Set Up Partner Accounts for Joint Venture Receivables Invoices

The Create Joint Venture Invoices and Journal Entries process creates accounts receivable invoices in Oracle Fusion Cloud Financials for each stakeholder’s share of costs in a joint venture. For each invoice line, the process creates an invoice distribution in the Revenue accounting class using the original account of the transaction the joint venture distribution came from.

In Oracle Joint Venture Management, the account that’s written in the Revenue accounting class is referred to as the partner account. In some industries, it’s referred to as the cutback account. To prevent invoice and journal transactions generated by Joint Venture Management from being identified and processed by Joint Venture Management again, you must perform one of these configurations:

• Override a segment of the partner account with an account that isn't identified as distributable in your joint venture definition.

  To do so, set up subledger accounting to replace a segment value that creates an account that represents reimbursement transactions for your joint venture. A user with application implementation consultant privileges can perform this configuration.

• Enable the "Exclude joint venture transactions" option in your joint venture definition.

  See Exclude Joint Venture Invoices and Journals from Oracle Joint Venture Management Processing for more information.

Partner Contribution Invoice Lines

Partner contributions in Joint Venture Management are used to manage cash advances, sometimes referred to as cash calls, from partners to cover cost distributions for each partner. Some distribution amounts might be covered completely by the contributions; others might be covered partially. Regardless, when the distributions are invoiced, the invoices capture the partner contribution amount and the net invoice amount, which is the actual amount that's invoiced to the partner after deducting the partner contribution amount.

The partner contribution invoice line must be recorded in the same liability account used in the invoice that was created to collect the partner contribution from the partners. You specify this liability account in the Joint Venture Partner Contribution Account field when you create partner contributions. As an alternative to specifying the liability account in the partner contribution, you can derive it in Subledger Accounting.

Credit Memos

When you need to make adjustments to an invoice, you create a credit memo to reverse the invoice transaction.

For the AutoInvoice process to create credit memos, you must set up a value for the profile option AR_USE_INV_ACCT_FOR_CM_FLAG; otherwise, the process ends in error. For information on how to set up this profile option, see Set Up Profile Option to Create Receivables Credit Memos. The value that you set up for this profile option determines whether you need an additional setup to ensure accurate accounting for credit memos. If you set this profile option to “No” for the desired profile level, the partner account on the posted invoice is automatically carried across to the credit memo. If you set the profile value to “Yes”, you must complete the additional setup described in Derive the Partner Account for Credit Memos to make sure that the correct partner account on the posted invoice is used on the credit memo.