Distributing Trust income using Accounts

For each Trust ledger, enter the required beneficiaries into the AE Accounts ledger.  You only need to perform this step once for each ledger.

1. Open the AE Accounts ledger and follow the menu path: File > Properties > Beneficiary Details. The Partnership Details window appears.
2. Enter the required beneficiaries starting from number 1 and going up to a maximum of 99. The beneficiaries are entered.

1. From the Enter menu, select Profit Allocation. The Profit Allocation window appears.

2. Type the dollar value of the profit allocation for each beneficiary. The profit is allocated accordingly.

   

   Unlike Partnerships that allow you to enter in percentages for each partner, Trusts require the distributions of profit to be in dollars and cents only.  Refer to the following for information regarding how to distribute as required:

   • If there is a profit for the year:

     Periods all but last	Last period
     Distribute to the first beneficiary - even if there is a loss for that period.	Distribute the profit as required between the beneficiaries.

   • If there is a loss for the year:
     • Distribute $0 for each loss period.
     • Distribute the value of any profit in a period to the first beneficiary.

Perform the following steps for existing Trust clients where profits have already been distributed via journals and an interim year close has been performed.

Ensure you have a backup of the AE Accounts ledger prior to performing this process.

1. Open the AE Accounts ledger and follow the menu path: File > Open > Previous Year. The previous year opens.
2. Click the Transactions tab and delete the profit distribution journals for each beneficiary. For example, delete the debit entry and the corresponding credit entries. The transactions are deleted.
3. Perform the steps above for To enter the beneficiary details. The beneficiary details are added.
4. Perform the steps above for To allocate the profit to the beneficiaries. The profit for the prior year is allocated.
5. From the Tools menu, select Year Close. The Year end wizard opens.
6. Select Interim close and complete the Year end wizard. The current year opens.
7. Perform step 4 for the current year. The current year profit is allocated.

Perform the following steps for existing Trust clients where profits have already been distributed via journals and an final year close has been performed.

Ensure you have a backup of the AE Accounts ledger prior to performing this process.

1. Click the Transactions tab and delete the profit distribution journals for each beneficiary. For example, delete the debit entry and the corresponding credit entries. The profit transactions are deleted.
2. Follow the steps above for To allocate the profit to the beneficiaries. The profit for the prior year is allocated.

1. From the Enter menu, select Comparatives. The Comparatives window appears.
2. Access the prior year and then delete the amounts from the codes used for profit distribution. For example, codes 549 Profit Allocation and 927 Distribution to each beneficiary. Note, the running balance should be nil.
3. Enter the profit distribution to the AUTO codes that Reporter uses in the same Comparative Entry window, for example:
   DR code 1008 total profit distributed
   CR Code 1101 for Beneficiary 1's amount
   CR Code 1102 for Beneficiary 2's amount
   etc
4. Open AE Reporter and preview the reports to conform they are correct. For example, #Trust Non Compliance all Balance Sheet Notes.