Managing Mutual Funds

Determining how Mutual Funds Are Mapped

Tax Code
-Displays the current tax code.
The original tax code for a transaction is stored in ONESOURCE Trust Tax and is used by ONESOURCE Trust Tax when factors are applied. You can view a transaction's original tax code under the
Trust Accounting System
collapsible section on the account binder's Transaction page.
Posting Date
-Displays the posting date. The date or date range you enter while factoring should capture the posting date, not the tax effective date. This is especially important when you are factoring the final postings of a fund in January of the following year. Unless the factor date range you enter extends into January of the following year, the last posting will not be factored.
Tax Effect Date
-Displays the tax effective date. ONESOURCE Trust Tax uses the tax effective date to determine the tax year to include the income for tax purposes. It is important to review the tax effective date because the date may have been incorrectly entered in your trust accounting system. The incorrect date could cause the transaction to be included in the wrong tax year.

Managing Mutual Fund Assets While Processing Tax Returns

Moving a Mutual Fund to a New Tax Code

Review the mutual fund asset to ensure that factors do not exist.
On the Register Listing page, select Run for the
Mutual Funds and Other Factored Assets without Factors
base register.
Select the check box in the second column on the left for the mutual fund asset you want to move to a new tax code.
Select the
Trust and Transaction List
subtopic.
Select Run for the
Transaction List for Asset
register.
Review the register results to ensure that only the transactions that you want to move to the new tax code are listed.
Open the
Column Update
collapsible section.
Select
Tax Code
from the
Column
drop-down list.
Select the new tax code from the
New Value
drop-down list.
Select
Update
.

Correcting the Tax Effective Date for Mutual Funds Posted to an Incorrect Tax Year

Create a custom register for correcting the tax effective date. To create a custom register:
From the Register Listing page, select Modify Register Properties for the
Trans from foreign assets sorted by preparer
register.
Select the
Information
collapsible section on the Register Properties page.
Enter the register name in the
Register Name
field and select the register scope from the
Scope
drop-down list.
Select
Save As
.
Select Delete for the following columns to remove them from the second grid under the
Detail Columns
section:
Preparer code
Explanation
Explanation (contd)
Entity Type
Income cash amount
Principal cash amount
Beginning date for tax year
Select
Save
.
Open the
Detail Filter(s)
collapsible section.
Select Delete to remove the foreign asset filter row from the grid.
Select
Save
.
Open the
Detail Filter(s)
collapsible section.
Add the filters listed below. To enter a filter, enter the details below in the row that includes the text, "Please select here to add new row." Press the TAB key until the filter is added as a grid row.
Condition	Column	Operator	List Value	Text Value	Value Type
And	Posting Date	Not equal to	Tax Effect Date		Field Compare
And	Tax Effect Date	Equal to		Enter a specific date using the MM/DD/YYYY format.	User Value
And	Asset ID	Equal to		Enter the CUSIP or asset ID of the mutual fund.	User Value
Select
Save
.
On the Register Listing page, select Run to run your custom register.
Review the register results to ensure that only the transactions you want to update are included in the register.
Make a global change to correct the tax effective date. To make a global change:
Open the
Column Update
collapsible section.
Select
Tax Effect Date
from the
Column
drop-down list.
Enter the correct tax effective date in the
New Value
field.
Select
Update
.

Reviewing and Updating Mutual Fund Factors

On the Register Listing page, select Run for the
Mutual Funds and Other Factored Assets
register.
Select the check box in the second column on the left for the mutual fund asset you want to review.
Select the
Mutual Fund Factors
subtopic. The Mutual Funds Summary page displays.
Select the
Asset ID
link for the mutual fund asset. The Mutual Fund Factors page displays.
If factors already exist, select down arrow for the posting date. In the second grid on the Mutual Fund Factors page, review and, if necessary, update the factors for the posting in the
Value per Unit
or
Percent of Distribution
column. If a factor exists for tax code 4 (Nondividend Distributions), then the amount per share or unit displays in the
Return of Capital Per Share
column. If the return of capital adjustment calculation is turned on but the
Return of Capital per Share
column is not populated, then no return of capital adjustment will be calculated by a processing request.
If you need to add one or more factors, add the posting(s) then add the factor(s).
To add a posting:
In the first grid on the Mutual Fund Factors page, select the row that includes the text, "Click here to add new Posting or Original Tax Code."
Enter the date range for the posting in the
Factor Date
from and
Through
fields.
Enter the original tax code of the transaction to factor in the
As Tax Code
field. Select
Lookup
(located to the left of the
Save
button) if you want to review a tax code listing.
Press TAB to automatically fill the
Description
field with the description for the tax code.
Enter the payment date in the
Payment Date
field. Press TAB until the posting date is added as a row to the grid.
Select
Save
.
To add factors:
In the first grid on the Mutual Fund Factors page, select down arrow for the posting date.
In the second grid on the Mutual Fund Factors page, select the row that includes the text, "Click here to add new Factor."
Enter the tax code to factor to in the
Tax Code
field. For a return of capital, enter
4
in the
Tax Code
field. Press TAB to automatically fill the
Description
field with the description for the tax code.
Enter the decimal amount to be factored to the tax code in the
Pct of dist
field. For a return of capital, enter the amount per share in the
Return of Capital Per Share
field.
Press TAB until the factor is added as a row to the grid.
Select
Save
.
Complete the steps listed above for each factor you are adding.
When you finish adding factors, verify the factors you added and that the total percent of distribution is 1.0000.
Select
Save
.
Use the Mutual Fund Posting Summary page to verify the posting changes you made. To access the Mutual Fund Posting Summary page:
From the
Mutual Funds and Other Factored Assets
register, select the check box in the second column on the left for the mutual fund asset.
Select the
Trust and Transaction List
subtopic.
Select Run for the
Trust List for Asset
register.
Select an
Account
link to open the account binder.
Select the
Transactions and Funds
main topic then the
Mutual Fund Summary
subtopic.
Select the
Asset ID
of the mutual fund. The posting display in the grid under the
Mutual Fund Postings
collapsible section.

Processing and Reviewing Mutual Fund Information

Worksheet
Tax Return Projection and Worksheet
Tax Return and Worksheet

When a return of capital adjustment amount is automatically calculated, the
Return of Capital Adjustment
field is populated and the
Date ROC Calculated
field is updated with the process date.
When a return of capital adjustment amount is manually entered prior to or in lieu of an automatic calculation, the
Return of Capital Adjustment
field is highlighted in yellow and the
Date ROC Calculated
field is blank.
When a return of capital adjustment amount is overridden after it was automatically calculated, the
Return of Capital Adjustment
field is highlighted in yellow and the
Date ROC Calculated
field retains the last process date before the override was entered.

Calculated ROC
ROC Override
Date ROC Calc
ROC Adjusted Cost or Basis
Fed Gain/Loss Before ROC
ROC State Adjusted Cost or Basis
State Gain/Loss Before ROC

The asset is factored through Wall Street Concepts (WSC).
The factors are bridged from your trust accounting system.
The factors are manually added in ONESOURCE Trust Tax.