IRIS Accounts Production - Partnership - (EPST)

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How do I generate a report without comparatives?

You will need to do two things to tell IRIS that you do not wish to have comparatives.
Select Edit | Data Screens | Presentation Options | Current Year Only, leave field provided blank.
Select Reports | Annual, complete the report output screen with details of where you wish to send the report to.

Enter the mnemonic of the report you wish to generate in the Report/Document field.
IRIS completes the lower half of the screen automatically with the relevant post file entry numbers.
Remove the post file entry number from the Last field and click OK.

I am getting Surplus on revaluation on the fixed asset schedule, how do I remove it?

When generating the Fixed asset schedule IRIS compares the brought forward figures in the current year with the carried forward figures in the comparative year, if there is a difference between the two years figures IRIS assumes a revaluation has taken place.  

To clear this error, ensure that the cost brought forward, plus additions, less disposals in the previous year, agrees to the figure brought forward this year.  Also ensure that the depreciation brought forward, plus charge for year, less elimination on disposal in the previous year agrees to the figure brought forward this year.

If you do not have comparatives you will need to follow the steps outlined above "How do I generate a report without comparative?".

If this is the businesses first year, check that fixed assets have been posted to the Additions accounts and not to the Cost account, similarly check that the depreciation has been posted to the Charge for the year account and not to the Accumulated depreciation account.

Why am I getting an Unknown partner on the Capital and Current Accounts report?

This occurs when postings have been made to a partner that does not exist. The most common example of this is where a partner has left the partnership in the comparative year but there is a balance b/fwd for that partner in the current year.
The balance on the partners capital account will need to be cleared down to zero in the year that the partner left by doing a journal to move the balance from the partners current account to either debtors, creditors or to the remaining partners, resulting in a balance c/fwd of nil.

How do I post a disposal of a fixed asset?

In this example we will assume a Motor car costing £10,000 has been disposed.
Credit account 525/3 (Motor vehicles - Disposals) with the original cost, £10,000
Debit account 525/23 (Motor vehicles - Eliminated on disposal) with the depreciation to date, say £3,000
Post the balance of the above to account 392/14 (Motor vehicles - Profit/loss on sale of assets), £7,000
The actual sale proceeds will also be posted to account 392/14 (Motor vehicles - Profit/loss on sale of assets) say £8,000 (the debit entry for example being to the bank account)
This will arrive at the profit on sale of motor car of £1,000

How do I set up the Partners and their share of profit?

Setting up the Partners
Select Edit | Partners
Click New, then click the magnifying glass next to the Partner box. This will display a list of existing people in the database.

Highlight and select the new partner if they appear in this list, or click New to set up a new person in the IRIS database.

Enter the dates the partners started or left the business if relevant and the accounting order number.

All partners must be allocated an order number, unless you are setting up a joint capital account.
The Accounting Order field is used to determine:

the order in which the partners appear on the information sheet,
which group in the accounts chart the partner's salary and so on, is posted to.

Entering the Partners Share of Profit
Select Edit | Partners Profit Shares
Select Shares
You will be asked to enter the Date partner net profit shares are to be effective from, if you have not entered start dates for the partners this field can be left blank and shares will be effective from start. If start dates were entered for the partners enter that date as the date the shares are to be effective from.

You will then be asked to specify the profit shares. If the profit is shared equally select Equal and click OK, if the profit is not shared equally select Specified and enter the percentage in the field provided.
Set the profit share for each individual partner.
Click Shares to display the partners profit allocation.

The screen shows the % profit split.
All active partners 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.

How do I set up a joint capital account?

Joint capital account can only be set up for two partners. You can have a three person partnership where two partners share a joint capital account and the third person receives an allocated percentage of profit.

Only one partner in a joint capital account will have an order number, the second (joint) partner will not be allocated an order number.

Setting up the Partners

Select Edit | Partners

Click New, then click the magnifying glass next to the Partner box. This will display a list of existing people in the database.

Highlight and select the new partner if they appear in this list, or click New to set up a new person in the IRIS database.

Enter the dates the partners started or left the business if relevant and the accounting order number.

Allocate order number one to one of the partners, the second (joint) partner will have no order number.

Entering the Partners Share of Profit

Select Edit | Partners Profit Shares

Select Shares.

