GL Administrator Distribute Profit Report overview

General Ledger > Administration > GLA Reports > GLAP

Function acronym: GLAP

Use this report to scan all General Ledger accounts and calculate the difference between the Income and Expense accounts.

The calculated difference is your net income. If the net income is positive, the Clearing account is debited and each of the profit accounts are credited for the portion (net income x % of profit value) specified for each account. If the net income is negative, the reverse occurs. Because GL Administrator Distribute Profit Report is a Replacement Entry function rather than an Accumulating Entry function, it allows profit to be distributed multiple times if adjustments need to be made to close out a period. It can be re-run for any period with no negative impact on the applicable year or the future year.

If you produce financial statements on a monthly basis, distribute profit before printing the reports. Make adjustments before you post profit. If you must make adjustments, whether for the current or prior period, run GL Administrator Distribute Profit Report again after you enter the adjustments. This includes any adjustments posted to a prior year. GL Administrator Distribute Profit Report recalculates the period to date profits each time it is run. Each time you make adjustments to any period and you re-run GL Administrator Distribute Profit Report, reprint financial statements for that period.

You can perform profit distribution for only one period at a time. Distributed amounts are stored on a monthly basis, however, financial statements can be reported on a quarterly basis or in any other time frame. At year end, you must run GL Administrator Distribute Profit Report for each period that has not had profit distributed. If you do not complete this process, General Ledger is out of balance in the new year.

Caution:

GL Administrator Distribute Profit Report cannot be performed for a future year.

Note: Use this function primarily for period-end and year-end profit distribution. Before GL Administrator Year End Report can be performed and the Chart of Accounts created for a new fiscal year, profit must be posted for the last time. If you need to make adjusting entries after profit has been distributed and GL Administrator Year End Report is complete, post the adjusting entries and simply rerun this function. Then print financial statements. You will not need to run GL Administrator Year End Report again.