Enter default information to be used in presenting percent of sales, retained earnings and rounding on your reports.
Calculating % of sales (denominator)
Select account number for the denominator in the percentage of sales calculation on the Income Statement (For example, sales would be 100% and the expense accounts would each be a percentage of sales). You can use a prime posting account or a control account.
Opening retained earnings
Type or select the account number for opening retained earnings. During a year-end close, Working Papers automatically creates a closing entry by posting all Income Statement balances to retained earnings.
This account is also used when using the "period" option in analytical review, leadsheet, or trial balance automatic documents.
Click the Multiple button if retained earnings is to be distributed to more than one than one account. Enter the account numbers and applicable percentages for the distribution of retained earnings. Performing a year-end close will allocate the net income or loss to these accounts based on the percentages you input. Therefore the percentages must total 100%.