We recommended creating the segregation policy at the start of the financial year.
While segregation policies can be created at any time, issues can arise when transactions have already been processed in that financial year.

This is because while the Segregation Dashboard will allow users to allocate investments currently held by the fund, the dashboard will not display any investments disposed of in the year.

• These disposed investments should have been accounted for in the segregation policy prior to their disposal to ensure any income and expenses are allocated correctly.

For these reasons, we recommend segregating at the start of the year, then updating the policy at year-end, and whenever purchases were made throughout the year.

Access can be restricted and granted from the Simple Fund 360 user roles. Refer to Invite User, User Roles and Reset Password option.

The segregation policy is normally updated on a year by year basis.  If the policy does not change, the existing policy can be copied across to the next financial year. Segregation policy can also be updated part way through the year as changes are made. (e.g. further allocate investments or expenses to the pool)

Users have the option to set multiple policies for a period of less than a full financial year. Input a Start Date and End Date, and select Set Policy Period. Note Create entries is required to match exactly the policy period before setting the policy, so that member balance is updated.

Two reports are available:

• Non Deductible Expense report
• Exempt Pension Income Reconciliation report

When investments are pooled to a pension pool, capital gains are not recorded on the SMSF Annual Return. Refer to Capital Gains have not been reported on the SMSF Annual Return for more.

Multiple Pension accounts are able to share the same pool.

Simple Fund 360 allows users to create pools which contain both accumulation and pension interests.

Simple Fund users have requested this feature in order to segregate a bank account between pension and accumulation accounts.

The ATO has confirmed in TD2014/7 that a bank account can be shared between pension and accumulation pools of assets, provided appropriate accounting records are kept.

• One way is to allocate a percentage for members to share a pool, which would allow a percentage to be applied to assets in the same pool among different members.
• An alternative to allocating a percentage is to create sub-accounts for each individual member under a control asset account. Members can then allocate their share of the asset under different sub-accounts respectively to their own pool. Please also check article How to allocate an investment across/to multiple pools for further details.

The policy period will automatically default to the current financial year.

When allocating the fund assets to pools, the asset values may not match the current member balance due to current-year transactions which may have already been processed. The values appearing in the segregation dashboards are current-day estimated allocations. The member balances will be finalised at the 30 June create entries.

The investment-linked accounts will be moved across automatically when an investment is allocated to a pool.

Unlimited pools can be created in Simple Fund 360.

Multiple Accumulation accounts are able to share the same pool.

In addition, Simple Fund 360 also supports income allocation from investments based on the segregation policy, whilst calculating income-tax related items based on the proportionate method and apply this to members. See Use segregation for income allocation only for more

Please refer to: Allocating an investment across/to multiple pools

To allocate an expense to a member:

1. The expense account type must be normal; and
2. There must existing transactions in that account.

When a fund is segregated, Simple Fund 360 will apportion the expenses (General and Admin expenses) based on the members' weighted balances.

Example

In a fund, there is no other investment except for a bank account and there are two members.

Account 60400 Bank Account has been allocated to Member A

If you process an expense of $1,000 for accounting fees:
DR Account 30100 - Accounting Fees
CR Account 60400 - Bank

Therefore, this will reduce the bank balance and thus the overall Net Value of Assets by $1,000. Since this is a general expense, it is not allocated to only Member A but is apportioned instead between the two members based on the members' weighted balances.

This is why, in this case, it is not possible to reconcile the Overall Value of Net Assets with the members' statements.

Yes, even after the asset has been disposed of, Simple Fund 360 will allocate the income amounts from that asset per the defined segregation policy.

For example, consider the following timeline:

Simple Fund 360 will still have allocated the dividend paid on 10/01/18 as per the defined segregation policy.

Investments with no balance and investments that have been disposed of in the current year to $0 will not show on the segregation screen.

To make the investment account appear, delete/reverse the disposal transaction and ensure that the investment has at least 1 unit and $1 balance in the current financial year.

With segregated assets, the receivable amount is excluded from the pooled total liability for accrued benefits allocated to the member account, as income has not been received. 

It will show under unallocated and when the income is received in the next year it will show under pooled accrued benefits as its income.

The Create Entries logic prevents standalone expenses from being segregated for tax purposes. 

Our current workaround for this issue is to change the tax label of the segregated expenses of the pension pool/s' to "Non-Dectuctible" (Non Tax-Deductible Expenses) and leave the labels of the pool as is.

Our product team is currently working towards a permanent solution.