Accounts in the range of 50000-59999, are system accounts used by Simple Fund 360 to manage member balances.
This article outlines the following:
- How these system accounts relate to other processes or income/expense accounts
- When the system posts journals to each account
- How each account is used to calculate the member's new opening balance when the period is closed.
System Accounts used in SF360 Processes
|System Account||Related Process in SF360||When the System Journal is Created|
|50010/Opening Balance||Used to record the opening balance of a member.||Close Period|
|53100/Share of Profit/(Loss)||Records the profit/loss allocated in the Create Entries process.||Create Entries|
Records tax allocated in the Create Entries process.
Also used when recording the tax implications of other member-related transactions such as Untaxed Transfers In or Life Insurance payments.
Create Entries /
On saving specific journals.
56100/Internal Transfers In
|Used in the Internal Transfer process.||N/A|
|57100/Internal Transfers Out||
Used in the Internal Transfer process.
System Accounts related to Income/Expense Accounts
|System Account||Related Income/Expense Account|
|51900/Division 293 Tax||Will display amounts posted to 48100/Division 293 Tax|
Will display amounts posted to 24200/Contributions
28500/Transfers In (additionally, 15% of the Untaxed component is posted to 53330/Income Tax)
(15% of the amount if the contribution is taxed)
|53900/Insurance Policy Proceeds||27500/Proceeds from Insurance Policies|
|53920/Life Insurance Premiums||
39000/Life Insurance Premiums (additionally, 15% of the amount is posted to 53330/Income Tax)
|53940/Income Protection Premiums||39400/Income Protection Premiums (additionally, 15% of the amount is posted to 53330/Income Tax)|
|53960/Total and Permanent Disability Premiums||39500/Total and Permanent Disability Premiums (additionally, 15% of the amount is posted to 53330/Income Tax)|
|53980/Death Cover Premiums||39600/Death Cover Premiums (additionally, 15% of the amount is posted to 53330/Income Tax)|
|54000/Management Fees||40000/Management Fees (additionally, 15% of the amount is posted to 53330/Income Tax)|
|54050/Members Expenses||40500/Member Expenses (additionally, 15% of the amount is posted to 53330/Income Tax)|
|54160/Pensions Paid||Will display amounts posted to 41600/Pensions Paid|
|54500/Benefits Paid/Transfers Out||Will display amounts posted to 46000/Benefits Paid / Transfers Out|
|55100/Excess Contributions Tax||Will display amounts posted to 44000/Excess Contributions Tax|
|55700/Superannuation Surcharge Tax||Will display amounts posted to 48700/Contributions Tax (Surcharge)|
|58000/Refund Excess Contributions||Will display amounts posted to 46600/Refund Excess Contributions|
2Will display amounts posted to 24200/Contributions
(when a reserve contribution type is selected in more details)
All the System journals related to these accounts are created when the Income/Expense journal is saved.
- These accounts can be reconciled by comparing the System Account and the related Income/Expense account on the Trial Balance:
- If these do not match, the system journals have likely been deleted.
To resolve this, re-save all transactions that are posted to the Income/Expense account. This will re-generate the system journal that was missing.
The Close Period Process
Each year, all system accounts related to a member are combined to create the member's new opening balance. This process is completed when Close Period is selected on the Period Compliance screen:
Close Period journals are then created, clearing each account to $0 and posting the balancing amount to 50010/Opening Balance. An example of a Close Period Journal can be seen here:
- An exception to this is 59200/Contribution Reserve, which is transferred to 52420/Contributions displaying that reserves are being recognised as contributions in the coming financial year.
See the Contribution Reserves article for more information.
Income Reserve Accounts
There are 5 other system accounts in the 50000-59999 range that are used for Income Reserving:
|Account Code||Account Name|
|59600||Unallocated Anti-Detriment Reserve|
|59650||Unallocated Contribution Reserve|
|59700||Unallocated Investment Reserve|
|59800||Unallocated Self-Insurance Reserve|
|59850||Unallocated Funeral Plan Reserve|
For instructions on how to enable the Member Allocation worksheet and use these Income Reverse Accounts, see the Income Reserving article.