Overview
A dividend or distribution reinvestment is an additional purchase of units by way of dividend or distribution received from the investment to fund the purchase. Any residual dividend/distribution reinvestment balance that remains after unit purchases can be allocated to account 62550/INVESTCODE. This residual amount is the difference between the Cash Balance carried forward and the Cash Balance brought forward in the statement.
DRP Residual Accounts
Dividend Residual Account 62550/INVESTODE will be automatically linked to the following Investment Accounts: 74700, 74800, 76800, 77600, 77700, 78000, 78200, 78300, 78400, 78500 post release. Each of these investment accounts will have their own linked 62550 account for dividend/distribution residual amounts. Account 62500/INVESTCODE will still be available in the Chart of Accounts. You can manually journal the amount from 62500/INVESTCODE to the specific 62550/INVESTCODE if required.
You can add multiple DRP linked accounts where separate HINs/SRNs exist. Refer to Linked Accounts.
In the following example, the reinvestment will consist of:
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Bank of Queensland (BOQ) Ordinary Fully Paid Shares (1,126)
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Dividend amount of $405.36 received on the 12/05/2015 (franking credit of $173.73)
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Cash Balance brought forward of $11.81 giving a total amount for reinvestment of $417.17
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31 shares purchased at a cost of $404.96
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Cash Balance carried forward of $12.21 ($417.17 - $404.96)
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Dividend Residual amount of $0.40 ($12.21 - $11.81)
Most Australian Listed Shares are now supported by the Corporate Action Alerts in Simple Fund 360 and can be automatically processed.
Instructions
| From the Main Toolbar, go to Accounting. |
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| Select Transaction list |
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- From the Transaction List screen, select New Transaction. From the drop-down list, select Journal.
- Input the Date of the transaction and a Reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the transaction in the Description box.
- Tick the Dividend / Distribution Reinvestment check box.
- Under the Account heading, click on the Select an account box and type in the investment account for which additional units are being purchased using the dividend/distribution (in this example, 77600/BOQ.AX). Since the Dividend / Distribution Reinvestment check box is ticked, Simple Fund 360 will automatically add the linked income (for example, 23900/BOQ.AX) and dividend residual (62550/BOQ.AX) accounts to the investment to the transaction.
- Input the number of units received (31) using the dividend/distribution reinvestment in the Units column to the investment account 77600/BOQ.AX and the amount of the purchase ($404.96). Input the income amount to Account 23900/BOQ.AX. The residual amount ($0.40) will be posted Account 62550/BOQ.AX.
- Select More + to review the franking credit ($173.73) information in the Dividend Details or Distribution/Interest Details section.
- After you have entered all information for the transaction, select Post to add the transaction and to view the Transaction List screen, or select Post & Add Another to add the transaction to the Transaction List, but remain on the Journal screen.