Simple Invest 360: Opening Balances - How to Setup an Entity (Trust) – Simple Invest 360

Overview

Generally, you will be entering these opening balance figures from financial statements.

Balance Sheet
Operating statement
Record of purchases of assets (CGT Register)
Beneficiary details.

The following will need to be completed when entering opening balances for your Trust:

Create the Trust
Add beneficiaries to the Chart of Accounts
Input balance sheet items
Input operating statement (optional)
Update ledger to the current year

The article will take guide you through the process of entering opening balances.

Example

Trust Details

Trust Name	BGL Trust
Date formed	14/06/1994
Financial Year Start	01/07/2019
Financial Year End	30/06/2020
System Start Date	01/07/2020

Financials

The following financial will be used in entering the opening balances for the Trust.

Instructions

From the Main Toolbar, select Home then click Entity Setup

Record the Trust details:

Entity Type	Select Trust.
Trust Type	Select one of the following: Discretionary Unit Hybrid Testamentary Bare Business Private Ancillary
Badge	Assign a Badge to the Trust.
Trust Name	Enter Trust Name
Entity Code	Entity code will be automatically created, however, the field is editable.
ABN	Enter the Trust ABN
TFN	Enter the TFN
Opening Balances	Select Yes, if you are setting up and entering opening balances.
Date Formed	Input the Date Formed.
Financial year	Input the Financial Period as per your Financial Statements.

Investment Revaluation will automatically trigger from the System Start Date going forward.

Automatic Revaluations can be controlled from the Trust Details Screen:

From the Main Toolbar, go to Trust.
Select Trust Details.
Select Yes for Automatic Revaluations.

Next we will set up the beneficiary accounts shown on the Statement of Financial Position. The following accounts are also available depending on your entity:

58700	Opening Balance - Beneficiary	Control Account.
58710	Capital Contributed	Control Account
58720	Gift	Control Account
58800	Unpaid Trust Distributions	Control Account
58900	Funds loaned to Trust	Control Account
58950	Drawings	Control Account

In this scenario, we will be using the Opening Balance account 58700. Follow the instructions below to create the Sub Accounts:

From the Main Toolbar, Navigate to Accounting, and Select the Chart of Accounts.
Locate Control Account 58700 and Select +,
In this example, we have two Beneficiaries. Please create two sub-accounts for both beneficiaries.

After the Beneficiaries have been created, the balance sheet can now be entered into Simple Invest 360.

The following components of the Balance Sheet will be entered:

Beneficiaries Balances
Investment History
Liabilities

Beneficiaries

First, the beneficiaries balances will need to be entered.

From the Main Toolbar, go to Accounting.
Select Transaction List
Select the New Transaction.
Select Journal.

From the Transactions screen, input the Beneficiary Opening Balances.

Date	Input 30/06/2020
Reference	Input 1
Description	Opening Balance - Beneficiary A
Select an account	Select Account 58700-0001 (Opening Balance Beneficiary)
Amount	Input a credit amount of $509,129.30
Select an account	Select Account 58700-0002 (Opening Balance Beneficiary)
Amount	Input a credit amount of $370,102.44
Add Line	Select
Select an account	Select Account 99800 Unspecified Data Clearing Account
Amount	Input a debit amount of $879,231.74

To post the journal, select Post.

Unspecified Data Clearing Account (99800)

For training purposes we have utilised Account 99800, However, when setting up an entity you will not be required to post to Account 99800 and can enter the balance Sheet into Simple Invest 360 as one journal.

Investment History

When entering investment history, purchases must use the more details panel and input the actual date of purchase as the contract date.

Fund Investments must be entered at the original purchase price.

In this task you will learn how to input all investment history manually. However, the option to import investment history using the BGL XML Import - Investment_OpeningBal Tab is also supported.

From the Main Toolbar, go to Accounting.
Select Transaction List
Select the New Transaction.
Select Journal.

Record purchase of Westpac Term Deposit

Date	Input 30/06/2020
Reference	Input 3
Description	Investment Purchase History
Select an account	Select
Create Investment	Select Investment
Investment Type	Select Fixed Interest Securities (Australian)
Investment Code	Input WPTD
Name	Westpac Term Deposit

Save Investment	Select
Account	Account 72400/WPTD will now display.
Amount	Input a debit amount of $360,000.00.

Record the purchase of CBA Shares

Select an account	Select
Create Investment	Select Investment
Investment Type	Select Shares in Listed Companies (Australian)
Securities	Select CBA.AX
Investment Code	Field will automatically populate based on the security code selected.
Name	Field will automatically populate based on the security code selected.

