How Reversals are Processed Based on the State of the Distributions

Distributions That Have Been Accounted

Remember that an invoiced distribution is considered accounted only after the accounts used to post the corresponding invoice to the General Ledger are updated in the joint venture distribution. An internal transfer journal is accounted only when the status of the internal transfer journal is updated to “Final Accounted.”

For distributions that are accounted, the reversal process performs these actions:

Cancels the original distributions, setting the distribution line type to Canceled.
Creates distributions with a distribution line type of Reversed to offset the original distributions. These distributions have an initial status of Available to Process.
Note: Each Reversed distribution record includes the reason for the reversal. This reason is specified by the user when setting up the reversal method to perform the reversals.
Updates the status of the transaction whose distributions were reversed.
If reversing distributions due to a retroactive change in ownership, it changes the transaction status to Available to Process so the transaction can be redistributed.
If performing a mass reversal of distributions, you have the option to reset the status of the transactions to Available to Process or Reversed.

To complete the processing of reversed distributions, you must perform these tasks as described in the Complete the Accounting of Reversed Distributions topic:

Create Credit Memos for Joint Venture Receivables Invoices
Create Debit Memos for Joint Venture Payables Invoices
Reverse the Amounts in Internal Transfer Journals
Return Partner Contributions (if applicable)
Reverse Cost Adjustments to Project Costing (if applicable)

Note: If reversals are included in the invoice netting setup of your joint venture definition, the invoicing process automatically includes reversed distributions in the net invoice calculation, eliminating the need for credit and debit memos. See Define Information to Create Net Invoices.

Distributions That Have Been Invoiced or Journaled but Not Accounted

If an unaccounted invoice or internal transfer journal exists for a distribution, the reversal process won’t reverse any distributions associated with the transaction. In the Joint Venture Distributions work area, unaccounted distributions have a status of Accounting in Progress.

Distributions That Haven't Been Invoiced or Journaled

For distributions that you have not created invoices or journals for, the reversal process performs the same actions as it does for accounted distributions, with one difference—the reversed distributions are created in Process Complete status.

"Distribution Only" Distributions

How “Distribution Only” distributions are processed for reversals depends on the reversal method that you use.

If reversing “Distribution Only” distributions using the retroactive ownership change method or the mass reversal method, the reversal process performs these actions:

Cancels the original distributions, setting the distribution line type to Canceled and the distribution status to Process Complete.
Creates distributions with a distribution line type of Reversed to offset the original distributions. These distributions have a status of Process Complete and are marked as “Distribution Only.”
Updates the status of the transaction whose distributions were reversed.

If reversing distributions due to a retroactive change in ownership, it changes the transaction status to Available to Process so the transaction can be redistributed.

If performing a mass reversal of distributions, you have the option to reset the status of the transactions to Available to Process or Reversed.

If performing a manual reversal of "Distribution Only" distributions, the process cancels the distributions and creates the following distributions for each canceled distribution:

A distribution with a distribution line type of Reversed, a status of Process Complete, and marked as “Distribution Only.”
A distribution with a distribution line type of Reassigned, a status of Ready to Reassign, and marked as “Distribution Only.”

Distribution States That Prevent Reversal

If any distribution associated with a transaction is in one of the following states, the reversal process skips all distributions for that transaction:

On Hold
In Error
Invoicing in Progress
Accounting in Progress
Credit Memo in Progress

Review Log File for List of Skipped Reversals

The reversal process generates a log file that includes a list of transactions whose distributions were not reversed. You can use these details to identify and review the distributions and determine how you want to handle them.