Please take the following steps to adjust profit against reserve accounts.
Create a reserve account in the Chart of Accounts
1. Navigate to the Chart of Accounts
|From the Main Toolbar, hover the cursor over the Accounting icon|
|From the side menu, select Chart of Accounts|
2. Select Add Account. From the drop-down menu, select Other
3. Select Normal for Account Class. Create an account in the 58000 range, name the account then select Save.
For the purposes of this example, we will be using the 58215 account and naming the account Unrealised Gains Reserve.
Adjusting profit against reserve accounts: Navigation
1. Navigate to the Period Compliance screen
|From the Main Toolbar, hover the cursor over the Compliance icon|
|From the side-menu, select Period Compliance|
2. Select Calculate Taxable Income from within the Period Compliance screen.
Simple Invest 360 will automatically adjust profits to reserve accounts according to the following entities:
58450 - Investment Revaluation Reserve
58460 - Capital Loss Reserve
|Companies||58665 - Investment Revaluation Reserve|
|Individuals||58065 - Investment Revaluation Reserve|
Select the x icon to remove the allocation.
Alternatively, select Reverse Period from the Period Compliance screen to reset the selected financial year.
- Note: This will reverse any other changes entered in the Year-End process including any amounts entered in Step 2: Distribute Profit.
Adjusting profit against reserve accounts: Manual process
1. Determine the figure that you wish to reserve. For this example, we will be reserving the entire increase in MV of Investments
2. Add the reserve account. This can be done scrolling down to the Reserve section and selecting the Select Reserve Account drop down arrow. Locate the reserve account that you created above.
3. Enter the reserve amount.
Note that the first time this reserve account will be used, the balance will be 0. To increase the balance, enter the balance as a negative (-), to decrease the balance, enter the balance as a positive (+).
4. Select Save & Continue
5. Note the adjusted earnings available for distribution on the following page.