Partnership Cutback Company GL400

This program is used to specify each cutback which will be made from a specific partnership to a specific general partner. There may be both a general partner interest and/or a limited partner interest cutback to a specific general partner. In other words, you may maintain two sets of percentages to create two sets of cutback entries from a partnership to a general partner.

There may be one or more general partners for each partnership. There must be one entry in this program for each individual cutback to be made. For example, suppose that Company 1 and Company 2 are both general partners with interest in Partnership 11. Company 1 has both a GP interest and an LP interest, while Company 2 has only a GP interest. Three separate entries would be made in this program.

For each separate cutback entry made in this program, a corresponding entry must be made in GL410 (Partnership Account), and GL421 (Partnership Percent) if cutback type is 1, 2 or 4.

A sequence number is associated with each cutback entry made in this program. The processing program selects all cutbacks for a particular sequence and processes them. The sequence number provides a means for a hierarchical structure of cutbacks whereby generated cutback transactions may become the source transactions for generating more cutback transactions in a subsequent cycle. This would be the case where a partnership's general partner is itself a partnership with general partners into which you wish to cutback transactions.