Track the Amounts Consenting Stakeholders Carry for Nonconsenting Stakeholders
You can generate carried interest distributions for all transactions that were distributed for a carried interest agreement. Carried interest distributions enable you to track the amounts that each consenting stakeholder is carrying for a nonconsenting stakeholder.
Carried interest distributions aren’t invoiced or accounted. You can export them to a spreadsheet for reporting purposes. For example, you can send a nonconsenting stakeholder the amounts that the consenting stakeholders are carrying for the nonconsenting stakeholder. You can send each consenting stakeholder the amounts that they are carrying for a nonconsenting stakeholder.
Carried interest distributions provide standard distribution details, such as the joint venture, source transaction information, and so forth. They also provide the following details about the stakeholders and the carried amounts:
| Column | Description |
|---|---|
| Agreement | The name of the carried interest agreement associated with the distribution. |
| Consenting Stakeholder | The name of the consenting partner for the distribution. |
| Nonconsenting Stakeholder | The name of the nonconsenting partner that the consenting partner is carrying the costs for. |
| Consenting Carried Percentage | The percentage that the consenting partner is carrying of the nonconsenting stakeholder’s ownership percentage. |
| Consenting Carried Amount | The amount of the transaction the consenting stakeholder is carrying for the nonconsenting stakeholder. |
| Nonconsenting Source Percentage | The nonconsenting stakeholder original ownership percentage for the joint venture. |
| Nonconsenting Distributed Amount | The nonconsenting stakeholder’s distributed amount based on their source percentage. |
The following example shows two carried interest distributions, the details of which are described below:
- Nonconsenting stakeholder SH_IP_02 has a source ownership percentage of 20%.
- The nonconsenting stakeholder was originally responsible for $200, which is 20% of $1000.
- The two distribution lines show the carried percentage and carried amount that each
consenting stakeholder is carrying for the nonconsenting stakeholder.
- Consenting stakeholder SH_CC_01 is carrying 40% of the nonconsenting stakeholder’s 20%. Therefore, the consenting stakeholder is carrying $80, which is 40% of $200.
- Consenting stakeholder SH_IP_01 is carrying 60% of the nonconsenting stakeholder’s 20%. Therefore, the consenting stakeholder is carrying $120, which is 60% of $200.
Each carried interest distribution includes a Distribution ID link to access the following additional details about the carried interest distribution:
- Carried interest ownership definition details
- Source transaction details, which includes a link to view the subledger journal for the original transaction
- Accounted amounts and entered amounts for the original transaction, the consenting stakeholder, and nonconsenting stakeholder
- The account information related to the original transaction
- Project information, if applicable