Distribution Re-investment (Corporate Actions Notifications)

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Overview


Simple Fund 360 now removes many of the friction points associated with processing distribution reinvestment plans. The dashboard will alert you to which reinvestment plans have taken place during the year and provide the required calculations and data to action these where applicable to your fund's circumstances. 

A distribution reinvestment is an additional purchase of units by way of a distribution received from the investment to fund the purchase. Any residual distribution reinvestment balance that remains after unit purchases can be allocated to account 62550/INVESTCODE.

Distribution reinvestments will appear in the Corporate Actions screen where the fund holds units in the particular investment and where Distribution reinvestments are offered by the company. 

The DRP will not show in the Corporate Actions screen if you have the following transaction posted:

DR Bank Account

CR 23800/XXX

OR

DR Investment Account

CR 23800/XXX

The transaction date has to be plus/minus a day of the DRP Corporate Action date.

For funds using bank feeds such as the BGL Bank Data Service, bank transactions loaded to the ledger will match to any cash components of DRP transactions processed through the Corporate Actions screen.

 

Note

BGL do not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.

 

Instructions


Under the Status column, the Process icon will appear for recent ASX announcements that apply to the fund. Selecting the icon will present the edit screen, with pre-filled information allowing you to quickly process the DRP.

How to Process


This Distribution Reinvestment is an example only.

  1. From the Corporate Actions screen, view the Type column. Confirm Distribution Reinvestment Plan appears under the column before proceeding.


  2. Select Process under the Status column.


  3. The Security will be automatically selected.

  4. Distribution Reinvestment Plan will display as the Corporate Actions Type.


  5. Confirm the chart account for the corporate action (for example, 77600/BOQ.AX).


  6. The Ex / Balance Date (the Corporate Action Ex Date) and the Payable Date (Transaction Date) will be selected. Simple Fund 360 will create a distribution reinvestment transaction in the Transaction List Payable Date.


  7. The Income Type (Distribution) and the reinvestment percentage will display.The percentage will default to 100%. 



  8. The linked income distribution account (23800) will automatically display as well as the linked dividend residual account (62550). 



  9. View the reinvestment transaction details. The DRP price per unit and number of units allotted during the transaction will automatically prefillThe Residual Balance C/F is the sum of: (Residual Balance B/F + [Total Amount Available Cost of units Allotted]).

    Note: The Residual Balance B/F is any amount sitting in account 62550/INVESTCODE.
    Note: The Residual Balance C/F can be rounded down to $0 if the amount is immaterial. This amount will then be transferred to the cost base of the shares received as part of the dividend reinvestment. 


    Note: Tax Components are to be entered after completing the DRP. See How to Enter a Distribution & Tax Statement.


  10. The Corporate Action Summary will appear below. Select Process Corporate Action. The reinvestment plan event will appear as Processed in the Corporate Actions screen.

How to Delete


If you are required to change a corporate action, you can delete and re-process the action from the Corporate Action screen.

 

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

 

Alternatively, you can access the Corporate Actions screen from the Transaction List:

Locate the corporate action to delete. Select the check box located next to the transaction and Delete. 

If disposals have been processed after the corporate action date for the investment it is recommended to delete the disposal first from the Transaction List.

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