Issue

I have a wrap account or a platform provider without a supported feed, and the account has many daily transactions. How do I account for the asset and what is the process for the transactions?

Resolution

You will need to account for the wrap investment as a One Line asset.  

This article will guide you through the process of using a Custom Holding Account to account for a wrap as a One Line asset item and record for the relevant year-end transactions that might have occurred.

Steps are;

1. Create the Wrap Investment
2. Enter Transactions
3. Record Wrap Income - Interest, Dividends and Distributions
4. Record Capital Gains/Loss
5. Cost Base Adjustments
6. Revaluing the Wrap

Creating the Wrap Investment

To set-up the Custom Holding Account, refer to the instructions in the Custom Holding Account article.

An example of a Custom Holding Account being set-up for a wrap account is shown below:

Entering Transactions

Navigate to Fund level > Transactions > Browse Bank Statements

The Custom Holding Account will have the same functionality as a Bank Account in Class, where you can enter transactions from the Transactions > Browse Bank Statements screen.

Select the + Add button to add movements such as income, capital gains and disposals/purchases at year-end. 

Recording Wrap Income - Interest, Dividends and Distributions

At year-end you can record wrap total income amounts in the Browse Bank Statements screen as shown below, and match these amounts to either:

• Transactions > Fund Income > Interest Received
• Transactions > Fund Income > Distribution - Cash
• Transactions > Fund Income > Dividend - Cash

Refer to Manual Tax Statements for guidance on processing an annual tax statement for the total distribution received by the wrap.

Recording Capital Gains/Loss

At year-end the total capital gains or losses can be recorded in the Browse Bank Statements screen. Enter the gain or loss amount as shown below, and match this transaction to Realised Accounting Gain/Loss event.

Cost Base Adjustments

To record cost base adjustments, the Realised Accounting Gain/Loss event will allow you to enter non-taxable adjustments. Enter your adjustment amount to the Gain/Loss Amount field and leave all the other amount fields blank as those fields are taxable. A positive amount to the Gain/Loss Amount field will lead to an increase of the cost base of the custom holding account. A negative amount to the Gain/Loss Amount field will lead to a decrease of the cost base of the custom holding account. 

Firstly enter the cost base adjustment in the Browse Bank Statements screen and then match this transaction to the Realised Accounting Gain/Loss event.

Revaluing the Wrap

The Custom Holding Account can be revalued by using the Security Issue Prices screen.