Click on the Create Loan button, this will open a pop-up box with a set of fields to enter.

1. Choose whether the Loaner is a registered entity in Simple Invest 360, or an entity external to the firm.

2. Then you can enter a description of the loan.

3. Select year 0 of the loan, this is the year that the loan was established.

4. Choose what type of loan it is, unsecured (7 years) or secured (25 years), as well as the lodgment date.

If the tax return was lodged in Simple Invest 360, the lodgment date will pick up the lodged date from the system. If the return was not lodged through Simple Invest 360 it will be set to 15/05/20XX and this date can be edited as required.

5. Select the asset/investment account that is being used to journal the loan and the interest account. The system will select the interest received account if a 25000 interest received account is linked to the investment account and the system will calculate the existing loan amount by taking all journals currently posted to the account. If the entity name was entered manually, you will not need to select an account and will need to enter the existing loan balance.

6. There is an optional field below this, where the shareholder or contact who borrowed the loan amount can be selected. If a Shareholder is entered and is an entity recorded in Simple Invest 360, you can also select a specific loan account that is linked to this Shareholder.

Once the asset has been created, you can navigate to the worksheet by clicking on the Loan. This will then open up a pop-up with the loan summary and calculations for the current and future years. As well as an option to export the worksheet to Excel

Below this, the Division 7A Worksheet will show all transactions posted to the loan asset/investment account.

1. Where there is an amount under "required to pay further" you can click on "Pay as Dividends" which will create a "Dividends declared" line for the remaining amount in the worksheet.

2. The refresh system payments will update the worksheet with any new changes made to the transaction list if the worksheet has differing information. The Post Interest Journal button will cause the system to post the following transaction to the transaction list.

3. There is also an option to manually enter a repayment at the bottom of the current year, however, this does not affect the transaction list or the balance sheet.

Where the loan is not linked to an entity in Simple Invest 360, then the only way to enter repayments is via the manual entry field in the worksheet, as there is no account attached for the system to calculate the balance or any repayments.

Posting the Dividend Journal to the transaction list.

1. After clicking the pay as dividends to create the "Dividends declared" line in the worksheet, you can select the "Post Dividend Journal" button which will open another pop-up.

2. Review the dividend amount and enter the Franked percentage for the dividend.

3. Click the button to post the journal

The journals will then appear in the Transaction List.

If Inter-Entities have been set up, these dividend repayments can also be recorded in the Shareholder's entity.

This is completed in the Inter-Entity tool on the Pay Dividends screen, accessed during the Year-End Workflow.

• For instructions on this process, see Inter-Entity Dividend Journals for Companies.