The following is a guide for how to distribute income for non-taxable Trusts
The current functionality available in Simple Invest 360 to cater to a non-taxable Trust is to allocate profit to the Retained Earnings account, rather than a Beneficiary. To process this in the Distribution Screen, any amount of profit that has not been allocated to a Beneficiary will automatically be posted to Retained Earnings.
Please see the following example:
You'll note that the Earnings Available for Distribution is $60,000. Of that $60,000, I have allocated $10,000 to a Beneficiary. This leaves the Closing retained earnings figure at $50,000. The Closing Retained Earning figure includes the Opening Retained Earnings value plus any profit that is not allocated to a Beneficiary.
When you click Post & Continue, the system will allocate the $10,000 to the Beneficiary and the rest ($50,000 in this example) to the Retained Earnings account. You will see these journals then posted under the System Journals section in the Transaction Screen.
For the Tax Components section of the Distribution Screen, you can click on the Autofill % section. This will autofill the tax components based on any percentage allocated to a Beneficiary. However, given the varying nature of Trusts, you may need to manually adjust some of the tax components or clear them out if required. The tax components section is fully editable for each Beneficiary.