Refer to Segregation for the main help.
Frequently Asked Questions
14. Can you use the Segregation Wizard for Investment Purposes and NOT ECPI purposes?
In addition, Simple Fund 360 also supports income allocation from investments based on the segregation policy, whilst calculating income-tax related items based on the proportionate method and apply this to members. See Use segregation for income allocation only for more
17. Net Value of Assets not reconciling with the members' statements when the fund's assets are segregated?
When a fund is segregated, Simple Fund 360 will apportion the expenses (General and Admin expenses) based on the members' weighted balances.
In a fund, there is no other investment except for a bank account and there are two members.
Account 60400 Bank Account has been allocated to Member A
If you process an expense of $1,000 for accounting fees:
DR Account 30100 - Accounting Fees
CR Account 60400 - Bank
Therefore, this will reduce the bank balance and thus the overall Net Value of Assets by $1,000. Since this is a general expense, it is not allocated to only Member A but is apportioned instead between the two members based on the members' weighted balances.
This is why, in this case, it is not possible to reconcile the Overall Value of Net Assets with the members' statements.