This article will guide you through how to process a quantity surveyor's (QS) report in bulk. The article has been split into two sections.
- Configure Load Opening Balances Screen (only used if the fund is new to class)
- Creating the Depreciation Worksheet
It’s recommended you break down the total cost base of the property into three main categories:
- Capital work deductions items for claiming special building write-off or any capitalised renovation costs.
- Capital allowance items to claim depreciation for any furniture and fittings
- Non-depreciable items to record land value and capitalised costs.
We have added an attachment at the end of this article to show you the worked example used select (Diminishing Value worked example.png)
Configure Load Opening Balances Screen
In this section, we will guide you through the process of configuring your Load Opening Balances Screen this is used if the fund is newly transitioned onto Class.
You will need to ensure the cost base of the property transitioned onto Class is correctly configured. This step is only applicable to new funds transitioned onto Class.
Navigate to Fund Level > Load Opening Balances > Properties
- Select View Parcel History for the property with the QS report.
- Select the Add button next to 'Adjustments'
- You will need to add the total accumulated depreciation as at year-end date as an adjustment for both Capital Allowance and Capital Works.
Adjustment Date Amount Type Description Div 40 Year-End Date Fund has transitioned Class Total Accumulated Capital Allowance claimed as at Year-End Date "enter as Negative" First Element Accumulated Div 40 Div 43 Year-End Date Fund has transitioned Class Total Accumulated Capital Works Depreciation claimed as at Year-End Date "enter as Positive" Tax-Deferred Accumulated Div 43
- Click Save.
The screenshot above shows how the QS report in steps 1 - 4 has been entered into Class in the Opening Balances >View Parcel History.
Creating the Depreciation Worksheet
Navigate to Fund Level > Investments > Depreciation Worksheet.
- Select New Fixed Asset. You will be entering a New Fixed Asset to break-up the property into the following three categories
Division 40 Capital Allowance, for the plant and equipment
Division 43 Capital Works
Remaining Residual Book Cost amount
This is the non-depreciable portion of the fund.
- At this point, the Depreciation Worksheet has been created, and there should be a nil Residual Book cost amount, as displayed below.
- Each financial year, as we are using manual depreciation override
- Select Edit against the item
- Under the Decline in Value field enter the depreciation amount per the QS report
- Click Save