Closing Unit Fund Accounts
Purpose
To
allow the closure of Unit Fund accounts when funds are completely withdrawn
Timing
There
are two parts to this process:
- Paying out Unit Fund accounts during the distribution period and writing off the future balance
- Closing the Unit Fund accounts post distribution
During the Distribution Period
Unit
Fund account holders will advise they wish to completely withdraw from the fund
- The current ledger balance will be paid out
- The future ledger balance will be made zero by
entering a transaction using the transaction type LG – Loss/Gain on Closure. The transaction value will have the opposite
sign to the balance of the future ledger.
- After these two transactions have posted the
Unit Fund account will have both a zero current and future ledger balance
- The Unit Fund account should retain a status of Open. This means the Unit Fund account must have the active flag checked on and the Close Date must be blank
Distribution
Prior
to Distribution the Unit Fund Account Status Report should be run. All accounts that have withdrawn all their
funds during the distribution period should be checked to ensure they are on
the report and that both the current and future ledger balances are zero.
If
any accounts are missing, access the Unit Fund account and check the Active
checkbox is checked and there is no Close Date.
Amend as necessary to achieve this state.
During
the Distribution process the Unit Fund Posting Audit Report – Average Daily
Balance Calculation should be checked for all accounts identified on the Unit
Fund Account Status Report as having both current and future ledger balances of
zero. Each account should appear on the
report and its average daily balance for the period shown.
Post Distribution
Complete
the distribution process and pay out all account holders. Post the cash from the Cashbook back to the
Unit Fund Accounts:
- Cashbook
| Post to Other
Systems
Once
that process is complete, each of the accounts for withdrawing investors will
have a zero current balance once again.
- Accounts
| Auto Close Accounts
Complete the dialog as follows and the below setup:
This
process will make inactive and add a close date to all Unit Fund Accounts where
both the current and future balances are zero.
Ensure
this process is run immediately after the distribution payout is complete to
ensure there are no timing issue with clients who may withdraw their funds
immediately after a distribution.
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