03 - Adding Assets & ROCAP

This module will take you through the process to correctly reflect amounts, enter, revalue, and realise Assets using the Asset Register.

Which in turn will assist you in producing the ROCAP out of the system.

You will see that by using the ROCAP Wizard, you can review the assets and the creditors of the job at the appointment, which can be a useful tool to ensure all ROCAP items (“labeled RATA”) are entered into the system.

After this module, you will be able to:

• Enter Assets
• Understand the differences between the different asset types.
• Produce Form 507 via ROCAP Wizard
• Other considerations when lodging ROCAP with ASIC

Entering Assets

The asset categories (Asset Types) directly relate to the categories specified on the (“ROCAP”) Report of Company Activities and Properties, and ASIC Form 5602 / Form 5603.

One Asset Type may have many asset-holding accounts. 

When adding an Asset, you specify the applicable asset holding account.

We will look at adding the following Asset Types

•     Cash at Bank / Cash on Hand at appointment

•     Accounts Receivable (Pre-Appointment)

•     Assets subject to Lease / Chattel Mortgage

•     Interests in Land

•     Plant and Equipment

•     Contingent Assets

•     Other Assets

•     Potential Legal Recoveries

•     Stock / Inventory

•     Work in Progress

Assets holding accounts.

Asset holding accounts are the financial accounts associated with the Asset.

When adding an Asset, the system creates a journal for the selected asset-holding account.

ROCAP Assets.

For Assets appearing in the Report on Company Activities and Property, ensure each asset is marked as a (“ROCAP”) asset.

Once the ROCAP is finalised, you cannot add ROCAP Assets unless you undo the ROCAP finalisation.

Cash at Bank / Cash on Hand at Appointment.

Click on the Financials tab > Assets tab to open the Assets Register. 

Either double-click or right-hand-click on the asset class Cash at Bank at Appointment, then click Add to Cash at Bank at Appointment. The Asset capture form will appear.

Enter the received from details by looking up the counterparty in the system (if it doesn’t exist, add it in). Then enter the ROCAP Value, ROCAP ERV, and Actual Value.

You will notice the holding account is Cash at Bank – the default Administration account – you can change this by adding a new account and selecting it via the drop-down arrow in the above window.

Once all the details are entered, ensure the ROCAP asset is ticked, click save, and exit.

Repeat the same process for Cash on Hand at Appointment.

Adding Accounts Receivable (Pre-Appointment)

You can enter Pre-Appointment AR individually and you can also import them like we did with employees and creditors.

Entering Individually

In the Assets summary, Right-hand click on the Asset Class Accounts Receivable (Pre-Appointment) and Choose Add Account Receivable (Pre-Appointment), and the Asset capture form appears.

Once again, search the system for the counterparty in the Debtor field or add a new one if it is not in the system. Then fill out the details as shown above, then save, and exit.

Note:  The Date of Debt should be before the Job’s start date otherwise the transaction may appear on the BAS return (using the accrual tax method). 

If the “Include as GST Input Tax” checkbox is ticked, and the debtor is collected, the GST of this entry will be included in the BAS returns.  Usually, GST collected from pre-appointment debtors is not remitted to the ATO, so leave this checkbox blank.

Importing Accounts Receivable

Click on Add or Import Data > Import/ Export from File > Import Debtors

Import Debtor Wizard will appear, Locate the file to import by clicking on the ellipsis, then click next.

The process is very similar to importing creditors.

 

Adding Assets subject to Lease/Chattel Mortgage.

Note: The procedure to add an Asset subject to Charges follows the procedure of entering the Secured              Creditors' details first and linking the asset(s) which is/are subject to the Secured Creditors' charges.

In the Assets summary, Right-hand click on the Asset Subject to specific Security and Choose to Add Asset Subject to specific Security, and the Asset capture form appears.

Then click Add and enter the details below. Ensure ROCAP asset is ticked.

Once all details are entered, either click save and exit or save and new to enter another asset.

Adding Interest in Land

In the Assets summary, Right-hand click on the Asset Class Interest in Land and Choose to Add Interest in Land and the Asset capture form appears.

Enter the details as per above and ensure that the ROCAP asset is ticked. Click save and exit.

Adding Plant & Equipment

In the Assets summary, right-click on the Asset Class Plant & Equipment and Choose to Add Plant & Equipment and the Asset capture form appears.

Enter the details as per above and ensure that the ROCAP asset is ticked. Click save and exit once done.

