Franking Credits

[John Ralls]

On Dec 26, 2013, at 2:40 AM, PeterO <petero at fotodomain.com> wrote:

> Peter,
> 
> This is perfectly true in case of an individual. However SMSF fund in
> pension mode does not pay tax on the fund income, so all franking credits
> are paid back by ATO. I am recording them as income of course, but was
> looking for a place in the chart of accounts to "park" them until the refund
> cheque arrives. (Unlike dividends, I can't enter them in the bank account
> because I don't have the money yet). 
> So I have created an account for it under 
> Assets:Investments:Broker:Shares:Franking Credits Accumulated. 
> That would be "paired" with bank deposit in due time.
> I tried to enter them under Expenses:Tax Paid as suggested earlier in this
> thread, but that screws up Advanced Portfolio report. Looks like a bug, so I
> needed to find an alternative.
> 
Your approach of parking them in Assets seems correct to me. They're an accrual
that's owed you, very much like an account receivable.

The usual disclaimers apply.

Regards,
John Ralls