Distribution Tax Automation simplifies year-end processing of Annual Tax Statements for ETFs, trusts and managed funds. It generates the distribution tax components for you, so you spend less time on manual entry and can reconcile distributions faster.
This article explains the Distribution Tax Automation screen and the recommended way to generate tax components and post year-end accruals.
- System Tax Data: Simple Fund 360 pre-fills the per-unit value for commonly held listed trusts and managed funds.
- SmartDocs: for securities without System Tax Data, upload the annual tax statement and SmartDocs extracts the tax components for you.
Navigation
| From the Main Toolbar, go to Home. | |
| Go to Fund Workflow. |  |
| Select a fund. | |
| From the Main Menu, select Compliance. | |
| Select Distribution Tax Automation. |
Fund Level Functions
Distributions with a unit balance need to be reviewed. To process in bulk, select multiple sub-accounts and use the functions at the top of the screen.
| Function | Image | Description |
|---|---|---|
| Generate Tax Data |
A lightning bolt next to the security code means System Data is available. Select the securities in the grid, then select Generate Tax Data to process them in bulk. Review each selected security, then select Generate & Mark as Reviewed or Generate Tax Data & Post Accrual. Simple Fund 360 then shows the tax data for the next selected income account. |
|
| Extract from PDF and Review | Allocate annual tax statements to investments and extract their tax components. See Instantly Automate Annual Tax Statements with SmartDocs. | |
| Mark as Reviewed | Moves the selected securities from Incomplete to Reviewed. | |
| Clear Components | Removes all tax data entered against the selected income accounts. | |
| Supported Securities | Lists the securities supported with System Data in a financial year. | |
| Distribution Event History | Shows the complete history of actions taken in Distribution Tax Automation. | |
| Distribution Reconciliation Report | Prepares the Distribution Reconciliation Report. | |
| Post Accruals | Opens the Post Accruals list to post year-end accruals for several distributions at once. |
Distribution Level Functions
Process and review each distribution that has a unit holding in the selected fund.
| Function | Image | Description |
|---|---|---|
| Expand/Collapse | Previews the income transactions posted to the ledger. If Expand/Collapse doesn't display, the investment has units but no income has been recorded to the linked income account. | |
| System Data | System Tax Data is available. Simple Fund 360 pre-fills the per-unit value for commonly held listed trusts and managed funds. System Data can't be edited. | |
| Extract from PDF | Extracts tax components from the attached annual tax statement. See Instantly Automate Annual Tax Statements with SmartDocs. | |
| Re-analyse | SmartDocs re-reads the annual tax statement and updates the tax components shown in Extract from PDF. | |
| Add new Transaction | Posts a journal or bank statement entry directly from the Distribution Tax Automation screen. | |
| Clear Components | Removes all tax data entered against the selected income account. | |
| Upload Document | Uploads source documents (30 MB maximum). Uploaded documents are saved to the Documents screen. | |
| View History | Shows the history of the selected distribution account. | |
| Custom Tax Data | For securities without System Data, enter Custom Tax Data to create a template you can use to automate tax data across your entire database. |
Manually entered components will be overwritten
If distribution components were recorded manually in the Transaction List in the current financial year, generating tax data in Distribution Tax Automation overwrites them for the selected investment.
Generate Tax Component Data
How you generate tax data depends on whether System Tax Data is available for the investment. If it is, a lightning bolt displays to the left of the investment on the Distribution Tax Automation screen.
If System Tax Data is available
- Select the Generate Tax Data icon in line with the investment.
The Generate Tax Data window opens with the tax components pre-filled. - Check the tax components are correct.
- Select Generate & Mark as Reviewed or Generate Tax Data & Post Accrual. See Which button should I select? below.
If System Tax Data isn't available yet
Use SmartDocs to extract the tax components from the annual tax statement.
- Email the annual tax statements to the fund's SmartDocs email address, or upload them on the Documents screen.
- Once all statements have been analysed, on the Distribution Tax Automation screen select Review, then attach the relevant investment code to each statement.
The statement is now attached to the investment. - Select the
icon in line with the investment.
The Generate Tax Data window opens with the extracted tax components and the statement alongside. - Check the tax components against the statement.
- Select Generate & Mark as Reviewed or Generate Tax Data & Post Accrual. See Which button should I select? below.
Upload statements in bulk
SmartDocs takes 2–3 seconds to analyse each statement. Gather all statements and send or upload them together rather than one at a time.
You can also enter tax components manually.
Uploaded tax statements help improve System Tax Data
SmartDocs data generated and reviewed from uploaded statements is used in BGL's process to collect, calculate and verify System Tax Data, so it can become available for other funds.