Click
Select an account	Select 77600/CBA.AX
Units	Input 400
Amount	Input a debit amount of $19,976.00
More details	Click to input purchase details.
Contract date	Input purchase date 21/10/2010
Settlement Date	Input settlement date 24/10/2010

Record the purchase of BHP Shares at the respective parcel dates for CGT purposes

Select
Select an account	Select 77600/BHP.AX which was previously added to the global Chart of Accounts.
Units	Input 2388
Amount	Input a debit amount of $43,325.00
More details	Click to input purchase details.
Contract date	Input purchase date 02/06/2000
Settlement Date	Input settlement date 05/06/2000
Select	to record the second purchase for BHP Shares
Select an account	Select 77600/BHP
Units	Input 900
Amount	Input a debit amount of $35,964.00
More details	Click to input purchase details.
Contract date	Input purchase date 10/12/2009
Settlement Date	Input settlement date 13/12/2009

Record purchase of Listed Unit Trusts

Select
Select an account	Input 78200/GPT, which was previously added to the global Chart of Accounts.
Units	Input 12,700
Amount	Input a debit amount of $25,000.00
More details panel	Click to input purchase details.
Contract date	Input purchase date 01/10/1995
Settlement Date	Input settlement date 04/10/1995

Record the opening Bank Balance as at 30/06/2020

Select
Select an account	Select
Create Bank Account	Select Bank
Make Default Bank Account	Select this option
BSB Number	Enter your bank account details
Account number	Enter your bank account details
Account Code	Input a unique bank code
Account Name	Input V2 Plus Account
Save Bank Account	Click
Select an account	Select 60400/ANZ
Amount	Input a debit amount of $411,016.30

Balancing Entry

Select
Select an account	Select Account 99800 Unspecified Data Clearing Account
Amount	Input a credit amount of $895,281.30

Once your Balancing entry has been entered, save the transactions by selecting .

Liabilities

To complete the setup for the BGL Trust, the liabilities need to be entered. Referring to the balance sheet above:

From the Main Toolbar, go to Accounting.
Select Transaction list
Select the New Transaction.
Select Journal.

Date	Input 30/06/2020
Reference	Input 5
Description	Input Liabilities
Select an account	Select Account 58800/00001 - Unpaid Trust Distributions (Create Sub Account)
Amount	Input a credit amount of $6,049.56
Select an account	Select Account - 58900/00001 Funds loaned to Trust (Create Sub Account)
Amount	Input a credit amount of $10,000.00
Add Line	Select
Select an account	Select Account 99800 - Unspecified Data Clearing Account
Amount	Input a debit amount of $16,049.56

Once your balancing entry has been entered, save the transaction by selecting .

The following accounts are also available depending on your entity:

80500	Amounts owing to other persons	Control Account
81000	Interest Accrued	Control Account
83000	Investment Liabilities	Control Account
84000	GST Payable/Refundable	Normal
84500	Income in Advance	Normal
85000	Income Tax Payable/Refundable	Normal
85500	Limited Recourse Borrowing Arrangements	Control Account
86000	PAYG Payable	Normal
88000	Sundry Creditors	Normal
89000	Deferred Tax Liability/Asset	Normal
89990	Migration Suspense Account	Normal

In this task, you will learn how to input the Operating Statement for comparative purposes. This step is optional based on whether you wish to report this year's profit and loss statement with comparative balances from the previous year.

Franking credits and Distributions

Prior year franking credit and taxable distribution components (tax deferred, tax-free, etc.) can be recorded in the More Details Panel of the respective line items when inputting comparatives for dividends (23900) and distributions (23800).

In this task, you will learn how to input Operating Statement items as of 30/06/2020.

You will be using Journals to enter the Operating Statement items.

From the Main Toolbar, go to Accounting.
Select Transaction list
Select the New Transaction.
Select Journal.

Note: The investment income and expense accounts have been automatically created. This occurred when the investment accounts were created.

Date	Input 30/06/2020
Reference	Input 6
Description	Operating Statement
Select an account	Select Account 23800/GPT
Amount	Input a credit amount of $3500.00
More Details Panel	Click
Other Non-Assessable Amounts	Input Tax-Free Amount $400.00 and Tax-Deferred Amount $700.00
Select an account	Select Account 23900/BHP
Amount	Input a credit amount of $2200.00
More details panel	Click
Dividend Details	Input Franked Dividend of $2,200.00 and Franking Credit of $942.86

Continue entering the remaining operating statement items by selecting Add Line.

Account	Description	Amount
24700	Increase in Market Value	(2,553.00)
30100	Accountancy Fees	1,200.00
25000/WPTD	Interest Westpac Term Deposit	(4,800.00)
49000	Profit/Loss Allocation Account (account 49000 will be used to balance the ledger)	11,853.00

To save the transaction, select .

The following message will display:

Select Ok.

In this task, you will learn how to update the ledger to the next accounting period to begin working on current year transactions.

From the Main Toolbar, go to Trust.
Select Trust details.

Under the Reporting section, change the Financial Year to the following: 01/07/2020 to 30/06/2021.

Once the Financial Year has been updated, select .

The Trust is now ready for the current financial year.