Trust account reporting
There are four trust account reports that help you comply with the record-keeping requirements in the Building Industry Fairness (BIF) Act:
- Trust Account Ledger
- Trust Account Ledger Trial Balance Statement
- Trust Record of Deposits and Withdrawals
- Trust Account Bank Reconciliation Report
To make sure balances in the reports are correct, make sure you enter trust-related bank transactions into MYOB Advanced Construction.
Trust Account Ledger
The Trust Account Ledger report shows you how much money trustees and subcontractors are entitled to in a trust.
The trust account ledger records changes to the beneficial interests of trust beneficiaries. Beneficial interests arise at times set out in the Building Industry Fairness (BIF) Act – these are different to when a liability is typically recognised in the trustee's business ledger. In MYOB Advanced Construction, a subcontractor's beneficial interest arises when an invoice from a subcontractor has been added to the system.
Go to the Trust Account Ledger form (MYCR3005).
Complete the fields:
Trust Account ID – The trust account you want to report on.
From Period and To Period – The period which the report should cover.
Prepared For – If you're preparing the report for someone in particular, enter their name here to add it to the report header information.
On the form toolbar, click Run Report. The report preview opens in a new window.
If you need to re-run the report for a different set of periods, using the Parameters icon (
) in the preview window won't work. Instead, close the preview window and re-run the report from the Trust Account Ledger form (MYCR3005).
If the trustee had transactions during the chosen period range, those transactions are always displayed at the top of the report.
The opening balance is equal to the closing balance of the previous period (i.e., the period that precedes the one you selected in the From Period field).
Trust Cash Account Available balance – the amount of funds on the cash account, as per normal system functionality.
Trustee Opening Beneficial Interest Balance – equal of the Trustee Closing Beneficial Interest Balance from the previous period.
How Trustee Closing Beneficial Interest Balance is calculated
The Trustee Closing Beneficial Interest Balance (TCBIB) is calculated using this formula: TCBIB = O + D - B - W
In the formula, the letters stand for:
O – The trustee's opening balance.
D – The sum of all deposits (funds transfers and bank transactions) made by the trustee to the trust account during the reporting period.
B – The sum of all subcontractor bills raised in the reporting period.
W – The sum of all withdrawals made by the trustee during the reporting period.
The trustee’s beneficial interest is only affected when a bill is created. It's not affected when:
For a project trust account (PTA), a subcontractor bill is paid.
For a retention trust account (RTA), funds are transferred.
For example, imagine a bill is raised in a period A and then paid in a period B. If you run the report for period B, the trustee's beneficial interest balance wouldn't be affected.
How Subcontractors Closing Beneficial Interest Balance is calculated
The Subcontractors Closing Beneficial Interest Balance (SCBIB) is calculated using this formula: SCBIB = O + S - P
In the formula, the letters stand for:
O – The sum of the subcontractor opening balances.
S – The sum of all subcontractor bills raised in the reporting period.
P – The sum of all payments made to subcontractors during the reporting period.
How Ledger Balance vs Bank Account Balance is calculated
The Ledger Balance vs Bank Account Balance amount is calculated by subtracting the available balance of the cash account from the closing balance of the trustee.
Trust Account Ledger Trial Balance Statement
A trust account ledger trial balance statement is required as part of the monthly reconciliation process. You must prepare the statement within 15 business days after the end of each month.
The Trust Account Ledger Trial Balance Statement report shows all the beneficiaries of a trust account and the transactions they made against the trust cash account.
Go to Trust Account Ledger Trial Balance Statement form (MYCR6310)
On the Report Parameters tab, complete the fields:
Balance Date – The date for which the report should run.
Trust Account – The trust account you want to report on.
Project – Optional. This field is useful if you're preparing the report for a retention trust project (RTA) that's used in multiple projects.
On the form toolbar, click Run Report.
For each supplier, transactions are listed from oldest to newest.
Transactions where a subcontractor was paid are from bills paid on the Cheques and Payments form.
Transactions where a customer was paid are from the Payments and Applications form.
Trust Record of Deposits and Withdrawals
The Trust Record of Deposits and Withdrawals report lists all of the transactions that trust parties have made to or from a trust account.
Go to the Trust Record of Deposits and Withdrawals form (MYCR6300).
On the Report Parameters tab, complete the fields:
From Date and To Date – The period that the report should cover.
Trust Account – The trust account you want to report on.
Project – Optional. This field is useful if you're preparing the report for a retention trust project (RTA) that's used in multiple projects.
On the form toolbar, click Run Report.
Trust Account Bank Reconciliation Report
The Trust Account Bank Reconciliation Report is a summary of the other trust account reports and the reconciliation statement. Running the report lets you reconcile:
- the financial institution account statement with the trustee's record of deposits and withdrawals
- the record of deposits and withdrawals with the trust account ledger.
Within 15 business days at the end of each month, you need to complete a bank reconciliation by running:
- a reconciliation on the Reconciliation Statements form (CA302000)
- the Trust Account Bank Reconciliation Report using the reconciliation Ref. Number from step 1.
Go to the Trust Account Bank Reconciliation Report form (MYCR6320).
On the Report Parameters tab, complete the fields:
Cash Account – The cash account associated with the trust account.
Ref. Number – The reference number of the reconciliation statement.
On the form toolbar, click Run Report.
The report has four sections.
Financial Institution Account Statement
This section reflects what is shown in the reconciliation statement you selected in the report parameters.
The totals for unreconciled transaction also appear in the Reconciliation Statement report (CA627000) for unreconciled disbursements.
The Reconciliation date bank statement balance is the number you enter when doing the reconciliation statement.
Record of Deposits And Withdrawals
This section totals all transactions in the reconciliation statement that were reconciled and not. These totals are the sum of the Financial Institution Account Statement section and the reconciled receipts and disbursements.
Trust Ledger Trial Balance Statement
This sections totals the transactions that have been reconciled and appear in the Trust Account Ledger Trial Balance Statement report.
Reconciliation
This section shows the same information as what's shown on the reconciliation statement you selected in the report parameters.