Business partners & profit sharing
How company-level investors share in your dealership's overall profit.
A business partner is someone who invests in your whole dealership (not a single vehicle) and shares in the overall profit you keep. VehicleERP tracks how much each partner has put in and automatically works out their share whenever you book company profit.
Not the same as a vehicle partner
A vehicle partner invests in one car and shares that car's profit — see Adding a vehicle partner. A business partner, covered here, invests in the business as a whole.
Setting up a business partner
Add each investor as a Business Partner party (see Parties). Their investments and withdrawals are recorded through the ledger against your company or bank accounts.
How profit is shared
Each time you record a Company Profit entry for a vehicle (the final step of settlement), VehicleERP:
- Calculates each business partner's net investment (what they've put in, minus what they've taken out).
- Works out each partner's percentage of the total invested.
- Splits the company profit across partners in those proportions.
- Records what each partner is owed — starting as Pending.
Paying partners
Each partner's share is tracked with a status:
- Pending — calculated but not yet paid.
- Paid — you've paid the partner their share.
As you pay partners, their records update so you always know who is still owed money.
TODO: screenshot — business partner profit distribution list
Keep investments accurate
Because shares are based on net investment, make sure every partner's investments and withdrawals are recorded in the ledger. If they're missing, the profit split won't reflect reality.