Issue
For a take-on fund, how do I take up the Interest accrued in prior year, but will be taxed in current year?
Resolution
To resolve this issue:
Step 1: Process a Tax Only income event, refer to How to process a Tax Only Income or Expense for detailed steps
Step 2: Match the Cash In transaction with Income Receivable
The instructions below cover:
- If the Income Receivable was loaded as a Custom Holding Account
- If the Income Receivable was loaded as an Interest Receivable
If the Income Receivable was loaded as a Custom Holding Account
Navigate to Fund Level > Transactions > Bank Statements
- Select the Income Receivable account
- Click on Add
- Add in the interest accrued amount as a Cash out transaction
- Click on Save
Refer to How to clear a Loan Account which is set up as a Custom Holding Account for detailed steps
Navigate to Fund Level > Transactions > Match Transactions
- Select the Cash In transaction and the Cash Out transaction to match
If the Income Receivable was entered as an Interest Receivable
Navigate to Fund Level > Transactions > Match Transactions
- the Interest Receivable is showing under the Business Transaction section
- Select the Cash In transaction and the Income Receivable business event to match
To see how the Income Receivable was taken up in the Opening Balance
Navigate to Fund Level > Fund > Load Opening Balances
- If it is setup as a Custom Holding Account, it is showing at the bottom of the Holdings tab
- If it is entered as an Interest Receivable, it is showing under the Assets and Liabilities tab