Set Up the Joint Venture Subledger for Internal Transfer Journals Related to Revenue

Set up the Joint Venture subledger to enable the proper accounting of a stakeholder’s share of revenue in a joint venture.

Internal transfer journals for revenue include the following journal lines:

• A debit to the cutback accounts for the joint venture where you record revenue.

  Cutback accounts include revenue amounts associated with nonoperator internal stakeholders and external stakeholders. Capturing these amounts in cutback accounts enables a managing partner of a joint venture to report on its actual revenue—the total joint venture revenue less the amounts in the cutback accounts.

• A credit to the stakeholder’s revenue accounts.

  These accounts should already exist in your configuration. For this setup, you only need to identify them in order to derive the accounts to which the internal transfer journals will be applied.