Set Up a Chart of Accounts Structure for a Stakeholder Reporting Ledger

For the stakeholder reporting ledger, set up a chart of accounts (COA) structure that’s identical to the COA of the primary or secondary ledger, with an additional segment for the stakeholder.

You must configure the stakeholder segment with a value set that contains a list of either stakeholder names or stakeholder IDs. The value set enables users to select a particular stakeholder when creating financial reports. Here are some important details to remember when configuring the value set:

Segment values have a maximum of 25 characters, while stakeholder names in Joint Venture Management have a maximum of 30 characters. If your stakeholder names exceed 25 characters or are not unique within the first 25 characters, you should use stakeholder IDs rather than stakeholder names.
Instead of adding stakeholder values manually to the value set, you can upload them from a spreadsheet.

The Joint Venture Definitions application provides an option to download joint venture information to a spreadsheet. The spreadsheet includes a stakeholder worksheet with a list of stakeholder names and stakeholder IDs, which you can use to upload to the value set.

Also, you’re highly encouraged to select the “Dynamic combination creation allowed” checkbox to enable the dynamic creation of new accounts for stakeholders in the stakeholder reporting ledger. Otherwise, you’d have to set up all possible accounts in the stakeholder reporting ledger before you can post stakeholder reporting journals to it.

Refer to the following example for details about this setup.

Example of COA Structures for a Primary Ledger and a Stakeholder Reporting Ledger

The following example shows a COA structure named HEPPLedger in the Edit Key Flexfield Structure Instance page. This is the COA associated with the primary ledger used by HEPP Petroleum to record all financial transactions, including those for their joint ventures.

The Segment Instances section shows five segments in the COA and the value set configured for each segment. The segments are HEPPCompany, HEPPCostcenter, HEPPAccount, HEPPIntercompany, and Future01.

This image shows a COA structure named HEPPLedger in the Edit Key Flexfield Structure Instance page as described in the surrounding text.

The next example shows a COA structure named HEPPLedger SH Reporting for a stakeholder reporting ledger. This COA structure is the same as the HEPPLedger COA in the preceding example, with an additional segment for stakeholders named HEPPStakeholder. There’s a value set named HEPPStakeholder HEPPLEdger SH Reporting configured for the segment that contains a list of stakeholder names.

This image shows a COA structure named HEPPLedger SH Reporting for a stakeholder reporting ledger as described in the surrounding text.

The following example shows the Manage Values page with a list of values for the HEPPStakeholder HEPPLEdger SH Reporting value set. Notice that one of the values in the example is 0. This is used for the stakeholder only when your configuration requires creating balancing entries for stakeholder reporting journals. See “Set Up Subledger Accounting Rules for Stakeholder Reporting Journal Balancing Entries” for more information.

This image shows the Manage Values page with an example of a list of values for a value set, as described in the surrounding text.