Tax book depreciation and capital work in progress
Keep income-tax depreciation by block beside the book depreciation without mixing them. Gather the costs of a new plant room or lobby while it is built, and make it an asset when it is ready.
PLANSScale only
The problem it solves
- Your accountant keeps the income-tax block working in a separate spreadsheet every year.
- A new lobby or chiller plant costs money over months, and the costs sit in expenses until someone moves them.
- Nobody can say how much a building upgrade cost against its budget.
How it works
- Open Invoicing > Configuration > Asset Categories > Tax Blocks. Press Load Country Pack for starting blocks of your Entity's country (India, the UK, Australia or the UAE).
- Check each block's rate with your accountant, give each category its block, and enter opening tax values if you move from another system.
- At the year end, open Invoicing > Fixed Assets > Tax Depreciation, pick a day of the year and press Work It Out.
- For an upgrade, open Invoicing > Fixed Assets > Work in Progress > New. Enter the name, the category it becomes, the work-in-progress account, an analytic account and the budget. Press Start.
- Post the bills for it to that account with that analytic account. When it is ready, press Capitalise: one entry moves the cost and a draft asset is made.
Everything it does
Tax blocks
- Methods: block on written-down value, pool, per asset diminishing value, prime cost, none
- Rate, half rate below a number of days (180 for India), first-year allowance, opening tax value
- The tax book posts nothing to your accounts
- India pack rates include buildings 10 %, residential buildings 5 %, plant and machinery 15 %, furniture 10 %. These are starting values for your accountant to check
The tax report
- Per block: opening, additions at full and half rate, sale money, depreciation, closing
- On screen; no tax form is filled
Capital work in progress
- Numbered CWIP/year/; Draft, In Progress, Capitalised, Cancelled
- Cost So Far from posted lines on the account with the analytic account; over budget is flagged
- Capitalise makes a draft asset with the full cost; confirm it to start depreciation
- Cancel only while nothing is booked to it
Who uses it
AccountantSets blocks, runs the tax report and capitalises work in progress.
Property or projects managerWatches the cost of an upgrade against its budget.
Where you use it
- Web: Invoicing > Configuration > Asset Categories > Tax Blocks; Invoicing > Fixed Assets > Tax Depreciation and Work in Progress
- Not tied to repair requests or fit-outs of tenants: only entries on the work-in-progress account count
What you control
Settings
- Per block: method, rate, half rate below 180 days (India), opening value
- Per category: its tax block
- Per work in progress: category, account, analytic account, budget
Questions
Does the tax book change our profit and loss?
No. It is a separate working; nothing is posted.Does it file our tax return?
No. It gives the block working on screen for your accountant.Can a tenant's fit-out be capital work in progress?
Only costs you book to the work-in-progress account count. A tenant's own fit-out is tracked in Lease fit-out, not here.Related features
ASSETSFixed assets: register and depreciationYour buildings, lifts, chillers, generators and furniture sit in one register with their cost, depreciation and book value. Each asset can belong to a property and a unit, and the property shows what its assets are worth in the books.ACCOUNTINGFull accounting with GST returnsRent bills, deposits, cheques, owner money, vendor bills and the leases you take all land in the books of the same system. Scale adds the full accounting screens and reports, from ledgers to cash flow, and GSTR-1 and GSTR-3B for Indian Entities.COMMERCIALFit-out: drawings, insured contractor, completion and depositFollow each tenant's fit-out from drawings to close. Drawings are approved or sent back, works start only with an insured contractor, and the deposit is settled at the end.
See your buildings on it.
Tell us how many properties and units you have, whether you let your own or manage for owners, and how rent is paid today. We will set up your portfolio with you on SmartMy Lease.