This article guides you with steps required for the creation of a new Custom Holding Account in Class.

A custom holding account is a generic investment account you can manually set up. You can easily revalue, allocate capital gains/losses, allocate income and allocate expenses to a custom holding account.

Typical scenarios of when to use a Custom Holding Account

General Ledger accounts:

• Prepaid expenses
• Accrued income
• Sundry Assets / Liabilities
• Borrowing Costs

Non-unitised investment accounts

• Wrap / Platform accounts (When there are no data feeds are available)
  
• Uncommon investments
• Loans / Borrowing accounts
  
• Partnership interests

Setting up a Custom Holding Account

Navigate to fund level > Investments > Custom Holding Account

1. Code - This can be any code you would like and it must be a unique holding code for the Fund and must have no spaces or symbols.
2. Description - Enter the name/description for the account here.
3. Unrealised Tax Provision Rate - Select an unrealised capital gains tax provision (Typically the portfolio will be comprised of a mix of short term and long term gains so the rate will technically be between 10% and 15%)
4. In-House Asset  - Select 'Yes' to report this account as an In-House Asset on the Annual Return to the ATO.
5. Linked to Holding Account - If the custom holding account is for an LRBA, link to the related property
6. Holding Reference - This field should be completed if you are adding feeds to the custom holding account (Generally, you would not enter anything here)
7. Asset Pool - This is used if the fund has segregated assets.
8. GL Classification - Select where this account will appear on the Financial Statements
9. Tax Return Classification - Select where this account will appear on the Annual Return
10. Capital Gain Classification - Select the classification that will appear on the Capital Gains Schedule
11. Market Type - Select a market type from the drop-down menu
12. Include In Performance Reports  - Option to include account in performance reports
13. Click Activate

Once you have set up your account navigate to Transactions > Browse Bank Statements to access the account.

Re-valuing the Custom Holding Account

1. Click on the Show Prices link
   
2. Click on +Add
3. Enter Effective Date for the valuation
4. Price Type - Select a type from the drop-down menu (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 -Value of the holding without the value of the next dividend or distribution factored in the price)
5. Price - Enter the new price
6. Select either Terminating/Continuing option 
   Terminating - the allocation will only be active for the effective date entered
   Continuing - the allocation entered will be ongoing until such time that it is overridden
   
   

Entering 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 - the allocation will only be active for the effective date entered
   Continuing - the allocation entered will be ongoing until such time that it is overridden)
5. Enter amounts into the Percentage column next to the Asset Classes as required
6. Click Submit to save, Cancel to exit screen or Delete to remove an old asset allocation.
   
   

What's Next?

Learn how to process a cost base adjustment to the Custom holding account by using the Realised Accounting Gain/Loss event.