Opening Balances: Setting up a new fund

First the member balances will be entered.

When inputting members' balances, you must set:

1. The correct preservation amount, and

2. The correct taxation components

It is important to record the correct preservation and taxation components amounts as they will affect the taxation on future withdrawals from the SMSF.

From the Main Toolbar, go to Accounting.
Select Transaction list from the list.
Select the New Transaction.
Select Journal.

Note that when entering opening balances, you are entering the closing balance for the period. For example, if you are entering opening balances for the 2015 financial year, you would post entries to the 30/06/2015.

 

From the Transactions screen, input the members' opening balances.

Date	Input 30/06/2015
Reference	Input 1
Description	Opening Balance - John Jones
Select an account	Select Account  50010 JJones-(opening Balance)
Amount	Input a credit amount of $509,129.30
More Details Panel	Select to enter the opening Balance Details
Rollover Components	Input Tax Free Component $58,939.30
	Input Taxable Component $450,190.00
Preservation Amounts	Input a Preserved Balance of $509,129.30
Select an account	Select Account 94920 Member Data Clearing Account
Amount	Input a debit amount of $509,129.30

To post the journal, select Post.

 Repeat the above steps for Mary Jones.

With the introduction of the Smart Docs - CGT screen, users are able to enter investment history by uploading Financial Statements and quick data entry directly into Simple Fund 360. For further information, please see Smart Docs - CGT.
Alternatively, When entering investment history, purchases must use the more details panel and input the actual date of purchase. The contract date must be entered in to provide accuracy of your reports and calculations for further processing. If the contract date has not been entered, when you dispose of the investment in the future, Simple Fund 360 will not be able to recognise the original cost base and will therefore calculate incorrect capital gains.

Fund Investments must be entered at the original purchase price.

In this task you will learn how to input all investment history.

From the Main Toolbar, go to Accounting.
Select Transaction list from the list.
Select the New Transaction.
Select Journal.

Record purchase of Westpac Term Deposit

Date	Input 30/06/2015
Reference	Input 3
Description	Investment Purchase History
Select an account	Select
Create Investment	Select Investment
Investment Type	Select Fixed Interest Securities (Australian)
Investment Code	Input WPTD
Name	Westpac Term Deposit
Save Investment	Select
Account	Account 72400/WPTD will now display.
Amount	Input a debit amount of $360,000.00.

Record the purchase of CBA Shares 

Select an account	Select
Create Investment	Select Investment
Investment Type	Select Shares in Listed Companies (Australian)
Securities	Select CBA.AX
Investment Code	Field will automatically populate based on the security code selected.
Name	Field will automatically populate based on the security code selected.
Click
Select an account	Select 77600/CBA.AX
Units	Input 400
Amount	Input a debit amount of $19,976.00
More details	Click to input purchase details.
Contract date	Input purchase date 21/10/2010
Settlement Date	Input settlement date 24/10/2010

Record the purchase of BHP Shares at the respective parcel dates for CGT purposes

Select
Select an account	Select 77600/BHP.AX which was previously added to the global Chart of Accounts.
Units	Input 2388
Amount	Input a debit amount of $43,325.00
More details	Click to input purchase details.
Contract date	Input purchase date 02/06/2000
Settlement Date	Input settlement date 05/06/2000
Select	to record the second purchase for BHP Shares
Select an account	Select 77600/BHP
Units	Input 900
Amount	Input a debit amount of $35,964.00
More details	Click to input purchase details.
Contract date	Input purchase date 10/12/2009
Settlement Date	Input settlement date 13/12/2009

Record purchase of Listed Unit Trusts

Select
Select an account	Input 78200/GPT, which was previously added to the global Chart of Accounts.
Units	Input 12,700
Amount	Input a debit amount of $25,000.00
More details panel	Click to input purchase details.
Contract date	Input purchase date 01/10/1995
Settlement Date	Input settlement date 04/10/1995

Record the opening Bank Balance as at 30/06/2015

Select
Select an account	Select
Create Bank Account	Select Bank
Make Default Bank Account	Select this option
BSB Number	Enter your bank account details
Account number	Enter your bank account details
Account Code	Input a unique bank code
Account Name	Input V2 Plus Account
Save Bank Account	Click
Select an account	Select 60400/ANZ
Amount	Input a debit amount of $411,016.30

Balancing Entry 

Select
Select an account	Account 94920 member Data Clearing Account
Amount	Input a credit amount of $895,281.30

Once your Balancing entry has been entered, save the transactions by selecting Post.

You must adjust your investment accounts up (or down) to their recorded market value as at the 30/06/2015 (Market Value less Original Cost Price).

Note:The manual revaluation of investments is only required when entering opening balances. This is a once off process. Investments will be automatically revalued daily or during the create entries process.

To process the manual revaluations please refer to the Investment Summary Report.

Instructions

In this task you will learn how to revalue investments to the current market price.

From the Main Toolbar, go to Accounting.
Select Transaction list from the list.
Select the New Transaction.
Select Journal.

Record the movement in market value for all investments

Investment accounts must be adjusted up (or down) to their market value. Simple Fund 360 distinguishes between a purchase transaction and a market value transaction based on whether units have been entered. Therefore, units must NOT be input when recording market value increases or decreases.

Date	Input 30/06/2015
Reference	Input 4
Description	Revaluation on Investments
Select an account	Select Account 77600/BHP.AX
Units - Do not enter any units as this will prompt Simple Fund 360 to treat this transaction as a revaluation
Amount	Input a debit amount of $23,855.56
Select an account	Select Account 78200/GPT
Units - Do not enter any units for Simple Fund 360 to treat this transaction as a revaluation.
Amount	Input a debit amount of $18,053.00
Add Line	Select
Select an account	Select Account 77600/CBA.AX
Amount	Input a debit amount of $7,696.00

Balancing Entry

Add Line	Select
Select an account	Select Account 94920 member Data Clearing Account
Amount	Input a credit amount of $49,604.56

Once your balancing entry has been entered, save the transactions by selecting Post.

The following message will display:

Select Ok.

Revaluations for investments will be done daily or during create entries process as this transaction relates to opening balances you will need to confirm the message.

To complete the setup for the BGL Training Fund, the liabilities of the SMSF need to be entered. Referring to the balance sheet above, there is Income Tax Payable and a Provision for Deferred Income Tax. These accounts are already established in the global chart of accounts and do not need to be created.

In this task you will learn how to account for the funds liabilities.

From the Main Toolbar, go to Accounting.
Select Transaction list from the list.
Select the New Transaction.
Select Journal.

Date	Input 30/06/2015
Reference	Input 5
Description	Input Fund Liabilities
Select an account	Select Account 85000 - Income Tax Payable
Amount	Input a credit amount of $8,555.00
More Details Panel	Select set Financial Year to 2014-15 and remove any amounts showing under SMSF Supervisory Levy.
Select an account	Select Account 89000 - Deferred Tax Liability
Amount	Input a credit amount of $5000.00
Add Line	Select
Select an account	Select Account 94920 - Member Data Clearing Account
Amount	Input a debit amount of $13,555.00

Once your balancing entry has been entered, save the transaction by selecting Post.