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This article applies to:

  • Product: Digita Accounts Production Advanced
  • Subject: Reports

Enter the Profit Allocation

For partnerships, allocate profit or loss between the partners. You can do this on a fixed percentage basis over the accounting period, a time apportioned fixed percentage, and also a fixed value basis.
  1. Select the
    Import/Account Assignment
     tab, then choose from:
    • Profit allocation
      : for a fixed percentage basis per partner over the accounting period.
    • Fixed profit share
      : when partners receive fixed amounts of money for specific circumstances.
    • Profit share percentage by date
      : when partners receive different proportions of the profits from the business generated over the accounting period.
  2. Profit allocation
  3. For Profit allocation:
    1. In the profit allocation window, select
      New
       to add a data entry row.
    2. Select the cell under the
      Partner
       column, then use the dropdown list to choose a partner.
    3. Repeat the previous 2 steps for each partner.
    4. Enter the percentage value of the residual profit share for each partner so that the total comes to 100.
    5. In the account column, enter the profit allocation code associated with the partners' capital or current account.
    6. Use the
      Rounding account
       box to enter the profit allocation code of the partner to which any rounding should be allocated.
    7. After entering the partners' residual profit share percentage and profit allocation codes, select
      OK
       to save and close the window.
  4. Fixed profit share
  5. For Fixed profit share:
    1. In the fixed
      Profit share
       window, select
      New
       to add rows for each partner that receives a fixed amount of profit.
    2. Select each partner's name from the dropdown list of partners in each cell of the
      Partner
       column.
    3. Enter the values that each partner receives under the income column.
    4. If you need to rename an income column, select
      Columns
      ,
      Rename
      , the heading, then change the column name and identifier boxes.
    5. Select
      OK
       to save the changes and close the window.
      The figures will be shown in the
      Profit allocation
       window for the respective partner when you add a row for them.
    6. Enter the percentage share of any residual profit in the residual profit share percentage column followed by the individual partner's profit allocation codes.
    7. Select
      OK
      to close the window.
  6. Profit Share Percentage by Date
  7. For Profit Share Percentage by Date:
    1. Select
      New
       to enter the date range that the profit will be split between the partners by a known percentage.
    2. Enter the start and end date within the accounting period that the profit will be split in this ratio.
      tip
      Start with the 1st day of the accounting period and work forward.
    3. Select
      New
      again and enter dates for the next profit allocation period.
    4. Enter rows for the partners and their fixed share of profits.
    5. Once you've entered time frames for the accounting periods, select
      OK
       to close the window.
    6. Open the
      Profit allocation
       window and enter rows for the partners.
      note
      The value of fixed profit share will show along with the calculated share of residual profit.
    7. Enter the profit allocation codes for the respective partner's share of profits.
    8. Select
      OK
       to close the window.
  8. Run the report and check that it's as you intended.