Example of Processing a Partner Contribution to Account for Debit and Credit Distribution Reversals

When a stakeholder has distributions of different line types with both credit and debit amounts, the reversal process first adds the credit amounts to the partner contribution regardless of the distribution line type. It then draws from the partner contribution to cover the debit amounts. This can increase the partner contribution open amount to completely cover the debit amounts.

The following example illustrates how partner contributions are processed when credit and debit distributions of different line types exist for a stakeholder:

The open amount in a stakeholder’s partner contribution = 50 USD

The stakeholder has 4 cost distributions: 2 debits and 2 credits of line types “Original” and “Reversed” as illustrated in the following table:

Distribution	Distributed Debit	Distributed Credit	Distribution Line Type
D1	100 USD	None	Original
D2	200 USD	None	Reversed
D3	None	120 USD	Original
D4	None	150 USD	Reversed

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 = 120+150=270 USD

Adds the total distributed credit to the open amount = 270+50=320 USD (new open amount)

Draws from the open amount to cover the distributed debits=320-(100+200)=20 USD