How Partner Contributions Are Processed for 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 or revenue distributions to a partner contribution balance.

The following table describes how partner contributions are processed for each type of distribution with a credit amount:

Distribution Type	Partner Contribution Processing
Revenue distributions	Added to the stakeholder's partner contribution when you run the Assign and Draw Partner Contributions process if the “Add Revenue to Contributions” option is selected in the joint venture definition. This enables joint venture revenue to cover costs without additional billing activity and reduces the need to request additional partner contributions
Cost distributions with a credit amount Example: A supplier issues a credit on a Payables invoice to provide a discount.	Added to the stakeholder's partner contribution when you run the Assign and Draw Partner Contributions process if the “Process Credit Cost Distributions” option is selected in this process. This helps ensure that credit cost transactions are accurately reflected in the partner contribution balance.

Distribution Type

Partner Contribution Processing

Revenue distributions

Added to the stakeholder's partner contribution when you run the Assign and Draw Partner Contributions process if the “Add Revenue to Contributions” option is selected in the joint venture definition.

This enables joint venture revenue to cover costs without additional billing activity and reduces the need to request additional partner contributions

Cost distributions with a credit amount

Example: A supplier issues a credit on a Payables invoice to provide a discount.

Added to the stakeholder's partner contribution when you run the Assign and Draw Partner Contributions process if the “Process Credit Cost Distributions” option is selected in this process.

This helps ensure that credit cost transactions are accurately reflected in the partner contribution balance.

Note: The process includes only credit distributions 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.