Revenue addition to partner contributions

Redwood Platform

Apply a partner’s share of joint venture revenue to their partner contribution balance instead of paying it directly to them. This helps cover the partner’s costs and reduces the need to request additional contributions.

These are the business benefits:   

• Reduces or eliminates the need to request additional partner contributions. 

• Improves cash flow efficiency as the partner's share of revenue is immediately available to fund costs. 

• Reduces billing activity by minimizing both the creation of Payables invoices to distribute revenue and Receivables invoices to recover costs. 

Steps to enable and configure

To use this option:

1. Access the joint venture definition and navigate to the Billing and Reporting page.
2. Select the Add Revenue to Contributions option.

Tips and considerations

• Revenue is included in partner contribution calculations only if this option is enabled in the joint venture definition. 

• When this option is enabled, the Allow Open Amount to Exceed Contribution Amount option in the Assign and Draw Partner Contributions process also applies to revenue distributions, just as it does to credit cost distributions. It determines whether a revenue distribution can be applied to a partner contribution if doing so would cause the open amount to exceed the accounted contribution amount.

• Enabling this option changes the processing order of the Assign and Draw Partner Contributions process so that revenue is added to partner contributions before amounts are drawn from them. 

Key resources

- Implementing Joint Venture Management guide  

- Using Joint Venture Management guide 

Access requirements

No new access requirements.