Reverse Distributions Generated by a Carried Interest Agreement
You can reverse distributions generated by a carried interest agreement.
When reversing distributions generated by a carried interest agreement, the adjustment process reverses the standard distributions and their associated carried interest distributions.
If you create carried interest journals for carried interest distributions, you need to process carried interest distribution reversal records the same as you would standard distribution reversal records. This reverses the carried interest journal amounts in Subledger Accounting.
Remember that you can download carried interest distributions to a spreadsheet to send to stakeholders for reporting purposes. Therefore, even if your setup doesn’t include the accounting of carried interest distributions through carried interest journals, reversals are generated for carried interest distributions to maintain reporting integrity.
You can use the following reversal methods to reverse distributions generated for a joint venture with a carried interest agreement:
- Reverse distributions due to a retroactive change in ownership
- Manually identify distributions for reversal