Username:  Password:
Forgot your username or password?        
     
Home Product Tour FAQ Forum Contact Us Download           
MySF Forums
Home       Calendar
        



Off market transfers - shares Expand / Collapse
Author
Message
Posted 10/04/2007 12:02:26 AM
Junior Member

Junior MemberJunior MemberJunior MemberJunior MemberJunior MemberJunior MemberJunior MemberJunior Member

Group: Forum Members
Last Login: 29/01/2009 8:06:30 PM
Posts: 0, Visits: 3
How do I enter shares transferred to the fund that have no cash consequence? That is, transferred via an Off Market Transfer.
Post #1680
Posted 7/06/2007 9:40:56 PM


MySF Administrator

MySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF Administrator

Group: Administrators
Last Login: 19/06/2015 3:22:19 AM
Posts: 479, Visits: 663
Hi,

If the off market transfer happened in a previous financial year then you can add the asset the same way that you would add other assets. Previous financial year transactions do not generate cash entries and require opening balances instead. Opening balances for transfers-in are the same as they would be if the asset is purchased.

If the transfer happened in the current financial year then the process is different. (Note that the example below assumes that the shares are being transferred in at their market value and not their cost base.)
Because you need to designate a bank account to use to record asset additions, and such transfers have no cash consequence, you will need to set up a new bank account to use as clearing account.
Please follow these steps:
1) Add a new bank account called "Clearing Account" under System Setup > Bank Accounts. This account should have a name that can be used to clearly identify this account, such as "Clearing Account"
2) Record a transfer in of the cash amount representing the asset in question. Go to Cash and Journal Processing > Cash Receipts and record a receipt using the bank account from above, the date of the transfer and the full market value of the transfer. Select one of the accounts under "4700 Transfers In" as the income account to use.
3) Add the asset using Manage Fund > Add / Manage Assets > Financial Assets > Shares. Use the bank account from above when asked to select a bank account. Use the market value per unit as the cost per unit (this event is an exception from normal processing).

After the asset has been added you should find that the Clearing Account has a balance of zero, there is a new asset and the income to the fund has increased by the value of the transfer in (same as the value of the asset).

Regards,

MySF
Post #1681
Posted 28/01/2008 7:41:37 PM
Master Member

Master MemberMaster MemberMaster MemberMaster MemberMaster MemberMaster MemberMaster MemberMaster Member

Group: Forum Members
Last Login: 19/03/2015 11:46:25 PM
Posts: 111, Visits: 2,302
Hi,

I'm pretty new to all this - so forgive me if I've got this wrong - but I'm pretty interested since I've recently made quite a few off-market transfers into my fund.

I would have thought that an off-market transfer to the fund was basically a sale of shares by the member to the fund together with a balancing personal contribution by the member of the sales proceeds.

As such, I would have thought one of the 4600 accounts would have been used (probably one of the 4630 Member Contribution accounts).

I would have also thought that the "contribution" would be counted towards one of the contribution "caps" - either the taxed or untaxed depending how the contribution was designated.

My understanding of the 4700 Transfers In accounts was that they would be used for funds already in the super system - eg inward rollovers from other funds.

I would be interested in any comments - agree/disagree?

Regards

Neil H.
Post #3771
Posted 28/01/2008 11:22:57 PM


MySF Administrator

MySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF Administrator

Group: Administrators
Last Login: 19/06/2015 3:22:19 AM
Posts: 479, Visits: 663
Hi,

If the transfer in is of an amount that was in superannuation elsewhere then you should classify it in MySF Manager as a transfer in and use one of the 4700 accounts. However, as you pointed out, if it is a new contribution of cash or assets then it needs to count toward the caps and you should use one of the 4600 accounts.

You should also check this information regarding the classification of transfers in and contributions with your accountant or other accredited professional.

Regards,

MySF Manager
Post #3772
Posted 14/02/2009 6:29:58 AM
Junior Member

Junior MemberJunior MemberJunior MemberJunior MemberJunior MemberJunior MemberJunior MemberJunior Member

Group: Forum Members
Last Login: 2/09/2009 6:11:14 AM
Posts: 9, Visits: 37
Hi,

Forgive me if these questions are a liitle naive - I'm pretty new to MySF.

I have to record details of several off-market share transfers (in current financial year) and have some questions about the process outlined in your 7/6/2007 post(below).

Step 2) outlines the recording of a cash receipt. One of the elements of a receipt record is Asset, however the new asset isn't added until step 3. Should the asset therefore be added before step 2 rather than after, or should the asset not be recorded as part of the cash receipt record?

Also, when adding the asset in step 3), should I select 'None' for Transaction to Generate?

Thanks
Peter

MySF2 (7/06/2007)
Hi,

If the off market transfer happened in a previous financial year then you can add the asset the same way that you would add other assets. Previous financial year transactions do not generate cash entries and require opening balances instead. Opening balances for transfers-in are the same as they would be if the asset is purchased.

If the transfer happened in the current financial year then the process is different. (Note that the example below assumes that the shares are being transferred in at their market value and not their cost base.)
Because you need to designate a bank account to use to record asset additions, and such transfers have no cash consequence, you will need to set up a new bank account to use as clearing account.
Please follow these steps:
1) Add a new bank account called "Clearing Account" under System Setup > Bank Accounts. This account should have a name that can be used to clearly identify this account, such as "Clearing Account"
2) Record a transfer in of the cash amount representing the asset in question. Go to Cash and Journal Processing > Cash Receipts and record a receipt using the bank account from above, the date of the transfer and the full market value of the transfer. Select one of the accounts under "4700 Transfers In" as the income account to use.
3) Add the asset using Manage Fund > Add / Manage Assets > Financial Assets > Shares. Use the bank account from above when asked to select a bank account. Use the market value per unit as the cost per unit (this event is an exception from normal processing).

After the asset has been added you should find that the Clearing Account has a balance of zero, there is a new asset and the income to the fund has increased by the value of the transfer in (same as the value of the asset).

Regards,

MySF
Post #4178
Posted 15/02/2009 4:39:06 PM


MySF Administrator

MySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF Administrator

Group: Administrators
Last Login: 19/06/2015 3:22:19 AM
Posts: 479, Visits: 663
Hi,

The 'Asset' selection box(es) on the cash receipt screen allow you to tag income earned by an asset to the asset. This helps with yield analysis.

In the case of contributions the income is not earned by the asset, but contributed by the member. Therefore in this case the asset selection box can remain blank. The member selection box can remain blank as well since the account used to record the contribution is tagged to the member already, so the software will be able to identify the contributing member from that information.

When adding assets through the Add / Manage Assets screen you must choose a transaction type (General Journal or Cash Payment) when recording a transaction for the current period. The actual account entries will always be basically the same. The difference between the two is that a cash payment will ask you to identify the person or company to whom the payment was made. In short, you should usually just select General Journal.

Regards

MySF
Post #4181
« Prev Topic | Next Topic »



All times are GMT -6:00, Time now is 8:58pm

Powered by InstantForum.NET v4.1.4 © 2018
Execution: 0.608. 8 queries. Compression Disabled.