Accountants Enterprise in Australia only
The management of trusts and trust distribution varies slightly when migrating an AE Accounts ledger to Client Accounting.
AE Accounts users has a menu option in the program that allowed you to specify allocation amounts. This did not create a journal or display in the trial balance, however used accounts in the range over 1000 to report on these balance.
During the migration to Client Accounting however, a journal is created to bring the income allocation into the trial balance.
As a result, new accounts are created during the migration process:
|Account Code||Account Description||Account Type||Tax Code|
|565||Distribution to beneficiaries||Equity||NTR|
|1.590||Distribution received – Beneficiary #1||Equity||NTR|
|2.590||Distribution received – Beneficiary #2||Equity||NTR|
Setting up the Chart of Accounts
We recommend that you use the standard AE Accounts chart of accounts to automate the account group mapping.
If the following structure is used, the financial statement will print:
- A summary of the distributions with each beneficiary name at the end of the Income Statement
A summary of each beneficiary's accounts in the Unpaid Present Entitlements note – beneficiary mame, opening balance, funds contributed, distribution received, drawings and capital contribution accounts.
Account Code Account Description Account Type 560 Settlement Sum Equity 528 Retained earnings Equity 1000 Current year earnings Equity 565 Distribution to beneficiaries Equity 1.580 Name of Beneficiary #1 Equity 1.585 Opening Balance Equity 1.590 Distribution received Equity 1.600 Drawings Equity 2.580 Name of Beneficiary #2 Equity 2.585 Opening Balance Equity 2.590 Distribution received Equity 2.600 Drawings Equity
The following journal has been automated in the migration for the current year only.
In subsequent years, you'll need to manually create this journal to distribute profit to each beneficiary:
|Account Code||Account Description||Debit||Credit|
|565||Distribution to beneficiaries (total net profit)||$ XXX|
|1.590||Distribution received by Beneficiary #1||$ XXX|
|2.590||Distribution received by Beneficiary #2||$ XXX|
(where $ XXX is the amount to be distributed)