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Separate Depreciable Assets

 

Overview

Investments including rental properties can contain separate depreciable assets (with a different depreciation rate). These can be added to the Chart of Accounts as a separate depreciable asset under one of the following accounts:

  • 76500/INVESTCODE (Plant and Equipment at Written Down Value)
  • 76550/INVESTCODE (Plant and Equipment at Written Down Value) - Unitised
  • 72600/INVESTCODE (Fixtures and Fittings at Written Down Value) 
  • 72650/INVESTCODE (Fixtures and Fittings at Written Down Value) - Unitised

What's the difference?

What's the different purposes between the two accounts?

Use account 76500/INVESTCODE or 72600/INVESTCODE if you going to calculate and input depreciation manually.

Use Account 76550/INVESTCODE or 72650/INVESTCODE if you are going to calculate and post depreciation using the Depreciation Schedule.

Navigation

 

From the Main Toolbar, go to Accounting.

Select Chart of accounts from the list.

 

Add Account

  1. From the Chart of Accounts screen, select Add Account and select Investment. The New Investment Account screen will appear.

  2. Under the Account Class heading, select Sub Account. 

  3. Choose the Investment Type. 

  4. Select Plant and Equipment (at written down value) if you are going to calculate and input depreciation manually.

    Select Plant and Equipment (at written down value) - Unitised if you are going to calculate and post depreciation using the Depreciation Schedule.

    This example uses plant and equipment; you can also use fixtures and fittings account 72600 or 72650 for unitised. 

  5. If you selected Plant and Equipment (at written down value) - Unitised in step 3, select a security to attach to this investment. The security should be specific to the Plant and Equipment. SF360 will now produce an INVESTCODE and name (this is editable upon creation only). If the security does not appear in the drop down list, select Create New to add the security to the list. Refer to the Securities Screen for further steps. 

    SF360 will automatically attach the investment to the fund.

  6. Next, select More Details to review the depreciation account:

    Account Option

    Explanation

    Linked Accounts

    Depreciation account 33400/INVESTCODE has already been added to the linked accounts section by SF360. This account will be used to post depreciation journals.
  7. If you are going to calculate and post depreciation using the Depreciation Schedule, ensure the Depreciable asset check box is selected. All Investments with this box ticked will automatically display on the Depreciation screen.



  8. Select Save to add the account to the chart of accounts or Cancel to not add the account.  

For instructions on recording depreciation journals, refer to How to Enter Depreciation.

Separate Depreciable Assets for Investment Properties

Separate depreciable assets can be linked to their respective investment property. This will allow depreciation for the separate depreciable assets to be included in Rental Property Statements of the investment property. Refer to Investment Property separate Depreciable Assets for more. 

For instructions on creating and linking a depreciable asset, please refer to Linking depreciable assets to Investment Properties for more information.

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