Question: How to allocate distribution to members?


Allocate member earnings for member/s

Currently, there are only 4 possible classification sectors for line items per member - 

A - Any line item associated with an inflow from an external source - essentially capital introduced.

B - Any line item reflecting something expensed on behalf of or drawn by a member - essentially drawings.

C - Opening Balances of members.

D - Any profits of the fund shared amongst members. (actual profit from investing activities)

Closing balance is abstract and computed by LodgeiT.

Traditional fund accounting treats certain capital introduced items via the profitLoss and then at attribution time, splits through a clearing account to the members. This means duplication of reflection and is confusing but industry-practice none-the-less.

i.e. in example where fund receives a contribution from the member that's subsequently banked - 

Dr Bank  (Asset)

Cr Member Contributions  (Where this is an account in the revenue sector)

Then as a second transaction, attributes the contribution at 30 June.

Dr Allocation of Profits -->Retained Earnings/Accumulated(Losses) --> Profit Attribution (can be via an expense account ONLY if that account is not reflected in the report, as we do with companies. 

Cr Some members contribution account