Derive Stakeholder Accounts for Cost Amounts

When a joint venture accountant sets up a stakeholder with the “Create journals” option, they must enter a cost center for the stakeholder. This cost center is used to derive stakeholder accounts in Subledger Accounting for internal transfer journals, with journal lines debited to these accounts.

Stakeholder accounts reside in the primary ledger of the business unit associated with a joint venture and should mirror the joint venture’s accounts, such as accounts for assets, maintenance, and so on. However, stakeholder accounts use a unique cost center so that they’re excluded from the distributable accounts for the joint venture.

This functionality relies on the provided Cost Transfer journal entry rule set, which you must copy and rename for your configuration. The rule set includes the Stakeholder Cost Center account rule that retrieves the stakeholder’s cost center. The account rule requires no additional configuration. Use a copy of the rule set to derive both stakeholder 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 Cost Transfer journal entry rule set and then click Duplicate to create your own copy.