Example of Processing a Partner Contribution to Account for Debit and Credit Cost Distributions
When a stakeholder’s cost distributions include both credit and debit amounts, the process first adds the credit amounts to the partner contribution. It then draws from the partner contribution to cover the debit amounts. This can increase the partner contribution balance to completely cover the debit amounts.
The following example illustrates how a partner contribution is processed when:
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A stakeholder's cost distributions include both debit and credit amounts
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The Assign and Draw Partner Contributions process is set up to include cost distributions with a credit amount and allow the open amount to exceed the contribution amount
The open amount in a stakeholder’s partner contribution = 1000 USD.
The stakeholder has 4 cost distributions, 2 credits and 2 debits as illustrated in the following table:
| Distribution | Distributed Debit | Distributed Credit |
|---|---|---|
| D1 | 1,000 USD | None |
| D2 | None | 800 USD |
| D3 | 700 USD | None |
| D4 | None | 500 USD |
The process adds the credits to the open amount and draws from the open amount for the debits in this order:
Totals the distributed credits = 800+500=1,300 USD
Adds the total distributed credit to the open amount=1,300+1,000=2,300 USD (new open amount)
Draws from the open amount to cover the distributed debits=2,300–(1,000+700)=600 USD (remaining open amount)