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Mutual Fund SIP & Accounting

edited January 2014 in Accounting
I have clients who pay Mutual Fund SIP through BillPay facility of Netbanking.
Bills appear before 7 days of due date.
e.g. SIP date is 20th Jan 2014, then bills will appear from 13th Jan 2014.
Since payment is made before actual date on PMS system, how to account for this.


  • edited January 2014
    As per income tax rule, for correct capital gain calculations, you need to show the date of purchase as date of fund house statement. If you are importing from statement, it will show 20-Jan-14 as purchase date. In MProfit Accounts, in Bank ledger, it will appear as debit on 20th Jan. Bank statement will show 13th Jan.
    This should be okay as many times, cheques issued are debited at later date from bank, so there will be always some lag between bank statement and your books of accounts. Accounts can sort this out during monthly bank balance reconciliation.
  • Is there any option to mark a transaction as reconciled/Pending etc so that we can verify from bank account statements.
  • This feature is not available now. We are working on importing from bank statements. We will review this after this features is introduced.
  • Now that we have bank accounts import facility, how to co-relate transactions in PMS and bank import with different dates. e.g. bank is debited for amount on 10th May i.e. Saturday, however units will be allocated on 12th May i.e. Monday closing once NAV for that day is declared.
  • You need to keep the date as per PMS entry, means 12th May for this transaction. During import, ignore the duplicate entry of 10th May.
  • Many software have options that bank transactions have date when the debit has been made.

    i.e. Bank transaction will have same debit date as that of account.
    However, the amount will be transferred to Investment (Cash) account temporarily.
    When NAV is allocated then on that date the amount will be transferred from Investment (Cash) to actual investment fund.

    The exact reverse process happens during redemption of funds. i.e. funds are redeemed on 10th May, however, account will be credited with that amount roughly after 3 working days.

    Is there any similar arrangement in Mprofit to solve this problem.
  • We have observed that in very few bank statements, they have two dates, one is transaction date and other is value date. Since there is no uniform pattern, it would be difficult to introduce such feature. We can review this at later date.
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