Support Query
How do I write back tax deferred amounts?
Solution
To write back Tax Deferred amounts, the following journal entry will need to be entered in Simple Fund 360. It is recommended to post the following entry on the 01/07/** once tax effect accounting has been switched off.
Which entry to record depends on whether the Deferred Tax is allocated to a specific member.
Allocated to specific member:
| Account | Debit ($) | Credit ($) |
|---|---|---|
| Deferred Tax Liability/Asset - 89000 | X,XXX | |
| Writeback of Deferred Tax - 49300/MemberCode | X,XXX |
Unallocated*:
| Account | Debit ($) | Credit ($) |
|---|---|---|
| Deferred Tax Liability/Asset - 89000 | X,XXX | |
| Writeback of Deferred Tax (unallocated) - 49350 | X,XXX |
The Unallocated Method requires an open Accumulation account.
The unallocated method will distribute the writeback of deferred tax to all open accumulation accounts on the date of the writeback. This is based on their weighted member balance.
If there are no available accumulation accounts, this writeback will not be automatically allocated causing the Statement of Financial Position to be out of balance.
Note: You can find the balance of deferred tax amounts through the Deferred Tax Reconciliation Report.