What Is a Joint Venture Definition?

A joint venture definition contains the information Oracle Joint Venture Management uses to process financial transactions associated with a joint venture. You create a joint venture definition for each of your joint ventures.

A joint venture definition includes the following details:

• Identification of distributable accounts, the accounts that contain the joint venture transactions to be distributed among partners. These transactions are in Subledger Accounting and the General Ledger.

  You can also set up a joint venture definition to distribute transactions related to specific projects. See Identify Distributable Transactions by Project Information for more information.

• Identification of distribution only accounts. Distribution only accounts contain transactions that aren’t directly related to costs or revenue. These transactions are split to create distributions, but the distributions aren't invoiced to stakeholders.
• Identification of billable asset accounts. You can identify a subset of distributable asset accounts that contain transactions for billable assets.

• Stakeholders. The partners in a joint venture. You can also include interested stakeholders, which are stakeholders that don't share in financial transactions but participate for information or oversight purposes.

• Ownership definitions that define the percentage of ownership for each type of transaction for each stakeholder in the joint venture. Joint Venture Management uses the ownership definition to calculate each stakeholder’s share of transactions. You can have multiple ownership definitions, and you have the option to designate one as the default.

• Classification of the joint venture. If you're the managing partner in the joint venture, you classify the joint venture as Operated. Otherwise, you classify it as Nonoperated. This helps you identify your role in the joint venture and use this information for invoicing, reporting, and auditing purposes.

  Note: The setup described here pertains to the managing partner or operator of a joint venture. If you're not the managing partner, and you want to set up a joint venture definition to re-create and track your portion of a joint venture as a nonoperator, see Set Up a Nonoperated Joint Venture Definition.

• The legal entity to which you account the invoices and journals generated for the joint venture.

• Optional approval information. You can enter an approval of the joint venture definition if your business process requires an approval before activation.

• Attachments to provide supplementary information at the joint venture, stakeholder, and ownership definition level. These can be supporting documents for joint operating agreements, such as signed contracts, emails, and statements of direction.