Pooling

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Concepts

Pooling in Reportance does not work like most other systems, where calculations for the pool are performed separate to the regular calculations for depreciation.

Instead, Reportance calculates the depreciation on each asset, so that we can measure each assets contribution towards all the relevant pool balances and calculations. For this reason, Reportance allows you to continue working out Asset Group based totals even if some of those assets are in a pool.

Adding Assets to a Pool

Individual Assets

To add an individual asset in the pool, go into that asset's Edit screen, and in the Depreciation tab, go to the Depreciation Calculation section and set Pool Type to the relevant pool.

If the asset started in the pool, also change the Depreciation Method to Pool. If the asset started off outside of the pool, and was later added, select the Year Entered Pool.

Multiple Assets at Once

To add multiple assets to a pool at once, go to the Assets screen and select the Pooling button on the left-hand side menu. 

First, select the relevant Year that you wish to add the assets for, then, on the top right-hand side click on the Actions button and select Allocate Existing Assets to a Pool.

In this screen you can nominate which assets to send to the pool. The top section has the following fields:

Pool Type

Determines which pool the selected assets will be allocated to

Apply to

The apply to tells Reportance whether the assets are to be allocated to the pools for Taxation purposes, Accounting purposes, or both.

In the lower section, tick the assets that you wish to allocate, and use the Select All or Unselect All buttons if appropriate. Once you are happy with the selection, select Allocate Selected Assets to allocate them to the pool.

Select OK once you are finished allocating assets.

Pool Balances

In the Pooling section of the Assets screen, you can review the pool balances for the selected Year and Type (Accounting or Taxation).

At the bottom of each pool is a summary of the calculations.

By default, pooled assets do not have a balancing adjustment, so that their CWDV, even if negative, will reconcile to the pool balance. You will need to modify the balancing adjustment for each asset in one of three circumstances:

1) You wish to write off the pool balance because it falls below a threshold (eg $20,000 for a General Pool);

2) You wish to clear off a negative pool balance (which is normally treated as assessable income); or

3) You have inadvertently left a balancing adustment against the asset by recording a disposal prior to recognising it in the pool - in this case you wish to reset the balancing adjustment back to zero.

To manage the balancing adjustments for each asset in the pool, ensure you have the correct Year selected and go to Actions and select Manage Pool Balances.

Here, for each pool balance, for both taxation and accounting purposes, you can either write off the balance of the pool (whether positive or negative), or reset the pool balance to zero. You should never have a value in both Pool Balance and Ass/Ded Adj.