Issue

How do I record the amortisation, for 5 years, of borrowing costs for tax purpose? 

Resolution

You could create a Custom Holding Account to record the sundry debtor for the borrowing costs. And then set up an expense type for amortisation expenses with a proper tax deductible category.

Step 1: Create a Custom Holding Account to record the sundry debtor for the borrowing costs

Refer to User Guide for further information on Custom Holding Account.

Once the custom holding account is created

Navigate to the Fund level > Transactions > Browse Bank Statements

1. select the Borrowing Cost account from the drop-down list of Bank Account
2. Click on +Add to add new transactions
3. Process a 'Cash In' transaction for the borrowing cost that has paid
4. Process the Cash Out transactions to reduce the balance of the custom holding account to reflect the claimable borrowing cost amortisation for each subsequent year
5.  Click Save Transactions

Step 2: Create an expense type for amortisation expenses with proper tax deductible category

Navigate to Business level > Settings >Investment Expenses

1. Select "Property Expenses" for Category Type
2. Select Add New Income Expense Type
3. Enter the expense Name, Code and GST Category
4. Select 'Yes' for Tax Deducitble
5. Mapped as an 'Investment expense' for the Tax Return Label 
6. Save 

After creating a new expense type

Navigate to the Fund level > Transactions > Match Transactions

1. Select Menu Icon  against the amortisation transaction, 
2. Select Match to New > Fund Expenses > General Investment Expenses
3. Select the Expense Type, being the account created in step 2
4. Select the Investment Account
5. Select Submit