I'm entering the opening balances for a fund where:
- a pension was paid to a member in the previous period
- that member's account ceased sometime after the pension payment in the previous period
What do I do in Simple Fund 360 to make the previous period reports show the following:
- Statement of Financial Position: Pension account with 0 balance
- Operating Statement: Payment of pension
The following steps will need to be completed:
- Create a placeholder pension account to record the previous period's pension payment against.
When creating the accumulation account for the pension account, input a balance of $1.
- Enter the pension payment while entering the previous period's operating statement.
Delete the journal created by Simple Fund 360 when the pension account was created. This journal will have the description "New Pension Member".
Ensure that the pension account has a balance of 0 after this transaction is deleted.
- Enter an end date for the pension account to ensure that the ceased member is not allocated any amounts in the future.
When generating the reports, the Pension account will have a balance of 0 and the pension payment will appear in the operating statement.