What is carried interest in SAP IS-OIL-PRA - Production and Revenue Accounting?

SAP Term: carried interest

• Component: IS-OIL-PRA

• Component Name: Production and Revenue Accounting

• Description: A "carried interest" partner is a partner that temporarily does not carry its own share, but is "carried" by the other partners. For example, this could happen if a partner becomes insolvent. If the project then yields profit, the partner becomes a "normal" partner again, but must forego a part of its profit.

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• Key Concepts: 
  Carried interest is a term used in the SAP IS-OIL-PRA Production and Revenue Accounting component. It is a type of compensation that is paid to a partner or investor in a business venture, usually in the form of a percentage of profits. The amount of carried interest is typically determined by the terms of the agreement between the parties involved. 
  
  How to use it: 
  In SAP IS-OIL-PRA Production and Revenue Accounting, carried interest can be used to track and manage the payments made to partners or investors in a business venture. The system allows users to set up and manage carried interest agreements, as well as track payments made and received. 
  
  Tips & Tricks: 
  When setting up carried interest agreements in SAP IS-OIL-PRA Production and Revenue Accounting, it is important to ensure that all parties involved are aware of the terms of the agreement. This will help ensure that payments are made on time and that all parties are satisfied with the arrangement. 
  
  Related Information: 
  For more information on SAP IS-OIL-PRA Production and Revenue Accounting, please visit the official SAP website at https://www.sap.com/products/is-oil-pra.html.