Opening Balances - How to Setup a Trust

Next we will set up the beneficiary accounts shown on the Statement of Financial Position.

For assistance with adding Beneficiaries to the Beneficiary Screen, please see the following article. The relevant Sub Accounts are created when adding a Beneficiary in the Beneficiary screen. 

The following accounts are also available depending on your entity:

In this scenario, we will be using the Opening Balance account 58700. 

Follow the instructions below to review the Sub Accounts:

1. From the Main Toolbar, Navigate to Accounting, and Select the Chart of Accounts.
   
2. Locate Control Account 58700 and Select the down arrow,
3. Review the relevant sub-accounts for the beneficiaries.

After the Beneficiaries have been created, the balance sheet can now be entered into Simple Invest 360.

The following components of the Balance Sheet will be entered:

1. Beneficiaries Balances
2. Investment History
3. Liabilities

Beneficiaries

First, the beneficiaries balances will need to be entered.

 

From the Main Toolbar, go to Accounting.
Select Transaction List
Select the New Transaction.
Select Journal.

 

From the Transactions screen, input the Beneficiary Opening Balances.

Date	Input 30/06/2020
Reference	Input 1
Description	Opening Balance - Beneficiary A
Select an account	Select Account 58700-0001 (Opening Balance Beneficiary)
Amount	Input a credit amount of $509,129.30
Select an account	Select Account 58700-0002 (Opening Balance Beneficiary)
Amount	Input a credit amount of $370,102.44
Add Line	Select
Select an account	Select Account 99800 Unspecified Data Clearing Account
Amount	Input a debit amount of $879,231.74

To post the journal, select Post.

For instructions on how to split the beneficiary balances under separate beneficiary accounts, click here. 

Unspecified Data Clearing Account (99800)

For training purposes we have utilised Account 99800, However, when setting up an entity you will not be required to post to Account 99800 and can enter the balance Sheet into Simple Invest 360 as one journal.

Investment History

When entering investment history, purchases must use the more details panel and input the actual date of purchase as the contract date.

Fund Investments must be entered at the original purchase price. 

In this task you will learn how to input all investment history manually. However, the option to import investment history using the BGL XML Import or Smart Docs - CGT is also supported.

New to Simple Invest 360, is the Quick Data Entry screen to record your investment history. For more information, click here. 

 

From the Main Toolbar, go to Accounting.
Select Transaction List
Select the New Transaction.
Select Journal.

 

Record purchase of Westpac Term Deposit

Date	Input 30/06/2020
Reference	Input 3
Description	Investment Purchase History
Select an account	Select
Create Investment	Select Investment
Investment Type	Select Fixed Interest Securities (Australian)
Investment Code	Input WPTD
Name	Westpac Term Deposit
Save Investment	Select
Account	Account 72400/WPTD will now display.
Amount	Input a debit amount of $360,000.00.

Record the purchase of CBA Shares 

Select an account	Select
Create Investment	Select Investment
Investment Type	Select Shares in Listed Companies (Australian)
Securities	Select CBA.AX
Investment Code	Field will automatically populate based on the security code selected.
Name	Field will automatically populate based on the security code selected.
Click
Select an account	Select 77600/CBA.AX
Units	Input 400
Amount	Input a debit amount of $19,976.00
More details	Click  to input purchase details.
Contract date	Input purchase date 21/10/2010
Settlement Date	Input settlement date 24/10/2010

Record the purchase of BHP Shares at the respective parcel dates for CGT purposes

Select
Select an account	Select 77600/BHP.AX which was previously added to the global Chart of Accounts.
Units	Input 2388
Amount	Input a debit amount of $43,325.00
More details	Click  to input purchase details.
Contract date	Input purchase date 02/06/2000
Settlement Date	Input settlement date 05/06/2000
Select	to record the second purchase for BHP Shares
Select an account	Select 77600/BHP
Units	Input 900
Amount	Input a debit amount of $35,964.00
More details	Click  to input purchase details.
Contract date	Input purchase date 10/12/2009
Settlement Date	Input settlement date 13/12/2009

