2Manage Joint Venture Transactions and Distributions

Manage Joint Venture Transactions and Distributions

Joint Venture Management uses Enterprise Scheduler Service (ESS) processes to identify joint venture transactions and create distributions for the transactions. You don’t have to perform any steps in between these processes to generate distributions. This touchless processing enables you to manage joint venture transactions and distributions by exception using these work areas:

  • Joint Venture Transactions work area

    This work area gives you the option to review transactions identified by the Identify Joint Venture Transactions ESS process. This work area doesn’t contain the actual transactions, but references transactions in subledger accounting and the general ledger. If you remove transactions from the Joint Venture Transactions work area, the transactions will remain in subledger accounting and the general ledger.

  • Joint Venture Distributions work area

    This work area enables you to review distributions generated by the Create Joint Venture Distributions ESS process.

In addition to reviewing transaction and distribution details, you can use these work areas to:

  • Override how transactions are processed.

    A default ownership definition, which contains each stakeholder’s ownership percentage, is associated with each transaction in the Joint Venture Transactions work area. Before the Create Joint Venture Distributions process in ESS processes transactions, you can override a transaction with a different ownership definition that contains a different breakdown of ownership percentages. Or you can override a transaction with a direct billed stakeholder to distribute the entire transaction amount to a single stakeholder.

  • Resolve disputes over distributed amounts.

    Transaction and distribution records provide important details such as the original transaction amount, distribution amounts, transaction account information, the ownership definition used to apply the split, and so on. You can use this information to verify that transactions were distributed correctly or to determine how to take corrective actions.

  • Troubleshoot other issues, such as transactions falsely identified for processing.

    Transactions in the Joint Venture Transactions work area include information about the account in which they originate. You can use this information to correct the joint venture definition and ensure the correct transactions are identified and distributed.

To resolve any issues or disputes, you can delete joint venture distributions and remove their associated joint venture transactions from the Distributions and Transactions work areas respectively. Then you can update the joint venture definition as needed to correct the issue. For example, you might have to add a new stakeholder or adjust the stakeholder percentages in the ownership definition, or identify another account that contains transactions to distribute. After revising the joint venture definition, you can rerun the ESS processes to identify and distribute the transactions again. For more information about possible scenarios in which you would need to reprocess transactions, see Correcting Issues with Joint Venture Transactions and Distributions.

Access Joint Venture Transactions and Joint Venture Distributions Work Areas

To use the Joint Venture Transactions and Joint Venture Distributions work areas, you must be set up as a joint venture accountant user. A joint venture accountant has these roles:
  • ORA_JV_JOINT_VENTURE_ACCOUNTANT_JOB

  • ORA_PER_EMPLOYEE_ABSTRACT

See Set Up Joint Venture Management Users and Security for more information.

To access these work areas, from the Navigator, select Joint Venture Management, and then click Transactions or Distributions.

Manage Joint Venture Transactions

The Joint Venture Transactions work area displays transactions identified by the Identify Joint Venture Transactions ESS process. Initially, all transactions are in the “Available to process” status. After the Create Joint Venture Distributions process creates distributions from the transactions, this status automatically changes to “Process Complete.”

Note: The Identify Joint Venture Transactions process identifies transactions in accounts defined as distributable in a joint venture definition. A combination of segment values, including a required cost center segment value, is used to identify distributable accounts. If any segment values are left blank, the ESS process will identify all transactions from accounts with any value in that segment. These transactions are displayed in the Joint Venture Transactions work area. However, the Create Joint Venture Distributions ESS process processes only the transactions from the accounts identified as distributable accounts. You can use the filter fields in the Transactions work area to display only the transactions to be distributed.

In the Joint Venture Transactions work area, you can view details about each transaction, such as the debit amount, credit amount, and the original account of the transaction. You can also override certain values, such as the default ownership definition, to change how a transaction is distributed if it hasn't already been processed by the Create Joint Venture Definitions process. See Override Joint Venture Transaction Processing for more information.

