Identify Stakeholder Accounts to Record Revenue Amounts

The lines within internal transfer journals are entered to debit revenue from the joint venture and credit revenue 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 and are therefore not distributable. Stakeholder accounts should mirror the accounts in the joint venture, such as accounts for assets, maintenance, revenue, and so on.