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Establishing a Trust ledger and distributing profits in MAS

This support note applies to:

  • AE MAS (AU)

Article ID: 29765

In MYOB Accountants Enterprise (AE) Management Accounting System (MAS) you set up accounting ledgers of different entity types.  The entity type selected on ledger creations determines the profit split account/s allocated.  The correct profit distribution account for a Trust is 500 02.

To successfully maintain a MAS ledger for a trust entity you need to:

  • Establish the ledger as a trust.  This automatically sets the required profit split account information. 

  • Determine the profit amount.

  • Perform a profit distribution journal.

 

To establish the ledger as a trust

  1. Open System Release and from the File menu, select New. The Select new object to create window appears.

  2. Click Item. The New Item Properties window appears, and the cursor appears in the Client: field.

  3. Type the new Client Code and press ENTER. The cursor appears in the Type: field.

  4. Type MAS4 and press ENTER. The cursor appears in the Name: field.

  5. Type the name of the ledger and press ENTER. The Location: field is highlighted.

  6. Click the Ellipses button. The Select Folder screen appears.

  7. Highlight the folder that contains your MAS4 files, and click Select. The New Item Properties screen appears.

    If you are unsure which folder to select, highlight each folder and select properties. The path for the folder shows the S6CLIENT directory.

  8. Click OK. The Welcome to the New MAS Ledger Wizard screen appears.

  9. Click Next. The Create a new MAS Ledger screen appears.

  10. Select Standard Ledger and click Next. The Entity Details screen appears.

  11. Click the drop-down arrow on the Entity Type field and select Trust. Trust is selected.

  12. Click Next. The Year and Period Details screen appears.

  13. Enter the appropriate Year and Period Details and click Next. The Completing the New MAS Ledger Setup Wizard screen appears.

  14. Review the details and click Finish. The ledger is created and the Client Chart window appears for you to continue adding accounts.

To determine the profit amount

After you have completed data processing for the financial year you need to identify the profit amount so as to perform a journal entry to distribute the profit to the individual beneficiaries.

  1. From the Reports menu, select Trial Balance. The Trial Balance screen appears.

  2. Click OK. The Record Selection window opens.

  3. Select the required options and click OK. The Print window opens.

  4. Click Preview. The report appears on the screen.

  5. Take note of the figure at the bottom of the report with the description "Net Profit this year" or "Net Loss this Year".

    For a Trust ledger, you only distribute a profit value.  If the ledger result is a loss, you do not distribute this value and it remains as carried forward losses until it is recouped by profit amounts in future years.

  6. Press ESC. The MAS ledger appears.

To process the profit distribution journal

  1. Follow the menu path: Data > Journals > Journal Entry. The Data Entry: Journals screen appears and the cursor appears in the Period end date field.

  2. Enter the period end date and click OK. The Journals screen appears.

  3. Process the distribution of profit through the beneficiay's accounts as follows then click Exit and Post. The transactions are posted.

    Account

    Description

    Sign

    500 03

    Distribution to Beneficiaries

    Debit

    501 02

    Share of profit (for beneficiary 1)

    Credit

    502 02

    Share of profit (for beneficiary 2)

    Credit

    50# 02

    Share of profit (all required beneficiaries)

    Credit