FACTS Balance Records

FACTS Balance Records

FACTS is primarily a tool that helps you to allocate investment returns and create General Ledger Journal entries from the allocations. The General Ledger maintains the financial history of these allocations, and FACTS maintains its own history of investment balances and changes.

FACTS creates the following Balance records for every valuation Cycle (usually quarterly or monthly):

• One Balance record for each Investment Pool.
• One Balance record for each of the Investment Accounts that hold the Pool’s assets.
• One Balance record for each Fund that participates in the Pool. This record is used to create the General Ledger Journal entries for each Cycle.

Each record has a Beginning Balance, an Ending Balance, and summary fields that categorize the Transactions responsible for the change in balance. These values can be kept at market, book (less frequently used), and income (rarely used).

The creation of these Balance records and the posting of the allocated changes to General Ledger are the two main goals of Pool processing.

In between the times when you process the Pool, Fund level Transactions (buys and sells of units) will automatically flow into FACTS. These Transactions are created every time a General Ledger Journal entry is posted to a Fund’s Pooled asset account. During Pool processing you will add new Investment Account Balance record(s) and enter earnings and fees from the Investment Account statement(s). The confirmed Fund level Transactions from General Ledger are automatically included, so the ending balance in FACTS will tie with the Investment Account statement. During Pool Allocation Processing FACTS will create the new Pool and Fund balance records.

When you post FACTS, the allocated amounts from the Fund Balance records are used to create Journal entries to the Fund level General Ledger accounts.