Run the Adjustments Process to Create Reversed Distributions and Redistributions

Run the following process to create reversed distributions and redistributions for a joint venture: Process Joint Venture Adjustments process in the Create Joint Venture Distribution Reversals mode.

You can set up this process to automatically run a subsequent process to redistribute transactions whose distributions were reversed. You can also run the two processes separately, which gives you the opportunity to review reversed distributions before creating redistributions.

The reversal process performs these actions:

• Marks original invoiced distributions as Canceled in the Distribution Line Type column.
• Creates a reversed distribution for each canceled distribution to cancel out the original distribution amount.

  Reversed distributions include the reason for changing the ownership definition. The reason is derived from the reason that you were required to enter when changing the effective dates in the existing ownership definition.

• Deletes any associated distributions that were not invoiced or journaled.

  The process does not leave an audit trail for deleted distributions.

• For the transactions whose distributions were reversed, it updates the transaction status to “Available to process” so that they can be redistributed using a new ownership definition.

Next, when set up to automatically create redistributions, the process invokes the Create Joint Venture Distribution process, which performs these actions:

• Redistributes transactions that were reset to “Available to process.”
• Creates distributions with a distribution line type of “Redistributed” and a status of “Available to process.”
• Changes the status of the processed transactions to “Process complete.”
  Note: If transactions have a status of “Error,” then check your joint venture definition and make sure that the ownership definition with the new ownership details is named the same as the original ownership definition name.

The following example shows a redistributed record for a stakeholder named BESTRIG. It also shows the canceled and reversed distributions for this stakeholder.

In the example, the original distribution has a distributed debit of $750.00 and is marked as Canceled in the Distribution Line Type column. The reversed distribution created for the canceled line has a distributed credit of $750.00. The new distribution with the Redistributed distribution line type has a new debit amount of $500.00, which was calculated according to the stakeholder’s percentage in the new ownership definition.

You can review the redistributed records and update them, if required, before you process them to create invoices or journals. For example, you can update a redistributed record as “Distribution Only” if you don’t need to create an invoice or journal for the cost or revenue.

Perform these steps to reverse distributions and generate redistributions:

1. Access Scheduled Processes from the Tools menu, and then search for this process by job: Process Joint Venture Adjustments.
2. For the Processing Mode, select Create Joint Venture Distribution Reversals.
3. For the Reversal Source, select Distributions identified by ownership definition change.
4. On Process Details, determine when you want to run the process:
   • As soon as possible. This is the default.
   • On a schedule. Click Advanced to set up a schedule for running the process. In the Advanced Options, you can create a schedule and set up a notification so you or another user are notified about the process.
5. In the Basic Options section, specify values in the following fields as required:
   • Joint Venture. Select a particular joint venture or leave it blank to run the process over all your joint ventures. The process selects only those joint ventures at an Active status.

     If data security is enabled, this list displays only the joint ventures associated with the business units you are authorized to manage. If you leave this field blank, the process creates reversed distributions only for the joint ventures you can manage.

   • Ownership Definition. You can select an ownership definition that’s associated with the joint venture you specified. If you haven’t specified a joint venture, the Ownership Definition drop-down list doesn’t display any values. You can leave this field blank if you want to process joint venture distributions for all the ownership definitions associated with the joint venture you specified.
   • Run Joint Venture Distributions Process. Select Yes to automatically redistribute the transactions after reversing the distributions that were created from the transactions. You can select No if you want to run these processes separately, to process the transactions in the next scheduled run of the Create Joint Venture Distributions process.
6. Click Submit.