Opening Balances - How to Setup an Individual

The balance sheet can now be entered into Simple Invest 360.

The following components of the Balance Sheet will be entered:

1. Assets
2. Liabilities
3. Equity

Assets

In this section we're going to cover an example of how to enter an investment (Telstra Corporation Limited).
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 the purchase of Telstra Corporation Limited.

Date	Input 30/06/2019
Reference	Input 1
Description	TLS [BUY 100 TLS.AX]
Select an account	Select
Create Investment	Select Investment
Investment Type	Select Shares in Listed Company (Australian)
Investment Code	Input TLS.AX
Name	Telstra Corporation Limited.
Save Investment	Select
Account	Account 77600/TLS.AX will now display.
Amount	Input a debit amount of $3000.00
Account	Select Account 99800 - Unspecified Data Clearing Account
Amount	Input a credit amount of $3000.00

 

Liabilities

We'll now look at entering liabilities for the individual based on the balance sheet above: We'll enter the example of an Investment Loan. In this example we will be using the 85660 Investment Loan account. In order to post to this account, we would first need to create a sub-account. 

From the Main Toolbar, go to Accounting.
Select Chart of Accounts
Locate the 85660 Investment Loan account using the Search Bar located in the top right hand corner.
Select the '+' icon, then select Sub Account
Determine the Sub Account code and name the Account. Select Save.

Now that the Sub Account has been created, you may post to it. 

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

 

Date	Input 30/06/2019
Reference	Input OB
Description	Input Investment Loan
Select an account	Select Account 85660/Loan (Investment Loan)
Amount	Input a credit amount of $31,000.00
Select an account	Select Account 99800 - Unspecified Data Clearing Account
Amount	Input a debit amount of $31,000

 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 Account
84500	Income in Advance	Normal Account
85000	Income Tax Payable/Refundable	Normal Account
85660	Investment Loan	Control Account
86000	PAYG Payable	Normal Account
88000	Sundry Creditors	Normal Account
89000	Deferred Tax Liability/Asset	Normal Account
89990	Migration Suspense Account	Normal Account

.

 

 

 

 

 

 

 

Equity

Equity accounts will often need to be created manually as part of the set up. For example, equity accounts such as drawings, capital contributions etc will need to be created manually within the 58060-58099 range. The system will post profit to Retained Earnings at the end of the year.

In this example we will post to the Opening Balance 58070 Account. As with the Liability example, in order to post to this account we would first need to create a Sub Account. 

First we will create the sub account - Individual Person #1.  

From the Main Toolbar, go to Accounting.
Select Chart of Accounts
Locate the 58600 Control Account using the search bar
Select the + icon.
Select Sub Account from the drop-down menu.
Enter the relevant information, including the Sub Account Code and name of the security. Once this has been entered, select Save.

Once the Equity account has been created, we will post the opening balance entry to the account. 

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

 

Date	Input 30/06/2019
Reference	Input OB
Description	Input Equity
Select an account	Select Account 58070/OB - Individual Person #1
Amount	Input a credit amount of $1,000,000
Select an account	Select Account 99800 - Unspecified Data Clearing Account
Amount	Input a debit amount of $1,000,000

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 30/06/2019.

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.

Select Add Line to add the remaining transactions that appear on the operating statement. Ensure that the transaction balances to be able to post the transaction in the ledger.

To save the transaction, select .

The following message will display:

Select Ok.

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

From within the Period Compliance screen, select 4. Close Period.

*Note that the other tabs - Calculate Taxable Income, Distribute Profit are not required to be processed at this stage. All required information should have been entered when entering opening balances. 

From within the Close Period screen, select the Close Period button. 


The Individual is now ready for the current financial year.