Expenses

7.2 Expenses: Add New Payment

The ADD NEW PAYMENT facility enables you to easily enter payments of pensions and benefits and other transfers out of Member accounts. Note that payments can only be made from Member accounts, not from the Fund itself, since any pension or benefit payment or transfer out will automatically reduce the balance of a member’s account.

To enter a payment, click the EXPENSES tab.

Expenses_ButtonMenu

If you have expenses entered already, Mclowd displays a list of expenses entered in the selected period.

Expenses_List

If you select Entire Fund in the Account selection box on the right (above the Financial Year selection), Mclowd will also display payments made to Members.

Expenses_ListwithPayments

To add a new payment, click the ADD NEW PAYMENT button.

Mclowd displays:

Expenses_AddPayment

In the Payment made on behalf of field, select the Member to or on behalf of whom the payment was made.


NOTE: Mclowd permits pension payments only to member accounts in pension mode.

Mclowd correctly allows benefit payments from accumulation accounts, but users should verify under what circumstances a benefit payment is permissible to such members. Under law, a benefit can be paid if one or more conditions of release are satisfied. For example, if the member has reached the age of 65, is over 60 and has ceased employment (even if they intend to return to work), or has reached their preservation age and retired. Benefits may also be payable under certain circumstances on compassionate grounds or if the member is suffering disability or incapacity. Benefits can also be paid from accumulation accounts to non-residents who leave Australia and to beneficiaries on the death of a member, and in certain other specific circumstances. Trustees of self-managed superannuation funds should carefully verify that a Condition of Release has been satisfied before making a benefit payment.

Transfers out are permitted for members in accumulation mode to provide for transfers of member funds to another superannuation fund if members request it.


Select or enter the Date of this payment.

Enter a Description of the payment.

Select the Payment From account. Only bank accounts will be available for selection.

Select the Payment Type: Pension, Benefit or Transfer Out.

Enter the Amount paid or transferred.

Click ADD PAYMENT to save the record.


NOTE:

Mclowd will verify that sufficient funds exist to make the payment. An error message will advise if the balance in the Member account is insufficient to make the payment. An error message will display if you attempt to make a pension payment from an accumulation account.


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding.
Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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