Reverse Cost Distributions Associated with Partner Contributions

You can use any of the reversal methods to reverse cost distributions associated with partner contributions. When you run the adjustments process in the Create Joint Venture Distribution Reversals mode as a part of the reversal process, the distribution amounts are automatically adjusted to the respective partner contributions.

For a distribution with a debit amount that was drawn from a partner contribution, the process returns the amount to the partner contribution. This results in an increase in the partner contribution open amount. In the Joint Venture Distributions work area, the amount that was in the Debit column in the Original distribution is moved to the Credit column in the Reversed distribution.

Note: The reversed distribution includes the partner contribution number from the original distribution. If the original distribution has split lines with a 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.

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

For a distribution with a credit amount that was added to a partner contribution, the reversal process draws the same amount from the partner contribution if it has enough balance. This results in a decrease in the partner contribution open amount. In the Joint Venture Distributions work area, the amount that was in the Credit column in the Original distribution is moved to the Debit column in the Reversed distribution.

However, if the partner contribution that was associated with the distribution doesn’t have enough balance to draw from, the reversal process skips the distribution and doesn’t process it. In such a case, you must run the following process to successfully reverse the distribution: Process Joint Venture Partner Contributions - Assign and Draw Partner Contributions. This process splits the distribution into two separate distributions:

A distribution with the amount covered by the open amount in the partner contribution.
A distribution with the remaining amount to be invoiced when the Create Joint Venture Invoices process is run. However, if there's another partner contribution available for the partner, the open amount in the partner contribution is applied to the distribution.

Tip: The log file generated by the Create Joint Venture Distribution Reversals process includes the count of distributions that weren’t reversed and need to be processed by the Assign and Draw Partner Contributions process.

Example of Processing a Partner Contribution to Account for Debit and Credit Cost Distribution Reversals

When a stakeholder has cost distributions of different line types with both credit and debit amounts, the reversal 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 enough to cover all the distributed debits, you must run the Assign and Draw Partner Contributions process, which will split 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.