Draw from Partner Contributions

The Process Joint Venture Partner Contributions – Assign and Draw Partner Contributions mode checks for cost-related distributions for a specified joint venture and stakeholder. It then draws from the open amount in partner contributions set up for the stakeholder to pay for the stakeholder’s cost distributions, which are typically debit amounts.

Each distribution covered by a partner contribution is updated with the ID of the partner contribution. This enables you to search for and review distributions paid with partner contributions in the Joint Venture Distributions work area.

If the open amount in a partner contribution for a stakeholder doesn’t cover the amount in a distribution, the distribution is split into two separate distributions:

• A distribution with the amount covered by the open amount in the partner contribution.

• A distribution with the remaining amount to be invoiced when the Create Joint Venture Invoices process is run. However, if there's another partner contribution available for the partner, the open amount in the partner contribution is applied to the distribution.

Note: Invoices created for cost distributions paid in part or in full by partner contributions include a credit line with the partner contribution amount. The invoice could result in a zero balance or with an amount to be recouped from the partner. If the distributed costs for internal stakeholders are covered by partner contributions, the internal transfer journals include additional lines to account for the partner contribution amount. Make sure to run the process to draw from partner contributions before you run the “Create Joint Venture Invoices and Journal Entries” process to create receivables invoices and internal transfer journals. This helps to ensure that a stakeholder receives a remaining balance in an invoice only after their partner contributions have been depleted.

Process Partner Contributions for Cost Distributions With a Credit Amount

You can have credit amounts in your cost distributions for several reasons, for example, when a supplier provides a discount on an item by issuing a credit on the payables invoice. Cost distributions with a credit amount aren’t automatically included in partner contribution processing; you must set up the Assign and Draw Partner Contributions process to include them. With this setup, the process adds the credit amount to the partner contributions, resulting in an increase of the open amount. This helps ensure that credit cost transactions are accurately accounted for and reflected in the partner contribution balance. You can also set up the process to allow the open amount to exceed the partner contribution amount when processing partner contributions for distributions with a credit amount.

Note: To be eligible for partner contribution processing, cost distributions with credit amounts must be associated with one of these account types: Assets, Expense, Overhead, and Fees and Other Charges. Distributions that originate from manual source transactions with Cost account type are also eligible.

When a stakeholder’s cost distributions include both credit and debit amounts, the process first adds the credit amounts to the partner contribution. It then draws from the partner contribution to cover the debit amounts. This can increase the partner contribution balance to completely cover the debit amounts. For an example on how partner contributions are processed to account for a stakeholder’s debit and credit cost distributions, see Example of Processing Partner Contributions to Account for Debit and Credit Cost Distributions.

Run the Process to Draw from Partner Contributions

Perform the following steps to run the process:

1. From the Home page, select Joint Venture Management, and then select Process Joint Venture Partner Contributions from the Quick Actions list.

2. For the Processing Mode, select Assign and Draw Partner Contributions.

3. Complete these fields as needed:

   • Joint Venture. Select a joint venture, or you can leave this field blank to run this process over all joint ventures. The process selects only those joint ventures in Active status.

   • Stakeholder. Select a stakeholder, or you can leave this field blank to run this process over all stakeholders that have partner contributions associated with them. The process draws from any stakeholders that have partner contributions set to "Available to Draw.”

     If you leave these fields blank, the process draws only from the joint ventures you can manage.

   • Process Credit Distributions. Select “Yes” to include distributions with a credit balance when processing partner contributions. If a stakeholder has distributions with a credit amount, the process will add the amount to the open amount of the stakeholder's partner contribution. Use the default value “No” to not process credit distributions.

     Note: Remember that distributions with a credit balance can be an original distribution with a credit amount or a reversal distribution that’s created when you reverse an original debit distribution. This option is applicable only for original distributions with a credit amount.

   • Allow Open Amount to Exceed Contribution Amount. This option only applies if you selected the preceding option to process credit distributions. Select “Yes” to add the credit amounts to the stakeholder’s partner contribution even if the open amount will exceed the contribution amount.

     With the default value "No", if the open amount will exceed the contribution amount when the credit amount is added, the process won't process the credit distribution unless it finds another partner contribution available with a suitable open amount.

4. Click Submit.

5. When the process completes, click OK in the confirmation.

6. Click the log file in the Log and Output section to view the details about the draw, including:

   • The open amount before the draw.

   • The contribution amounts applied to distributions.

   • Other details, including information about any issues the process might have encountered.