Search for Joint Venture Transactions

To search for joint venture transactions:

  1. In the Joint Venture Transactions work area, click the Select Joint Venture field at the top and select a joint venture from the drop-down list.

    By default, the system displays joint venture transactions from the primary ledger, which is displayed in the adjacent field.

  2. Select either the Subledger or General Ledger option to display transactions from either source.

  3. To display transactions from a ledger other than the primary ledger, click in the ledger field and select a different ledger from the drop-down list.

To filter your search results:

  1. In the Search field, you can enter search criteria that includes any data that can be found in the grid.

    The system displays transactions that include the data you entered.

  2. Click Show Filters to refine your search using one or more of these filters:

    • Transaction Status. Use the status toggles to display transactions in one or more statuses.

    • Ownership Definition. Display transactions associated with a particular ownership definition.

    • Direct Billed Stakeholder. Display transactions for a particular direct billed stakeholder.

    • Created By. Display transactions by the user who created the joint venture transactions.

    • Creation Date. Enter a date range to find transactions based on the date they were identified for the joint venture by the Identify Joint Venture Transactions ESS process.

    • Last Updated By. Display transactions by the user who last updated the joint venture transaction.

    • Last Update Date. Display transactions based on a date range that transactions were last updated.

    The filters you are actively using are displayed above the grid.

About Transaction Details

The Transactions work area displays the following details for each transaction:

Column Description
Creation Date The date and time the joint venture transaction was identified for processing by the Identify Joint Venture Transactions ESS process.
Transaction Date The date when the transaction occurred, which may be different from the journal entry effective date or subledger accounting date.
Transaction Status The status of the joint venture transaction.
Ownership Definition

The name of the ownership definition that will be used to distribute the transaction. If you override the original ownership definition with a different ownership definition, the name of the ownership definition that you are using as an override is displayed here.

Original Ownership Definition The original ownership definition associated with the transaction.
Direct Billed Stakeholder The direct billed stakeholder assigned to the transaction, which overrides the default ownership definition. When a stakeholder is entered here, the system creates a distribution for the stakeholder that contains the entire transaction amount.
Original Direct Billed Stakeholder This column is not currently used.
Accounted Debit Amount The transaction debit amount in accounting currency.
Accounted Credit Amount The transaction credit amount in accounting currency.
Account The account of the source transaction.
Journal Description The description of the accounting journal line.
Accounting Class The short name classification of the journal entry lines. Applicable only to subledger transactions.
Units The statistical amount of the journal entry line.
Party Number The number of the party participating in the business relationship. Party information is applicable only to subledger transactions.
Party Site Number The site number of the party participating in the business relationship. Party information is applicable only to subledger transactions.
Third-Party Type The type of the additional third party. Party information is applicable only to subledger transactions.
Accounting Date The date used to determine the accounting period for the transaction. Applicable only to subledger transactions.
Effective Date The accounting date of the journal. Applicable only to general ledger transactions.
Source Table The name of the source table. Applicable only to subledger transactions.
Created By The user who scheduled or ran the Identify Joint Venture Transactions ESS process to identify joint venture transactions.
Last Updated Date The date and time when the joint venture transaction was last updated.
Last Updated By The user who last updated the joint venture transaction.
Line Status The journal entry status. Applicable only to general ledger transactions.

Override Joint Venture Transaction Processing

In the Transactions work area, you can override settings associated with a joint venture transaction to change how the transaction is processed. You can only override transactions that haven't already been processed by the Create Joint Venture Distributions process. Here’s what you can override:

  • Transactions status

    You can change the “Available to process” status to “On hold” for transactions that you don't want distributed yet. You might need to do this for any transactions that have been called into question. When you determine if and how to process the transactions, you can reset the status to “Available to process.”

  • Ownership definition

    All identified transactions displayed in the Transactions work area are associated with a default ownership definition, which is displayed in the Original Ownership Definition column. This comes from the default ownership definition defined for the joint venture in the joint venture definition. You can override the default ownership definition associated with a transaction with a different ownership definition. See Example of Overriding a Default Ownership Definition for more information.

