SA Administrator Options - Financials - Profit Distribution overview

System Administrator > Administration > Administrator Options > Financials > Profit Distribution

Use this page to set up the clearing account code.

The Clearing account code set up on this page is used during GL Administrator Distribute Profit. It is designed so profit can be distributed on a period, quarterly, or yearly basis. Because the account code period amounts from GL Administrator Distribute Profit GL Account Setup are not accumulating amounts, you can perform GL Administrator Distribute Profit as many times as required. If profit was previously posted to these accounts, the amounts are reversed out and the new profit posted.

GL Administrator Distribute Profit creates a replacement of the previous amount posted into these accounts. It is considered a Replacement Entry function rather than an Accumulating Entry function. Therefore, adjusting entries can be posted to accounts even after profit has been posted. After you complete the adjusting entries, perform GL Administrator Distribute Profit again.

The account codes entered here are stored on the SA Company Setup record.

You must set up Retained Earnings and Clearing accounts in GL Account Setup.

Note: Do not change the profit accounts or clearing account midway through the year. If the accounts are changed and GL Administrator Distribute Profit is performed for a period that has already had profit distributed, a reversing entry will not be created for the old account. This causes the balance sheet to overstate the retained earnings by the amount contained in the old account.