Which button should I select?
The Generate Tax Data window (System Tax Data and SmartDocs) and the Custom Tax Data window both have two buttons for saving the tax components.
- Generate Tax Data & Post Accrual
Posts the tax components, posts the year-end accrual and marks the distribution as Reviewed, all in one step. The accrual posted is the amount shown in Accrual required to be posted at year end in the top-right of the window. Use this when the distribution hasn't been fully received by year-end. You don't need to post the accrual again in Step 2.
- Generate & Mark as Reviewed
Posts the tax components and marks the distribution as Reviewed, without posting an accrual. Use this when no accrual is needed, or when you'd rather post accruals for several distributions together in Step 2.
Process receipts first
Process all bank or cash receipts and reinvestments for the distribution before you select Generate Tax Data & Post Accrual. The accrual amount is calculated from what has already been recorded.
Post Accruals
Use Post Accruals to post year-end accruals for several distributions at once.
Already used Generate Tax Data & Post Accrual?
The accrual for that distribution has already been posted. You only need this step for distributions you saved with Generate & Mark as Reviewed.
Before you start, process all bank or cash receipts of distributions and distribution reinvestments.
- On the Distribution Tax Automation screen, select Post Accruals.
- Select the distributions to create accrual journals for.
- Select Post Transaction. A confirmation window summarises the selected distributions and their combined total.
- Select
to post the accruals.
FAQs on accruals
All investments with an income account linked to the 23800 accounts.
There's no required order. To do both in one step, select Generate Tax Data & Post Accrual in the Generate Tax Data or Custom Tax Data window. This also marks the distribution as Reviewed.
The same calculation is used in the Post Accruals list and for Generate Tax Data & Post Accrual.
| Label | Description |
|---|---|
| Accrual OB | Amount recorded to the distribution accruals / receivable account in the prior financial year. |
| Reverse Accrual | The prior year's distribution accrual / receivable cleared in the current year. |
|
Net Cash Distribution |
|
| Bank Receipt / Reinvestment | Total amount received in the bank or reinvested for the investment in the current financial year. |
| Accrual | Amount already recorded to the distribution accruals / receivable account in the current financial year. |
| Year End Accrual (amount to be posted) |
Amount to be posted to the distribution accruals / receivable account in the current financial year: Year End Accrual = Accrual OB + Net Cash Distribution − Bank Receipt / Reinvestment − Accrual |
It depends on how the accrued distribution was received.
Received in the bank: use a Bank Statement Journal to post Distributions Receivable (61800/Investment Code) against the Bank Account.
Reinvested: use a General Journal to post Distributions Receivable (61800/Investment Code) against the Investment Account. Enter the reinvested units and select the Dividend/Distribution Reinvestment option.
Yes. Distribution Event History keeps a record of all distribution accruals posted.
| Entry | Account |
|---|---|
| Debit | 61800/InvestmentCode.AX or 62000/InvestmentCode.AX |
| Credit | 23800/InvestmentCode.AX |
Supported Securities - System Tax Data
To see which securities have System Tax Data, select Supported Securities on the Distribution Tax Automation screen.
The supported securities for the current financial year display. Use the drop-down menu to view the previous or next financial year for the selected entity.
Frequently Asked Questions
The total income posted to 23800/InvestmentCode or 27000/InvestmentCode, depending on the investment.
It's the total of the tax components entered against the income account, and it should reconcile with the payment received.
Yes. Select the income account and select Mark as Incomplete.
Edit the transaction in the Transaction List.
No income has been posted to the linked income account.
Yes. Custom Tax Data works across your database.
System Tax Data is mainly available from the 2019 financial year. Some securities also have 2018 data, but no new securities will be added for 2018.
Upload the annual tax statement and use SmartDocs to extract the tax components (see Step 1), or enter Custom Tax Data. Statements you upload help BGL add System Tax Data for more securities.
The CGT discount rate selected here is only used to reconcile the calculated tax components with the annual tax statement. Most annual tax statements from managed funds and trusts use a 50% rate, so you can choose either 50% or 1/3. The tax return still uses the 1/3 rate, whichever rate you select here.
It still comes through as before and is marked with the feed icon. You can still use Distribution Tax Automation for these investments, but components calculated for investments held through wraps or platforms may be incorrect.
Check the distribution against the annual tax statement. If the statement shows a TFN amount withheld, add it manually to the matching 23800 entry. System Tax Data doesn't include TFN amounts withheld.
Check that units are entered against the investment account. For example, for an unlisted unit trust, make sure control account 78400 is set up as a unitised investment and sub-account 78400/InvestmentCode has units entered.