The management of financials of a Joint Venture is key to the successful business relationship between joint venture partners. Accurate management of joint venture, budgets, costs, invoices and payments help ensure transparency of the joint venture financials. Joint Venture Management (G09J) provides the architectural foundation to create and manage Joint Ventures and the Distribution of Interest among the joint venture partners.
A new enhancements for Joint Venture Management is now available to define and manage Allocations for Joint Ventures. Allocations are the process of accumulating costs for various accounts for specific allocation business units and then cascading these costs to the business units which got the benefit from these expenses.
The Advanced Variable Numerator (AVN) method of computing joint venture-based allocations provides the same functionality that is available in the account balance-based variable numerator method but also supports allocations to different joint ventures and joint venture business units for indirect costs incurred by the managing partner.
The transactions to be allocated are excluded from the joint venture distribution process until the allocation process is complete. After the costs are allocated to the impacted business units, the amounts are distributed to the partners, including the managing partner.
The new Joint Venture Management enhancements can be downloaded from the Update Center under Bug 28711697 - JOINT VENTURE MANAGEMENT – ALLOCATIONS
For more detailed information on this functionality, please review: New Enhancement –Joint Venture Management Allocations EnterpriseOne 9.2 (Doc ID 2508350.1)