Reverse Distributions to Correct Ownership Details

Use this reversal method if you need to correct ownership details in an active ownership definition. Unlike a retroactive ownership change, the ownership structure itself didn’t change over time. Instead, the ownership details were incorrect when the ownership definition was created. Examples include incorrect stakeholder percentages and missing or incorrect stakeholders. If the ownership definition has already been used to distribute transactions, all associated distributions must be reversed and the transactions redistributed.

To use this method, you must first correct the ownership definition and then run the adjustments process to create reversed distributions and redistributions. For an example, see Example of Reversing Distributions to Correct Ownership Details.

If your intention is to reverse distributions only for transactions affected by a retroactive ownership change, use the Reverse Distributions Due to a Retroactive Change in Ownership method instead.

Follow these steps to correct ownership details in an active ownership definition:

1. In the joint venture definition, access the ownership definition you want to correct.
2. On Edit Ownership Definition, change the status to Editing.
3. Select a change reason and enter any additional details about the change.
   These fields are available only if distributions have already been created using the ownership definition.
4. Correct the stakeholder ownership percentages, including adding or removing stakeholders as needed.
   Caution: You can change the start and end dates of the ownership definition along with correcting the ownership details. When both are changed, the adjustments process ignores the date changes during reversal processing and reverses all distributions created using the ownership definition. The revised dates are applied only during redistribution. As a result, only transactions within the revised date range are redistributed using the ownership definition. Transactions outside the date range must be redistributed using a different ownership definition whose effective dates cover these transactions.
5. Select Save.
6. Change the status back to Active to enable it for processing. Then, select Save.
   Caution: If the corrected ownership definition isn’t active, the adjustments process won’t include its associated distributions for reversal.

What to do next

You then run the adjustments process. For information on how to run this process, see Create Reversed Distributions and Redistributions.