Scenario: Reversal and Redistribution for a Stakeholder Who's Updated as Distribution Only
In the preceding example, distribution T1D3 was invoiced and the invoice was sent to stakeholder S3. The ownership percentage for S3 is 25% as illustrated in the following table.
Distribution | Stakeholder | Ownership Percentage | Invoice Number |
---|---|---|---|
T1D3 | S3 | 25% | T2D3inv |
In the new ownership definition, suppose you mark stakeholder S3 as “Distribution Only” without changing the ownership percentage. Now, the stakeholder cannot be billed for this distributed cost and you must back out the amount in the invoice. Therefore, the process creates a reversed distribution, enabling you to create a credit memo for the invoice. The process also creates a redistributed record marked as “Distribution Only”.
Distributions | Stakeholders | Percentages of Ownership | Ownership Definition Effective Dates | Distribution Line Type |
---|---|---|---|---|
T1D3 | S3 | 25% | 1/01/2019 - 12/31/2019 | Canceled (original distribution line) |
T1D3RV | S3 | 25% | 1/01/2019 - 12/31/2019 | Reversed |
T1D3RD | S3 | 25% | 6/01/2019 - 12/31/2019 | Redistributed |