Distribution Reversal Methods

Oracle Joint Venture Management provides different methods that you can use to reverse joint venture distributions. The following table describes the reversal methods and the scenarios in which you would use each method.

Reversal Method	Scenario
Reverse and Redistribute Distributions Due to a Retroactive Change in Ownership	A renegotiation of ownership of a joint venture requires the reversal and redistribution of distributed costs and revenue. This method entails updating the effective dates in an ownership definition to exclude the transactions whose distributions need to be reversed. You then set up another ownership definition that includes the renegotiated ownership details, with effective dates that cover the transactions whose distributions will be reversed. This ownership definition is used to generate redistributions. You can then run the adjustment process, which uses the ownership definitions to delete, reverse, and redistribute distributions depending on where a distribution is in the invoicing or journal entry process.
Manually Identify Distributions for Reversal	A stakeholder disputes a small number of distributions related to a particular cost, and the issue isn’t related to a setup issue within the joint venture definition. This method enables you to mark a select number of distributions for reversal in the Joint Venture Distributions work area. You can then run the adjustment process to reverse the selected distributions and create reassignment distributions for reassigning to a different stakeholder.
Perform a Mass Reversal of Distributions	Transactions were processed incorrectly due to a setup issue in the joint venture definition, such as: An incorrect ownership definition was assigned to the transactions Invoicing partner was set up incorrectly The stakeholder was set up incorrectly Incorrect identification of distributable accounts or project information resulting in the distribution of the wrong transactions You run the adjustment process to select transactions that were processed in error and reverse their associated distributions. You can then correct the setup issue and process the impacted transactions again.

Reversal Method

Scenario

Reverse and Redistribute Distributions Due to a Retroactive Change in Ownership

A renegotiation of ownership of a joint venture requires the reversal and redistribution of distributed costs and revenue.

This method entails updating the effective dates in an ownership definition to exclude the transactions whose distributions need to be reversed. You then set up another ownership definition that includes the renegotiated ownership details, with effective dates that cover the transactions whose distributions will be reversed. This ownership definition is used to generate redistributions.

You can then run the adjustment process, which uses the ownership definitions to delete, reverse, and redistribute distributions depending on where a distribution is in the invoicing or journal entry process.

Manually Identify Distributions for Reversal

A stakeholder disputes a small number of distributions related to a particular cost, and the issue isn’t related to a setup issue within the joint venture definition.

This method enables you to mark a select number of distributions for reversal in the Joint Venture Distributions work area. You can then run the adjustment process to reverse the selected distributions and create reassignment distributions for reassigning to a different stakeholder.

Perform a Mass Reversal of Distributions

Transactions were processed incorrectly due to a setup issue in the joint venture definition, such as:

An incorrect ownership definition was assigned to the transactions
Invoicing partner was set up incorrectly
The stakeholder was set up incorrectly
Incorrect identification of distributable accounts or project information resulting in the distribution of the wrong transactions

You run the adjustment process to select transactions that were processed in error and reverse their associated distributions. You can then correct the setup issue and process the impacted transactions again.

For detailed examples of processing reversals using these reversal methods, see Distribution Reversal Examples.

Note: To reverse distributions generated by a carried interest ownership definition, you can't use the mass reversal method. For information on how to use the other reversal methods to reverse these types of distributions, see Reverse Distributions Generated by a Carried Interest Agreement.

You must be a joint venture accountant to perform reversals.