assign a direct billed stakeholder on transactions, you can do so in the Joint Venture Transactions work area. You can also use ownership definition assignment rules when you need to assign different ownership definitions to different categories of transactions in a joint venture. Assignment rules enable you to automatically assign an ownership definition or direct billed stakeholder to transactions in a specific account or set of accounts identified as distributable for a joint venture. See Overview of Ownership Definition Assignment Rules for more information.

The Joint Ventures page includes alerts to indicate when an ownership definition isn't complete. The alert describes the remaining tasks that you need to perform to complete the ownership definition.