  • Direct billed stakeholder

    Instead of using the ownership definition to create distributions, you can override an ownership definition with a direct billed stakeholder to apply an entire transaction amount to a stakeholder.

  • Transaction date

    The transaction date—the accounting date in subledger transactions and the effective date in general ledger transactions—is used to determine which ownership definition to use to distribute the transaction. You can have multiple versions of a default ownership definition that are named the same, as long as the effective date ranges don't overlap. The unique effective date range is what establishes a version of the ownership definition. You can change the transaction date to coincide with the effective dates of the default ownership definition that you want to use to process the transaction. When the Create Joint Venture Distributions process is run, it compares the transaction date to the effective dates in the available default ownership definitions to determine which one to use to create distributions for the transaction.

To override joint venture transaction processing:

  1. Select the transactions you want to override:

    • Select one or more rows manually.

    • Or click the Select All check box above the first row if you want to update all transactions based on your filter criteria.

    Important! When you use Select All, you are selecting all transactions based on the filter criteria, not just the transactions displayed in the table.

  2. Click the Edit Transactions button.

    The Edit Joint Venture Transactions dialog box displays the count of selected transactions.

  3. On Edit Joint Venture Transactions, select the new values as appropriate.

  4. Click OK.

Remove Joint Venture Transactions

You can remove joint venture transactions that have a status of "Available to process" or "On hold." Transactions in the "Process complete" status can't be removed.

  1. Select the transactions you want to remove:

    • Select one or more rows manually.

    • Or click the Select All check box above the first row if you want to remove all transactions that match your filter criteria.

    Important! When you use Select All, you are selecting all transactions based on the filter criteria, not just the transactions displayed in the grid.

  2. Click Delete.

    Note: Transactions removed from the Joint Venture Transactions work area are not removed from subledger accounting or the general ledger.

Manage Joint Venture Distributions

Use the Joint Venture Distributions work area to search for and review distributions generated by the Create Joint Venture Distributions ESS process. All distributions associated with transactions in the primary ledger that are generated by this ESS process have an initial status of “Available to process.” Here you can change the status of distributions to “On hold” for distributions that you are not ready to create invoices for. The distributions associated with transactions in the secondary ledger that are generated by the ESS process have the status “Process complete” and are marked as “Reporting only.” You cannot process these distributions to create invoices or journals.

To review information on how to manage distributions that were included for invoicing but were not invoiced due to errors, see Manage Unprocessed Joint Venture Distributions.

Search for Distributions

You can search for distributions generated for your joint ventures. When opened, the Joint Venture Distributions work area automatically searches for distributions for all your joint ventures. However, a limited number of records is displayed in the grid for performance purposes.

You can search for distributions by a particular joint venture. Use the search and filter options to further refine your search results.

To search for distributions for a particular joint venture:

  1. At the top of the Joint Venture Distributions work area, select a joint venture from the Select Joint Venture drop-down list.

    The search results contain distributions generated from transactions in the primary ledger, which is displayed in the adjacent field.

  2. Select either the Subledger or General Ledger option to display distributions from either source.

  3. You can select a different ledger in the ledger drop-down list to search for distributions from a ledger other than the primary ledger.

To refine your search results:

  1. In the Search field, you can enter search criteria that contains any data that can be found in the table.

    The results include the distributions that match the data you entered.

  2. Click Show Filters to refine your search using one or more of the filters.

    For a description of the data you can filter on, see About Distribution Details.

    The system displays distributions according to your filter criteria. The filters you are actively using are displayed above the grid.

About Distribution Details

The Distributions work area displays information about the distributions, including the transactions from which the distributions were created.

