The Create Entries Report provides you with a breakdown of the calculations from the Create entries process.
How to prepare the Create Entries Report
|From the Main Toolbar, go to Reports.||
To download an individual report in PDF, Word or Excel format:
- On the left hand side of the Reports screen, Drag & Drop the Create Entries Report from the Financial Reports list.
- Once the report has been dragged & dropped, select Options (to the right of the report).
- Select either Download PDF, Download Word or Download Excel.
You can also add this report to a Report Pack. See Reports for instructions.
|From the Main Toolbar, go to Compliance.||
|Select Period compliance from the list.||
- The Create Entries will appear in the Create Entries table below.
- To open the Create Entries Report, select the Print icon under Action.
Create Entries Report sections
See below for more information on the key sections of the Create Entries Report.
Financial year summary
This section of the Create Entries Report will outline a summary of the profit and tax generated from the Financial Year.
This section will display the following calculations:
- Total Profit - this amount will reconcile with the funds Operating Statement (the sum of Income less expenses).
- Tax Summary - this amount will reconcile with the fund's Statement of Taxable Income.
- Profit/(Loss) Available for Allocation - The profit that will be allocated to the members. This is the sum of the Total Profit excluding any member related transactions which have already been allocated (eg contributions, pension payments), plus any franking, TFN, Foreign and FRW credits.
- Income Tax Expense for Allocation - The income tax expense to be allocated to the member accounts. This is the sum of the Income Tax on Taxable Income or Loss excluding any tax that has been already allocated to a member as a result of a member related transaction (for example, the tax on a concessional contribution) plus PDIT amount in the current year (if tax effect accounting is ticked under fund details).
- Calculation of Non Deductible Expense Percentage(s) - A breakdown of the calculation of the non deductible expense percentage.
The Create entries process is broken down into segments.
On the create entries report, the segment sections will display the profit and tax allocations for specific periods within the create entries period.
A segment is created when a trigger event occurs. A Trigger Event is an event in the fund where a member's balance is required to be updated to current market value including rollouts and pension commencements. A mid year create entries is completed. The program will be able to identify these events based on the processing of particular events (new pension member transactions and lump sum payments) and the member start and end dates.
Profit and Tax will be allocated to members on a segment basis.
Other sections of the create entries report include further information in regards to:
Displays a breakdown of the revaluations occurring within the segment for the investments held.
This can be reconciled against the changes in Market Movement line item in the Operating statement.
Exempt Pension Income Segment
Displays the effect of income and tax credits to the funds Exempt pension income. The line items reflect the income and tax credits recorded within that particular segment. The amount field will display the amount recorded to the income account multiplied by the Actuary percentage.
Profit/loss available for allocation
The amount of profit/loss to be allocated to the members is determined by the total profit/loss for the year, adding back any member expenses and subtracting other member transactions.
Member transactions that are added back include Pension Payments and Member expenses.
Member transactions that are subtracted include Contributions.
These amounts are excluded from the profit/loss to be allocated as they are already allocated to a member in the create entries process.
Daily member weighted balances
Profit and tax are allocated to members on a pro rata basis, based on the daily member weighted balances.
The daily member weighted balances method adds the total amount allocated to the members account for the year placing a weighting on each dollar based on the transaction date. The remaining profit (or loss) and income tax applicable is then allocated to members accounts based on the total of weighted members account balance. This method ensures that members who make contributions during the year receive an appropriate percentage of the profit (or loss) of the fund at year end.
Example is based on a segment from 01 July 2013 to 04 May 2014 (308 days)
Calculation of the weighted percentage for Mary Jones
Weighted amount combined:
510,216.08 + 430,253.51 = 940469.59
Weighted percentage for Mary Jones:
430,253.51 / 940469.59 = 45.75%
Breakdown of Mary Jones' weighted balance using the daily member weighted balances method
Example of a contribution from Mary recorded on the 01/01/2014 pro-rated
Amount x (days in fund / Total days in segment)
Contribution amount: 20,000.00
Days in fund: 01/01/2014 - 04/05/2014 (124 days)
20,000.00 x (124 / 308) = 8,051.95
Note: The Member Allocation Worksheet can be used to override the daily weighted average balance calculation.
Calculation of Net Capital Gains
This section will outline a breakdown of the Net Capital gains calculated for the create entries period.
Includes the breakdown of:
- Capital Gains
- Capital losses
- Carried forward capital losses applied
- CGT Discounts
- Realised Notional gains.