Issue

How do I run a period update when the foreign bank account has a negative balance? 

Cause

There are two scenarios which can cause this issue:

Scenario 1

For the first-year fund on Class, you could refer the following article.

Period update error message "A disposal of $xxx xxx units of Foreign cash account on 30/06/201X cannot be matched due to insufficient holding"

Scenario 2

For the non-first-year fund on Class, there is a Cash Out transaction with the amount exceeding the current balance during the financial year. 

Resolution

Class does not support a negative ending balance for the foreign bank account. You are required to remove the cash transaction to bring the foreign bank account balance to zero. 

There are two workarounds available to resolve this issue:

Option 1:  Change the date of the cash transaction to avoid a negative balance

Option 2: Create a custom holding account to handle the cash transaction which triggers a negative balance, to retain a zero or positive balance in the foreign cash account.

Option 1: Change the date of the cash transaction to avoid a negative balance

Navigate to Fund level > Transactions > Browse Bank Statements > select the foreign bank account

1. Select the cash transaction which triggers a negative balance
2. Click on "Edit"
3. In the Edit Transaction screen, update the transaction date to the date on which foreign cash account has sufficient funds to make a zero or positive balance
4. Save the Transaction

Example

Option 2: Create a custom holding account to handle the cash transaction which triggers a negative balance, to retain a zero or positive balance in the foreign cash account.

1. Create Custom Holding Account. The User Guide provides instructions for creating a Custom Holding Account.

Navigate to Fund level > Transactions > Browse Bank Statements > select the custom holding account you created 

1. Create a Cash Out transaction with AUD equivalent for the foreign cash transaction which triggers the negative balance and leave it as "unmatch"
2. Add a Cash Out transaction in the foreign bank account when the foreign cash account has sufficient funds to handle this Cash Out transaction
3. Create a Cash In transaction in custom holding account which is handling negative foreign bank account balance
4. Match the cash transactions created in Step 1 and Step 3 in Transactions > Match Transactions screen

For further information on other period update errors, refer to Period Update Error Messages: Summary