When a fund is migrated which contains a member initially in accumulation phase but commenced a pension account later on in the same financial year internal transfer journals are generated by the system for contribution amounts?
Internal transfers are generated by Simple Fund 360 as the pension account once migrated does not contain a contribution chart account (in contrast to the Simple Fund desktop) for any contributions made during the last financial year to be migrated to. Therefore the contribution transaction(s) in Simple Fund desktop are allocated to a dummy accumulation member account on migration. Simple Fund 360 will then generate an internal transfer journal to move the contribution balance back to the pension account.
This is reflected in the following example journal whereby $500 worth of contributions are transferred to the pension balance:
- Contribution amounts from the last financial year that form part of the pension balance for the member in Simple Fund Desktop.
- The contribution amount is transferred to a dummy accumulation account (see account 52420 below) created during the migration process.
- Simple Fund 360 completes an internal transfer from the dummy accumulation account to the pension account transferring the contribution amounts.