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Junior Member
Group: Forum Members
Last Login: 30/05/2011 4:22:51 PM
Posts: 2,
Visits: 72
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After processing a share dividend (cash) for shares with less than 100% franking (eg PPX) the amount posted to the relevant bank account is significantly different to that actually received and therefore it is impossible to reconcile bank a/c's. What am I doing wrong?
Ray Brown
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MySF Administrator
Group: Administrators
Last Login: 29/01/2012 4:16:49 PM
Posts: 208,
Visits: 958
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When you post a Dividend the amount you enter is the amount of the Cash component on the front screen. This then flows to the pop up screen where you enter the amount of the imputation credit and the percent franked.
Click on this link for a picture of what I mean www.mysf.com.au/pdf/brownsample.jpg
The amount you enter on the front screen will be the amount that is posted against the Bank account. The journal entry will be
Dr Bank $700 and Cr Dividends Received $700
If you enter an imputation credit as in the example a second entry is generated which is
Dr Imputation Credit Rebate (this is a negative Liability Account) $100
and Cr Imputation Credits (Income account)
So the second entry doesnt touch the Bank account at all.
This applies whether it is 100% franked or less.
Let us know if you need more clarification
Regards
MySF
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