Overview
The Close Period process for Trusts is completed at the end of each financial year. Closing the financial year will close the ledger forward to the next financial year, and as part of the year-end process, users are also able to select beneficiary account balances to be closed to the beneficiary’s opening balance account.
Navigation
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Navigate to Compliance from the Main toolbar |
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Select Period Compliance |
Select Start Workflow for the selected Period.
Note: The Period currently defaults to one whole financial year and can be changed to a partial financial period.
As part of the Workflow, users may review the breakdown of items in the calculation of taxable income, and change the tax labels, where applicable. Then proceed with distribute profit and here, users are also able to process inter-entity distribution journals for beneficiary entities. Finally, view the relevant tax reports.
In the final stage of Close Period, the beneficiary control accounts will display:
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58710 |
Capital Contributed |
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58720 |
Gift |
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58800 |
Unpaid Trust Distributions |
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58900 |
Funds Loaned to Trust |
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58950 |
Drawings |
Additionally, any user-created Beneficiary accounts will also display in this list
Select the checkbox to move the control account to the 58700/XXX - Opening Balance – Beneficiary account.
Select
System Journals
Once the Close Period has been processed, system journals are automatically posted, and will differ depending on the control account selected, and whether the balance had been negative or positive.
For example, a Trust had a balance of $30.00 in 58720 – Gift, and ($40) in 58800 – Unpaid Trust Distributions as at 30/06/2019.
The Trust decides to close the two accounts to the 58700 – Opening Balance Beneficiary account.
Once Close Period has been processed, the following system journal will be posted automatically:
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Date |
Account |
Debit |
Credit |
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01/07/2020 |
58720/xxx – Gift |
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30 |
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58800/xxx – Unpaid Trust Distributions |
40 |
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58700/xxx – Opening Balance Beneficiary |
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10 |
These system journals will be locked in the Transaction List.
Re-Open Financial Year
To reverse a closed financial year in Simple Invest 360, Select the previous year from the Timeline and select Re-open Period.
Note: The Re-open icon will not appear unless the close period was previously processed.
Reports
Listed under the Financial Reports section of the Reports screen, the Beneficiary Balance Summary Report is available, which enables users to have an overview of the movements in the Beneficiary balance.
Accounts that are not closed to the Opening Balance – Beneficiary account will be listed separately.