Tax Effect Accounting will create a provision for deferred income tax. When Tax Effect Accounting has been selected the create entries process will calculate the PDIT/FBIT for the fund and post an entry to account 89000 - Deferred Tax Liability.
The calculations will take into account whether the fund members are in Accumulation or Pension phase, and use the Segregation Policy or Pension Policy to adjust the tax provision.
Turn on Tax Effect Accounting
Tax Effect Accounting can be switched on or off from Fund Details | Reporting.
|From the Main Toolbar, go to Fund.
Select Fund details from the list.
Under Reporting, select Tax Effect Accounting.
If enabling Tax Effect Accounting for a fund for the first time, Simple Fund 360 will retroactively apply tax effect accounting to all of the fund's transactions since the fund's inception.