This article guides you with steps required for the creation of a new Custom Holding Account in Class and allocation of transactions related to the account including:

• Overview
• Setting up a Custom Holding account
• Value the Custom Holding account
• Enter an Asset Allocation for the Custom Holding account
• Record Custom Holding account transactions

Overview

A Custom Holding account is a generic investment account you can manually set up. You can:

• revalue the account
• allocate capital gains and losses
• allocate Div 296 gains and losses
• allocate income and expenses

You may want to set up a Custom Holding Account for:
General Ledger accounts, such as:

• prepaid expenses
• accrued income
• sundry assets or liabilities
• borrowing costs

Non-unitised investment accounts, such as:

• wrap or platform accounts (one line wraps)
• uncommon investments
• loan or borrowing accounts
• partnership interests

Setting up a Custom Holding account

Navigate to fund level > Investments > Custom Holding Account

1. Enter a Code. This can be any unique holding code for the Fund, with no spaces or symbols. 
2. Enter a Description for the account. 
3. Select an Unrealised Tax Provision Rate. The portfolio will typically be a mix of short term and long term gains, so the rate will generally fall between 10% and 15%. 
4. Select Yes under In-House Asset to report this account as an in-house asset on the Annual Return to the Australian Taxation Office.
5. If the Custom Holding Account is for a Limited Recourse Borrowing Arrangement, select the related property under Linked to Holding Account. 
6. Complete the Holding Reference field only if you are adding feeds to the Custom Holding Account. In most cases you do not need to enter anything here. 
7. Select an Asset Pool if the Fund has segregated assets. 
8. Select a GL Classification to determine where this account will appear on the Financial Statements. 
9. Select a Tax Return Classification to determine where this account will appear on the Annual Return. 
10. Select a Capital Gain Classification to determine where this account will appear on the Capital Gains Schedule. 
11. Select a Market Type from the drop-down menu. 
12. Select whether to Include In Performance Reports. 
13. Click Activate.

Value the Custom Holding account

Navigate to fund level > Investments > Browse holding accounts > select the Menu icon of the investment > Security Issue Prices

1. Click on +Add.
2. Enter Effective Date for the valuation.
3. Select a Price Type:
   Sell is the price if the investment was disposed of.
   NAV is the Net asset value (NAV) price equal to assets less it's liabilities
   ExDiv is the value of the holding without the value of the next dividend or distribution factored into the price.
4. Enter the new Price.
5. Select either Terminating/Continuing option 
   Terminating applies the valuation only for the Effective Date entered.
   Continuing applies the valuation on an ongoing basis until it is overridden.
   
   

Enter an Asset Allocation for the Custom Holding account

1. Click on 'Show Asset Allocations'
   
   
    
2. Click +Add
3. Enter Effective Date
4. Select either Terminating / Continuing  
   Terminating applies the allocation only for the Effective Date entered.
   Continuing applies the allocation on an ongoing basis until it is overridden.
5. Enter amounts into the Percentage column next to the Asset Classes.
6. Click Submit to save, Cancel to exit screen or Delete to remove an existing asset allocation.
   
   

Record Custom Holding account transactions

Navigate to Fund Level > Match Transactions

Custom Holding Account transactions are treated in the same way as cash transactions. You must activate a Custom Holding Account before you can match transactions to it, although you can also create the account and match a transaction to it at the same time.

1. Click on the Menu icon
2. Click Match To New
3. Click on Custom Holding Account > Transaction.
4. Select the Custom Holding Account from the drop-down menu. If the account has not yet been created, use the quick add function to create it from this screen.
   

You can record tax transactions against a Custom Holding account using the Realised Accounting Gain/Loss event.

What's Next?

Learn how to process a cost base adjustment to the Custom Holding Account using the Realised Accounting Gain/Loss event.