Scenario
If this rounding amount is caused by manual revaluations to an Investment Account (transaction to investment with blank units) and no corresponding entry has been entered to Account 24700, the steps below can be followed to reconcile the amount.
Step 1
Check if the changes in market movement in the Operating Statement matches the total market movement in the Notes to Financial Statements:
Operating Statement
The Operating Statement uses the balance in Account 24700 for the current year.
The Changes in Market Movement figure has been calculated using the transactions to Account 24700 in the current year:
Notes to Financial Statements
The Notes to Financial Statements uses any transaction posted to a system-unitised investment that has blank units.
The Total Market Movement figure has been calculated using the transactions to the investment accounts that have blank units:
Step 2
If the figures in Step 1 do not match, go to Accounting | Transaction List and tick all the Transaction Types below:
Review the transactions to check if there are any transactions entered to the investment accounts which appear in the Notes to the Financial Statements that have blank units and the other side is not posted to Account 24700.
Review the investments which appear under the unrealised/realised section of the Notes to the Financial Statements. The Notes to the Financial Statements will only display investments set to System-unitised in the Chart of Accounts. These are the only accounts that should cause this issue.
For example:
You can also use the Transaction List report in the Reports screen to review
Step 3
Add all the transactions which have been posted to the investment accounts with blank units.
In this example:
50 - 10 = $40
Check if this is the amount appearing as the SMSF Annual Return Rounding figure in the Statement of Taxable Income.
Step 4
You need to correct those transactions depending on the intended results.
- If the transaction should be a cost base adjustment entry, refer to the following help files:
Once the transactions have been modified, you will need to reverse and re-create entries before reviewing the reports.
- If the transaction is meant to be a revaluation, it is recommended to enter a Security Price under Investment | Investment Security List for the relevant investment so that the create entries process can automatically revalue the investment.
This is only required if it is not a listed security. If it is listed, SF360 will update the price.
The following message will display if the user posts an entry to an investment account with blank units and the other side is not to Account 24700.
