You can generate depreciation pool reports if a few steps.
Log in to HandiLedger and Select your entity.
Open the Depreciation Pools Report window.
Go to Reports, point to Depreciation Reports and then click Depreciation Pools.
Or go to the View menu, Depreciation Schedule.
On the Depreciation Schedules window, click Schedule and then Pooling.
On the Depreciation Pools window, click Report.
Click View to see a preview before printing or press Print to print the report directly.
Asset pooling basics
For a detailed walkthrough on entering data for asset pooling, refer to the HandiLedger User Manual.
Before assigning an asset to a pool, it must first be entered into the Depreciation Schedule.
Each asset pool generates one depreciation journal entry per financial year, recorded on the last day of the entity’s financial year.
If an asset is purchased during the current year, ensure the acquisition details are entered accurately. HandiLedger uses the acquisition date to determine whether the asset qualifies for a reduced depreciation rate applicable to current-year purchases.
The Depreciation Report for pooled assets is divided into two sections:
Summary – provides an overview of the pooled depreciation.
Workings – shows the detailed calculations behind the summary.
The Summary Section
This section is used by the program to calculate the depreciation journal entry, so it’s important to understand the following key points:
1. Opening Value of the Pool
The opening balance is critical. The program multiplies this amount by the applicable pool depreciation rate to calculate the deduction for the decline in value of pooled assets for the income year. Example: $29,000×30%=$8,700.
Tip: You can adjust the opening balance by going to View, Depreciation Schedules, Pooling. Choose the relevant pool and year, then click Opening.
2. Taxable Use Percentage of New Assets
This refers to the total value of assets allocated to the pool during the current income year. The program applies the reduced depreciation rate to this figure to calculate the deduction. Example: $5,000×15%=$750.
3. Termination Values of Disposed Assets
When assets are disposed of during the year, their termination values are included in the taxable use percentage for the pool. Example: An asset was disposed of for $1,500.
4. Closing Balance
A positive closing balance will roll forward to the next income year.
Example: $19,650.A negative closing balance indicates a balancing adjustment due to asset disposals. In this case, you’ll need to manually post the relevant entries to assessable income.
5. Closing a Pool
If the pool no longer contains any assets or needs to be closed, the balance must be brought to zero to prevent it from rolling forward. Use the Pool Write-Off function to finalise and close the pool.
The Workings section
The Workings section is designed to help clients identify the individual assets that make up a pool. While this section is retained for transparency, there are a few important points to keep in mind:
1. Asset Details
This section lists all assets allocated to the pool, including any private use portions. The data here feeds into the Summary Section for depreciation calculations.
2. No Column Totals
You won’t see totals for the columns in this section. This is because it includes private ownership portions, which are excluded from the pool. Only the taxable use portion of each asset is included in the pool calculations.
3. Written-Down Values
The closing written-down value shown here includes the private portion of each asset. This value will roll forward to become the opening written-down value in the next financial year.
4. Disposed Assets
If an asset was sold in a previous year, its termination value would have already impacted the pool balance at that time. The asset will no longer appear in the Workings section, but the effect of the sale is still reflected in the Summary Section.
5. Asset Identity
Once assets are pooled, they lose their individual identity. As a result, asset numbering is not available for pooled assets.
Note: If you wish to cross-check the totals and pool balances, you must account for the private portions and any assets sold in prior years.
Small Business Entity
Assets purchased that cost less than $20,000 are immediately deductible at the time of writing; however, the legislation will need to be checked for any changes. Other assets are pooled into either a general pool or a long-life pool.
To have access to SBE pools in HandiLedger, the Small Business Entity check box must be selected for the relevant accounting year. To locate the Simplified Tax System checkbox:
Log in to HandiLedger then go to View, Entity Details.
On the Entity Details window, highlight the entity and the accounting year.
Click Year and then click Edit.
The Small Business Entity check box is displayed towards the bottom of the window.
