1. Implementing Joint Venture Management
  2. Define Information to Create Net Invoices

Define Information to Create Net Invoices

Instead of generating separate Receivables and Payables invoices for a stakeholder, you can set up the joint venture definition to create a single net invoice. The invoicing process combines the stakeholder's shares of costs and revenue, and based on the resulting balance, it creates either a Receivables or Payables invoice for the net amount. For example, if a stakeholder’s share of costs is $1,000 and revenue is $600, netting results in a single Receivables invoice for the net amount of $400 to be recovered from the stakeholder.

This applies to only stakeholders with an invoicing preference set to create invoices.

You can configure the joint venture definition to always generate Receivables invoices for the net amount, regardless of whether the amount is a credit or debit. This option is especially helpful for joint ventures that aren't yet in full revenue mode, such as during early operational stages or periods of low revenue.

The invoicing process compares the resulting net amount against the specified minimum invoice amount thresholds for Receivables and Payables to determine whether to generate a net invoice. It also applies the receivable or liability account defined in your configuration to the respective invoice type.

  1. On the Billing and Reporting Information page for your joint venture definition, enable Invoice Netting.

  2. Complete the following netting details:

    • 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 default value 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. Select this to always generate a Receivables invoice, regardless of whether the net balance is a credit or a debit.

  3. Select Save or Continue as needed.