Distribution Reconciliation Report

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Overview


The Distribution Reconciliation Report has been added to the Reports screen to assist you with the following:

  • Verifying tax components that have been entered against your distribution income.
  • The payment received reconciles with the Operating Statement.
  • Gross trust distributions (label 11M in the tax return) can be easily reconciled.
  • Capital Gains reconciliation section added at the bottom of the report to assist in reconciling the gross capital gain of the fund with the NET capital gains for both the 1/3, 2/3 method (superfund) and 50% (individuals) discount rates. The discount elected for each distribution is determined by the election made in the Distribution details panel when recording tax statements. Refer to How to Enter a Distribution & Tax Statement for more.

Navigation


 

From the Main Toolbar, go to Reports.

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Select Reports.

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How to Prepare The Distribution Reconciliation Report


To download an individual report in PDF, Word or Excel format:

  1. On the left-hand side of the Reports screen, Drag & Drop the Distribution Reconciliation Report from the Work Paper Reports.

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  2. Once the report has been dragged & dropped, select Options (to the right of the report).

  3. Select either Download PDFDownload Word or Download Excel.

You can also add this report to a Report Pack. See Reports for instructions.

Rate Column


The Rate column under Distributed Capital Gains (B) section indicates whether the 1/3 or 50% method has been selected in the distribution more details panel.

"S" indicates the 1/3 method has been selected;

"I" indicates the 50% method has been selected.

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Note: Taxable Income of reconciliation report will differ in circumstances where the discount rate elected for distributions is 50% in the More Details Panel to the taxable income of the fund. The distribution reconciliation report is purely for the reconciliation of distribution statements; not with direct reconciliation to the fund's taxable income regarding capital gains. Use the Realised Capital Gains Report as an alternative for that matter.

Variance in Net Cash Distribution


The Distribution Reconciliation Report will indicate if there is a variance between the total distribution payment received and the total net cash payment received for each investment. The variance will only be displayed at the sub account level.

Example

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Notice that the partnership has a net variance of $11,800.00. This would indicate that there is a discrepancy in the Payment Received and Net Cash Distribution received.

If there is no variance, the report will not display a variance indicator.

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Comments

6 comments
  • I'm not sure why this variance is being reported in its current form when there are still so many deficiencies/variations in the tax summary reporting from entities...for example, trying to reconcile the cash Distribution is pointless when an entity reports Tax offsets against Capital Gains Cash items, but in BGL we can only record the Taxable (Attribution) amount for Capital Gains, not the Cash distributed amount even though it appears in BGL's cash received column - so there will always be a variance - in addition to that of the Grossed up vs 1/3 discounted amount being included in the Cash Distribution amount as opposed to what is reported on the Distr Rec Report (which excludes the 1/3 discount amount creating a fictional variance).

    Perhaps the Transaction entry screen should just continue to show the Net cash distribution amount as it appears on a tax statement as opposed to adjusting down the CGT cash amount for the discount at "Distributed Capital Gains (B)", and the Taxable column indicate the SMSF's tax amounts with the discount applied to it.

    On the Distribution Reconciliation Report....surely if all items have been accounted for the variance should be zero .....I'm of the view that the Net Cash Distribution comparison needs to take these SMSF adjustments into account to minimise the appearance of errors - particularly when there are none.

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  • the annual tax component is entered at the last distribution of the year for trust distribution, distributions received during the year are left blank, overall there is no variance. Now with this variance added onto the distribution reconciliation report, it's just unnecessary, and waste people's time deleting them as it's appearing all over the place.

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  • Thanks Elleen for your feedback.

    We’ll be making a change in the next update (later this week) to display the Net Cash Distribution and Variance at sub total level only for each investment instead of per transaction. That way it’ll work for both scenarios where components are split across each individual income payment or entered in the 1 distribution for the year (in your case). And if there was a variance for the investment it would flag that it still needs to be reviewed.

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  • Hi Rosalie,
    Thank you for your feedback.

    In addition to my reply to Elleen, if the distribution tax components have been entered based on CGT rate of 50% (as is the case with most managed funds tax statements), then the Net Cash Distribution (the figure at the bottom of Distribution more details in transaction screen) will match the tax statement. This acts as a checking mechanism to ensure the tax components have been processed correctly.

    Eventually the calculation that flows through to the tax return is still based on 1/3 rate regardless of the CGT rate selected in distribution.

    Hope that clarifies.

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  • I understand but I would still like the variance to disappear on the Reconciliation Report as this is provided to Client and looks like an error in calc.

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  • Thank you Deryn for your feedback. Your request to have a hide variance option has been added to the wish list for future improvements.

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