# Set a target R&D percentage

The Set R&D % feature allows you to quickly assign R&D percentages to multiple expenses at once and automatically distribute them across your qualified R&D projects without having to allocate project by project.

### Summary

The Set R&D % feature allows you to quickly assign R&D percentages to multiple expenses at once and automatically distribute them across your qualified R&D projects without having to allocate project by project.

> **Tip:** Use this for: Allocating R&D for expenses when there is not clear way to allocate by project. The main use case is to allocate non-employee expenses like Cloud, Contractors that don’t have a clear allocation by project.

The system will apply the R&D % proportionally to qualified projects based on each project's share of current employee qualified expenses, saving you from manual project-by-project allocation.

### How it Works

![Screenshot from Set a target R&D percentage](https://vaffozzswoq4jjsz.public.blob.vercel-storage.com/help-center/726d8bc5-b465-47f9-85de-32c0124d191f/target-rd-percent-1.png)

![Screenshot from Set a target R&D percentage](https://vaffozzswoq4jjsz.public.blob.vercel-storage.com/help-center/7e7bfd08-a976-4406-abbe-1825d7195bea/target-rd-percent-2.png)

### How It Works in Detail

#### Accessing the Feature

1. Navigate to either the **Other QREs** or **Wage QREs** page
1. Select one or more R&D expenses by checking the boxes next to them
1. Click the **Set R&D%** button that appears above the right hand side of the table
1. The "Set R&D % for \[X\] Expense(s)" modal will open

#### Setting Your R&D Percentage

In the modal, you can set your desired R&D percentage (0-100%) either by:

- Using the slider for quick adjustments

#### Automatic Project Distribution

When you apply the R&D percentage, Neo.Tax automatically distributes it across your qualified R&D projects using this calculation:

**Project Allocation = Your R&D % × Project Weight**

Where Project Weight = (Project's Employee Qualified Expenses ÷ Total Employee Qualified Expenses)

**Example**: If you set 80% R&D and Project A represents 43% of total employee qualified expenses, Project A will receive 34% allocation (80% × 43% = 34%)

#### What Gets Replaced

This feature **replaces any existing project allocations** for the selected expenses. Your previous manual allocations will be overwritten with the new proportional distribution.

### FAQ

#### Q: What happens if I don't have any qualified R&D projects set up?

**A:** You'll see an error message explaining that qualified R&D projects must be configured before using this feature. Set up your R&D projects first, then return to bulk edit your expenses.

#### Q: What if my total employee qualified expenses are $0?

**A:** The system will show an error explaining that project weights cannot be calculated without employee qualified expense data. Ensure you have employee expenses allocated to your R&D projects before using this feature.

#### Q: How precise are the project allocation percentages?

**A:** The system calculates precise percentages  to the nearest whole number for display. The underlying calculations maintain accuracy for your R&D credit calculations.

#### Q: Will this work with a large number of R&D projects?

**A:** Yes, the feature is designed to handle companies with any number of R&D projects efficiently. All qualified projects will receive proportional allocations based on their employee expense weights.