How does Simple Fund 360 automatically revalue securities?
Simple Fund 360 applies revaluation journals to all automatically revalued investments overnight.
Example
A fund has the following holdings:
| Account | 77600/BHP.AX - BHP Billiton |
|---|---|
| Units held | 1,000 |
Consider the following share price movement:
| Date | 15/06/2016 | 16/06/2016 |
|---|---|---|
| Share Price | $10 | $12 |
| Balance | $10,000 | $12,000 |
Simple Fund 360 will post the following revaluation entry:
| Date | 16/06/2016 | |
| Account | DR ($) | CR ($) |
|---|---|---|
| 77600/BHP.AX - BHP Billiton | 2,000 | |
| 24700 - Changes in Market Values of Investments | 2,000 | |
On the first Saturday night of every month, these daily revaluation entries are replaced by a single journal entry. Simple Fund 360 does this by deleting all the daily system revaluation journals and posting a single system journal that summarises the monthly net revaluation that will be applied to the investment.
When are system revaluation entries made by Simple Fund 360?
Daily system revaluation entries are made by Simple Fund 360 in the following most common scenarios:
-
Create Entries: When creates entries is run for the fund. If there are any future revaluation entries for the investment after the create entries end date, these will be deleted and replaced with a single transaction summarising those future revaluation entries. This transaction will be dated one day after the create entries was done.
Revalue all securities
To revalue all securities at a particular date, run the create entries process using the date you wish to revalue the securities at as the end date for the create entries segment.
Please note that in Simple Invest 360, there is no Create Entries function. Instead the year end revaluations are triggered when you click on Start Year-End Workflow or Calculate taxable income button. - Disposal: When a disposal occurs. Similar to the create entries scenario, all future revaluation entries after the disposal date will be replaced by a single transaction summarising those future revaluation entries. This transaction will be dated one day after the disposal date.
- Member date: When a member has a new End Date or Start Date entered for them.