Derive Partner Contribution Accounts for Internal Transfer Journals

If distributed costs for stakeholders are covered by partner contributions, the internal transfer journals include the following additional journal lines to account for the partner contribution amount:

• A debit to the joint venture’s partner contribution accounts

• A credit to the stakeholder’s partner contribution accounts

To derive the partner contribution accounts for these journal lines, you can use system-provided account rules in your setup.

Review the Account Rules for Deriving Partner Contribution Accounts for Internal Transfer Journals

Review the provided account rules for deriving the joint venture's partner contribution accounts and the stakeholder's partner contribution accounts.

Access the Joint Venture Management functional area in FSM, select Show – All Tasks, and then click the Manage Account Rules task. This task includes the following account rules that you can use for your setup:

• Partner Contribution Account

• Stakeholder Cost Center

You can open these account rules to review the Rule Type. Notice that the Rule Type for the “Partner Contribution Account” account rule is Account Combination whereas, for the “Stakeholder Cost Center” account rule, it’s Segment.

Subledger Accounting uses the “Partner Contribution Account” account rule to retrieve the joint venture partner contribution account that you specified when creating a partner contribution. It uses the “Stakeholder Cost Center” account rule to retrieve the stakeholder’s cost center.

These account rules are delivered assigned to the journal lines provided in the example journal entry rule set. You must modify these journal lines in your journal entry rule set to complete the setup as described in the next section.

Update the Journal Line Rules for Partner Contributions

If the distributed costs for stakeholders are covered by partner contributions, you must complete this setup as a part of the "Create a Journal Entry Rule Set" task described in Derive Expense Cutback Accounts for Internal Transfer Journals.

The following example shows the two journal line rules for partner contributions provided in the example journal entry rule set:

To modify the journal line rule for deriving the stakeholder partner contribution accounts:

1. Highlight the row for the “Cost Transfer – Internal Stakeholder Partner Contribution” journal line rule.

   Note: This rule can apply to both internal and external stakeholders. You can name it as appropriate for your business.

2. Click the drop-down list for the column representing the cost center segment of the chart of accounts and select Stakeholder Cost Center. This setup will use the cost center of the stakeholder to credit the partner contribution amount to the stakeholder’s partner contribution account.

   In the delivered journal line rule, this row currently has no value.

To modify the journal line rule for deriving the joint venture partner contribution accounts:

1. Highlight the row for the “Cost Transfer – JV Partner Contribution” journal line rule.

2. Click the drop-down list for the column representing the cost center segment of the chart of accounts and select the blank value.

   In the delivered journal line rule, this row currently has the value Stakeholder Cost Center. The Account Combination Rule column is already set up with the “Partner Contribution Account” account rule. This is the only setting required for this journal line rule.