How do I capitalise the Borrowing/Formation Cost?
To resolve this issue, create a Custom Holding Account. Process a Cash In amount to the created Custom Holding account and match to the Cash Out transaction from the bank account.
Create a Custom Holding Account
Navigate to Fund Level > Investments > Custom Holding Account
- Set up a Custom Holding Account for the Borrowing Cost. See the below screenshot as an example for the asset classification
Record the balance of the borrowing cost
Navigate to Fund Level > Transactions > Browse Bank Statements
- Select the Custom Holding Account you created
- Click on Add to enter the total amount of the borrowing cost as a Cash In transaction
- Match this Cash In transaction with the Cash Out transaction paid from the Bank Account