The Depreciation schedule in Simple Fund 360 has simplified the process of processing journal entries and preparing a schedule for your depreciable assets.
It is recommended to have a unit recorded against the purchase transaction to utilise the schedule. However non-unitised investments are also supported in the schedule.
To include an asset in the schedule please follow the steps outlined below:
|From the Main Toolbar, go to Compliance.||
|Navigate to Period compliance|
2. Search for the asset by either the Account Code or Name.
3. Purchase Date/Opening Cost will be automatically calculated and will include any cost base adjustments if applicable. This field is editable and open for on-screen adjustments.
4. Accumulated Depreciation - This field will only display when setting up a fund. By default, Simple Fund 360 will calculate total balance posted to the investments linked depreciation account. This field is editable and open for on-screen adjustments.
The Assets Contract Date must be before the System Start date for the Accumulated Depreciation field to display.
5. Select a Depreciation Method. Simple Fund 360 supports:
- Diminishing Value Method
- Prime Cost
- Low-Value Pool
- Capital Works Deduction
6. Input a Depreciation Rate.
7. Simple Fund 360 will automatically calculate the Opening Written Down Value.
The Closing Written Down Value will update once depreciation has been posted in the current period.
8. Select Save.
1. Select the checkbox next to the Asset(s).
2. From the Depreciation Menu click Post Depreciation.
3. Input the Depreciation Date and select Post.
IMPORTANT: By changing the Depreciation Date, the depreciation amount will be Pro-Rated based on the date. See
To preview previously posted depreciation transactions in the Simple Fund 360. Navigate to the Transaction List and Select the Depreciation Filter.
1. Add the asset to the Depreciation Schedule.
2. From the Action Column select the 3rd Icon.
3. Input a date.
4. Select Write Off.
To preview the transactions, navigate to the Transaction List and Select the Depreciation Filter.
To generate a schedule, select the Depreciation Schedule button.
2. How to remove an asset from the Depreciation Schedule
To remove an asset from the depreciation Schedule, from the actions column select the trash icon.
3. Error when posting depreciation. "Cannot find the depreciation account for Asset"
When trying to add a depreciation asset I receive an error that I cannot find the depreciation account. To Resolve this error please follow the steps below to create a linked depreciation account for the investment.
- Navigate to the Chart of Accounts.
- Edit on the Asset Account
- Select to display More Details
- Click Add Link Account.
- Select Expense
- Select the Account Code as 34400 - Depreciation
- Select Save
I have edited the opening balance, will simple fund 360 posts any adjustments to the ledger?
Simple Fund 360 provides you with the flexibility to adjust the Accumulated Depreciation and Opening Written Down Value. When making any adjustments from the depreciation schedule no transactions will be posted to the fund ledger.
Simple Fund 360 simplifies managing your depreciation compliance by giving you the ability to post multiple similar depreciation journals simultaneously through the use of Depreciation Pools.
Low Value Pool
To add an asset to a low value pool:
- Click Low Value Pool
- Search for the asset by typing into the Asset Search field
- Change the Pool Date to reflect the date that the asset will be allocated to the pool.
Simple Fund 360 will automatically determine the depreciation rate to use by looking at the Pool Date. If the Pool Date is prior to the current financial year, the full depreciation rate will be used, otherwise if the Pool Date is within the current year, the half rate will be used.
In subsequent financial years, the full rate will be used when depreciating assets in the low value pool.
- If required, edit the Opening Cost, Opening Written Down Value, or Closing Written Down Value.
- Click Add to Pool.
Once the pool is added, it will be visible in the Depreciation Schedule. The rate used to depreciate the low value pool in the current financial year is displayed within the low value pool name.
Post depreciation entries for multiple assets that use the same depreciation method and rate by placing them in a custom pool.
To create a new custom pool:
- Click Custom Pool
- Type a name for the custom pool under Pool Name.
- Select the Deprecation Method that will be used to depreciate all assets in the pool.
Available methods are Prime Cost Method or Diminishing Value Method.
- Enter the Depreciation Rate that will be used to depreciate all assets in the pool.
- Enter the Purchase Date for the asset.
The purchase date will be used to pro rata depreciation amounts for the first year of asset ownership.
- Enter the Opening Cost of the asset being added to the pool.
- If required, edit the Opening Written Down Value or Closing Written Down Value.
- Click Add to Pool.
To view the assets belonging to a given pool, select the + icon in the pool to reveal all assets in that pool.
To delete an existing pool, select the Delete Pool icon next to the pool:
To add all assets currently in the depreciation schedule to any type of pool, please complete the following steps:
- Create an empty custom pool
- Remove all assets from the depreciation schedule
- Add the assets to the required pool. This can be either the pool created in step 2, or a completely different pool
Incomplete & Reviewed
The Depreciation Schedule is divided into two sections being Incomplete and Reviewed. Assets will remain in the Incomplete section even if depreciation has been posted. To update the status of the asset(s) from Incomplete to Reviewed, from the depreciation Schedule screen SF360 users will need to select the asset(s) and click on Mark as Reviewed. Once this has been actioned Simple Fund 360 will automatically update the security price as at the 30/06/20XX for any unitised asset(s) to equal the closing written down value.
Note - Depreciation needs to be posted before you can move the asset to Reviewed.