When posting a transaction with tax-deferred/tax-free amounts I receive the following message:
"Tax-Deferred /Tax-Free components cannot be entered as the investment has been fully disposed in prior years or has no purchase parcel entered."
This message will appear if you are trying to post tax-deferred or tax-free amounts When an investment has been fully disposed of in a prior financial year or has no purchase parcel entered.
Tax-deferred and tax-free amounts should only be recorded to investments with units still on hand.
Simple Fund 360 will only adjust investment holdings by tax-deferred and tax-free amounts for current purchase parcels on hand and will only re-process disposal transactions for current year holdings.
In order to enter the tax components, the following solutions may be relevant:
1. Create Entries processed part way through the year after a full disposal of the investment, but before the distribution is received in the same financial period.
Users may need to reverse Create Entries to enter distribution components.
Where Create Entries is not performed when entering tax components relating to a fully disposed security in the same financial period, the following message will prompt. Select Continue to allow the system to reprocess disposals automatically.
2. Improper processing of distributions in the previous financial period.
Distribution should be recorded on an accrual basis. Where distribution is actually received in the next financial period, the following entry should be processed in the previous period when it was recognised.
Dr. 61800 Distribution Receivable
Cr. 23800 Distribution Received
23800 account allows tax deferred/free components to be recorded where applicable.
Users may need to reprocess the distribution for the previous period in this case.
Note: This message can also appear if you are posting amounts to an income account not linked to an investment account in the Chart of Accounts.