Derive Partner Contribution Accounts for Journal Entries to Close Partner Contributions

The journal entry that you create to close partner contributions includes three journal lines:

• A debit to the joint venture’s partner contribution account for the open amount in the partner contribution

• A credit to the agreement default charge account, if an agreement default charge applies

• A credit to the account where you want to refund the balance

To derive the accounts for these journal lines, you can use the following account rules that are provided in the Manage Account Rules task for Joint Venture Management:

• From Partner Contribution Account

• Agreement Default Charge Acct

• From Stakeholder Cost Center

Subledger accounting uses the “From Partner Contribution Account” and “Agreement Default Charge Acct” account rules to retrieve the joint venture partner contribution account and the agreement default charge account, respectively, from partner contributions. It uses the “From Stakeholder Cost Center” account rule to retrieve the stakeholder’s cost center to which the balance will be refunded.

These account rules are delivered assigned to the journal lines provided in the example journal entry rule set as shown in the following image. It shows two credit lines and a debit line. The credit line for recording the agreement default charge is assigned the Agreement Default Charge Acct account rule. The other credit line for recording the refund amount is assigned two account rules: From Partner Contribution and From Stakeholder Cost Center. This setup will override the cost center segment value with the stakeholder’s cost center. The debit line for recording the open amount is assigned the From Partner Contribution Account account rule.

You can create a copy of the example journal entry rule set and use it, or you can copy and modify it to meet your needs. For example, to record the refund amount to a different segment, you can create an account rule to override that segment.