The Capital Allocation tab of the Accounts screen is available if you set up your Entity Type as a partnership, S corporation, or limited liability company. From this tab, you can enter partner or shareholder names and profit-sharing percentages.
The required accounts for each partner or shareholder are generated automatically by the system, using any increment you select.
To enter names and profit-sharing percentages:
1. Select Accounts from the Company menu to open the Accounts screen, and select the Capital Allocation tab.
This tab is not available unless you specified partnership, S corporation, or limited liability company as your Entity Type on the Setup tab of the Company Setup screen.
2. Use the drop-down lists in the Capital Account, Capital Contributions Account, and Capital Distributions Account fields in the Starting Accounts panel to select the starting account of each type you want to generate accounts for each partner.
The Account fields display all of your equity accounts in classes RE (Retained Earnings), CC (Capital Contributions), and DS (Capital Distributions).
3. Enter or verify the increment in the Increment field, or enter a different increment number and select the Reassign check box for each type of account to re-increment saved accounts.
The Increment defaults to 1 but can be changed, if necessary.
4. Enter the names and percentages (up to 2 decimal places) for each partner or shareholder in the Partner's Name and Percent columns in the table.
The accounts listed in the Capital Account, Capital Contributions Account, and Capital Distributions Account columns are automatically generated based on your entries in the Starting Accounts panel and the Increment field, but you can edit any generated account number, if necessary.
The total entered in the Percent column for all partners or shareholders must equal 100% before you can save the accounts.
5. Click Save to save the accounts, which are created with the partner's or shareholder's name in the description for easy identification.
You can optionally click Excel to export the information on this screen to an Excel spreadsheet.
You must save your entries on this tab before moving to another tab of the Accounts screen.