1. Using Joint Venture Management
  2. Update an Ownership Definition

Update an Ownership Definition

The updates you can make to an ownership definition depend on its status. An ownership definition can be set to one of these statuses:

  • Editing. The initial status when you create an ownership definition.

  • Active. Enables the joint venture to use the ownership definition to process transactions.

  • Inactive. Use this status when you no longer want the joint venture to use the ownership definition to process transactions.

Update an Ownership Definition in Editing Status

This is the default status when you create an ownership definition. You can change any of the details in an ownership definition in this status.

This status can also be used to update ownership definitions that are currently in Active status. To do so, change the ownership definition status from Active to Editing. You can then update its description, effective dates, and stakeholder ownership details. If the ownership definition has been used to distribute transactions, updating the ownership details triggers reversal of all associated distributions. Updating only the effective dates triggers retroactive reversal of associated distributions whose transaction dates fall outside the revised effective dates. In both cases, you must enter a reason for the change and can optionally provide additional details.

Caution: Updating both ownership details and effective dates in an ownership definition triggers reversal of all distributions associated with the ownership definition. The revised effective dates are applied only during redistribution. See Distribution Reversal Methods for more information.

Update an Ownership Definition in Active Status

This status enables the joint venture to use the ownership definition for transaction distribution.

You can make the following changes to an ownership definition while it remains in Active status:

  • Change the description and status of the ownership definition.

  • Change the "Distribution Only" setting for a stakeholder. This update takes effect the next time the ownership definition is used for transaction distribution.

  • Modify the effective dates. If the ownership definition has been used to distribute transactions, updating the effective dates requires reversal of associated distributions whose transaction dates no longer fall within the revised effective date range. In such cases, you must enter a change reason and can optionally provide additional details about the change. You must then run the adjustments process to reverse the affected distributions and redistribute the transactions using another applicable ownership definition.

    See Distribution Reversal Methods for more information.

You can’t directly change stakeholders or ownership percentages while the ownership definition is in Active status. To make these changes, you must first change the ownership definition status to Editing.

Update an Ownership Definition in Inactive Status

The Inactive status is used when you no longer want a joint venture to process transactions with the ownership definition. Because an ownership definition contains the ownership percentages of stakeholders, for auditing and tracking purposes, you can’t change any details of an ownership definition in this status. However, you can change its status to Editing or Active if you need to update or reuse the ownership definition.

Delete an Ownership Definition

You can delete an ownership definition if it hasn’t been used in an overhead method or to distribute transactions.