Issue
When attempting to reverse the Create Entries process, the following message appears:
Cannot reverse entries for funds transferred or recovered prior to
Cause
This message will appear when the fund has been added to your subscription via the Fund Transfer process or recovered from another subscription.
As part of a fund transfer, certain historical processing information is not transferred between subscriptions. This includes the information required to reverse the Create Entries process (Profit/Loss Allocation, Tax Allocation and Close Period journals) for prior periods.
As a result, Simple Fund 360 cannot reverse Create Entries for periods that were processed before the fund was transferred.
Resolution
Depending on your circumstances, there are three available options.
Option 1 - Reverse Entries in the Original Subscription
If the fund still exists in the previous firm's subscription:
- Contact the previous accountant or administrator.
- Ask them to reverse the Create Entries process for the required periods.
- Once the reversals are complete, please transfer the fund again.
This option allows the required historical changes to be made before the fund is re-transferred.
Option 2 - Post Manual Adjustments
If the fund has already been transferred and historical changes are required:
- Review the required adjustments using the Reconcile Fund section outlined in the article How to Amend Prior Year Data from Another Firm's Simple Fund 360 post Fund Transfer.
- Post the necessary adjustment journals manually.
- Contact BGL Support if member-related journals or Close Period journals need to be updated.
Note: While manual adjustments can update the fund balances, the figures in the tax return will not automatically update. This is because updating the tax return requires reversing the original Create Entries process, which is not possible for transferred funds.
Option 3 - Request a Fund Conversion
If significant prior-year amendments are required, a new fund can be created through a fund conversion.
The BGL Client Success team can:
- Create a new fund and enter the opening balances and comparative data.
- Provide a secure file upload link for the required reports and documentation.
If you would like to proceed with a fund conversion, contact BGL Support and request a referral to the Client Success team.