Assets may be recorded under Assets and Liabilities by selecting the Acquire an asset transaction:
This will open a form allowing you enter the details of the asset having been acquired.
How are you recording this transaction?
- As a purchase by the trust.
- As a gift to the trust.
- I'm just recording this asset.
- Real property (real estate)
- Other asset
- Non-income earning
- Income earning or investment
Short title to refer to the property
A description of the property
Address of the property
At what value was it acquired? $
When was it acquired? Enter date the asset was acquired
Any additional expenses? Select the account (e.g. legal fees, rates etc.), add notes if applicable, enter amount and click add.
NOTE: Before adding expenses you need to setup an expense category
How is it being paid for? Select account, add notes, enter amount and click add.
NOTE: Ensure that you have added a Non Bank-debt facility or bank accounts for this section
As a Purchase by the Trust
Record assets as trust purchases when you want to record all aspects of the purchase and payment in a single transaction. You must provide a purchase price and date of acquisition along with how the assets has been paid for. In the latter case a common scenario will be a loan to the trust from some third parties (bank, Settlors, etc). This must be recorded in the system prior to recording the asset purchase (by adding a bank account or non-bank loan).
In addition to the above you may also record any additional expenses associated to the purchase and an initial gifting (for example, a loan from Settlors is gifted immediately).
The following example shows a sample acquisition:
Here the purchase price was $500,000.00 dated 1 September 2014. Additional expenses incurred were legal fees of $1,200.00. Payment for the property was made in part from the trusts cheque account ($25,000.00 for the deposit) and the balance was loaned by the Settors (covering both the balance of the purchase price less deposit and the legal fees).
Note that the transaction will only be able to be saved when the payments match the expenses and the amount that is Out of balance is nil.
As a Gift to the Trust
This simply records the property as having been gifted to the trust (without specifically recording who is gifting the asset). In this case, you only need to provide a value for the property and the date that it was acquired. The associated transaction created will offset the purchase price against a gifting transfer so the funds balance.
I'm just recording this asset.
This is a similar to gifting except that the purchase price is balanced not against the internal gifting category but rather the conversion balance category.
This is useful when you cannot specifically associate a purchase with any specific loan or you are simple recording conversion balances. In this case, you should ensure that there are loans recorded with opening balances such that the net conversion balance is nil.
The following creates a property transaction for a vehicle without recording where the payments came from and generates a transaction that balances the value of the property against the internal Conversion account.
If you look at the conversion account you will see that it has a net balance of ($25,000.00) which means that we need to balance this against something else (i.e. a loan). If we know that Trust has been loaned some money from Jill Jones (say) specifically for that purchase then you can create a non-bank loan for Jill Jones and have the opening balance for that loan be ($25,000.00) and this will clear the balance for the Conversion account: