Overview
If a fund was previously processed in another accounting firm's Simple Fund 360 and has now been transferred to your firm’s Simple Fund 360, you may need to amend prior year data that was completed before the transfer.
This guide outlines how to make those changes in your current Simple Fund 360 setup.
When to Use This Process
Use this process if:
- The fund was previously administered in another firm's Simple Fund 360.
- The fund has already been migrated into your Simple Fund 360.
- You need to make corrections or adjustments to prior year transactions (before the fund was transferred to your firm).
Solution
There are two options available to amend the fund's data for the migrated financial year:
- Deleting the fund in Simple Fund 360; or
- Making manual journal adjustments in Simple Fund 360
Deleting the fund in Simple Fund 360
This option is the easier option and is recommended over attempting to journal adjustments to the fund in Simple Fund 360. The following steps will need to be completed:
- Process the amendments in the previous firm's Simple Fund 360
- Delete the fund in the current firm's Simple Fund 360
- Reprocess the Fund Transfer to move the fund back into the new firm's Simple Fund 360
As this option involves deleting the fund in Simple Fund 360, funds that have already been processed for financial years after the migrated fund year will need to take this into consideration. Generally, deleting a fund then reprocessing future periods will still be quicker than attempting to journal adjustments to the fund in Simple Fund 360.
We recommend using this method only if it is possible as it is easier, quicker, and less error-prone.
To delete a fund, please refer to Deleting a Fund.
Journal adjustments to fund in Simple Fund 360
This option can be appropriate for funds where reperforming a fund transfer is not possible or the fund has been processed beyond the migrated year period in Simple Fund 360, and it is not feasible to lose the transaction data entered after the migrated year.
You will need to work with the BGL Support Team to process this option. Please contact BGL Support first before performing the instructions below.
Review the Trial Balance
Review the Trial Balance in Simple Fund 360 and determine what adjustments need to be made. All required changes in the Trial Balance will need to be noted, as these will be the basis for creating the reconciling journals in Simple Fund 360.
Post reconciling journals
The following steps will need to be completed:
- Set the financial year of the fund in Simple Fund 360 to match the migrated financial year
- Record the reconciling journals
Record the reconciling journals using the highlighted differences noted above in step 2. This is to be completed not by editing existing journals, but instead by adding a new transaction.
To post a journal in Simple Fund 360, please refer to Transaction Input in Simple Fund 360.
Considerations
Please note the following considerations when recording the reconciling journals.
Member journals
When attempting to record the reconciling journals to member accounts, you will be prevented from posting entries directly to the member accounts by Simple Fund 360.
For all reconciling journals that post to a member account, instead, for increases in member balances post the entry to the Members Internal Transfer In account (56100) and for decreases in member balances the Members Internal Transfer out account (57100). When recording these transactions, ensure to complete the more details panel to specify the preservation and taxable components.
Once the transaction is posted, log a support call to give access to the fund for the BGL Support Team. The team will require access to your fund to allocate the transaction to the corresponding member accounts.
CGT Relief (Cost Base Reset)
For funds amending the 2017 Financial Year, the deferred notional gain, if any, will need to be considered for every investment parcel.
For all investment parcels you wish to apply CGT Relief to, please ensure the following:
- The investment parcel has a contract date of 30/06/2017.
Please refer to Investment Purchases for more information about setting the contract date of an investment purchase. - The deferred notional gain is provided to the BGL Support Team
TBAR
Additionally, funds amending the 2016-17 Financial Year will also need to consider the effects of amending member balances on previously lodged TBARs.
Previously lodged TBARs with an incorrect member balance will need to be cancelled and a new TBAR lodged with the correct balance.
The lodged TBAR can be cancelled by referring to the following link:
Once the previously lodged TBAR is cancelled, manual TBAR events will need to be recorded in Simple Fund 360. For instructions on how to do this, please refer to Adding an Adjustment.
After the TBAR events for the fund have been recorded, a TBAR file can be prepared in Simple Fund 360 and then lodged on the Tax Agent Portal. Please refer to the following resources for more information: