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Managing Common Trust Funds

Common trust fund information is bridged different from the information for ordinary transactions. Each account that holds the common trust fund posts cash transactions for each distribution period to tax code 986. The transactions are applied to the factor records for the same distribution period that is also bridged. The posting date of the tax code 986 transaction must match the posting date of the factor record. This is how the amount of income, expense, and gain or loss is determined for each account.
note
The extract program of your trust accounting system determines whether factor records are bridged as a percent of distribution or a value per unit.

Reviewing and Updating Common Trust Fund Factors

Existing common trust fund factor records can be reviewed and updated from a register, but posting dates cannot be added or deleted. Contact ONESOURCE Trust Tax for assistance with making more extensive changes.
No income or factor updates (including tax code 986 transaction updates) can be made in ONESOURCE Trust Tax at the account level. Updates to common trust fund factors are made at the asset level only.
To review and update common trust fund factors:
  1. From the Register Listing page, select Run for the
    Common Fund Factors
     register.
  2. Select the assets you want to review and update. To select one or more assets, select the check box in the second column on the left. If you want to review and update all of the assets in the register, do not select any check box.
  3. Select the
    CTF Factors
     subtopic. The Common Trust Funds Summary page displays.
  4. Select the
    Asset ID
     link for the first asset you want to review. The CTF Postings for page displays.
  5. If necessary, select down arrow for the posting date you want to review. The grid under the
    Detail-Posting Date
     collapsible section shows the factors for the posting in the income distributions and/or gain distributions columns.
  6. Calculated factors are shown in blue font. To change the factor basis between the value per unit and the percent of distribution, enter the factor in the applicable column, select another column (or press TAB) then select
    Save
    . After saving, the entered factor is shown in black font and the calculated factor is shown in blue font. If factors are populated in only one column (value per unit or percent of distribution) then the unused column is unavailable.
  7. Verify the accuracy of the factor information in ONESOURCE Trust Tax by comparing the total of the income factors to the factor information available from your trust accounting system.
  8. Select
    Save
     if you changed the factor information.
  9. Select Back or Forward at the top of the CTF Postings page to move through the postings for each asset you selected for review.

Processing and Reviewing Common Trust Fund Factors on a Worksheet

A worksheet is a document that includes all of the account information, recipient information, cash transactions, capital sales and common fund information for an account. You can process worksheets from a register or the account binder at any time during the year by selecting one of the following from the
Request
 drop-down list on the Process page or pop-up window:
  • Worksheet
  • Tax Return Projection and Worksheet
  • Tax Return and Worksheet
After processing completes, a worksheet print file for each account included in the processing request is created and stored on the account binder's Documents page. To access the worksheet print file, open the tax year category then open the
Document: Worksheet
 category.
The worksheet's Common Trust Fund Income Schedule shows the common trust fund information. The posting dates are presented as headings, and the units, distribution, and tax code breakout for the distribution are categorized under each heading. The following graphic shows a worksheet's Common Trust Fund Income Schedule:

Preparing Common Trust Fund Reports

You can prepare summary and detailed common trust fund participant reports for a specific date range. Completed reports are available on the Documents and Data Files page.
To prepare a common trust fund report:
  1. From the Register Listing page, select Run for a common trust fund register or an asset register that was filtered to display only common trust fund asset types. For example, you can select Run for the
    Common Trust Funds
     base register.
  2. Select the
    Prepare CTF Reports
     subtopic.
  3. Select one of the following check boxes to indicate the type of report you want to prepare:
    • Summary report
      -When selected, a summary report in PDF format is prepared.
    • Summary download
      -When selected, a summary report in a download (*.txt) format is prepared.
    • Detail report
      -When selected, a detailed report in PDF format is prepared.
  5. Select the
    Overwrite existing reports
     check box to overwrite any existing reports with the report you are currently preparing.
  6. Enter the beginning and ending dates for the report in the
    Begin Date
     and
    End Date
     fields. Use the format, MM/DD/YYYY, to enter the dates.
  7. Select
    Process
     then select OK for each message that displays. After the report is prepared, you can open or download it by selecting the
    File Name
     link under the
    Folder: Assets-Reports
     category on the Documents and Data Files page.

This article applies to:

  • Product: ONESOURCE Trust Tax