Update Ownership Definitions to Enable the Reversal and Redistribution of Distributions

In the joint venture definition, change the effective dates in the existing ownership definition to exclude the transactions whose distributions you want to reverse.

You can then set up an ownership definition with the renegotiated ownership details and date it to redistribute transactions whose distributions were reversed.

The changes that you need to make are best explained through an example.

Suppose that you have an active ownership definition from 1/01/2020 to 12/31/2020 that’s already been used to process transactions through 7/31/2020. The renegotiated joint venture terms include changes to the ownership that need to be put in place retroactively from 7/01/2020. To accommodate the changes, you make the following changes to the joint venture definition:

• Change the effective end date in the existing ownership definition to 6/30/2020.

  The application prompts you to enter a change reason and any additional details about the change.

• Set up an ownership definition with the renegotiated ownership percentages, and make sure that it has the same name as the existing ownership definition. Enter effective dates with a start date that immediately follows the end date of the existing ownership definition. In this example, the effective dates for the ownership definition are 7/01/2020 to 12/31/2020.

After you save the joint venture definition with the ownership changes, you can run the adjustment process as described in the next topic.