Investments Accounts to Simple Fund 360
Investment accounts fall under the 70000 account code range. An INVESTCODE is used to represent each investment account in the chart of accounts.
For example, account 77600, Shares in Listed Companies will have multiple sub accounts for each fund. The chart of accounts will distinguish between the different share accounts by using a unique INVESTCODE (for example, 77600/INVESTCODE) for each account falling under 77600.
The INVESTCODE is the sub account code for each investment of the fund.
When you add an investment to the chart of accounts, you are required to attach a security to the investment from the Securities List. When you attach a security to the investment account you are creating, SF360 will use the security to form the INVESTCODE for the new investment.
- Is up to twenty alphanumeric characters in length
- Takes the form of the listed security that is tagged to the investment
How to add Investments to the Chart of Accounts
1. From the Chart of Accounts screen, select Add Account and select Investment. The New Investment Account screen will appear.
2. Under the Account Class heading, select Sub Account.
3. Choose the Investment Type. This will determine the account number used in the chart for the created investment.
|Fixed Interest Securities - Australian
|Fixed Interest Securities (Australian) - Unitised
|Fixed Interest Securities - Overseas
|Fixed Interest Securities - Overseas (Unitised)
|Fixtures and Fittings (at Written Down Value)
|Fixtures and Fittings (at Written Down Value) - Unitised
|Government Securities (Australian)
|Government Securities (Overseas)
|Interests in Partnerships (Australian)
|Interest in Partnerships (Overseas)
|Leased Assets - Unitised
|Limited Recourse Borrowing Arrangements
|Insurance Policies - Unitised
|Loans to Associated Entities (In House Assets)
|Loans to Associated Entities (In House Assets) - Unitised
|Managed Investments - Australian
|Managed Investments - Overseas
|Mortgage Loans (Australian)
|Mortgage Loans (Overseas)
|Motor Vehicles (At Written Down Value)
|Motor Vehicles (At Written Down Value) - Unitised
|Plant and Equipment (at Written Down Value)
|Plant and Equipment (at Written Down Value) - Unitised
|Pooled Superannuation Trust
|Real Estate Properties (Australian - Residential)
|Real Estate Properties (Australian - Non Residential)
|Real Estate Properties (Overseas - Residential)
|Real Estate Properties (Overseas - Non Residential)
|Shares in Listed Companies (Australian)
|Shares in Listed Companies (Overseas)
|Shares in Unlisted Private Companies (Australian)
|Shares in Unlisted Private Companies (Overseas)
|Units in Listed Unit Trusts (Australian)
|Units in Listed Unit Trusts (Overseas)
|Units in Unlisted Unit Trusts (Australian)
|Units in Unlisted Unit Trusts (Overseas)
Attach a security to this investment. SF360 will now produce an INVESTCODE and name (this is editable upon creation only).
If the security is already created from Investment Security list, then users can type in the code or names of the security and the security will appear in the drop-down list for users to select.
If the security does not appear in the drop-down list, select Create New to add the security to the list. Refer to How to process Securities for steps.
SF360 will automatically attach the investment to the fund. If you want to attach the investment account to other entities in SF360, tick the Attach to all Entities? check box. Click Select Entities which will take you to the Multi Entity Selector screen if you wish to add SMSF, Trust or Company Entities.
If you are adding Shares to Listed Companies, refer to Adding Shares in Listed Companies to a Fund's Chart of Accounts for more information.
5. Next, select More Details to input the following information for the investment:
|System - More Details Label
Depending on the investment type, Unitised or Non Unitised Investment will appear by default. Unitised investments such as shares are investments that are revalued and disposed of (while non-unitised investments are not revalued and are not subject to CGT, such as a Term Deposit). SF360 will select the appropriate More Details label.
SF360 will select the appropriate tax return label. The tax label is based on the fund's current financial year and the ATO tax return labels of that particular year.
In House Status
Select the In House Status of the investment (if applicable).
Asset subject to CGT
By default this check box is ticked. This asset is subject to CGT upon disposal.
Displayed in this section are the linked accounts to the investment that have been created by SF360. Select Add Link Account to add another linked account to the investment or Delete to remove a linked account. SF360 will create income, expense and liability accounts for the investment.
Note: Users are able to manually update items above in the More Details section, even after the account is already created. Caution is needed when change is to be made after there are already transactions recorded in the same account.
6. Once you have finished inputting the investment account information, select Save to add the investment account to the chart of accounts or Cancel to not add the account.
When an investment account is created, SF360 automatically adds a series of linked accounts to the investment. These linked accounts consist of a combination of income, expense, receivable and liability accounts to an investment. You can add as many linked accounts to an investment account as required.
These account linkages between investments and their income and expense accounts are essential for the correct calculation of profit/(loss) on disposal of investments, exempt current pension income where applicable.
To add or view the linked accounts to an investment first select the investment from the chart of accounts. From the Edit Investment account screen, select More Details.
- From the chart of accounts, locate the investment control account (for example, 77600) and select the + sign. This will display all sub accounts for this investment type.
- Select the sub account to edit. The Edit Investment Account screen will appear.
- Select More Details >>. You can now view and change the linked accounts created by SF360.
It is recommended that Shares in Listed Companies - Australian are added to your firm's Global chart of accounts only once. This one account can then be attached to multiple funds which hold shares in this investment, or go on to purchase shares in this investment in the future.
The reasoning behind this stems from:
- Where the BGL Contract Note Service is used, SF360 will automatically process buy and sell transactions to the share account with the initial security code.
What is meant by the initial security code?
When Shares in Listed Companies are added to the chart of accounts, a security must be selected from the list. A listed security will take the form of the ASX code with ".AX" added to the end of the ASX code.
For example, CCL will display as CCL.AX.
If an additional share account is added into any fund in your SF360 firm, it will take the next available code. In this example, the next available code is CCL.AX1.
Is there an issue with the additional digit after .AX?
Automated services such as the Contract Note Service will still upload transactions for share accounts with additional digits.
The contract notes transactions will allocate to the investment account which contains units.
How do I attach the share account to a fund's chart of accounts correctly (instead of creating them again)?
Within the fund, head to the chart of accounts.
|From the Main Toolbar, go to Accounting.
|Select Chart of accounts from the list.
Select Global View.
Input account 77600 and select the Search icon. Display the sub accounts for 77600 by clicking the + sign.
Select the sub account and the Edit Investment Account screen will appear. Choose the fund to attach to the account (Select Entities) and select Save. Select Save again to update the account.
Note: Select Attach to all entities? to attach this account to all entities. This is a useful tip for your most commonly recorded listed investments.
I have found a share account with an additional digit (CCL.AX1). How do I fix this?
See Duplicate Listed Securities for instructions.