Understanding Division of Interest (DOI) Assignment Rules
You set up DOI assignment rules for the system to determine which DOI to use for each financial transaction associated with a joint venture. The DOI is used during the distribution process and determines how the transaction amount is distributed between a list of joint venture partners. If you do not want the transaction amount to be distributed among the partners using a DOI, you can specify that you want the entire amount to be directly billed to a single partner. The partner can be an insider or an outsider. You use the Division of Interest Assignment Rules program (P09J22) to create the rules. The system stores the rules in the Division of Interest Assignment Rules table (F09J22).
You can set up a DOI assignment rule for any level in the hierarchy below:
Company
Joint Venture
Joint Venture Parent BU
Business Unit
Depending on the complexity of your joint venture, you might require several assignment rules to determine which DOIs or direct billed partners to use for financial transactions. For example, the majority of your transactions might use one DOI. You can set up a rule to make this DOI the default DOI for the joint venture. However, there might be some transactions, for example, those associated with a specific G/L account, that require the transaction amount to be distributed differently among the partners. To ensure that the correct DOI or direct billed partner is assigned to these transactions, you can create a more specific rule that identifies the DOI or direct billed partner to use for the joint venture and that specific account. The system allows you to create as many rules as needed so that the correct DOI or direct billed partner is assigned to each transaction.
When attempting to assign DOIs or direct billed partners to financial transactions, the system uses the joint venture business unit hierarchy and the DOI assignment rules. The system assigns the rules starting with the most specific to the least specific.
DOI Assignment Rule Sequence
This list is in order from the least specific to the most specific:
Company
Joint Venture
Joint Venture Parent Business Unit
Business Unit
Note that each level of the DOI assignment rule sequence can have Object Account From and Thru as well as Subsidiary From and Thru information. For a particular level (for example, business unit), the system will first assign the DOI to the business unit that has the object account and subsidiary information before assigning the DOIs to the business units that do not have the account information.
To enter a generic rule that is used for all transactions in a company, you simply enter the Company number, and specify the DOI or direct billed partner to use for transactions associated with that company.
From there, you can make more specific rules. For example, you might have a company that has multiple joint ventures. Therefore, you can create rules that specify the joint venture name, and assign the appropriate DOI or direct billed partner to each of those rules.