Derive Partner Accounts for Cost Recovery Invoices

Partner accounts are accounts in your general ledger for posting amounts to be received from partners for their share of costs. They’re sometimes referred to as cutback accounts, as they enable the managing partner of a joint venture to report on gross or net costs for a joint venture.

Cost recovery invoices generated for joint venture partners include lines with distribution amounts that can be from different transaction sources. For each invoice line, an invoice distribution is created in the Revenue accounting class using the original account of the source transaction. You can use this account for the partner account, or you can define a different partner account to use for each transaction source. The transaction sources can include:

Cost transactions in subledger accounting and general ledger (distribution types E or A)
Manual cost joint venture source transactions created in Joint Venture Management (distribution type S)
Overhead transactions generated by Joint Venture Management (distribution types H or F)
Partner contributions created in Joint Venture Management used to cover amounts from cost, manual, and overhead transactions (distribution type P)

Determine the Partner Account for Transactions that Originate from Subledger Accounting, General Ledger, or Manual Joint Venture Source Transactions

Here are your options for the partner account for distributed costs that originate from general ledger, subledger accounting, or manual joint venture source transactions:

Partner Account Option	Business Purpose	Implementation Action
Use the account on the source transaction.	With this option, the balance of the accounts from the source transaction will contain the net amount for the managing partner.	This option is enabled by default. Important: If you use this option, when users set up joint venture definitions, they must enable the “Exclude joint venture transactions” option. This prevents these transactions from being identified and processed by Joint Venture Management. See Exclude Joint Venture Invoices and Journals from Oracle Joint Venture Management Processing for more information.
Use a different account than the account on the source transaction.	With this option, all balances of the accounts from the source transaction will contain the gross amount for the joint venture.	Set up subledger accounting rules to override the source transaction account with a different account. See Use Subledger Accounting Rules to Derive the Partner Account for more information. Important: If you use this option, when users set up joint venture definitions, they must perform either of the following actions: Enable the “Exclude joint venture transactions” option in each joint venture. When identifying distributable accounts for the joint venture, they must make sure the partner account isn’t included in the list of distributable accounts.

Determine the Partner Account for Transactions that Originate from Overhead Transactions Generated by Oracle Joint Venture Management

Partner Account Option	Business Purpose	Implementation Action
Use the account on the overhead transaction.	You want to use the cost recovery or revenue account defined on the overhead method. You don’t need to specify a different account.	When setting up an overhead method for calculating overhead costs for a joint venture, a joint venture accountant specifies a partner account in the overhead method. This partner account can represent either a cost recovery account or a revenue account to account for the overhead amounts for the managing partner. Important: If you use this option, the cost recovery or revenue account specified on the overhead method should not be a cost account for the joint venture.
Use a different account than the account on the overhead transaction.	This option provides the flexibility to use subledger accounting rules to determine the partner account.	Set up subledger accounting rules to override the account from the overhead transaction with a different account. See Use Subledger Accounting Rules to Derive the Partner Account for more information. Important: If you use this option, the cost recovery or revenue account specified on the overhead method should not be a cost account for the joint venture.

Determine the Partner Account for Partner Contribution Lines on the Invoice

If you’re managing partner contributions in Joint Venture Management to cover joint venture costs, your invoices will include a separate invoice line for the summarized partner contribution amount. The partner account to be used for the partner contribution line is included on the invoice line. This account is the partner contribution account that users identify when they create partner contributions.

Here are your options for the partner account for partner contributions.

Partner Account Option	Business Purpose	Implementation Action
Use the account on partner contribution line.	Use this option if you want to maintain the balance of the partner contribution in the partner contribution account.	Joint venture accountants specify the partner contribution account when they set up partner contributions. This account contains amounts that have been prepaid by one or more partners. The balance of this account represents the amount that can be drawn against for costs incurred by the joint venture. See About Joint Venture Partner Contributions for more information.
Use a different account than the account on the partner contribution line.	This option provides the flexibility to use subledger accounting rules to determine the account.	Set up subledger accounting rules to override the account from the partner contribution line with a different account. See Use Subledger Accounting Rules to Derive the Partner Account for more information.