Scenario: Reversal Includes Previously Reversed Distributions

In this example, you'll see how distributions that have been manually reversed and reassigned are included again for reversal due to a change in the ownership definition.

Consider a $1,000 transaction distributed using the following ownership percentages:

Stakeholder	Ownership Percentage	Distribution
Stakeholder 1	45	450
Stakeholder 2 (Managing partner)	55	550

Stakeholder 1 disputed the invoice created from the $450 distribution. The joint venture accountant manually reversed the distribution and reassigned it to stakeholder 3, who agreed to absorb the amount. The reversed distribution was processed to create a credit memo, and the reassigned distribution was invoiced to stakeholder 3.

The following table illustrates the newly created reversed and reassigned distributions.

Stakeholder	Distribution	Distribution Line Type
Stakeholder 1	450	Canceled
Stakeholder 1	-450	Reversed
Stakeholder 3	450	Reassigned

Later, the ownership percentages were revised as follows:

Stakeholder	Ownership Percentage
Stakeholder 1	35
Stakeholder 2	65

This requires distributions to be reversed and the transaction redistributed using the revised ownership percentages. Stakeholder 3 was only involved through reassignment and isn’t included in either the original or revised ownership definition. However, the reassigned distribution for stakeholder 3 is still reversed and redistributed using stakeholder 1’s revised ownership percentage, as illustrated in the following table:

Stakeholder	Distribution	Distribution Line Type
Stakeholder 3	450	Canceled
Stakeholder 3	-450	Reversed
Stakeholder 3	350	Redistributed