If your fund holds direct shares or hybrids, you may receive Dividends that you choose to reinvest to acquire additional shares/units.
To enter reinvested dividend receipts:
Click the INCOME tab.
Click the ADD NEW INCOME button.
Choose the Account to which the income attributes (Fund, or a Member account if the income attributes to a segregated asset.)
Select the Asset that generated the dividend.
If you select Direct Equity or Hybrids, Mclowd will display:
In the Income Type, select Reinvestment.
Mclowd will grey out the Add to account field and add additional fields:
You should enter Franked and Unfranked Amounts in the same manner as for cash dividends.
You should receive a statement from companies you invest in detailing the dividend paid and listing the franked and unfranked components and franking credits applicable. If you do not receive a statement, you can often locate the needed information (for Australian companies) by searching the ASX website. Go to http://www.asx.com.au/asx/markets/dividends.doand type the stock code into the search field. Details of dividends will be displayed.
Mclowd will calculate the Franking Credits based on your input of Franked amount.
IMPORTANT NOTE: You MUST enter a value in both Franked and Unfranked Amount fields, even if the amount is 0.00.
- If the dividend is fully franked, type 0 in the Unfranked Amount field.
- If the dividend is fully unfranked, type 0 in the Franked Amount field.
You should then enter the Cost per Unit of newly acquired shares, and the Volume Reinvested.
Mclowd will calculate the Reinvested Amount, and will display any Reinvested Over/Under Amount and Cumulative Balance.
- If the Dividend Income received is greater than the amount reinvested, the Cumulative Balance will be debited to account 1-1060 Dividends Receivable, as a debt owed to you by the company.
- If the Dividend Income received is less than the amount reinvested, the balance will be credited to account 1-1060 Dividends Receivable as a debt from your Fund to the company.
In either case, the balance is carried forward on your Fund’s balance sheet for future adjustment as and when declared by the company.
A future dividend from that company may differ from the income due to you, in which case the difference would be allocated to account 1-1060 to offset the debt or credit in that account.
Account 1-1060 does not provide a breakdown by company/investment of debits or credits accumulating in the account. It will only ever reflect a cumulative total for all dividend reinvestment residuals from all investments.
You should ensure that data entries or supplementary records you keep clearly indicate the assets for which residual debits or credits have accrued and the amounts of each debit or credit.
When you are satisfied that all data has been correctly entered, click SAVE INCOME.