The Distribution screen allows Reportance to be able to easily distribute the net profit or loss of the entity.
To make a distribution, select the relevant dataset and then click on the Other Info tab. This will take you to the Distributions screen.
Now enter the accounts and details of the distribution. As with all other journals, if your accounts don't exist Reportance will create them for you. Please note if you do this you will need to allocate the accounts to the correct area of the chart of accounts after processing the journal. Distributions can be entered as fixed dollars and/or as percentages.
Some sample accounts are as follows:
|Dividend/Distribution Account ||Payable/Liability Accounts |
|Dividend Paid||Provision for Dividend|
|Distribution of Profit Beneficiary 1||Distribution Received Beneficiary 1 |
|Distribution of Profit Beneficiary 2 (etc)||Distribution Received Beneficiary 2 (etc) |
|Distribution of Profit/Loss Partner 1||Share of Profit/Loss Partner 1 |
|Distribution of Profit/Loss Partner 2 (etc)||Share of Profit/Loss Partner 2 (etc) |
|Partners Salary |
|Distribution of Profit ||Share of Profit/Loss |
Note: You should not distribute partnership losses as dollars, only percentages. The dollars option is designed to pay a partner's salary or where someone is always entitled to a fixed dollar amount.
When you have completed the details click the Post Automatic Journals button and you will get a notice to say it has been processed successfully. The journal will now appear in the Journals screen and can be edited or deleted like other journals.
Note: To show the profit/loss split in the Appropriation Statement you will need to create separate dividend/distribution accounts for each shareholder/beneficiary/partner (see above). You can then wrap up the headers in the Balance Sheet to consolidate them if required.
Should you need to make any adjustments to your file, or need to refresh the client's data, press the Post Automatic Journal button again and it will update the existing journal with the new figures.
Note: Clicking on the Process Automatic Journals button in the Journals tab will also post any distribution configurations saved (along with depreciation and primary production journals).
Next article: Datasets - Other Info - Primary Production