A dividend or distribution reinvestment is an additional purchase of units by way of dividend or distribution received from the investment to fund the purchase. Any residual dividend/distribution reinvestment balance that remains after unit purchases can be allocated to account 62550/INVESTCODE. This residual amount is the difference between the Cash Balance carried forward and the Cash Balance brought forward in the statement.
In the following example, the reinvestment will consist of:
Bank of Queensland (BOQ) Ordinary Fully Paid Shares (1,126)
Dividend amount of $405.36 received on the 12/05/2015 (franking credit of $173.73)
Cash Balance brought forward of $11.81 giving a total amount for reinvestment of $417.17
31 shares purchased at a cost of $404.96
Cash Balance carried forward of $12.21 ($417.17 - $404.96)
Dividend Residual amount of $0.40 ($12.21 - $11.81)
|From the Main Toolbar, go to Accounting.|
|Select Transaction list|
From the Transaction List screen, select New Transaction. From the drop-down list, select Journal.
Input the Date of the transaction and a Reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the transaction in the Description box.
Tick the Dividend / Distribution Reinvestment check box.
Under the Account heading, click on the Select an account box and type in the investment account for which additional units are being purchased using the dividend/distribution (in this example, 77600/BOQ.AX). Since the Dividend / Distribution Reinvestment check box is ticked, Simple Fund 360 will automatically add the linked income (for example, 23900/BOQ.AX) and dividend residual (62550/BOQ.AX) accounts to the investment to the transaction.
Input the number of units received (31) using the dividend/distribution reinvestment in the Units column to the investment account 77600/BOQ.AX and the amount of the purchase ($404.96). Input the income amount to Account 23900/BOQ.AX. The residual amount ($0.40) will be posted Account 62550/BOQ.AX.
Select More + to review the franking credit ($173.73) information in the Dividend Details or Distribution/Interest Details section.
- After you have entered all information for the transaction, select Post to add the transaction and to view the Transaction List screen, or select Post & Add Another to add the transaction to the Transaction List, but remain on the Journal screen.