Adding Stock / Inventory

In the Assets summary, Right-hand click on the Asset Class Stock/ Inventory and Choose to Add Stock/ Inventory and the Asset capture form appears.

Enter the details as per above and ensure that the ROCAP asset is ticked. Click save and exit.

Adding Work in Progress

In the Assets summary, Right-hand click on the Asset Class Work in Progress and Choose to Add Work in Progress and the Asset capture form appears.

Enter the details as per above and ensure that the ROCAP asset is ticked. Click save and exit once done.

 

Adding Contingent Assets, Potential Legal Recoveries & Other Assets

In the Assets summary, Right- Hand clicks on the Asset Class required and Choose to Add the required class, and the Asset capture form appears.

Enter the details as per above and ensure that the ROCAP asset is ticked. Click save and exit once done.

Note: The assets capture forms are the same in terms of the details you need to enter. Each asset class is held in its own holding accounts. 

The ROCAP Wizard

The ROCAP comprises of three (3) parts:

• Part A: Form 507 (lodged with ASIC)
• Part B: Questionnaire-style form for directors to complete and give to you (not lodged with ASIC and does not form part of Form 507)
• Instructions: which comprehensively guide directors in completing the ROCAP.

There are three (3) types of letter packs that have been included in the software for practitioners to use in producing the ROCAP.

Type of ROCAP Letter packs	Description
A Blank PDF version	The blank version is based on the ASIC Form 507 which practitioners may download from the ASIC website. This version is split between Part A and B and contains the additional schedules that need to be completed as part of the form. The director will need to print out this form, complete it, and sign it. The form will need to be scanned in order to lodge and upload it to the ASIC Liquidators' portal.
A blank fillable PDF	This version allows practitioners / or the director to complete the form using an editable PDF. The schedules provided are blank but editable. The fields that are pre-populated with the external administrator's information. As this version contains active content you will need to remove the active content before lodging with ASIC. See the instructions about removing Active Content below.
A data-enriched output	This version of the output can be populated with data including all the schedules.

To start the ROCAP wizard, select the letter pack required by clicking Circulars & Mailing à Letter packs

You can also locate the ROCAP via Reports & Forms à Statutory Forms and Lodgments à Directors Notices

Alternatively, you can run the ROCAP Wizard, from the toolbar. Click on Reports and Forms à Find Report or Form à Type in 507

Complete the Wizard by filling out the input form and clicking next until you arrive at the end. Click finish once you are ready to complete the wizard.

Other Considerations -ROCAP Wizard

        Combine the output documents into PDFs.

• Once the director reviews and returns digitally signed documents ROCAP’s Part A and B and the respective schedules, practitioners are required to lodge to ASIC, ROCAP’s Part A and its schedules.
• Presently you can only upload a source document (Form 507- Part A) and one attachment (Form 507 – Schedules to Part A) in PDF or TIF to the ASIC Liquidators' Portal.
• As the ROCAP’s schedules for Part A prepared by the system are of separate documents, it may be necessary to combine PDF documents into a single combined document.
• One way of doing this is by using Adobe Acrobat Pro (you need to subscribe). Alternatively, you may print all schedules and scan them as one document.

Reducing file size

When a PDF document is created or scanned sometimes the document file will be too large to be uploaded to the ASIC liquidators' portal.

The following error will appear:

“Upload Error(s): The size of the document “Form 507-ROCAP Part A” named “Form 507-ROCAP Part A.pdf” exceeds the maximum limit of 3 MB”.

 To reduce the size of a PDF file you may need to rescan the document at a lower resolution or use "Adobe Acrobat Pro" to reduce the file size.

  Active Content Issue

When uploading to the ASIC Liquidators' Portal, the blank ASIC provided Form 507 contains active content.

Note: A scanned version of the ROCAP Part A and the Schedules will not have active content issues.

When you upload a document, you may receive this error:

“Upload Error(s): The content of the document “Form 507-ROCAP Part A.pdf” is invalid. It contains active content. allowAcroForms. For security reasons, we do reject PDF documents containing encrypted data, active content (e.g., JavaScript, PostScript), external references, and PDF documents with attached objects or executables. Please remove Active Content from the attachment and then add.”

To eliminate active content from documents, you can use the print option in a PDF viewer:

- From the File menu > Select Print

- Select "Print to PDF."

- Click Print

- Enter a new file name for the PDF document and save.