Profit allocation for Companies will be finalised via the Pay Dividends screen in Simple Invest 360.
Note: This screen is currently only available for Companies. For Trusts and individuals, please also check articles on distributing profit for Trusts and how to allocate profit and loss for individuals.
|Navigate to Compliance from the Main toolbar
|Select Period Compliance
Select the Distribution Frequency. You can select between yearly, quarterly or monthly Profit/Distribtuion 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.
2. Pay Dividends
In the next stage of Pay Dividends, the Earnings Breakdown will display with Earnings available for distribution showing as the subtotal.
Select Edit besides Franking Credits Available, to view the Franking Account Worksheet.
Select the Franking Rate, which will affect the calculated franking credits per shareholder.
The Record Date and Payment Date will default to the period end based on the distribution frequency.
Users can process the dividends by entering the Dividend Amount (% or $) and Franked % for each unit class.
*Where a shareholder does not hold any share class information, the Dividend Amount (% or $) and Franked % can be entered per shareholder.
Once entered, this will automatically populate the Franked Amount, Unfranked Amount and Franking Credits for each shareholder. These details cannot be edited and will be locked on screen.
Once the distribution has been entered, the system will also calculate the closing retained earnings to be carried forward to the next financial year.
Click on the dropdown for Current Period Transactions to view all dividends paid to the shareholder for the period.
Note: Users can hover the cursor beside shareholders to reveal the Edit iconto update shareholder details.
System journals will differ depending on the specific profit/loss scenarios.
For more information regarding the system journals posted, click here.
Reprocess Profit and Tax Distribution
System journals posted for earnings and tax distribution will be locked in the Transaction List.
To update the dividends, return to the Pay Dividends tab in Period Compliance.
Users are able to update the dividend details on screen.
Once clicking the system journals will be re-posted accordingly.
To remove all system journals posted from the Pay Dividends screen for the current financial year, select Reverse FY 20XX System Dividends on top of the screen
Manage the Profit/Distribution workflow by using the Timeline.
The Timeline will allow you to select the previous period in the Financial Year.
Selecting a previous period will allow you to Reverse Period if you ever need to reprocess the Profit/Distribution calculation. Simply click .