Overview
Depreciable assets of an investment property can now be linked to the property via the Chart of Accounts.
The purpose of linking a depreciable asset to an investment property is that the depreciation of the depreciable assets will be included in the Rental Property Statement of the investment property.
The following steps will be completed to add the linked depreciable asset to the investment property
- Create the depreciable asset in the chart of accounts
- Create the security
- Create the account
- Link the Depreciable asset to the linked account
Instructions
From the Main Toolbar, go to Accounting. Select Chart of accounts from the list. - Click Add Account and select Investment
- Click Select Securities and click Create New
- Give an appropriate name and code for the Depreciable asset.
Set the Market Type as Miscellaneous - Click Add Price and enter the Cost of the depreciable asset and Date then click Add to save the security price
- Select the Security created above and set the Investment Type as Fixtures and Fittings (at written down value) - Unitised
- Click
From the Main Toolbar, go to Accounting. Select Chart of accounts from the list. - Search the Chart of Accounts for the investment property that will have the linked depreciable asset and click on it
- Click under the Edit Investment Account screen
- Under the Depreciable Assets section, click into the search box and search for the account created above. Ensure the depreciable asset appears
- Click Save to link the depreciable account to the investment property