Set Up the Joint Venture Subledger for Internal Transfer Journals

Set up the Joint Venture subledger to support the creation of internal transfer journals from stakeholder cost and revenue distributions.

This setup enables the automatic creation of internal transfer journals for the following stakeholders that are set up with the “Create journals” option:

• An operator internal stakeholder

  This setup enables you to track the managing partner’s share of costs and revenue in a joint venture in the managing partner’s cost center.

• Nonoperator internal stakeholders

  This setup enables the proper accounting of a nonoperator internal stakeholder’s share of costs and revenue in a joint venture. This type of stakeholder is part of the same enterprise as the managing partner. Their accounting is performed in Oracle Fusion Cloud Financials in the same ledger as the joint venture, but in a different cost center or primary segment value.

• External stakeholders

  You can create internal transfer journals instead of invoices for an external stakeholder’s distributions. This makes it easier to generate a single invoice of the net costs and revenue for a stakeholder at your convenience, instead of generating separate invoices for each of their distributions.

Note: You can skip this configuration if you don’t anticipate setting up stakeholders in this way. See Set Up Stakeholders for more information.

The automatic creation of internal transfer journals enables you to shorten the time to process joint venture distributions with additional automation of processes. It also increases visibility of the status of the subledger accounting entries created from internal transfer journals, which helps ensure accurate and timely processing for period close processing.