Issue 

The fund is in full pension phase, when I did the Period Update the tax return did not show any tax. However, in the Operating Statement (profit and loss report), it shows tax expense.

Cause

If no Fund Policy has been entered for the financial year, tax will automatically be calculated and taken up.

Resolution

To resolve this issue you will need to:

1. Rollback Tax Finalisation
2. Rollback Period Update
3. Update Fund Policy with 100% Pension under Pension Exempt Actuarial
4. Re-Process Tax Finalisation
5. Re-Process Period Update

Ensure you follow the steps in the order they appear.

If this does not resolve the issue, refer to our article, Why does Class calculate income tax on a fund in 100% pension phase?

What's Next?

Learn the correct steps to processing a fund by viewing this article "6 - Best Practice Processing"