Setup for Internal Transfer Journals Related to Revenue

The accounting of internal transfer journals for revenue requires the following accounts:

• Stakeholder accounts

  Revenue amounts from internal transfer journals are entered as a credit to stakeholder accounts. These accounts should mirror the accounts in the joint venture, such as accounts for assets, maintenance, revenue, and so on.

• Revenue cutback accounts

  Revenue amounts are entered as a debit to cutback accounts for the joint venture, which enables a managing partner to report on its actual revenue.