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Return of Capital (Manual)

 

Corporate Actions - Transaction List

Return of Capital transactions can be posted from the Corporate Actions screen or from the Transaction List. For the Transaction List article, click here.

Navigation

 

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

 

 

Alternatively, you can access the Corporate Actions screen from the Transaction List:

If you access the Corporate Actions screen from the Transaction List, skip step 1 below. 

Process a Return of Capital

This Return of Capital is an example only.

  1. Select New Corporate Action.

  2. Select the Security to process.

  3. Select Return of Capital as the Corporate Actions Type.

  4. Select the chart account for the corporate action (for example, 77600/BHP.AX).

  5. Input the Ex / Balance Date (Corporate Action Ex Date). Simple Fund 360 will apply the return of capital to parcels purchased before the ex date. Next, input the Corporate Action Date (Transaction Date). Simple Fund 360 will create a return of capital transaction in the Transaction List based on the corporate action date that was entered.

  6. Input the Corporate Action Date (Transaction Date).
  7. Input the return of capital payment amount.

  8. The Corporate Action Summary will appear below. Select Process to post the return of capital.
  9. The payment amount will be posted to the Transaction List.
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  10. When the payment amount is received in the bank, record a bank statement transaction clearing account 94910 (Investment Movement Data Clearing Account). See below for steps.

Record the payment received to the bank

  1. From the Transaction List screen, select New Transaction. From the drop down list, select Bank Statement.
  2. Input the date the payment amount was received and a reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the receipt in the Description box.

  3. Under the Account heading, select the bank account from the Select an account box. For Simple Fund 360 to automatically select this bank account by default when entering bank statement transactions, tick the Default Bank check box.

  4. Click on the next Select an account box. Begin typing and select account 94910.

  5. Input the amount of the return of capital to account 94910 as a Credit.

  6. Select Post to add the transaction to the ledger.
  7. If desired, select the payment received to the bank and the corporate action and match the transactions together. This results in one transaction for the corporate action:
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How to delete a Return of Capital

If you are required to change a corporate action, you can delete and re-process the action from the Corporate Action screen.

 

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

 

 

Alternatively, you can access the Corporate Actions screen from the Transaction List:

 

Locate the corporate action to delete. Select the check box located next to the transaction and Delete. 

 

 

If disposals have been processed after the corporate action date for the investment it is recommended to delete the disposal first from the Transaction List.

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