Overview
I have migrated a fund to Simple Fund 360 but now need to make an amendment to the prior year accounts which were completed in Simple Fund desktop. What do I need to do to complete this?
Please note that the word "amendments" here is taken to mean both making changes to the transactions in the migrated year and, if applicable, amending the annual return.
Solution
There are two options available to amending the fund's data for the migrated financial year:
- Deleting the fund in Simple Fund 360
- Making manual journal adjustments in Simple Fund 360
Deleting the fund in Simple Fund 360
This option is the easier option and is recommended over attempting to journal adjustments to the fund in Simple Fund 360. The following steps will need to be completed:
- Process the amendments in Simple Fund Desktop
- Delete the fund in Simple Fund 360
- Re-migrate the fund into Simple Fund 360
As this option involves deleting the fund in Simple Fund 360, funds that have already been processed for financial years after the migrated fund year will need to take this into consideration. Generally, deleting a fund then reprocessing future periods will still be quicker than attempting to journal adjustments to the fund in Simple Fund 360.
We recommend using this method if possible as it is easier, quicker, and less error prone.
To delete a fund, please refer to Deleting a Fund.
Journal adjustments to fund in Simple Fund 360
This option can be appropriate for funds where the fund has been processed beyond the migrated year period in Simple Fund 360 and it is not feasible to lose the transaction data entered after the migrated year.
You will need to work with the BGL Support Team to process this option.
As the accounts in Simple Fund 360 are different from those in Simple Fund Desktop, we recommend referencing the following guide to become more familiar with the accounts in Simple Fund 360:
Consolidated Chart of Accounts
The following steps will need to be completed:
- Process the amendments in Simple Fund Desktop
- Compare the Trial Balances between Simple Fund Desktop and Simple Fund 360
- Post the reconciling journals in Simple Fund 360
Process the amendments in Simple Fund Desktop
This will be done to create the Trial Balance that will be used to compare to Simple Fund 360's Trial Balance.
Compare the Trial Balances
Compare the Trial Balances of Simple Fund Desktop and Simple Fund 360. All differences in the Trial Balance will need to be noted (highlighted or other method) as these will be the basis for creating the reconciling journals in Simple Fund 360.
Post reconciling journals
The following steps will need to be completed:
- Set the financial year of the fund in Simple Fund 360 to match the migrated financial year
- Record the reconciling journals
Record the reconciling journals using the highlighted differences noted above in step 2. This is to be completed not by editing existing journals, but instead to add a new transaction.
To post a journal in Simple Fund 360, please refer to Transaction Input in Simple Fund 360.
Considerations
Please note the following considerations when recording the reconciling journals.
Member journals
When attempting to record the reconciling journals to member accounts, you will be prevented from posting entries directly to the member accounts by Simple Fund 360.
For all reconciling journals that post to a member account, instead, for increases in member balances post the entry to the Members Internal Transfer In account (56100) and for decreases in member balances the Members Internal Transfer out account (57100). When recording these transactions, ensure to complete the more details panel to specify the preservation and taxable components.
Once the transaction is posted, log a support call to give access to the fund for the BGL Support Team. The team will require access to your fund to allocate the transaction to the corresponding member accounts.
CGT Relief (Cost Base Reset)
For funds amending the 2017 Financial Year, the deferred notional gain, if any, will need to be considered for every investment parcel.
For all investment parcels you wish to apply CGT Relief to, please ensure the following:
- The investment parcel has a contract date of 30/06/2017.
Please refer to Investment Purchases for more information about setting the contract date of an investment purchase. - The deferred notional gain is provided to the BGL Support Team
TBAR
Additionally, funds amending the 2016-17 Financial Year will also need to consider the effects of amending member balances on previously lodged TBARs.
Previously lodged TBARs with an incorrect member balance will need to be cancelled and a new TBAR lodged with the correct balance.
The lodged TBAR can be cancelled by referring to the following link:
Once the previously lodged TBAR is cancelled, manual TBAR events will need to be recorded in Simple Fund 360. For instructions on how to do this, please refer to Adding an Adjustment.
After the TBAR events for the fund have been recorded, a TBAR file can be prepared in Simple Fund 360 and then lodged on the Tax Agent Portal. Please refer to the following resources for more information: