As part of the year-end period compliance in Simple Invest 360, a dividend paid can now be posted directly into the ledger of the receiving entity.
This means that when a dividend is made, instead of recording it separately between entities, the dividend can be recorded directly to the receiving 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 Dividend Frequency. You can select between yearly, quarterly or monthly Profit/Dividend calculations. Alternatively, select Other to be able to specify your desired period.
Click Start Workflow for the selected Entry Period.
If the dividend was paid midway through the financial year, you will need to enter the date the dividend occurred after selecting Other first, then click Start Workflow.
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 Pay Dividends for Companies.
Select to proceed.
Simple Invest 360 will prompt the option to enter inter-entity journals
Select to post the dividend income journals to the ledger of the receiving entity.
The dividend amounts and tax components will be pushed for each Shareholder in the Inter-Entity Journal Tool.
Receiving entities will have the investment account linked to the shareholder.
For more information on how to attach the investment account to the shareholder entity, refer to the Shareholders 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 dividend income transactions will now be posted to the 23900 account and dividend receivable transactions to the 62000 account in the ledger of the receiving entity. This transaction will be posted to the date the workflow was created to.
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.