All the figures in the beneficiary reports can be traced to other sections in Simple Invest 360, allowing you to confirm the figures are correct.
The main reports you can use to reconcile beneficiary reports are:
- Beneficiary Distribution Summary
- Annual Tax Statement
- Statement of Distribution
- Beneficiary Balance Summary
- Tax Reconciliation Report
This article will give a brief summary of each report and explain how each can be used for reconciliation purposes.
Beneficiary Distribution Summary:
The Beneficiary Distribution Summary is a direct reflection of the Distribute Profits screen that displays the tax components of all distributions for all beneficiaries.
The taxable distribution amount is the total of the tax components displayed on the same report and each of these items can be reconciled with other reports:
- The Income of the Trust Estate can be reconciled using the Beneficiary Balance Summary and the Operating Statement.
- The Tax components (Franked Distributions, Non-Primary Production Income, Capital Gains, Foreign Income, Other Taxable Income and Tax Offsets) can be reconciled using the Annual Tax Statement and the Tax Reconciliation report.
Note: Non-Primary Production Income
Non-Primary Production Income is displayed under different headings in the reports.
In the Beneficiary Distribution Summary, this income is split into distribution and non-distribution income.
However, the Annual Tax Statement displays this as Gross Interest, Other Income and Other Deductions Relating to Distributions.
Annual Tax Statement:
The Annual Tax Statement displays details for each beneficiary, the tax components for the distribution, and the Tax Return label related to each section.
These figures are best used to reconcile the individual tax components applied to each beneficiary on the Beneficiary Distribution Summary.
Statement of Distribution:
The Statement of Distribution provides a summary of distributions for each beneficiary.
This is a direct reflection of the Beneficiary Distribution Summary and the Distribute Profits screen.
Beneficiary Balance Summary:
The Beneficiary Balance Summary outlines the opening balance, total distribution, and closing balance for each beneficiary.
This can be reconciled with the Income of the Trust Estate displayed on the Beneficiary Distribution Summary and the total displayed matches the total distribution on the Operating Statement.
Tax Reconciliation Report:
The Tax Reconciliation Report is the link between the Beneficiary Distribution Summary and the transactions entered into Simple Invest 360. It outlines how all the Tax Return labels are calculated, showing each transaction that has been included in the total figure and the rounding that has been applied.
Each of the totals displayed on this report are combined to make the total tax components (Franked Distributions, Non-Primary Production Income, Capital Gains, Foreign Income, Other Taxable Income and Tax Offsets) on the Beneficiary Distribution Summary.
- The Distribution Reconciliation Report can be used to see a further breakdown of all transactions posted to 23800/Distributions Received.