Derive Carried Interest Accounts for Cost Amounts

When creating a carried interest agreement, a joint venture accountant has the option to set up a consenting stakeholder with the “Create carried interest journals” option. When this option is enabled, a field appears to specify a carried interest account for the carried interest journals. See Add a Stakeholder Group for more information.

Carried interest accounts reside in the primary ledger of the business unit associated with a joint venture.

This functionality relies on the provided Carried Interest Cost journal entry rule set, which you must copy and rename for your configuration. The rule set includes the Carried Interest Cost account rule which retrieves the carried interest account specified for the consenting stakeholder in the carried interest agreement. The account rule requires no additional configuration. Use a copy of the rule set to derive both carried interest accounts and cutback accounts.

To copy and rename the provided journal entry rule set:

1. In the Joint Venture Management functional area in Setup and Maintenance, select Show – All Tasks and then click the Manage Journal Entry Rule Sets task.
2. Select the Carried Interest Cost journal entry rule set and then click Duplicate to create your own copy.