Query
When applying for an Actuary Certificate, I received an error message stating that because the end of day balance is negative on certain dates, this will impact the Actuary’s calculation.
Solution
This error occurs when a member account balance falls below zero on a specific date. To resolve this, you will need to identify which transaction or account caused the negative balance.
Step 1: Identify the Date of the Negative Balance
Refer to the date specified in the error message.
Run either:
- A Member Statement for the exact date shown in the error message, or
- Two Member Statements:
- One up to the day before the error date
- One up to the error date
Step 2: Generate a Member Statement Report
- From the Main Toolbar, select Reports.
- Click Reports again.
- From the left-hand menu, select Financial Reports.
- Click Add and select Members Statement.
- Adjust the Start Date and End Date using the date filter to match the required period.
Step 3: Review Decreases to Member Accounts
Within the Member Statement:
- Navigate to the Detailed Account Summary.
- Locate the section titled Decreases to Member Accounts during the period.
Review the transactions listed to determine which account caused the member balance to go negative.
Step 4: Check the Following Accounts
The following accounts can cause a member's balance to become negative. Review each carefully and confirm that the balances and transactions are correct:
| Member Account Description | Account Code |
|---|---|
| Pensions Paid | 41600 |
| Contributions Tax | 44000 |
| Income Tax | 53330 |
| No TFN Excess Contributions Tax | 53500 |
| Excess Contributions Tax | 44000 |
| Refund Excess Contributions | 46600 |
| Division 293 Tax | 48100 |
| Insurance Policy Premiums Paid | 39000 |
| Management Fees | 40000 |
| Member Expenses | 40500 |
| Benefits Paid/Transfers Out | 46000 |
| Superannuation Surcharge Tax | 55700 |
| Internal Transfer Out | 57100 |
Step 5: Review Pension Commencement (If Applicable)
Another common cause is failing to properly Create Entries before commencing a pension.
If a pension has started during the period, ensure all required Create Entries have been completed correctly.
Refer to: Commence or Start a Pension.
Step 6: Review Profit Allocations
If all accounts and Create Entries appear correct, review your profit allocations.
You can manually adjust allocations using the Member Allocation Worksheet.
Refer to: Member Allocation Worksheet.