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Where does a distribution over AAA in an S Corp belong on the balance sheet in Proseries?

Level 1

I have a single member LLC taxed as an S corp where the single member pulled out distribution over AAA. This client has always been taxed as an S corp so no A&E. Usually I put this on the balance sheet as a loan to shareholder and have the client pay it back. This time the amount is too big so he will be taking it as a long-term capital gain on his personal return. Problem is my balance sheet in Proseries is out of balance by the distibution amount. I need to put it somewhere but not sure where. Have any of you run into this problem and, if so, what did you do?

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Level 15

Distributions reduce Retained Earnings.