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Disposal with payments received on separate days

 

Support Query

How to process a disposal when consideration amounts are received on separate days?

Process

Consideration received from the disposal can be posted to account 68000 (Sundry Debtors) when the disposal transaction is recorded. When the payment is received at a later date, the debtors account can be cleared with the corresponding entry posted to the bank account. This process is broken down into two steps:

Step 1: Record disposal and consideration to sundry debtors;

Step 2: Record consideration received to bank and clear sundry debtors. 

Step 1: Record disposal and consideration to sundry debtors

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

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 Journal.

  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 account 68000 (Sundry Debtors) from the Select an account box. Input the consideration amount in the Debit column. 

  4. Click on the next Select an account box. Begin typing and select the 77600/INVESTCODE account that is being disposed of.

  5. 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.

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). 

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).
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.

Step 2: Record consideration to bank and clear sundry debtors

  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 68000.

  5. Input the consideration amount to account 68000 as a Credit. 

  6. Select Post to add the transaction to the ledger and complete disposal.

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