Issue

How do I process a property purchase when the deposit and settlement crosses multiple financial years, e.g. deposit was made in FY2018 and settlement incurred in FY2019.

Resolution

In order to process the property purchase successfully, create a Custom Holding Account to hold the deposit in the first financial year. In the following financial year, you will clear the Custom Holding Account, and record the Property Purchase Deposit and Settlement events.  

Step 1 - Accounting for the Deposit in the Current F/Y

Navigate to Fund Level > Investments > Custom Holding Account.

1. Create a new Custom Holding Account and select 'Sundry Asset' as a GL Classification
   
   

   Navigate to Transactions > Browse Bank Statement 

2. Select the Custom Holding Account created previously
   
3. Select +Add, to  a "Cash In" transaction dated as of the deposit payment date
4. Match the Custom Holding transaction against the deposit paid, by navigating to Transactions > Match Transaction

Step 2 - Accounting for the Deposit and Settlement in the Next F/Y

Navigate to Transactions > Investment - Buy > Property Purchase Deposit

1. Create a Property Purchase Deposit event, dated 1st July 
2. Create a "Cash Out" transaction from the Custom Holding Account, by navigating to Transactions > Browse Bank Statements
3. Match "Cash Out" transaction with the Property Purchase Deposit, by navigating to Transactions > Match Transactions
4. Process the Property Purchase Settlement event

To record the correct CGT date, set up a Depreciation Worksheet. The Depreciation Worksheet will allow you to record the actual purchase date.