Depreciation Schedule

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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.

Setup Depreciation Schedule  Post Depreciation  Write Off FAQs

To include an asset in the schedule please follow the steps outlined below:

From the Main Toolbar, go to Compliance.

Navigate to Period compliance
Select Depreciation.

 

Tip

Click  for the ATO's Guide to Depreciating Assets.

 

1   Select 

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.

Info

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:

6. Input a Depreciation Rate.

7. Simple Fund 360 will automatically calculate the Opening Written Down Value.

Simple Fund 360 provides you with the flexibility to adjust the Opening Written Down Value, this might be required for any funds that have been migrated from Simple Fund Desktop.

The Closing Written Down Value will update once depreciation has been posted in the current period.

8. Select Save.

Depreciation Pools


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:

  1. Click Low Value Pool
  2. Search for the asset by typing into the Asset Search field
  3. 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.
  4. If required, edit the Opening Cost, Opening Written Down Value, or Closing Written Down Value.
  5. 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.

Custom Pool

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:

  1. Click Custom Pool
  2. Type a name for the custom pool under Pool Name.
  3. 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.
  4. Enter the Depreciation Rate that will be used to depreciate all assets in the pool.
  5. 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.
  6. Enter the Opening Cost of the asset being added to the pool.
  7. If required, edit the Opening Written Down Value or Closing Written Down Value.
  8. 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.

Edit pool

To edit an existing pool, select the Edit Pool icon next to the pool:

Delete pool

To delete an existing pool, select the Delete Pool icon next to the pool:

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Adding all assets to pool

To add all assets currently in the depreciation schedule to any type of pool, please complete the following steps:

  1. Create an empty custom pool
  2. Remove all assets from the depreciation schedule
  3. Add the assets to the required pool. This can be either the pool created in step 2, or a completely different pool
If the empty custom pool is not needed, please feel free to remove it.

 

 

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.

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Note - Depreciation needs to be posted before you can move the asset to Reviewed.

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