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Difference between a cash call and a cutback

Hello All

I want to know what the difference is between a cash call and a cubtack. When we run a cutback (GJCB) the system calculates the amount that each partner owes us based on the equity group and the expenses are sent to the partners based on their share. They basically owe us money.

When there is a cash call we are requesting for money as well. This could be before the expense has been occurred or after it has been occurred. If a cash call ( gj03) Is made after the expenses have been occurred then what is the difference between a cubtack and a cash call as we are basically sending our partners an invoice for the expenses.


Can some one please clarify

W

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2 Answers

  • Best Answer
    Posted on Apr 26, 2012 at 02:59 AM

    Hi,

    Cash calls are usually sent to partners when the operator expects a huge expenses to be incurred in future. He forecasts his expenses and based on his calculation, he requests his partner for an advance payment even BEFORE the expenses are incurred.

    Whereas Cutback is posted AFTER the expenses are incurred, and the operated is now requesting for payment from his partner.

    Best Regards,

    Aruna.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 28, 2012 at 06:19 PM

    Hi,

    Cash calls are made for partners to request an advance amount for forecasted expenditure. Partners are requested to pay cash call in advance, this is called billing partners in advance, hence billing month of cash call is one month. But actual operation month when expenditure is incurred could be different.

    Where as cut back pull all expenditure for the month and generates invoice for partners.

    Regards,

    Ramesh.

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