Allocate profit

Profit Allocation shares a profit amount across all employees in proportion to their available balances.

Steps

Open Profit Allocation

On the PF Transaction page, click Profit Allocation.
Set the dates and amount

Both dates start as today.
- Post Date: when the profit is added to employees’ PF.
- Allocation Base Date: balances are read up to and including this date. It must be after the Opening Date and cannot be after the Post Date.
- Total Profit Amount.
Preview the shares

Click Preview Allocation. Employees are listed with their Allocation Base (available balance) and Allocated Amount; everyone with a positive Allocation Base is ticked.
Adjust who is included

Untick anyone who should not receive profit; the shares are worked out again. Employees with a zero or negative balance are shown but cannot be ticked.
Choose accounts and save

Pick the Debit Account and Project; the PF account is filled in for you. Click Save or Save & Post.

Example

Sharing 50,000 of profit

Employee	Allocation Base	Share	Allocated Amount
Ali	270,000.00	54%	27,000.00
Sara	180,000.00	36%	18,000.00
Bilal	50,000.00	10%	5,000.00
Hina	(2,000.00)	—	0.00
Total	500,000.00	100%	50,000.00

Ali’s 300,000 Gross PF balance less his 30,000 loan gives the 270,000 used here. A negative loan works the other way and raises the Allocation Base. Hina’s balance is negative, so her row cannot be ticked and she receives nothing. The Share column is added here to show the working; the app shows only the amounts.

Rounding

Shares are worked out to the cent. If 1,000.00 is shared equally by three employees, two get 333.33 and one gets 333.34, so the total is always exact. The extra cent goes by a fixed rule, so the result is the same every time.

Good to know

An allocation can be backdated, even before an earlier Profit Allocation or Settlement.
To change a draft, open it with Edit and click Recalculate.
If balances change after you save, posting the draft shows Recalculation required. Open it with Edit, recalculate, and post again.