Creating partner allocations
A partnership agreement can require an item to be allocated among the partners in a different way than the default method. This is done by creating a special allocation. The default allocation for the entire partnership uses the partners’ effective profit ratio to allocate distributive items that are not specially allocated. The effective ratio is calculated from the beginning partner ratio information entered for each partner. If no ratios are entered, the application calculates beginning ratios based on the amount entered for each partner’s beginning capital balance.
- You can change the default allocation method in theTypesection inOrganizer,General Information,Return and Print Options, theAllocations Optionstab.
- Choices areProfit,Loss, orCapital. The other allocation options are found in the Time section:Beginning,Effective, andEnding.