You will be asked to enter the Date partner net profit shares are to be effective from, if you have not entered start dates for the partners this field can be left blank and shares will be effective from start. If start dates were entered for the partners enter that date as the date the shares are to be effective from.

You will then be asked to specify the profit shares. IRIS will display the details for the partner with order number 1.

Select the Joint capital account field and either enter the identifier of the joint partner or click the magnifying glass to display the joint partner, click OK.

Select Equal if profits are to be shared equally or Specified and enter the percentages for each partner.

The screen shows that from the start of the business there is one partner sharing one hundred percent of the profit.

Click Shares to display the joint capital account.
The screen shows the two partners together and that the type of partner is Joint.

How do I enter a change in the Partner 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 1999 the profit is to be shared equally.

Select Edit | Partners Profit Shares

IRIS will display the current profit share details, select New date.

IRIS will ask you to enter the Date partner net profit shares are to be effective from, if the share allocation has changed from one accounting period to the next, enter the date as the first day of the accounting period.

You will be taken to each of the partners in turn to enter their profit shares. If the profits are shared equally tick Equal and click OK, 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.
Click Shares to show the new profit allocation.
The screen shows that from xx/xx/xx, the partners are sharing the profit equally (the date being relevant to the date of change).

All active partners 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.

How do I change the partner profit share when a new partner is appointed?

When a new partner joins a business you need to set up a new share date to reflect the inclusion of the new partner into the profit allocation.

All active partners 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.

Enter the new partner in Edit | Partners
Click New, then click the magnifying glass next to the Partner box.
This will display a list of existing people in the database.
Highlight and select the new partner if they appear in this list, or click New to set up a new person in the IRIS database.
Enter their date of appointment in the From field.
Enter the new partners accounting order number.
The screen will display the existing partners along with the new partner.
Click close, then select Partner Profit Shares.
IRIS will display the existing profit share, select the relevant line, and select Shares.
Enter the new profit allocation for all partners.
The screen now shows all of the current partners sharing the profit.
Select Shares to see the percentage of the profit allocated to each partner.

How do I change the partner profit shares if a partner leaves the partnership?

When a partner leaves a business you need to set up a new share date to reflect the new profit allocation.

Select Edit | Partners highlight the partner that has left the business and click View. Enter the date the partner has left in the To field.
Click close, then select Partner Profit Shares.

IRIS will display all share dates. Select the relevant line and select Shares.

Enter the new profit allocation for all remaining partners.

The screen now shows all of the current partners sharing the profit.

Select Shares to see the percentage of the profit allocated to each partner.

All active partners 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.

How do I enter actual amounts for the partner profit share?

Select Posting | Post, select the post file you wish to work in.
Click OK on the Review/Specify posting batch screen.
Click Posting Extras | Partner Profit Share
IRIS asks you to confirm the start date of the current period, by displaying the previous period end date, then adding one day.

Click the magnifying glass to select an alternative account period end date.

Click OK to continue or Cancel to enter an earlier date or return to the posting screen.
The next screen will list the partners with the calculated profit based on the percentages allocated in Edit | Partners Profit Shares
You can change the profit for an individual partner by highlighting the partner and clicking Change Share.

Clicking the magnifying glass in the Actual field will either:

insert the amount of profit share calculated by IRIS, or,
insert the balance of the remaining profit when actual amounts have been entered for all but the final partner.

Enter the amount you wish to allocate to this partner in the Actual field.
If the figure is a profit the amount should be prefixed with a minus sign.
If you wish to change the profit allocation for all partners, click Change All.
Click OK to save or Cancel to return to the Partner net profit shares screen.

The next screen will show the current profit allocation for the business. The figures for the Total Profit/loss and the Share total allocated have to be the same.

Click OK to return to the Partner Net Profit Shares screen.

I am getting a rounding difference in my Sundry account, how do I move this?

Rounding differences can be cleared by either making a journal adjustment to account 280, and the other side of the entry to any other profit and loss account, OR, by changing the nominated rounding account for the client.  

This can be changed by going to Posting | Rounding Accounts

The rounding account can also be changed for the whole chart by going into Setup | Accounts Chart | Amend Chart, select the EPST chart, then go to Rounding error accounts.