The Beneficiary type selected in HandiLedger determines the account code range required when entering transactions relating to a beneficiary.
Trust distributions in HandiLedger and its relation to Beneficiary Types
For existing beneficiaries, the account code options will be either Beneficiary Loan or Non-Equity(UPE).
For new beneficiaries, the options available will be Beneficiary Loan, Non-Equity (UPE), Corp Beneficiary Equity (UPE) and Corp Beneficiary Equity (Sub Trust).
NOTE: If you have already created the beneficiary and selected the wrong Type, you will need to create a new beneficiary. You cannot delete the existing beneficiary as this will affect your reports. You can however Resign the existing Beneficiary.
Please also ensure all members have all years created even if there is a zero amount, via the View, Beneficiary Details window, this is important for the distributions to allocate correctly, if a member is missing one year it may cause an incorrect distribution. It may also generate errors on roll over if some of the years for members are missing.
Beneficiary Account Code requirements
For Beneficiary Loan and Non-Equity (UPE) the account codes to use will be in the Capital account range (4000-4099):
Capital account range (4000-4099) for beneficiary loans (standard loan arrangement) and Non-equity (UPEs). These will appear in assets or liabilities in the balance sheet.
To view all Capital Accounts go to View on the main menu then select Chart of Accounts. Tab to Capital Accounts
NOTE: The Capital accounts must be sub accounted e.g. 4000.01, you must not post to the control account.e.g 4000
For Beneficiaries with a type selected Corp Beneficiary Equity (UPE) or Corp Beneficiary Equity (Sub Trust), any entries to these beneficiaries need to be issued to an account code in the Equity range:
Unpaid Present Entitlement range (4400-4499) for corporate beneficiaries that will appear in Equity.
Sub-trust range (4500-4599) for corporate beneficiaries that will appear in Equity.
NOTE: The number of sub accounts in the chart of accounts should match the number of beneficiaries that you have in View, beneficiary details.