Query

A transaction related to an investment account has been locked. How can I edit it or delete the transaction?

Solution

A transaction will be locked, if Simple Fund 360 has detected future CGT event transactions to the investment after its transaction date.

To unlock, please remove or reallocate Demergers, Disposals, Tax Deferred Distributions and/or other relevant CGT events after this transaction date posted to the same investment account.

These include transactions such as:

• Cost base adjustments after the locked transaction.
• Disposals after the locked transaction.
• Demergers after the locked transaction.
• Deferred Tax entry to the income accounts after the locked transaction.
• Tax-Free entry to the income accounts after the locked transaction.
• AMIT cost adjustments to the income accounts after the locked transaction. 

Check the CGT Register to locate the future CGT transactions in the general ledger which relate to the investment parcel of the locked transaction. 

Example

1. Subsequent disposals after the initial transaction

A fund invested in 100 units of BHP shares on 10/04/2020 and disposed of 50 units on 10/05/2020.  

This can be confirmed on the CGT Register, as per below: 

Use the Transaction Filter to narrow the Transaction List by the investment account to assist you in locating future transactions. Before using the filter, users can also tick the System Journal checkbox to include system-generated journals, such as system revaluations.

Simple Fund 360 will lock the initial transaction on 10/04 once the disposal on 10/05 has been entered. 

To unlock the transaction, there are two methods available:

Method 1. Remove the subsequent transaction in order to update the locked transaction.

Check the box to select the relevant transaction and click Delete. This will unlock the transaction dated 10/04.

Please note the removal of the disposal transaction can not be reversed. Users may have to re-enter the disposal under this method. Also see how to delete a transaction. 

Method 2. Update the subsequent transactions by leaving units as blank.

Select the transaction on 10/05 to edit and remove the units. This allows the initial transaction to be unlocked. Users can thus update the first transaction dated 10/04. Once completed, users can then edit the subsequent disposal transaction by simply adding back the relevant units. This method saves users the trouble of re-entering the whole transaction.

2.  Subsequent Tax Components to an income account

A fund purchased 100 units of a listed trust and later received a distribution of $1,000, out of which $150 was Tax-free and $200 was Tax-deferred. 

This is noted on the CGT Register as per below: 

The system will then lock the initial purchase transaction of the listed trust. 

To unlock the transaction, users need to delete the distribution transaction or remove the tax components from the distribution. These transactions can be re-entered once the locked transaction has been updated.

3. Depreciation Transactions after the initial transaction

A property account has depreciation posted to it at the end of the financial year.

This is noted on the CGT Register as per below: 

The system will then lock the initial purchase transaction of the property

To unlock the transaction, users need to delete the depreciation transaction(s). Once the initial purchase journal has been changed, the depreciation transaction(s) can be reposted from the depreciation schedule.

Please note, users will be unable to view depreciation transactions within the transaction list without turning on the transaction type filters.

• For Capital works Deductions, users need to toggle on the filter to be able to view and delete the transaction.
• For any other depreciation method, users will need to toggle on the filter to be able to view and delete the transaction.