Identify Stakeholder Accounts to Record Cost Amounts

The lines within internal transfer journals are entered to credit cost from the joint venture and debit cost to the stakeholder’s accounts.

A stakeholder’s accounts are set up in the primary ledger of the business unit associated with the joint venture. However, stakeholder accounts are in a separate cost center, which ensures that the accounts aren't part of the distributable accounts for the joint venture. Stakeholder accounts should mirror the accounts in the joint venture, such as accounts for assets, maintenance, and so on.