Fund Set Up

3.7.1 Fund Setup: Receivables and Liabilities: Future/Deferred Tax Liabilities

At commencement of recording, your Fund may have a Deferred Tax Liability, or a Tax Refund entitlement.

Enter a refund entitlement following the instructions for entering Receivables, and selecting Account 1-1090 Tax Refund Due.

Enter a tax liability following the instructions for entering Liabilities and selecting Account 2-1100 Income Tax Payable, or 2-1105 Deferred Income Tax.


NOTE:  The automated logic in Mclowd only allows for a deferred liability to be entered on fund setup. It is possible that a Future Income Tax Benefit entitlement exists. In this case, it is recommended that you record a manual journal dated your Migration Date to DEBIT account 2-1105 Deferred Income Tax and post a corresponding credit to Account 9-9999 Clearing Account.

Jnl entry for future tax credit due as at migration date


 

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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