How Partner Contributions Are Processed for Cost Distributions with a Credit Amount

Partner contributions are used to cover cost distributions, which are typically debit amounts. You can also optionally add cost distributions with credit amounts to a partner contribution balance.

You can have credit amounts in your cost distributions for several reasons, for example, when a supplier provides a discount on an item by issuing a credit on the payables invoice. Including distributions with credit amounts in the partner contribution process helps ensure that credit cost transactions are accurately accounted for and reflected in the partner contribution balance.

Note: The process includes only the distributions with credit amounts that are associated with billable asset, expense, overhead, or manual source transactions.

Partner contributions can also be associated with a reversed distribution having a credit amount. In this case, the original debit cost distribution was drawn from a partner contribution. When you run the Create Joint Venture Distribution Reversals process, the amount is returned to the partner contribution and the reversed distribution with a credit amount is created. The partner contribution ID is retained in the reversed distribution. For more information, see How Distribution Reversals Affect Partner Contributions.