Diagnostic: 30740 - "Schedule K-1. The default ending Profit and Loss percentages printed on the Schedules K-1, Part II, item J..." in a 1065 return using worksheet view.
"Schedule K-1. The default ending Profit and Loss percentages printed on the Schedules K-1, Part II, item J for all Partners who were involved in a transfer of Interest that resulted in a termination of their interest will be equal to their Profit and Loss percentages immediately before the termination. This will result in the total ending Profit and Loss percentages printed on the Schedules K-1 exceeding 100%. If the partner's interest was changed, but not terminated, then the Profit and Loss percentages in effect at the end of the partnership year are used. The percentages can be changed by entering the desired Profit and Loss percentages on the Other Payments / Printing Percentage Overrides / Other Options section of the Partner Information worksheet."
In the partners - transfers of interest - section 3 line 1 % should be 1.00 as it is the percent of his 100% that he is transferring, and the receiver is what percent they receive of #1's 100% so 1.0 is right there. Please note diag. 30740 and 30741. The transfers show a bit differently this year on the K-1's. You can change that treatment by overiding the ending percents under Partners - General Options - section 4.
The departing partner no longer reports the departing partners percentages as -0- for profit and loss. Per the instruction it will reflect the percentage prior to terminating from the partnership.
When a partner is involved in a transfer of capital that results in a termination of interest, Sch K-1 Part II item J will show their capital immediately prior to termination.
This is a change to the software for 2017 to comply with 1065 Schedule K-1 instructions. When selected, the information diagnostic 30740 issues for this.