Column Description
Creation Date The date the distribution was created.
Distribution Status The status of the joint venture distribution.
Joint Venture The name of the joint venture of the source transaction.
Joint Venture Description The description of the joint venture.
Ledger The name of the ledger of the source transaction.
Ownership Definition The name of the ownership definition that was used to split the transaction and generate the distribution.
Direct Billed Stakeholder This column displays the name of the direct billed stakeholder if the entire amount of the transaction was applied to a stakeholder.
Accounted Debit Amount The transaction debit amount in accounting currency.
Accounted Credit Amount The transaction credit amount in accounting currency.
Distributed Debit Amount The distributed debit amount for the stakeholder.
Distributed Credit Amount The distributed credit amount for the stakeholder.
Ownership Percentage The percentage of ownership the stakeholder has in the joint venture transaction.
Account The account of the source transaction.
Line Description The description of the accounting journal line.
Units The statistical amount of the journal entry line.
Transaction Date The date when the transaction occurred, which may be different from the journal entry effective date or subledger accounting date.
Stakeholder The name of the stakeholder for the distribution.
Invoicing Partner The name of the partner associated with the stakeholder that will be invoiced for the distributed amount.
Cost Center The cost center associated with the distributable stakeholder.
Rounding Applied If the stakeholder is a rounding partner, this indicates if the transaction amount could not be divided evenly among stakeholders and the remaining amount was applied to the stakeholder’s distribution.
Invoicing Preference Indicates whether an invoice or a general ledger transaction will be created.
Account Type Indicates if the account is for assets, liabilities, and so forth. Account type E (Expense) is for operating expenses, A (Assets) is for capital expenditures, and R (Revenue) is for revenue.
Business Unit The name of the business unit on the joint venture.
Distribution Only Indicates whether the joint venture stakeholder is participating in the transaction distribution only or is also being invoiced.
Customer The name of the customer associated with the stakeholder.
Supplier The name of the supplier associated with the stakeholder.
Original Ownership Definition The name of the default ownership definition associated with the transaction when initially identified for processing. If the transaction was overridden to use a different ownership definition, the name of the ownership definition used to create the distribution is displayed in the Ownership Definition column.
Effective Start Date The start date of the effective date range of the ownership definition.
Effective End Date The end date of the effective date range of the ownership definition.
Original Stakeholder This column is not currently used.
Created By The user who created the joint venture distribution.
Last Update By The user who last updated the joint venture distribution.
Last Updated Date The date and time when the joint venture distribution was last updated.

Change the Status of Distributions

All distributions associated with transactions in the primary ledger that are generated by the Create Joint Venture Distributions ESS process have an initial status of “Available to process.” You can change the status of distributions to “On hold” for distributions that you are not ready to create invoices or journals for. The distributions associated with transactions in the secondary ledger that are generated by the ESS process have the status “Process complete”. You cannot process these distributions to create invoices or journals.

After searching for distributions:

  1. Select the distributions you want to update:

    • Select one or more rows manually.

    • Or click the Select All check box above the first row if you want to update all distributions based on your filter criteria.

    Important! When you use Select All, you are selecting all distributions based on the filter criteria, not just the distributions displayed in the grid.

  2. Click the Edit Distributions button.

    The Distributions dialog box displays the number of selected distributions that can be updated.

  3. On Edit Distributions, you can change the status from “Available to process” to “On hold” or the reverse.

  4. Click OK.

Change the Distribution Only Setting

You can override the “Distribution Only” setting for distributions from the Joint Venture Distributions work area. You can change this setting only for distributions that have not been processed.

After searching for distributions:

  1. Select the distributions you want to update:

    • Select one or more rows manually.

    • Or click the Select All check box above the first row if you want to update all distributions based on your filter criteria.

      Important! When you use Select All, you are selecting all distributions based on the filter criteria, not just the distributions displayed in the grid.

  2. Click the Edit Joint Venture Distributions button.

    The Edit Joint Venture Distributions dialog box displays the number of selected distributions that can be updated.

  3. On Edit Joint Venture Distributions, to change the “Distribution Only” setting for the distributions, click the Distribution Only drop-down list and select “Yes” or “No” as required.

  4. Click OK.

Delete Distributions

When you delete a distribution, the system deletes all distributions that are associated with the same transaction. It also automatically changes the status of the transaction back to “Available to process” in the Joint Venture Transactions work area.

  1. Select the distributions you want to remove:

    • Select one or more rows manually.

