Carried Interest Payout Processing

Use carried interest payout processing to configure penalties associated with carried interest agreements. Track the costs, revenue, and balances being carried for non-consenting stakeholders; report on payout balances to the stakeholders; and close agreements after final payout. 

Business benefits include:

• Reduced administrative costs by automating the tracking of carried costs, penalties, revenue, and balances for stakeholders.
• Improved operational efficiency through consistent processing of carried interest terms, timely and accurate payout reporting, and agreement closure.

Steps to enable and configure

This feature is ready to use and does not require any opt-in

To configure carried interest payout processing:

1. In Setup and Maintenance, navigate to the Joint Venture Management functional area under Financials.
2. Select the Manage Carried Interest Agreements task and create a carried interest agreement for your joint venture and stakeholder group for the agreement.

   Carried Interest Agreement

   Carried Interest Stakeholder Group

3. Select the Manage Carried Interest Penalty Definitions task and create a penalty definition for the carried interest agreement.

   Carried Interest Penalty Definition

Tips and considerations

Make sure penalty definitions align with your carried interest agreement terms and internal policies. 

Key resources

For more information, refer to:  

• Implementing Joint Venture Management guide.
• Using Joint Venture Management guide.  
• Watch the video for Carried Interest Payout Processing

Access requirements

The privilege required for creating and processing carried interest agreements and penalties are Manage Carried Interest Agreements, Manage Carried Interest Distributions, and Manage Carried Interest Penalty Definitions, which is included as part of the Joint Venture Accountant role.