Process Partner Contributions for Reversed Cost Distributions

When you reverse cost distributions with a debit amount and the distributions are covered by partner contributions, you must return the amount to the respective partner contribution.

Note: The reversed distributions include the partner contribution number from the original distribution. If split lines exist for a distribution with partner contribution covering one of the split lines, the reversal process creates a reversed distribution for each split line. The partner contribution number of the original distribution is carried over to the associated reversed distributions.

To return the amounts drawn from partner contributions, run this process: Process Joint Venture Partner Contributions-Assign and Draw Partner Contributions. The process includes reversed distributions that are associated with partner contributions and processes them to return the partner contribution amounts. This results in an increase of the open amount, which you can review in the Joint Venture Partner Contributions page.

Partner Contribution Processing When Cost Distributions With a Credit Amount are Reversed

When you reverse a cost distribution with a credit amount and the distribution is associated with a partner contribution, you must revert the credit amount that was initially added to the partner contribution. Reversals from cost distributions with a credit amount aren’t automatically included in partner contribution processing. You must set up the Assign and Draw Partner Contributions process to include them. With this setup, the process draws from the partner contribution to revert the credit amount. This results in a reduction of the partner contribution open amount.

Note: To include reversals from cost distributions with a credit amount in partner contribution processing, the original distributions must be associated with one of these account types: Assets, Expense, Overhead, and Fees and Other Charges. Reversals from distributions that originate from manual source transactions with Cost account type are also eligible.

When a stakeholder has cost distributions of different line types with both credit and debit amounts, the process first adds the credit amounts to the partner contribution regardless of the distribution line type. It then draws from the partner contribution to cover the debit amounts. This can increase the partner contribution open amount to completely cover the debit amounts.

The following example illustrates how partner contributions are processed when credit and debit distributions of different line types exist for a stakeholder:

The open amount in a stakeholder’s partner contribution = 50 USD

The stakeholder has 4 cost distributions: 2 debits and 2 credits of line types “Original” and “Reversed” as illustrated in the following table:

Distribution	Distributed Debit	Distributed Credit	Distribution Line Type
D1	100 USD	None	Original
D2	200 USD	None	Reversed
D3	None	120 USD	Original
D4	None	150 USD	Reversed

The process adds the credits to the open amount and draws from the open amount for the debits in this order:

Totals the distributed credits = 120+150=270 USD

Adds the total distributed credit to the open amount = 270+50=320 USD (new open amount)

Draws from the open amount to cover the distributed debits=320-(100+200)=20 USD

Note: If the open amount isn’t sufficient to cover all the distributed debits, the process splits the distribution that can only be partially covered by the partner contribution. The split distribution with the remaining amount will be absorbed by the next available partner contribution for the stakeholder. Or it can be billed to the stakeholder when you run the invoicing process.