Withdrawals from Accumulation Account

Can you advise how to process a withdrawal from an accumulation account. i.e member has both a pension and an accumulation account, anything in excess of their minimum pension has been minuted to come from the accumulation account.
How do you process this transaction?
I have tried a journal but it says I cannot process a manual transaction from account code 54500"Benefits Paid/Transfers out"

A search in SF360 takes you to this page with full details - How to Enter Rollover or Lump Sum Payments – Simple Fund 360 Knowledge Centre

Thanks David, eventually I found this only to be confronted with the quandry whether to create entries or not……

Can you possibly further assist……

The instructions on this page under “How to process”, say you must ENSURE you have completed the create entries process…

However the instructions on this page under “you need to Create Entries when”, says you wont need to create entries or may not be required to run CE process when

  • Fund has sufficient cash to meet payment obligation

For example.

So is it ensure you do or, if there’s enough cash you don’t need to……

The phrase “may not” has me confused.

Thanks

Sue

Hi Sue

It is safer to run create entries at the date of the proposed commutation, because you then know all the member balance components are up to date, particularly if you have multiple members with different phase sub-accounts or investment segregation. The reference to sufficient cash is presumably there because if the fund hasn’t got enough cash it will need to liquidate an asset which has consequences for the member’s balance.

NB I am not a BGL support person, but just a normal user like you. I have done a number of commutations and always processed create entries first.

Regards
David

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Excellent thanks for help David, greatly appreciated…. So do you think that also means I need to revalue all investments (those that are not auto updated) as at the date before the withdrawal……

I would, yes. Just like a year end.

Actually you have to create entries before processing lump sums, especially for accumulation accounts - you’ll run into negative member balances if not lucky. BGL normally advised to create entries a day before the lump sum withdrawal.

Just a note picking up on the reference to liquidity to pay lump sums (as cash out) … it is my understanding that this need not be done in the form of cash, in specie transfer can made made (at fare market valuations) to provide for Lump sum payments and re-contributions … I am a trustee not a SMSF professional so please refer to your own Advisor to confirm what maybe suitable for your own purposes.
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