Introduction
As part of the year-end period compliance in Simple Invest 360, the distribution paid can now be posted directly into the ledger of the beneficiary entity.
This means that when a distribution is made, instead of recording it separately between entities, the distribution can be recorded directly to the beneficiary entity's ledger via the Inter-Entity Journal Tool.
This streamlines the process and reduces the risk of errors or discrepancies during manual recording.
| Navigate to Compliance from the Main toolbar | |
| Select Period Compliance |
Select the Distribution Frequency. You can select between yearly, quarterly or monthly Profit/Distribution calculations. Alternatively, select Other to be able to specify your desired period.
Click Start Workflow for the selected Entry Period.
As part of the Workflow, the Calculate Taxable Income screen will prompt, displaying a breakdown of items in the calculation of taxable income, allowing users to add adjustments where needed. Change the Tax Labels, where applicable.
Select 
to proceed to the next step.
Users are then able to proceed with profit allocation, for more information, see Distribute Profit for Trusts.
Select to post the distribution income journals to the ledger of the beneficiary entity.
Once Distribute Profit for Trusts has been completed, the distributed amount and tax components will be pushed for each Beneficiary/Unit Class in the Inter-Entity Journal Tool.
Beneficiary entities will have the investment account linked to the beneficiary, and Unitholder entities will have the investment account linked to the unit class.
For more information on how to attach the investment account to the beneficiary/unitholder entity, refer to the Beneficiaries screen, however, this can be adjusted from within the Inter-Entity Journal Tool.
If transactions have not already been posted, users have the choice to post the journal entry directly against the entity.
The distribution income transactions will now be posted to the 23800 account and distribution receivable transactions to the 61800 account in the ledger of the beneficiary entity.
1. The system has locked the ability to post journals against the entity. How do I proceed?
Posting inter-entity journals will not be permitted if Period End Entries or Create Entries have already been initiated for the entity to which the journal entries are intended for.
In this case, navigate to the entity within Simple Invest 360. This can be easily done by selecting the link of the entity within the Inter-Entity Journal Tool.
Head into the Period Compliance tab and reverse period/entries for the entity. Once done, head back into the inter-entity journal tool and posting journals against the entity will now be unlocked.
2. I'm unable to find the investment account to attach against the beneficiary/unitholder entity, even though it has been created within the Chart of Accounts.
At this stage, only the 78400 - Units in Unlisted Unit Trusts (Australian), 78500 - Units in Unlisted Unit Trusts (Overseas) and any custom investment accounts will appear in the drop-down to be attached against the beneficiary/unitholder entity.
Moreover, these investment accounts need to have a 23800 - Distributions Paid and 61800 - Distributions Receivable accounts linked. For more information on how to do this, refer to Linked Accounts.
If the above two conditions are met, the investment account will be available to attach against the beneficiary/unitholder entity.