SMSF Annual Return Rounding Reconciliation Process

To identify if this is the issue: Navigate to Accounting | Transaction List and filter the 24800 accounts using the search bar.

Note those transactions where the 24800 account is recorded along with 24700 account in a single transaction. Example: (*Right click the image to open in a new tab)

Once the issue is identified, reverse entries, and split the transactions between the 24800 and 24700 accounts. Example: 

Once split, re-create entries. 

Where the user has entered a manual revaluation to an Investment Account (70000 range), there must be a corresponding amount to account 24700. If there isn't a corresponding entry, the revaluation will be added to the rounding amount.

An indicator that this may be the fault can be found by comparing the Realised Capital Gains report and the Statement of Taxable Income.

• The "Realised Accounting Capital Gains" figure should match the total figure of the Indexed, Discounted and Other Gains under the Tax Treatment heading of the Realised Capital Gains Report. If it does not match, the difference will cause a Rounding amount in the Statement of Taxable Income.

•  If you do encounter a discrepancy, you can compare the Realised Capital Gains report to the Market Movement Report in order to locate the investments related to the rounding.

This may have been done unintentionally. For example, trying to enter a cost base adjustment where inputting "0" in the Units field is required however this field was left blank.

An annual rounding error can occur when debits and credits are posted to income or expenses respectively. 

The negative figures for the income / expenses cause issues with how tax is calculated, resulting in the rounding error.

• To review this, generate the General Ledger via the Reports screen and double-check any Income transactions (20000 - 29999 range) posted as Debits and all Expense transactions (30000 - 47999 range) posted as Credits:

A previous issue existed in the transaction matching process where dividend, contribution and interest transactions are missing tax data.

• For interest transactions, check if the total interest amount in the operating statement is equal to the total interest amount in the annual return. 
• For dividend transactions, check if the total dividend amount in the operating statement is equal to the total franked + unfranked + foreign income from dividends in the annual return. 
• For employer contribution transactions, check if the total contribution amount in the operating statement is equal to the total assessable contributions in the annual return plus non-assessable contributions in the SOTI. 

If any of the above transaction issues occur, you will need to adjust the individual transactions (editing the affected transactions and changing data that is missing in the More Details Panel). You may then re-create entries. Contact BGL Support on 1300 654 401 for further assistance. 

Review the Interest Income Reconciliation Report for amounts that may have a discrepancy. These transactions will then need to be edited and the Gross Interest updated to match the bank amount. 

Review the Dividend Reconciliation Report for amounts that may have a discrepancy. These transactions will then need to be edited and the franked/unfranked fields updated to equate to the bank amount.

Transaction recorded to Account 25000 but nothing to the gross interest column. If there is no gross interest and only foreign income then this amount should be posted to the 23800 account.

When making adjustments, especially for tax components, you will need to first Reverse Entries.

Note: There is no issue with having multiple Create Entries throughout the year so long as the transactions within those Create Entries periods don’t change, as the taxable income calculations can change. If transactions within those create entries periods change, then users will need to recreate entries