Derive Partner Accounts for Joint Venture Payables Invoices

Partner accounts are accounts in your general ledger for posting amounts in payables invoices generated to pay joint venture partners their share of revenue.

Payables invoices include lines with distributed revenue amounts. For each invoice line, an invoice distribution is written to the original account of the source transaction. You can use this account for the partner account or you can specify a different account to use.

Note: The partner account setup described here also applies to payables invoices created for nonoperated joint ventures using the “Create Joint Venture Invoices and Journal Entries” process. The nonoperator of a joint venture can create payables invoices to pay the managing partner for their share of the joint venture costs.

Here are your options for determining the partner account for distributed revenue amounts.

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 is the default behavior. 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 Payables Invoices 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.

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 is the default behavior.

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 Payables Invoices 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.