When adding a listed investment to the Chart of Accounts, users may notice one digit has been added to the end of .AX (for example, 77600/BHP.AX1). Users may then mix them up and post transactions to the other duplicate account. As a consequence, transactions in the right account can not be matched or transactions in its linked accounts may not get processed. Why has this occurred and how to resolve it?
Simple Fund 360 will add a digit to the end of a security code where the same security already exists in the global Chart of Accounts.
For example, if account 77600/BHP.AX already exists in your firm's global chart, the next account you add will display as 77600/BHP.AX1.
BGL recommends before adding a listed security, to always check your firm's global chart of accounts to see if the account already exists. If it does, you can simply attach the account to your fund without having to re-create it.
Note: A .AX1 may appear next to an investment if that security has already been used in another Investment Type (for example if it appears as 77600/BHP.AX1, there may be an account under 78200/BHP.AX).
To review use the search filter in the Chart and search by the INVESTCODE (BHP in this example).
How do I remove the duplicate account?
If no transactions have been recorded using the duplicate account, you can delete the account from the global chart of accounts.
What if the duplicate account contains transactions and I am unable to delete it?
If you attempt to delete the account from the chart and an error message appears "accounts which have transactions cannot be deleted" these transactions will need to be recoded to the correct account before the duplicate account is deleted. Click here for instructions.
What can I do to avoid this in the future?
Prior to adding an investment account, check the global Chart of Accounts to see if the investment already exists.
If it does, simply attach the investment to the fund from the global chart instead of creating a new account. To attach the account to particular entities, untick the box beside Attach to all entities and click on Select entities. On the prompted page, attach individual entities by selecting the plus icon.
If it does not exist, when adding an investment account, users can tick the checkbox beside Attach to all entities. This way, the investment account will be readily available for use in each entity.