HandiLedger Depreciation Asset Pool Report Depreciation

Comments

Transcription

HandiLedger Depreciation Asset Pool Report Depreciation
HandiLedger
Depreciation Asset Pool
Report
Depreciation Pool Report
This article gives a brief explanation of how the depreciation schedule for pooled assets
works in HandiLedger.
Asset pooling: Depreciation schedule in HandiLedger
1) A comprehensive guide to entering data for pooling can be found in the
HandiLedger User manual.
2) Before allocating an asset to a pool, the asset needs to be entered into a
depreciation schedule.
3) Each pool will only have one depreciation journal entry for year for the pool. The
journal entry is generated on the last day of the entity's financial year.
4) If an asset is purchased in the current year it is important that you complete the
acquisition details correctly as the program uses the acquisition date to determine
if it must be allocate the reduced rate for assets purchased in the current year.
5) Your depreciation report for pooled assets is divided into two distinct sections, the
"summary section" and the "workings section".
A) The Summary Section:
This is the area that the program uses to calculate the depreciation journal entry and as
such you need to note the following important points:
a) The opening value of the pool is critical as the program multiplies this figure by the
relevant pool depreciation rate to arrive at the deduction for the decline in value of
depreciating assets of the pool for the income year. In our example $29,000 x 30%
= $8,700.
To find out more visit www.sagehandisoft.com.au
or contact our support team on (08) 9245 0666 or email [email protected]
Page 1 of 3

Note: The opening balance can be adjusted by going to the View menu and
clicking Deprecation Schedules. On the Depreciation Schedules window
select Pooling. In the Depreciation Pools window select the relevant pool and
year and click Opening.
b) The taxable use percentage of assets allocated to the pool for the income year is
the total of all assets allocated to the pool with an acquisition date in the current
year. This figure is multiplied by the reduced rate for the pool to arrive at the
deduction for the decline in value of depreciating assets allocated to the pool for
the income year (see 4 above). In our example $5,000 x 15% = $750.
c) The termination values of disposed assets are allocated to the taxable use
percentage of the termination value of pooled assets disposed of during the
income year. In our example an asset was disposed for $1,500.
d) A positive closing balance will roll forward to the next income year. In our example
$19,650.
e) A negative closing value will reflect as a balancing adjustment due to disposal of
assets during the income year and you will need to post the relevant entries to
assessable income manually.
f)
If for any reason the pool will no longer have any assets or needs to be closed off,
the pool balance will need to be brought to zero to avoid it rolling forward to the
next year. This can be done by using the Pool write off functionality.
B) The Workings section:
To assist clients in determining the assets that make up the pool we have retained the
workings section of the schedule, however, it is important to note the following:
a) This section lists all the assets in the pool, including details of private use. The
information in this section is drawn on by the summary to do its calculations.
b) This section will not reflect totals for the various columns. The reason for this is that this
section includes the private ownership portion which is not included in the pool, as the
pool only includes the taxable purpose portion of each asset allocated to it.
c) The closing written down value in this section includes the private portion, which will roll
forward to the opening written down value in the next year.
d) If an asset has been sold in a prior year, the termination value of that asset will have
affected the pool balance and the balance carried forward at the time. The workings
section will no longer reflect the asset, however, the result of the sale is still reflected in
the pool balances in the summary section.
Note: If you wish to cross check the totals to your pool balances you need to account
for the private portions and any assets sold in prior years.
Small Business Entity
Assets purchased which cost less than $20,000 are immediately deductible at the time of
writing, however the legislation will need to be checked for any changes since. Other
assets are pooled into either a general pool or a long life pool.
To find out more visit www.sagehandisoft.com.au
or contact our support team on (08) 9245 0666 or email [email protected]
Page 2 of 3
To have access to SBE pools in HandiLedger, the Small Business Entity check box must
be selected for the relevant accounting year. To locate the Simplified Tax System check
box:
a) From the View menu, click Entity Details.
b) On the Entity Details window highlight the entity and the accounting year.
c) Click Year and then click Edit.
d) The Small Business Entity check box is displayed towards the bottom of the
window.
To find out more visit www.sagehandisoft.com.au
or contact our support team on (08) 9245 0666 or email [email protected]
Page 3 of 3

Similar documents