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How to manually post an Investment Disposal

 

How to record an Investment Disposal in Simple Fund 360

Investment disposals (e.g. sell a share or sale of an asset) are recorded through the Transaction List. 

If you are disposing of a depreciating asset during the year, the depreciation for the period up until the disposal will need to be calculated manually prior to disposal. Refer to Recording Depreciation Part-way Through the Year for instructions on posting the manual amount.

 

 

From the Main Toolbar, go to Accounting.

Select Transaction list

 

  1. From the Transaction List screen, select New Transaction. From the drop down list, select Bank Statement.

  2. Input the Date of the disposal and a Reference (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the disposal in the Description box.

  3. Under the Account heading, select the bank account from the Select an account box. Click on the next Select an account box. Begin typing and select the 77600/INVESTCODE account that is being disposed of.

  4. Input the number of units to be disposed of in the Units column to account 77600/INVESTCODE and the amount of the disposal as a Credit. Simple Fund 360 will post a corresponding Debit entry to the bank account. 

  5. Optional Step: If this is a nil disposal, input $0 in the credit field. 

Note: Account 77600/INVESTCODE is only an example of a share disposal. You can also follow these disposal steps to record disposals of other investments, including Managed Investments (74700) and Rental Properties (77200). 

Since you have input a credit amount to an investment. Simple Fund 360 will now treat this transaction as a disposal.

The Disposal Details panel will now display. Simple Fund 360 will pre-fill some information by default. Input any other relevant information if required. 



Field Explanation
Disposal Method Select from the following disposal options:
  • Most tax effective - Simple Fund 360 will dispose of the units using the most tax effective disposal method.
  • Least tax effective - Simple Fund 360 will dispose of the units using the least tax effective disposal method.
  • First in first out - Simple Fund 360 will dispose of units based on the date order (oldest parcels first).
  • Last in first out - Simple Fund 360 will dispose of units based on the date order (newest parcels first).

Simple Fund 360 will use the contract date for CGT purposes and only use parcels which are on hand at the contract date of the Selling event
GST on Purchase/Disposal

To record GST on purchases or disposals of property, record it in the GST on Purchase/Disposal field. This field will only appear for property accounts.
Select Parcel Select the investment parcel from which you are disposing units. Input the number of units disposed of in the Units to Sell field and Simple Fund 360 will calculate the amount of capital gains/losses.

After you have entered all information for the disposal, select Post to process the disposal and to view the Transaction List screen, or select Post & Add Another to add the disposal to the Transaction  List, but remain on the Bank Statement screen.

How to reverse a disposal

Delete it from the Transaction List. Locate the disposal by date and select the check box to the left of the transaction. Select Delete. 

Simple Fund 360 not allowing you to delete this disposal? Click Deleting Investment Transactions.

 

Disposal Report Options

Disposals can be viewed in the CGT Register Report. 

This can be accessed under the Investment Reports section of the Reports screen. 

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