Equity transactions are available for Trust entities only. This article details the different kinds of transactions you can choose from in this category.
Equity Withdrawal
Navigate to fund level > Transactions > Equity Transactions > Equity Withdrawal
- Withdrawal Type - Displays automatically.
- Select the Equity Account type - Select from either Gift, Reserve, Retained Earnings, Settlement Sum, or Unpaid Present Entitlements.
- Enter the Date - The date of the transaction.
- Enter the Gross Amount - The amount of the transaction.
-
Description (Defaults to Equity Withdrawal but can be overridden).
- Click Submit
- A Reserve account may be used to hold funds that are equity but do not neatly fit into any other equity account, e.g. the non-taxable, distributable capital amount of a realised capital gain.
- When a period update is run, profits accrued throughout the financial year are allocated to the Retained Earnings account.
- The Settlement Sum account is the initial amount of money provided to establish the trust
- A Beneficiary Account is automatically created for each beneficiary of a trust. This is the account that Retained Earnings are moved to when the trustee distributes monies to the beneficiaries.
Equity Contribution
Navigate to fund/trust level > Transactions > Equity Transactions > Equity Contribution
- Contribution Type - Displays automatically.
- Select the Equity Account type - Select from either Gift, Reserve, Retained Earnings, Settlement Sum, or Beneficiary Accounts.
- Enter the Date - The date of the transaction.
- Enter the Gross Amount - The amount of the transaction.
- Description (Defaults to Equity Contribution but can be overridden).
- Click Submit.
Equity Adjustment
This functionality can be used to adjust equity account balances when the Trust is first loaded onto Class. Class will correctly maintain equity account balances over time.
- Transfer Date - The date you would like to affect the adjustment.
- Description (Defaults to Equity Adjustment but can be overridden).
- Enter the Transfer Amount against the desired Account (eg. Gift, Reserve, Retained Earnings and so on).
- Tick the Create Business Transaction' for the difference of $XXX.XX - allows the adjustment event to be completed with a variation. The variation will then be used to create a business transaction on the Match Transactions page.
- Click Submit
As you enter amounts in the Transfer Amount column the closing balance will update. This can make it easier for you to determine what adjustment amount to enter.