Add an External Stakeholder

Access the Stakeholders page for your joint venture definition.

On Stakeholders, select Add.

On New Stakeholder, enter a name and description for the stakeholder.

If you leave this field blank and you associate an invoicing partner to the stakeholder, the description of the invoicing partner will appear here.

For the Stakeholder Type, select External.

The status for new stakeholders is Pending. You can’t change it to Active until after you complete the required fields under Partner Information.

For the Classification, identify the stakeholder's role in the joint venture as either an operator or nonoperator.

Select a value for the Stakeholder Category.

This is an optional field that contains user-defined values that your company can set up to further categorize your stakeholders if desired.

Select Distribution Only if the stakeholder will participate only in the transaction distribution and won't be billed.

You've the option to change this setting when you add the stakeholder to the ownership definition on the Ownership Definition page.

For the Invoicing Preference, select one of these options:

Create invoices. Create invoices for billing or paying the stakeholder through Receivables and Payables.
Create journals. Create internal transfer journals for the external stakeholder’s share of costs and revenue. This makes it easier to generate a single invoice of the net costs and revenue for the stakeholder at your convenience, instead of requiring an invoice to create the accounting for the distributions.

If the external stakeholder isn't sharing in the joint venture costs or revenue, see Add an Interested Stakeholder.

If you selected "Create invoices," complete these fields under Partner Information:

Invoicing Partner. Select an invoicing partner from the list. If you don’t see the invoicing partner:
- Make sure that the invoicing partner is active.
- Make sure that it's set up with the same business unit that’s associated with the joint venture.
Party. Select a party for the stakeholder. Leave this field blank to use the default party, which will appear after you save the record.

The application uses either the customer or supplier associated with the invoicing partner to determine the default party.
- If there’s a customer, the default party is the primary contact of the customer site that’s associated with the invoicing partner. If the invoicing partner isn’t associated with a customer site, the default party is the primary contact of the customer.
- If there’s no customer or the preceding customer information isn’t available, the supplier is used to determine the default party. In this scenario, the default party is the earliest administrative contact defined for the supplier. If there’s no administrative contact, the earliest contact will be used instead.
After you save your changes, the application displays contact information for the party, if available. If you use a default party, the application displays the party’s primary email address, primary phone number, and primary bill-to address as the contact information for the stakeholder.

If you selected "Create invoices," complete these fields under Billing Information as needed:

Override Invoice Netting. If invoice netting is enabled for the joint venture and you want to override the settings for the stakeholder, enable this option. If netting isn't enabled for the joint venture but the stakeholder requires netted invoices, enable this option to configure netting for the stakeholder.

Tip: After enabling this option, select Save to access the rest of the override fields.
- Invoice Netting. Enable this option to use invoice netting for the stakeholder.
  
  If invoice netting is enabled at the joint venture level but you want to exclude this stakeholder from netting, deselect this option.
- Include in Netting. Select whether to include cost reversals, revenue reversals, or both in the netting calculation. This option enables you to offset reversed distributions, eliminating the need to create credit memos and debit memos.
- Netted Invoice Preference. Select one of the following options:
  - Receivables or Payables based on net balance. Use this to generate a Receivables invoice if the net balance is zero or a debit and a Payables invoice if it's a credit.
  - Receivables always. Use this to always generate a Receivables invoice, regardless of whether the net balance is a credit or a debit.
Invoice Currency Override. Select a currency to create invoices for the stakeholder in a different currency than the primary ledger currency of the joint venture business unit.

This field is also available in the invoicing partner setup. If completed in that setup, the value is automatically displayed here.

If you selected "Create journals," complete these fields:

Cost Center. Enter the cost center for posting the stakeholder’s costs and revenue to.
Party. Select the party for the external stakeholder. This is the party associated with the entity that you set up as a part of the prerequisite tasks. See Before You Set Up Stakeholders.

When you save your changes, the application displays additional information for the party if available.

Under Billing Information, complete these fields, which are used when generating a joint interest billing report for the stakeholder:

Joint Interest Billing Report Template. The report template must exist in the BI Publisher catalog for Joint Venture Management. The name of the predefined template for stakeholders is “Joint Interest Billing For Stakeholder”.
Joint Interest Billing Report Output Format.

These fields are also available in the invoicing partner setup. If completed in that setup, the values are automatically displayed here.

To attach a file for the stakeholder, drag the file from your local directory into the Drag and Drop field. Or click anywhere in this field, locate the file and upload it. To attach a URL, complete the URL field and select Add URL.

For information on how to view, edit, and remove attachments, see Add Attachments.

Select Save to save your changes and stay on the page. Or select Save and New to save this stakeholder and add another.