Record purchase of Listed Unit Trusts

Select
Select an account	Input 78200/GPT, which was previously added to the global Chart of Accounts.
Units	Input 12,700
Amount	Input a debit amount of $25,000.00
More details panel	Click  to input purchase details.
Contract date	Input purchase date 01/10/1995
Settlement Date	Input settlement date 04/10/1995

Record the opening Bank Balance as at 30/06/2020

Select
Select an account	Select
Create Bank Account	Select Bank
Make Default Bank Account	Select this option
BSB Number	Enter your bank account details
Account number	Enter your bank account details
Account Code	Input a unique bank code
Account Name	Input V2 Plus Account
Save Bank Account	Click
Select an account	Select 60400/ANZ
Amount	Input a debit amount of $411,016.30

Balancing Entry 

Select
Select an account	Select Account 99800 Unspecified Data Clearing Account
Amount	Input a credit amount of $895,281.30

 

Once your Balancing entry has been entered, save the transactions by selecting .

 

 

 

 

 

 

 

 

Liabilities

To complete the setup for the BGL Trust, the liabilities need to be entered. Referring to the balance sheet above:

 

 

From the Main Toolbar, go to Accounting.
Select Transaction list
Select the New Transaction.
Select Journal.

 

Date	Input 30/06/2020
Reference	Input 5
Description	Input Liabilities
Select an account	Select Account 58800/00001 - Unpaid Trust Distributions (Create Sub Account)
Amount	Input a credit amount of $6,049.56
Select an account	Select Account  - 58900/00001 Funds loaned to Trust (Create Sub Account)
Amount	Input a credit amount of $10,000.00
Add Line	Select
Select an account	Select Account 99800 - Unspecified Data Clearing Account
Amount	Input a debit amount of $16,049.56

 Once your balancing entry has been entered, save the transaction by selecting .

The following accounts are also available depending on your entity:

80500	Amounts owing to other persons	Control Account
81000	Interest Accrued	Control Account
83000	Investment Liabilities	Control Account
84000	GST Payable/Refundable	Normal
84500	Income in Advance	Normal
85000	Income Tax Payable/Refundable	Normal
85660	Liability Loan	Control Account
86000	PAYG Payable	Normal
88000	Sundry Creditors	Normal
89000	Deferred Tax Liability/Asset	Normal
89990	Migration Suspense Account	Normal

 

In this task, you will learn how to input the Operating Statement for comparative purposes. This step is optional based on whether you wish to report this year's profit and loss statement with comparative balances from the previous year.

In this task, you will learn how to input Operating Statement items as of 30/06/2020.

You will be using Journals to enter the Operating Statement items.

From the Main Toolbar, go to Accounting.
Select Transaction list
Select the New Transaction.
Select Journal.

Note: The investment income and expense accounts have been automatically created. This occurred when the investment accounts were created.

Date	Input 30/06/2020
Reference	Input 6
Description	Operating Statement
Select an account	Select Account 23800/GPT
Amount	Input a credit amount of $3500.00
More Details Panel	Click
Other Non-Assessable Amounts	Input Tax-Free Amount $400.00 and Tax-Deferred Amount $700.00
Select an account	Select Account 23900/BHP
Amount	Input a credit amount of $2200.00
More details panel	Click
Dividend Details	Input Franked Dividend of $2,200.00 and Franking Credit of $942.86

Continue entering the remaining operating statement items by selecting Add Line.

To save the transaction, select .

The following message will display:

Select Ok.

In this task you will learn how to update the ledger to the next accounting period to begin working on current-year transactions.

Under the Details section, change the Financial Year to the period post opening balances. Example: 01/07/2020 to 30/06/2021.

Once the Financial Year has been updated, select .

The Trust is now ready to be processed in the current Financial Year.