Introduction:
Simple Fund 360 revalues listed securities on a daily basis and automatically posts a system journal for revaluations upon Create Entries. At the disposal of a security, the system will automatically post an Unrealised Gain Writeback journal to reverse unrealised capital gain/loss previously recorded from the system-created revaluation journals for that security.
Note:
1. The Unrealised Gain Writeback amount will be calculated on a pro-rata basis of the holding units that have been disposed of;
2. The System-created journals for revaluations will be posted upon Create Entries;
3. The Unrealised Gain Writeback will be posted upon disposal, as long as System-created journals for revaluations have been previously posted. Check to review the journal.
4. The Unrealised Gain Writeback journal will remain locked unless the disposal transaction has been deleted. Also check locked transactions.
Unrealised Gain Writeback should only generate when an investment is disposed of/sold.
- If an Unrealised Gain Writeback journal remains after the disposal transaction has been removed, please Log a Support Call and inform us about what transaction needs to be removed.
Example:
An SMSF purchased 100 units of BHP at $40 on 01/07/2019. An interim Create entries was posted as of 01/04/2020. On 01/06/2020, 50 units of BHP were sold at $30.
1. System-created journals for revaluations upon create entries on 01/04/2020 will be posted as below:
| Dr. | 24700 Changes in Market Value of Investments | $977 (Working 1) | |
| Cr. | 77600/BHP.AX | $977 |
Working 1:
Accounting Cost $40*100 = $4,000
Market Value $30.23*100 = $3,023 ($30.23 is the market price as of 01/04/2020)
Unrealised Loss: $4,000 - $3,023 = $977
2. Upon disposal of the units on 01/06/2020, the following Unrealised Gain Writeback journal will be posted by the system.
| Dr. | 77600/BHP.AX | $488.50 (Working 2) | |
| Cr. | 24700 Changes in Market Values of Investments | $488.50 |
Working 2:
50/100 * $977 = $488.50