This article will guide you through how to process a property purchase 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 (you can leave 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 the Contract Date will flow from the deposit event 
3. The Remaining Amount will flow from the deposit event
4. The Based on Sale of Price of amount will also flow from the deposit event
5. Enter a Description (or use the default description)
   
6. Click Add to add "Disbursements"
7. 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. 

   
8. 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. Contract Date = the date per the contract of sale is the cost base or CGT date.
3. Deposit = the total amount deposited, including the GST component. The gross deposit amount.
4. GST in Deposit = the GST component of the deposit amount received.
5. Total GST = the total GST received to dispose of the property, based on the contract price.
6. Remaining Amount = the total gross amount after deducting the gross deposit amount.
7. Description = free text field, you can change the default description
   
   
8. Click the Submit button 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, the Contract Date will flow from the deposit event
3. The Remaining Amount will flow from the deposit event 
4. Enter Total GST = "total GST per the contract amount"
5. The GST Remaining amount will flow from the deposit event
6. The Based on Purchase Price of amount, will flow from the deposit event
7. Enter a Description, or leave as the Class default.
   
8. Click Add to add "Disbursements", 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.
9. Enter GST if applicable
   

   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'.

10. 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