Set Up Stakeholders

Set up a stakeholder for each partner in a joint venture. After you set up the stakeholders, you can add them to an ownership definition and specify their ownership percentages in the joint venture.

You can add the following stakeholders to a joint venture:

• External stakeholders. The partners that are external to the managing partner’s organization.

• Internal stakeholders. You can have two types of internal stakeholders:

  • A stakeholder designated as the operator. This stakeholder represents the managing partner of the joint venture.

  • A stakeholder designated as a nonoperator. This stakeholder represents partners that are part of the same enterprise as the managing partner.

You can also set up an external or internal stakeholder as an interested stakeholder that participates in the joint venture for informational or oversight purposes only. An interested stakeholder doesn’t partake in the sharing of the joint venture costs and revenue.

When you set up a stakeholder, you determine whether you want to use invoices or journal entries to recoup costs from and distribute revenue to the stakeholder. Either option requires an additional setup that needs to be performed before you can generate invoices or journal entries. See Before You Set Up Stakeholders for more information.

Distribution Only Stakeholders

You have the option to set up external and internal stakeholders as "distribution only" if you don’t need to create invoices or journal entries for them. For example, the managing partner might not want journal entries created for their share of cost or revenue, or your joint venture might not bill or pay partners on a monthly basis.

Stakeholder Statuses

The following table describes the stakeholder statuses. You can also apply user defined statuses to stakeholders.

Status	Description
Pending	The initial status when you set up a stakeholder.
Active	Enables you to add the stakeholder to an ownership definition or as a direct billed stakeholder on transactions, overhead methods, or ownership definition assignment rules.
Inactive	Use this status when the stakeholder is no longer a participant in the joint venture.