Apportioning profits between partners

The portion of the profits each partner receives is entered into the system as a ratio.

To enter the profit share for each partner:

1. From the Tools menu choose Profit Sharing Ratios. The Profit Sharing Ratios window appears. Each partner is listed. 
2. Enter the fixed profit each partner receives in the Prior allocation column. This is not included in the apportionment but is deducted from the total profit prior to apportionment.
3. Enter the split each partner receives as a ratio in the last column(s). If a partner's start or end date for the partnership falls in the current tax year, there will be more than one column, one for each section of the tax year prior to and following the relevant start or end date. The partner's ratio will be set to zero for times when the individual was not a partner in the partnership.
4. If each partner receives an even split, click Split Evenly to enter this information automatically.
5. To enter the split as a percentage, make sure that the ratios add up to a total of 100.
6. Click Apply PSRs.