Unable to edit locked Corporate Action

Overview

If a Corporate Action in Simple Fund 360 is locked, this means the system has detected future CGT affecting transactions on the same investment that occur after the date of the Corporate Action. These future transactions prevent edits or deletion of the Corporate Action until they are addressed.

This can include transactions in the current period and in future periods (for example, in a later financial year). The system will lock the Corporate Action to maintain the integrity of CGT events and cost base sequencing.

Why it happens

A Corporate Action becomes locked because Simple Fund 360 recalculates Capital Gains Tax (CGT) outcomes in strict chronological order.

To unlock, please remove or reallocate Demergers, Disposals, Tax Deferred Distributions and/or other relevant CGT events after this transaction date posted to the same investment account.

These include transactions such as:

• Cost base adjustments after the Corporate Action.
• Disposals after the Corporate Action.
• Demergers after the Corporate Action.
• Deferred Tax entry to the income accounts after the Corporate Action.
• Tax-Free entry to the income accounts after the Corporate Action.
• AMIT cost adjustments to the income accounts after the Corporate Action. 

Check the CGT Register to locate the future CGT transactions in the general ledger that relate to the investment parcel of the locked transaction.

Solution

Below, an ANZ (demerger) Corporate Action on 02/06/2021 has been locked. 

Removing future disposals

1. Using the CGT Register search for the investment account to locate the locked Corporate Action and any disposals after the Corporate Action date.  

2. Navigate to the Transaction List and use the Transaction Filter to search for the Disposal transaction. Make sure to search in the correct period.   

3. Delete the disposal transaction.   

Please note the removal of the disposal transaction can not be reversed. Users may have to re-enter the disposal under this method. Also see how to delete a transaction.