This article will guide you through how to process a property sale for both residential and commercial properties. This article consists of the following;

• Residential Sale Deposit
• Residential Sale Settlement
• Commercial Sale Deposit
• Commercial Sale Settlement

If you are trying to sell a property, where the deposit and settlement events occur in different financial years, please refer to the process documented in this Knowledge Base article.

Residential Sale Deposit

This section will guide you through how to process a property disposal for a property that does not attract GST.

A typical property sale involves two transactions, the first being the deposit event and the second being the settlement event. 

The Property Sale Deposit event takes up an accrual of the full property sale and the Property Sale Settlement event clears this accrual and allows the user to enter any additional disbursements that relate to the property sale.

Navigate to Fund Level > Transactions > Investment - Sell > Property Sale Deposit

1. Select the Property Account that is being sold
2. Enter the Contract Date
3. Enter the Deposit amount
4. Enter the Remaining Amount (Contract amount less the deposit amount paid)

   If there was no deposit received the deposit amount should be nil and the remaining amount should be the total contract amount.

5. Enter a Description (This is a free text field, and you can change the default description)
   
   
6. Click Submit to process the deposit
   

Residential Sale Settlement

Navigate to Fund Level > Transactions >Investment - Sell > Property Sale Settlement

1. Select Property Account
2. Enter the Settlement Date
3. Contract Date will prefill from the date in the deposit event
4. Remaining Amount - The contract amount less the deposit amount already paid. This prefills from the deposit event. The amount cannot be edited in this event and is not inclusive of any disbursements paid on settlement
5. The Based on Sale Price of amount will prefill from the deposit event
6. Enter a Description (This is a free text field, and you can change the default description)
   
7. Click Add to add "Disbursements"
8. Select Type by using the drop-down field to select the property expense and enter an Amount of the disbursement
   

   Remember to enter the amount as negative if the amount is being allowed for by the vendor. You also have the option to Capitalise an expense items to add it to the cost base.

9. Click Submit button to process the settlement

The GST fields are not relevant to a Residential Property sale so you can choose to leave these blank.

Commercial Sale Deposit

This article page will take you through processing a property disposal for properties that attract GST "commercial".

A typical property sale involves two transactions, the first being the deposit and the second being the settlement.

Navigate to Fund Level > Transactions > Investment - Sell > Property Sale Deposit

1. Select the Property Account under the 'type to search' field. This is the property that is being sold
2. Enter Contract Date (The date per the contract of sale is the cost base or CGT date)
3. Enter Deposit (The total amount deposited, including the GST component. The gross deposit amount)
4. Enter GST in Deposit  (The GST component of the deposit amount received)
5. Enter Total GST (The total GST received to dispose of the property, based on the contract price)
6. Enter Remaining Amount (The total gross amount after deducting the gross deposit amount)
7. Enter a Description (This is a free text field, and you can change the default description)
   
8. Click Submit to process the deposit

Remaining Amount and Nil Deposit: The remaining amount is the contract amount less the deposit amount already received. If there was no deposit received the deposit amount should be nil and the remaining amount should be the total gross contract amount.

Commercial Sale Settlement

Navigate to Fund Level > Transactions > Investment - Sell > Property Sale Settlement 

1. Select the Property Account 
2. Enter Settlement Date
3. Contract Date will prefill from the date in the deposit event
4. Remaining Amount - The contract amount less the deposit amount already paid. This prefills from the deposit event. The amount cannot be edited in this event and is not inclusive of any disbursements paid on settlement
5. Total GST will prefill from the deposit event (The GST component of the Gross remaining amount)
6. GST Remaining will prefill from the deposit event (The amount should be the same as GST on Settlement)
7. The Based on Sale Price of amount will prefill from the Deposit event (This is the gross contract price including GST)
8. Enter a Description (This is a free text field, and you can change the default description)
   
9. Click Add to add "Disbursements"
10. Select Type from the drop-down field and select expense, Enter Amount of the disbursement "gross amounts", Remember to enter the amount as negative if the amount is being allowed by the vendor
    

    You also have the option to Capitalise or Expense items. in the example above discharge of mortgage fee and the legal fees have been capitalised, by marking the tick-box under 'Capitalise'.

11. Click Submit to process the settlement

What's Next?

Does your property have a depreciation schedule?

If the property being sold has a property depreciation schedule, learn how to correctly dispose of assets in the depreciation worksheet,  Sale of Property Worksheet