In this article, we will teach you how to create and configure a Limited Recourse Borrowing Arrangement loan account. We will take you through two steps;

1. Setting up a Loan Account
2. Configuring LRBA Account to a Property Account

Setting up a Loan Account

Navigate to Fund Level > Investments > Bank Account 

1. Enter Code (Enter a unique code)
2. Enter Display Name (Enter a description for the loan account)
3. Full Account Name (Enter or confirm the account name)
4. Enter BSB and Account Number (this can be left blank if not available)
5. Search Linked To Holding Account Id field, and select the property account linked to the LRBA (this is for asset allocation reporting purposes)
   
   
6. Select the Asset Classification tab
   
   
7. Change the GL Classification to 'Limited Recourse Borrowing Arrangement'
8. Change the Tax Return Classification to 'Borrowings-LRBA'
9. Select Activate

Configuring LRBA Account to a Property Account

In order to begin configuring your LRBA account you need to complete the Property Set-Up and Setting up a Loan Account first.

Navigate to Fund Level > Investments > Browse Holding Accounts.

1. Select the Property Holding Account by clicking the property with the LRBA
2. Select Edit
3. Tick  Enable Editing of Reporting Categories
   
   
4. Ensure Tax Return Classification is correct
   

   'LRBA - Australian residential real property' for residential properties or 'LRBA-Australian non-residential real property' for commercial properties.

   
5. Click Save

What's Next?

Learn more about Depreciation Schedules by selecting  Depreciation Worksheet