How to debit retained earnings directly

cdavenport22cdavenport22 Member Posts: 2

I can't seem to debit retained earnings directly. I want to account for profit distributions to partners. I can record this as an owner's draw, but then I get a permanent line on the balance sheet showing all the money that has been distributed doing back forever. Is there a way to debit retained earnings directly? Thanks!

Comments

  • ErikErik Administrator Posts: 187 admin

    Hi @cdavenport22 this currently cannot be done in Wave. Just so that I have a talking point when I bring this up to the team, is there a particular reason you don't want that permanent line on the balance sheet showing what you have distributed?

  • cdavenport22cdavenport22 Member Posts: 2

    Thanks for the response. Total lifetime distributions is just not a useful line item and does not tell me anything about the current state of the company's finances. I was able to solve this issue by making a journal entry transferring all income and expenses to a "retained earnings" account. Then I debited that account for the distributions.

  • KelseyRodricksKelseyRodricks Administrator Posts: 16 admin

    Thanks for your response @cdavenport22. Knowing about our users' workarounds really helps us improve the user experience.

    edited January 17, 2019
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