Before You Can Process Transactions for Carried Interest Agreements

Before processing transactions for a carried interest agreement, you must set up a carried interest agreement. You can also optionally configure carried interest penalty definitions to calculate penalties and track payout balances associated with carried costs and carried revenue. See About Carried Interest Agreements, Penalties, and Payout for more information.

You have the option to create journals for carried interest distributions, which provides another way to track the amounts consenting stakeholders are carrying for nonconsenting stakeholders. An application implementation consultant must set up the Joint Ventures subledger to support the creation of carried interest journals. See Set Up the Joint Ventures Subledger for Carried Interest Journalsfor more information.