How Partner Contributions Are Processed for Cost Distributions with a Credit Amount

You have the option to use the Assign and Draw Partner Contributions process to process cost distributions with credit amounts, which adds the credit amount to the partner contribution’s open amount.

You can have credit amounts in your cost distributions for several reasons, for example, when a supplier provides a discount on an item by issuing a credit on the payables invoice. Including distributions with credit amounts in the partner contribution process helps ensure that credit cost transactions are accurately accounted for and reflected in the partner contribution balance.

Note: To be eligible for partner contribution processing, cost distributions with credit amounts must be associated with one of these account types: Assets, Expense, Overhead, and Fees and Other Charges. Distributions that originate from manual source transactions with Cost account type are also eligible.

When a stakeholder’s cost distributions include both credit and debit amounts, the process first adds the credit amounts to the partner contribution. It then draws from the partner contribution to cover the debit amounts. This can increase the partner contribution balance to completely cover the debit amounts, as shown in the example in the next topic.