1. Using Joint Venture Management
  2. Draw from Partner Contributions

Draw from Partner Contributions

When you’re ready to draw from partner contributions to cover each stakeholder’s cost distributions, you run this process: Process Joint Venture Partner Contributions – Assign and Draw Partner Contributions. The process first checks for cost distributions for a stakeholder in a joint venture and assigns a partner contribution to each distribution. It then draws from the open amount in the stakeholder’s partner contribution.

Each distribution covered by a partner contribution is updated with the ID of the partner contribution. This enables you to search for and review distributions paid with partner contributions in the Joint Venture Distributions work area.

If the open amount in a stakeholder’s partner contribution doesn’t completely cover the distribution amount, the distribution is split into two separate distributions:

  • A distribution for the amount covered by the partner contribution’s open amount.

  • A distribution for the remaining amount to be invoiced when the Create Joint Venture Invoices process is run. If another partner contribution is available, the process applies it to cover the remaining amount.

Note: Cost recovery invoices and internal transfer journals that are paid partially or fully by partner contributions include additional lines to account for the partner contribution draw. The invoice or journal could result in a zero balance or with an amount to be recouped from the partner. Make sure to run the process to draw from partner contributions before you run the “Create Joint Venture Invoices and Journal Entries” process to create receivables invoices and internal transfer journals. This helps to ensure that a stakeholder is billed only for the amount remaining after their partner contributions are applied.

To understand the accounting for cost recovery invoices that include partner contribution lines, see the "Invoice Accounting" topic in About Creating Invoices for Joint Venture Distributions. If a distribution is covered by multiple partner contributions with different accounts, each partner contribution account will appear as a separate invoice line.