To enter Fund Formation Costs, return to the ADD RECEIVABLES meu option on the Setup Menu if necessary, and select ADD RECEIVABLE OPENING BALANCE.
Ensure FUND is selected in the ACCOUNT field. Select 1-1086 Fund Formation Expenses in the Add Other Receivables Select field.
Complete the form, entering a description and the amount.
NOTE: You may wish to write off this expense. You can do this after you REVIEW AND CLOSE the opening year. When closing the year in which the expense is written off, you can select whether to claim the written off amount as tax deductible or non-deductible. Please refer to Chapter 7 EXPENSES for instructions to write off the cost, and to Chapter 11: YEAR END PROCESSING for instructions on ensuring the written off amount is correctly reflected in your Tax Return.