LLCs do not make distributions. They pay out Member Draw to a member even if that member is another LLC or an S corp.
The S corp would treat it as one of the following
stock purchase by the LLC
loan by LLC to S corp
but probably> temporary retained earnings to be applied against the pass through profit or loss from the LLC. The S-corp gets a K-1 from the LLC for % of profit or loss to be applied against the P&L of teh S-corp