When entering a distribution, I receive the following error: 'This distribution contains tax components, however there are no units on hand, please reverse any disposals first.' As a result I am unable to save the transaction.
The error will display if the distribution transaction contains any tax free or tax deferred amounts and:
The Distribution is recorded after the disposal of the investment
To resolve either:
- Delete the disposal before processing the distribution. When the disposal is re-processed, the disposal will be adjusted for any tax deferred and tax free amounts posted to the distribution; or
- Change the Record Date of the distribution in the More Details panel of the distribution.
In the More Details Panel, change the Record Date to a date before the disposal was processed. You do not need to change the date of the transaction itself.
Note that this method will not adjust the disposal by any tax free or tax deferred amounts recorded in this distribution journal. To have these amounts apply, the disposal will need to be re-processed.
For instructions on entering distributions into Simple fund 360, see How to Enter a Distribution.
A unit has not been recorded to the investment account
Tax deferred and tax free amounts will affect the cost base of an investment upon disposal. An investment purchase transaction needs to be input with units to indicate the program that the investment has been acquired.
Ensure that a unit has been recorded to the investment account.
The investment account has been set up as a Non-Unitised investment
If the investment account has been set up as a non-unitised investment, it will need to be changed to a unitised investment.
Head to the Chart of Accounts.
From the Main Toolbar, go to Accounting. Select Chart of accounts from the list.
- Locate the investment account in the chart of accounts by typing the investment name into the search field and selecting the Search icon.
Select the investment and the Edit Investment Account screen will appear.
Select More Details.
- Change the System - More Details Label to System Unitised Investment and select Save.
- Edit the existing investment transaction(s) and input the number of units that are on hand for the investment. ensure the transactions that you edit are on the correct contract date for CGT purposes. Use the Transaction Filter in the Transaction List to locate the investment transactions.
- Once the label has been changed you will now be able to input the Distribution.
The income account is not linked to the investment account
Ensure that the income account used for entering the distribution is linked to the investment account.
See Linked Accounts for steps on how to check the account is linked.