Change in the Partner or Member Profit Share Allocation

In this example there are two partners sharing the profit 45:55 from the start of the business. However for the year ended 31 May the profit is to be shared equally.

Select Edit | Partners or Members Profit Share

IRIS will display the current profit share details.

1. Select New date.
   
   IRIS will ask you to enter the Date partner net profit shares are to be effective from.
   
2. If the share allocation has changed from one accounting period to the next, enter the date as the first day of the accounting period. In this example the new shares are effective from 1 June , the first day of the accounting year.
   
   You will be taken to each of the partners in turn to enter their profit shares.
   

   1. If the profits are shared equally, select Equal and click OK.

3. If the profit is not shared equally, select Specified and enter the percentage in the field provided.
   
   The screen will display the new profit share.

4. Click Shares to show the new profit allocation.

The screen shows that from 1 June the partners are sharing the profit equally.

• All active partners or members must be allocated a share of profit even if they receive zero percent this must be specified by ticking the Zero field for that partner or member.