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Setting taxation details for a low value pool (LVP) asset

Australia only

This will be Step 2 of the Create New Asset Wizard for Taxation only or Accounting and Taxation assets. In this scenario you are entering the taxation details for the low value pool asset (LVP).

This step will not be seen if you are creating an Accounting only asset.

To enter the taxation details for a low value pool asset
  1. In the first step for Asset details you selected Low value pool from the Asset type drop-down.
  2. Enter the Acquisition date of the asset.
    1. By default, this field is automatically filled with the Year start date.
    2. Enter the date in the format dd/mm/yyyy or select the date from the drop-down calendar.
    3. Click Today on the drop-down calendar to use the current date.
    4. You must not enter a date that is after the Year end date.
    5. If you enter a date prior to the Year start date for the year period, this asset will be added as a previously depreciated asset and will be depreciated at Year 2+ rates.
    6. The Start date field for the asset is automatically filled with the Year start date.
    7. Low value pooled assets are always depreciated for the full year regardless of when they were purchased, therefore there is no need to enter a start date.
  3. Enter the Cost of the low value pool asset.
    1. The default value is 0.00.
    2. This is a numeric field that is limited to a maximum of 17 digits including 2 decimal places.
    3. An asset can only be added to a low value pool if its cost is less than $20,000.
    4. If you add a low value pooled asset whose cost is greater than $20,000, a message will be displayed to inform you of this. Decide whether you would still like to add the asset to the low value pool by clicking Yes or No. You can also select the Don’t ask again checkbox, so as not to receive this message again under similar circumstances.
  4. Enter the Opening written down value of the asset.
    1. An Opening written down value can only be entered, if the Acquisition date is prior to the current financial year, e.g., if you are loading a previously depreciated asset from another accountant’s schedule.
    2. The default value is 0.00.
    3. This is a numeric field that is limited to a maximum of 17 digits including 2 decimal places.
  5. Select the Asset came from an existing LV Pool checkbox, if required.
    1. The Asset came from an existing LV Pool checkbox is only available for any previously depreciated assets that are being added to the pool.
    2. Select this checkbox if you are, e.g., adding assets that came from another accountant.
    3. This will result in the following rules being applied:
      1. The pool contribution (taxable value) will not be reduced again by the Private use%, as it was already reduced in the original pool.
      2. No journal will be created to transfer the asset into the pool. The pool account balance is already correct when the original trial balance was placed into the general ledger.
      3. If a change in private use is later applied, selecting the Asset came from an existing LV Pool checkbox will result in the Tax year added to pool value being based on the acquisition date rather than the year it was added to the register.
  6. If you are adding the assets from general assets, then the Asset came from an existing LV Pool checkbox must be deselected.
  7. The Asset came from an existing LV Pool checkbox will be selected by default when you are migrating low value pooled assets from another system.
  8. Enter the Private use % for the asset.
  9. The value must be between 0 and 100%.
  10. The Pool contribution (Taxable value) is calculated.
  11. The Calculate decline in value section contains a number of read only fields:
    1. Depreciation Rate
      This field is based on the Start date. It changes from 18.75% to 37.5% depending on whether the asset has already been depreciated in previous years.
    2. Calculated depreciation
      This is field is calculated as the Pool contribution (Taxable value) multiplied by the Depreciation rate.
    3. Total depreciation
      This is the sum of the calculated depreciation.
    4. Termination value
      This is only relevant once an asset has been sold and you are Editing the taxation details for a low value pool asset.
    5. Taxable termination value
      This is only relevant once an asset has been sold and you are Editing the taxation details for a low value pool asset.
    6. Closing written down value
      This is calculated once the Cost or Opening written down value has been entered, based on the other values above.
  12. Click Next.
    1. If the asset being created is an Accounting and Taxation asset then continue to Setting accounting details for a low value pool (LVP) asset.
    2. If the asset being created is a Taxation only asset then continue to Setting general details for a low value pool (LVP) asset.
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