Record and pay dividends

Step by step

1. 1New BV and NV administrations already have the standard dividend accounts. For an existing administration, link your existing liability accounts once under Settings > Dividend accounts. Add a missing account through the ordinary ledger-account form.
2. 2Open Bank > Dividend declarations > New dividend declaration. Enter the declaration date, shareholder and gross dividend. Enter only the actual agreed withholding; leave it empty or enter zero when there is none. Choose the source reserve and check the visible posting accounts.
3. 3Check and confirm the posting preview. The declaration reduces the reserve and creates the net dividend liability and any dividend-tax liability. It does not post an expense or bank payment.
4. 4For the outgoing bank transaction, choose Pay dividend or Pay dividend tax and the existing declaration. You can also record a new declaration together with its actual payment there. Without an imported bank transaction, use the payment action on the declaration. The ordinary bank, date, amount and currency fields apply.
5. 5A correction retains the declaration journal number. Actual payments and bank links remain unchanged. The preview also shows the new remaining amounts. Overpayments stay visible and are not automatically transferred to current account or expenses. Deletion removes only the declaration; payments remain accessible.

What is on the screen?

• Declaration date, shareholder and gross dividend
• Actual withheld dividend tax, when applicable
• Source reserve and liability accounts
• For a payment: actual bank account, date, amount and any currency conversion

What happens next?

For each declaration, liability account and shareholder, you see declared, paid and remaining amounts. The total ledger balance may also include an opening balance or other postings. Later settings changes do not change the accounts stored with existing declarations.

Continue reading