Overview
Now available in the Learning Channel - Fund Setup in Simple Fund 360 for video demonstrations on how to process Opening Balances!
By entering opening balances for your funds in Simple Fund 360, you will be able to pick up straight from where you left off and begin processing your fund for the current financial year and onwards.
Generally, you will be entering these opening balance figures from a fund's financial statements.
- Balance Sheet
- Operating statement
- Record of purchases of assets (CGT Register)
- Member details
The following will need to be completed when entering opening balances for your fund:
- Create the fund
- Add members to the fund
- Input balance sheet items
- Input operating statement (optional)
- Update ledger to current year
The article will take you through each step in entering opening balances for a fund.
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
For entering TBAR opening balances, please click here
Example
The opening balances will be entered for the John Jones and Mary Jones SMSF.
Fund Details
| Fund Name | JJ and MJ SMSF |
| Date formed | 14/06/1994 |
| Financial Year Start | 14/06/1994 |
| Financial Year End | 30/06/2015 |
| System Start Date | 01/07/2015 |
Financial Year Dates
The Financial Year Start Date has been opened up to allow both the recording of assets at their historical purchase dates as well as the start dates of the members.
Member Details
| Figure | John Jones | Mary Jones |
| Total Benefit |
509,129.30
|
422,201.56
|
| Preservation Components | ||
| Preserved | 509,129.30 | 422,201.56 |
| Restricted non-preserved | 0 | 0 |
| Unrestricted non-preserved | 0 | 0 |
| Tax Components | ||
| Tax Free |
58,939.30
|
0
|
| Taxable |
450,190.00
|
422,201.56
|
| Death benefit at 30.6.2015 |
1,000,000.00
|
1,000,000.00
|
Financials
The following financial and member reports will be used in entering the opening balances for the fund.
Note that reports under Investment Purchases will be used to record the investment purchase history for the fund.
Instructions
The fund will first be created in Simple Fund 360.
To do this in Simple Fund 360:
- From the main toolbar, select Home
then click Entity Setup
-
Record the Fund details above when creating the fund in the Quick fund setup screen.
For more information on the System Start Date, please refer to the following article System Start Date
Next the members will need to be added to the fund.
Note that for this example, both of the members are in accumulation. For adding a member that will be in pension, please refer to the following article Input Opening Balances for Pension Accounts
To add the members to the fund:
- From the main toolbar, select Member
then click Member list
- From the Member List screen, select New Member Account and from the drop down list below, select New Accumulation Member.
- Input the member's personal details. If the member has been added to the Contacts list in Simple Fund 360 (see Getting Started: Add a Person) begin inputting their name into the Select Member From Contacts search bar and select their name from the drop down list that appears below.
- Simple Fund 360 will create a MEMBERCODE based on the member's name (which is editable).
Once you have saved the member account, the MEMBERCODE is no longer editable. -
Input the member details above for John Jones.
-
Once the details for John Jones have been entered, select Save to add the member to the fund or Cancel to abort the change.
After selecting Save, the following screen will display:
- Repeat the above steps for Mary Jones
After the members have been added to the fund, the balance sheet for the fund will need to be entered into Simple Fund 360.
The following components of the Balance Sheet will be entered:
- Member Balances
- Investment History
- Manual Revaluations on Investments
- Fund Liabilities
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.
|
Mary Jones
|
Details
|
|---|---|
| Date | Input 30/06/2015 |
| Reference | Input 2 |
| Description | Opening Balance - Mary Jones |
| Select an account |
Credit - 50010/MJones Debit - 94920 Member Data Clearing Account |
| Amount | Input a credit amount of $422,201.56 |
| Tax Free Component | - |
| Taxable Component | Input $422,201.56 |
| Preservation Amounts | Input a Preserved Balance of $422,201.56 |
Member Data Clearing Account (94920)
For training purposes we have utilised Account 94920- Member Data Clearing Account, However, when setting up a fund you will not be required to post to Account 94920. It is recommended to enter all components of the balance sheet in a single journal.
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.
Notional Gain
To add Notional Gain for opening balances, users must use the BGL File Import XML. See BGL File Import XML for more information.
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.
Entering a property through the Property Dashboard
As the investment history are based on the reports shown above, it does include how to enter a property through the Property Dashboard. For further information on How to record Property when entering in Opening Balances please refer to the article here.
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.
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.
In this task you will learn how to input the Operating Statement for comparative purposes. This step is optional based on whether you wish to report this year's profit and loss statement with comparative balances from the previous year.
By the end of this task, you will be able to:
- Record dividend and distribution transactions with taxable components
- Record expenses
- Record income tax expense when setting up a fund
- Record profit allocation
Franking credits and Distributions
Prior year franking credit and taxable distribution components (tax deferred, tax free etc.) can be recorded in the More Details Panel of the respective line items when inputting comparatives for dividends (23900) and distributions (23800).
In this task you will learn how to input Operating Statement items as at 30/06/2015.
You will be using Journals to enter the Operating Statement items.
| From the Main Toolbar, go to Accounting. |
|
| Select Transaction list from the list. |
|
| Select the New Transaction. |
|
| Select Journal. | |
Note: The investment income and expense accounts have been automatically created. This occurred when the investment accounts were created.
| Date | Input 30/06/2015 |
| Reference | Input 6 |
| Description | Operating Statement |
| Select an account | Select Account 23800/GPT |
| Amount | Input a credit amount of $3500.00 |
| More Details Panel | Click |
| Other Non-Assessable Amounts | Input Tax-Free Amount $400.00 and Tax-Deferred Amount $700.00 |
| Select an account | Select Account 23900/BHP |
| Amount | Input a credit amount of $2200.00 |
| More details panel | Click |
| Dividend Details | Input Franked Dividend of $2,200.00 and Franking Credit of $942.86 |
Continue entering the remaining operating statement items by selecting Add Line.
| Account | Description |
Amount
|
| 24700 | Increase in Market Value |
(52,553.00)
|
| 30100 | Accountancy Fees |
1,200.00
|
| 25000/WPTD | Interest Westpac Term Deposit |
(4,800.00)
|
| 24200/JJones | Contributions - Employer $7500 and Personal Non-Concessional $20,000 | (27,500.00) |
| 24200/MJones | Employer Contribution | (8000.00) |
| 48500 | Income Tax Expense |
42,634.00
|
| 49000 | Profit/Loss Allocation Account |
54,719.00
|
To save the transaction, select 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.
In this task you will learn how to update the fund ledger to the next accounting period to begin working on current year transactions.
| From the Main Toolbar, go to Fund. |
|
|
Select Fund details from the list. |
|
Under the Reporting section, change the Financial Year to the following: 01/07/2015 to 30/06/2016.
Once the Financial Year has been updated, select .
The fund is now ready to be processed in the current Financial Year.
Additional Notes
Real Estate / Separate Depreciable Assets:
Any depreciable asset with a history prior to when opening balances is recorded needs to be input at their written down value.
Instructions on this process can be found in the Depreciation - Recording at written down value article.