    • Or click the Select All check box above the first row if you want to remove all distributions that match your filter criteria.

    Important! When you use Select All, you are selecting all distributions based on the filter criteria, not just the distributions displayed in the grid.

  2. Click Delete.

Correcting Issues with Joint Venture Transactions and Distributions

To resolve any issues or disputes, you can delete joint venture distributions and remove their associated joint venture transactions from the Distributions and Transactions work areas respectively. You can then update the joint venture definition to correct the issue. For example, you might have to add a new stakeholder or adjust the stakeholder percentages in the ownership definition, or identify another account that contains transactions to distribute. After revising the joint venture definition, you can rerun the Joint Venture ESS processes to identify and distribute the transactions again.

This section describes some of the different types of issues you might encounter and the general process for resolving them.

Distributions with Incorrect Amounts

To resolve distributions with incorrect amounts:

  1. In the Joint Venture Distributions work area, delete the distributions created for the transaction.

    Deleting distributions automatically resets the status of the associated transaction from “Process Complete” to “Available to process” in the Joint Venture Transactions work area.

  2. In the Joint Venture Transactions work area, locate the transaction and change the status to “On hold” so the scheduled Create Joint Venture Distributions ESS process doesn’t process the transaction again.

  3. Identify the ownership definition that's associated with it and verify that the ownership percentages are correct.

  4. If a different version of the ownership definition exists that contains the correct ownership percentages, you can override the transaction date in the transaction by entering a date that aligns with the effective dates in the appropriate ownership definition version.

  5. If there isn't an ownership definition with correct ownership percentages, you have two possible actions:

    • In the joint venture definition, correct the ownership percentages in the ownership definition that was used to calculate the split.

      Note: The system prevents you from updating an ownership definition if distributions exist that were generated using the ownership definition.
    • In the joint venture definition, create a new ownership definition with the proper ownership percentages. It could be that there was a change to the joint operating agreement that calls for a change in the split calculation for transactions from a particular account, which includes the transaction in dispute. You can create a new ownership definition to adjust for this change.

  6. Access the Joint Ventures work area, and open the joint venture definition.

  7. Either update the existing ownership definition with the correct percentages or create a new ownership definition with a different breakdown of ownership percentages.

  8. If you created a new ownership definition, in the Joint Venture Transactions work area, override the transaction with the new ownership definition.

  9. Change the status of the transaction to “Available to process.”

  10. Manually run the Create Joint Venture Definitions ESS process, or wait for it to run on its schedule, to generate distributions for the transaction again.

Transaction Split When Entire Transaction Amount Should Be Applied to a Direct Billed Stakeholder

A transaction should have been distributed to a direct billed stakeholder but instead was mistakenly split and distributed among stakeholders. To correct this issue, you need to:

  1. In the Joint Venture Distributions work area, delete the distributions created for the transaction.

    This resets the status of the associated transaction from “Process complete” to “Available to process” in the Joint Venture Transactions work area.

  2. In the Joint Venture Transactions work area, locate the transaction and change the status to “On hold” so the scheduled Create Joint Venture Distributions process doesn’t process the transaction again.

  3. Override the ownership definition with the direct billed stakeholder.

  4. Reset the status to “Available to process.”

  5. Manually run the Create Joint Venture Definitions ESS process, or wait for it to run on its schedule to create a distribution for the stakeholder that contains the entire transaction amount.

Incorrectly Identified Transactions

Distributions have been generated for transactions that are not associated with a joint venture. In this case, it's likely that the wrong account has been identified as distributable in the joint venture definition. To correct this issue, you need to:

  1. Suspend the joint venture definition so that it stops processing transactions from the wrong account. In the Joint Ventures work area, open the joint venture and change its status to a user defined status such as “On hold” or "Suspended."

  2. In the Joint Venture Distributions work area, delete distributions generated from the incorrectly identified transactions.

  3. Remove the transactions from the Joint Venture Transactions work area.

  4. In the Joint Ventures work area, in the joint venture definition, remove the information used to identify the incorrect distributable account.

  5. Reset the status of the joint venture definition to "Active."