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Term Deposits - How To Expand / Collapse
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Posted 9/03/2010 6:01:28 PM


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This is a very common question among users of MySF Manager.


Initial Setup (if you have not already added these)

1. Go to Configuration > Asset Classes and add a new financial class called 'Term Deposits'.

2. Create a clearing bank account through Cash and Bank Accounts > Manage Bank Accounts. This account will just be used to pass funds through so particular transactions do not show up on your main bank account.


Recording the purchase of a Term Deposit

1. Go to Assets > Buy and Manage section > Term Deposits and add a new term deposit by clicking the 'Add New' button.

2. This is very important Enter all the details for the term deposit. The price per unit should be entered as "$1" and number of units as the total amount of the term deposit. For example, if I opened a term deposit with $10,000 I would enter "$1" as the price per unit and "10,000" as the number of units. You will see the capitalised cost field at the bottom of the screen shows the exact amount of the term deposit.

3. Click the 'Add' button when all the information has been added.


Adding interest received to your bank account.

1. Add a cash receipt through Cash and Bank Accounts > Receive Cash section > Interest. The values of the fields for the receipt will be as follows:
  • Deposit to Account: The bank account you received the interest in
  • Payor: Term deposit asset
  • Receipt Type: Interest

In the lines where there are two drop down boxes and an amount entered under 'Amount', select the term deposit from the Asset drop down box and the account to select should be '4130 Interest Received'.

2. Click 'Save' to process the cash receipt and increase the bank account selected by the amount of interest received.


Adding interest reinvested back into a term deposit.

1. Add a cash receipt through Cash and Bank Accounts > Receive Cash section > Interest. The values of the fields for the receipt will be as follows:
  • Deposit to Account: The clearing account set up in the initial setup above
  • Payor: Term deposit asset
  • Receipt Type: Interest

In the lines where there are two drop down boxes and an amount entered under 'Amount', select the term deposit from the Asset drop down box and the account should be '4130 Interest Received'.

Click 'Save' to process the cash receipt which will now increase the clearing account by the amount of the receipt. Now you will use this amount to purchase a new lot of parcels for your current term deposit.

2. Add a new purchase of your term deposit parcels through Assets > Buy and Manage section > Term Deposits. Click 'Add New' at the bottom right and enter the same information as the term deposit you received interest for. The only difference should be that the number of units will be the total amount of interest received in step 1 above and the cost per unit will be $1. Important Ensure that the bank account that this purchase comes from will be your clearing account that was increased by the cash receipt in step 1 above. Remember that the 'Code', 'Name' and 'Shortname' should be the same as the original term deposit you received interest for.

That's it. You should repeat these steps every time you reinvest interest received into any term deposit.


Closing or withdrawing parts of your term deposit.

1. Go to Assets > Sell section > Term Deposits.

2. Select the term deposit you are selling all or some of in the first drop down box. Each parcel of interest you reinvested back into the term deposit will be displayed as a separate line in the bottom area of the screen.

3. Enter the number of units you're selling and make sure the sale price is entered as $1 per unit. You also need to tell the software for each line in the bottom area, how many of the units in each parcel you are selling.

4. Enter information in the rest of the fields so that it matches the sale of your term deposit.

5. Click 'Process' and you're done.


If you require assistance with any of the above, please do not hesitate to contact us at info@mysf.com.au

Best Regards,

MySF

Post #4503
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