Support Query
How to record Property when entering in Opening Balances?
Overview
In this example, we will record a purchase of an Australian Residential Real Estate Property (Account 77200) as at 30/06/2022.
| Purchase Price |
$200,000 Contract Date: 30/06/2015 |
| Market Value | $300,000 as at 30/06/2022 |
Create Property Account
| From the Main Toolbar, Select Investments. |  |
| Select the Property Dashboard. |  |
To add a new property into the Property Dashboard, select the Add New Property button.
In the Create Property Account screen, enter the Address of the property and select the Property Type (Australian/Overseas), (Residential/Commercial), or Farming Property.
A Security Code will automatically generate based on the address, if necessary this can be adjusted. This will be the sub-account code for the property.
| Asset subject to LRBA | Tick if the Property is subjected to LRBA. Simple Fund 360 will automatically link the 85500 - Limited Recourse Borrowing Arrangements sub account |
Once you have entered the property details, select Add Account at the bottom of the screen.
The property will be added to the Property Dashboard.
Recording the Property at Cost
| From the Main Toolbar, go to Accounting. |  |
| Select Transaction list from the list. |  |
| Select the New Transaction. |  |
| Select Journal. |  |
Fund Investments must be entered at the original purchase price.
|
Transaction Date: 30/06/2022 |
||||
|
Account Name |
Account Code |
Units |
DR(S) |
CR($) |
|
Investment Property |
77200/Property |
1 |
200,000 |
|
|
Member Data Clearing Account |
94920 |
|
|
200,000 |
Member Data Clearing Account (94920)
For Opening Balance purposes we have utilised Account 94920 - Member Data Clearing Account. However, when setting up a fund, other suspense accounts can be used. It is recommended to enter all components of the balance sheet against the same suspense account.
Ensure the correct contract date is entered in the more details panel of the Investment Property.
The contract date must be entered in to provide accuracy of your reports and calculations for further processing. If the contract date has not been entered, when you dispose of the investment in the future, Simple Fund 360 will not be able to recognise the original cost base and will therefore calculate incorrect capital gains.
Once your Balancing entry has been entered, save the transactions by selecting Post.
Manual Revaluation
You must adjust your investment accounts up (or down) to their recorded market value as at 30/06/2022 (Market Value less Original Cost Price).
Simple Fund 360 distinguishes between a purchase transaction and a market value transaction based on whether units have been entered. Therefore, units must NOT be input when recording market value increases or decreases.
|
Transaction Date: 30/06/2022 |
||||
|
Account Name |
Account Code |
Units |
DR(S) |
CR($) |
|
Investment Property |
77200/Property |
(leave blank) |
100,000 |
|
|
Member Data Clearing Account |
94920 |
|
|
100,000 |
Once posted, the market value of the property at year-end will be reflected in the Statement of Financial Position (See Below).
Add the market value as at 30th June of year end via the Property Dashboard. For more information, click here. This will be reflected in the Unrealised Capital Gains Report – Detailed and Investment Summary Report (See below).
Depreciation
Prior year depreciation and accumulated deprecation can be recorded as manual journal entries. Alternatively, the Depreciation schedule can be used, although this method is recommended when managing depreciable assets individually.
For more information, click here.
Financial Reports
See Also: