Opening Balance: Lump sum exceeds member opening balance

 

Support Query

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I'm entering opening balances for a fund, and the lump sum payment made in the previous period exceeds the member's actual opening balance.

What do I do in Simple Fund 360 to include the lump sum payment in the operating statement?

Solution

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The following steps will be completed:

1. When entering the opening balance for the member, add the Lump Sum payment amount to the journal
2. When entering the opening operating statement journals, include the lump sum payment as normal
3. Edit the transaction in step 1 to be the actual member opening balance

Example

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A lump sum amount of $100,000 was paid out of the member's account.

After this payment, the member account has a balance as at 30/06/2016 of $50,000.

As the lump sum payment amount exceeds the member's actual closing balance, the following steps will be followed:

1. Adding the lump sum amount the the members balance when entering the member's opening balance.

   Lump sum amount + member's actual opening balance
   = $100,000 + $50,000
   = $150,000

   Account	Code	DR ($)	CR ($)
   Member Data Clearing Account	94920	150,000
   Member Opening Balance	50010		150,000

2. Enter the opening operating statement as usual:

   Account	Code	DR ($)	CR ($)
   Benefits Paid Out/Transferred Out	46000	100,000
   Interest Received	25000		1,200
   etc...	....	....	....

3. Edit the transaction posted in step 1 to member's actual opening balance:

   Account	Code	DR ($)	CR ($)
   Member Data Clearing Account	94920	50,000
   Member Opening Balance	50010		50,000