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
- 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.
- Description - Enter the name/description for the account here.
- 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%)
- In-House Asset - Select 'Yes' to report this account as an In-House Asset on the Annual Return to the ATO.
- Linked to Holding Account - If the custom holding account is for an LRBA, link to the related property
- Holding Reference - This field should be completed if you are adding feeds to the custom holding account (Generally, you would not enter anything here)
- Asset Pool - This is used if the fund has segregated assets.
- GL Classification - Select where this account will appear on the Financial Statements
- Tax Return Classification - Select where this account will appear on the Annual Return
- Capital Gain Classification - Select the classification that will appear on the Capital Gains Schedule
- Market Type - Select a market type from the drop-down menu
- Include In Performance Reports - Option to include account in performance reports
- 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
- Click on the Show Prices link
- Click on +Add
- Enter Effective Date for the valuation
- 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)
- Price - Enter the new price
- 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
- Click on 'Show Asset Allocations'
- Click +Add
- Enter Effective Date
- 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) - Enter amounts into the Percentage column next to the Asset Classes as required
- 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.