Unit Fund Account Type Setup

Unit Fund Account Type Setup

Purpose

To allow for different types of Unit Fund Accounts to be created, such as Unit Fund and Loan Repayments

Each Account Type can be assigned a different Unit Value if required

Access

  1. Accounts | Edit/View Account Types |  | Unit Fund Account Type Details | 

Process

The following dialog will display:



Field
Explanation
Current Revaluation Trans Type

[F2] to highlight and  the Transaction Type that will post a Revaluation Amount from or to the Current Ledger

The selected Transaction Type must have the below fields setup as:

  1. Module: Unit Fund
  2. Ledger: Current
  3. Control Input: Control
  4. Post Interest & Year End Tax Reporting: None 

Future Revaluation Trans Type

[F2] to highlight and  the Transaction Type that will post a Revaluation Amount from or to the Future Ledger

The selected Transaction Type must have the below fields setup as:

  1. Module: Unit Fund
  2. Ledger: Current
  3. Control Input: Control
  4. Post Interest: None
  5. Post Interest & Year End Tax Reporting: None
Revaluation Comm Type

[F2] to highlight and  the Communication Type that will be created when the Revalue Unit Fund Accounts is run

A Communication can be created detailing the increase or decrease in the Unit Fund Valuation and Units Held
Dealer Trans Type

This is the Transaction Type that will Post Brokerage calculated on Unit Fund Accounts to the associated Broker (Dealer) Account for Payout to that Broker

The selected Transaction Type must have the fields setup as below:

  1. Module: Dealer
  2. Ledger: Current
  3. Control Input: Control
  4. Post Interest & Year End Tax Reporting: None
Unit Value ($/Unit)

Enter here the Unit Value that will apply to all accounts associated with this Account Type

When an account is saved, it will refer to the Unit Value on the associated Account Type and will cause the system to update that Account with its opening number of units based on the Current Ledger Balance divided by the Unit Value specified here

After the setup of this dialog, this field is disabled, but will be updated with the latest Unit Value whenever the Revalue Unit Fund Accounts process is run
Unit Rounding Method

This is intended to allow rounding of non-whole units in different ways

At this stage there is only one option available:

Round > = 0.5 up to next whole unit

This means everything 0.5 or greater is rounded to the next whole unit - where values below 0.5 will be rounded down
Unit Valuation Method

Investment – where the revaluation is undertaken on the investment amount.  Changes to the value of the investment will be posted to a reserve fund represented by the unit fund future ledger balance.  The number of units does not change.

Units – the investment amount never changes.  Rather, if the fund is revalued the number of units available at the price for that fixed investment is updated.



    • Related Articles

    • 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 ...

    • Post Unit Fund Distribution - Units

      Purpose There is functionality within the system to distribute income from loan accounts over Unit Fund Accounts using a rate of interest that is calculated at the time of the distribution. A summary of the process is as follows: Up to six Variable ...

    • Post Unit Fund Distribution - Investment

      Purpose There is functionality within the system to distribute income from loan accounts over Unit Fund Accounts using a rate of interest that is calculated at the time of the distribution. A summary of the process is as follows: Up to six Variable ...

    • Revalue Unit Fund Accounts

      Purpose The value of units of a fund may vary over time. This will result in a loss (decrease in unit value) or gain (increase in unit value) on the investment by the account holder. This process automatically updates the Unit Fund Account and ...

    • PIE Attribution Report

      Purpose To show by client, their unit balance, Holding %, PIR and net income received for a reporting period. It will also detail the income attributed to each PIR. Timing The report will be run monthly for each month during an attribution period and ...