Return of Capital (Notifications)

Process a Return of Capital

1. From the Corporate Actions screen, view the Type column. Confirm Return of Capital appears under the column before proceeding. 
   
   
   
   
2. Select Process under the Action column.
   
   
   
   
3. The Security will be automatically selected.
   
   
   
   
4. Return of Capital will appear as the Corporate Actions Type.
   
   
   
   
5. Select the chart account for the corporate action (for example, 77600/BHP.AX).
   
   
   
   
6. The Ex / Balance Date (Corporate Action Ex Date) and the Corporate Action Date (Transaction Date) will be selected. Simple Fund 360 will create a return of capital transaction in the Transaction List based on the corporate action date that was entered; and parcels dated prior to the Ex / Balance date will be affected by the action.
   
   
   
   
7. The return of capital payment amount will pre-fill.
   
   
   
   
8. The Corporate Action Summary will appear below. Select Process Corporate Action to post the return of capital.
   
   
9. The payment amount will be posted to the Transaction List. 
   
   
   
10. When the payment amount is received in the bank, record a bank statement transaction clearing account 94910 (Investment Movement Data Clearing Account). See below for steps.

Record the payment received to the bank

1. From the Transaction List screen, select New Transaction. From the drop-down list, select Bank Statement. 
2. Input the date the payment amount was received and a reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the receipt in the Description box.

3. Under the Account heading, select the bank account from the Select an account box. For Simple Fund 360 to automatically select this bank account by default when entering bank statement transactions, tick the Default Bank check box.

4. Click on the next Select an account box. Begin typing and select account 94910.

5. Input the amount of the return of capital to account 94910 as a Credit. 
   
   
   
   
6. Select Post to add the transaction to the ledger and complete the return of capital.
7. If desired, select the payment received to the bank and the corporate action and match the transactions together. This results in one transaction for the corporate action:
   
   

How to delete a Return of Capital

If you are required to change a corporate action, you can delete and re-process the action from the Corporate Action screen. 

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

Alternatively, you can access the Corporate Actions screen from the Transaction List: 

Locate the corporate action to delete. Select the check box located next to the transaction and Delete.