No VAT? The VAT Recon, Full VAT Recon, and Invoice VAT modules will be hidden from the module dashboard. No employees? The EMP201 / Salary Recon module will be hidden. Fincure only shows the modules relevant to this entity.
🛒
Retail / Wholesale
Cat A SDL · standard VAT
🏗️
Construction
NHBRC · s13sex buildings
💼
Professional Services
Accounting / Legal / IT
🌾
Agriculture
Farming allowances · s17A
🏠
Property
CGT · s13sex · Div 4
🚛
Transport / Logistics
Fleet · 4yr truck IN47
📋
Other
Specify in notes
Industry / Sector
Step 2 of 7
VAT Registration
This determines which VAT recon module opens and how invoices are processed.
ℹ️
VAT modules will be hidden / greyed out — Invoice VAT, Full VAT Recon, and Deep VAT tabs will not be available for this client. All other modules proceed normally.
Most Pastel users are on invoice basis — VAT is raised when the invoice is issued, not when payment is received.
Step 3 of 7
Employees & Payroll
Opens EMP201 reconciliation and salary modules.
ℹ️
EMP201 & Salary Reconciliation module will be hidden / greyed out — no payroll working papers will be created for this client.
Step 4 of 7
Assets & Financing
Select all that apply — each opens the relevant module in your file.
Fixed Assets (property, vehicles, equipment)
HP / Finance Lease / Bond agreements
Investment Property
Inventory / Trading Stock
Step 5 of 7
Equity & Loans
Opens member loan accounts and related party disclosures.
Member / Director loan accounts?
Do total liabilities exceed total assets?
⚠️
Subordination agreement module will be opened automatically. A CIPC report may be required. You will be prompted at the relevant step.
Step 6 of 7
Tax Profile
Determines which tax calculation module opens — SBC rates or standard company rates.
Approximate annual turnover
Used to calculate materiality and check SBC eligibility (turnover < R20M)
Is the client eligible for SBC tax rates? (s12E)
Farming income?
Step 7 of 8
Beneficial Ownership
Required for ITR14 (SARS, effective 16 Sep 2024) and CIPC Annual Return (effective 1 Jul 2024). Captures the natural persons who ultimately own or control the company.
⚖️
SARS requires beneficial ownership disclosure on every ITR14 from 16 September 2024. CIPC requires it on every Annual Return from 1 July 2024. Non-compliance carries penalties. Maximum 9 beneficial owners per ITR14.
Is ownership held through a trust or holding company?
Chain of ownership: Trace through to the natural person(s) at the top. Trusts must disclose all trustees and beneficiaries. Holding companies must disclose their own beneficial owners.
Step 8 of 8
Review & Create File
Fincure will open exactly the right modules for this client. Nothing more, nothing less.
✨
Based on your answers, 14 modules will be opened for this engagement. Materiality: R 24,000. VAT basis: Invoice.
Assigned Clerk
Reviewing Manager
{Client Name}
Complete the intake checklist to load client details
VAT: ActiveEmployees: YesLeases: —Start by completing the intake checklist →
0%
complete
Core Data — Upload First
✅
GL Data Dump
Upload Pastel GL Detailed Ledger
Complete
📂
Cash Book Dump
Upload bank statements / cash books
Click to upload
📊
TB Dump
Upload your Pastel trial balance export
Click to upload
Compliance Reconciliations
🔴
VAT Recon (Invoice Basis)
Ready to start — no data entered yet
Not started
✅
Salary Recon
Ready to start — no data entered yet
Complete
✏️
TB Roll-Forward
No journals yet — complete modules first
In Progress
Balance Sheet Workings
🏗️
Fixed Asset Register
Enter assets, rates & depreciation method
Click to open
📋
Lease & HP Register
Upload OTP or enter lease/HP details
Click to open
🔒
Tax Calculation (SBC)
Complete FA Register first
Locked
Year-End Journal Workflow
📝
Journal Workflow
No journals yet — complete modules first
In Progress
🔒
Final Adjusted TB
Complete all modules first
Locked
🔒
TB Export
Complete journals first
Locked
✅
Beneficial Ownership
ITR14 & CIPC disclosure — owners captured in intake
Compliance notice: Beneficial ownership disclosure is mandatory on all ITR14 returns from 16 September 2024 and all CIPC Annual Returns from 1 July 2024. Penalties apply for non-disclosure. Maximum 9 natural persons per ITR14.
📋 Beneficial Owners Captured
No owners captured yet — complete intake Step 7 first.
📋 Ownership Structure
Loading...
✅ Compliance Checklist
Requirement
Source
Status
Natural persons identified (no corporate entities)
SARS ITR14 s1
✓ Verified
SA ID numbers captured
SARS / CIPC
✓ Verified
Tax reference numbers captured
SARS ITR14
✓ Verified
Ownership % / nature of control stated
CIPC Reg 5
✓ Verified
Number of owners ≤ 9
SARS ITR14 limit
✓ Within limit
Chain of ownership disclosed (if applicable)
CIPC / SARS
Pending
Draftworx Integration
Lead schedule mapping — see how each Fincure module feeds into your Draftworx engagement file
📊
How this works: Fincure operates in the SAIPA Section 11 space — the per-balance compilation programs. Draftworx handles sections 2–10 (engagement management) and section 12 (sign-off). Fincure produces the supporting schedules that feed every Draftworx lead schedule column.
🟢 Direct Feed — Modules that populate Draftworx lead schedules
Gross salaries, PAYE/UIF/SDL, net pay, payroll creditor balance
✓ Live
🟡 Unique — No equivalent exists in Draftworx
Fincure Module
SAIPA Program
Why it's unique
Status
VAT Recon – Invoice Basis
11.14 Taxes & levies · 11.15 Trade payables
Draftworx captures the VAT control balance but has no VAT reconciliation tool. Fincure proves the balance from the VAT201 and Pastel output.
✓ Unique
Full VAT Recon
11.14 Taxes & levies
Full payments-basis and comprehensive output-input reconciliation with SARS SOA matching.
✓ Unique
EMP201 Salary Reconciliation
11.21 Employee costs
Draftworx has the employee benefits note (60.10) but no PAYE/UIF/SDL calculation tool. Fincure provides the full payroll reconciliation.
✓ Unique
Beneficial Ownership Register
Client intake / CIPC compliance
Not available in any working paper tool. Mandatory for ITR14 and CIPC from 2024. Fincure captures and exports this for every engagement.
✓ Unique
🟠 Phase 2 — Coming Modules
Module
Draftworx Schedules
Phase
Tax Computation
52.01–52.10 (Deferred tax, current tax, income tax expense)
Phase 2
Impairment
30.13/14, 31.11, 34.10, 35.15
Phase 2
Inventory Recon
34.01/34.02
Phase 2
Analytical Review & Ratios
35.11, 51.11, 51.12.x
Phase 2
Cash Book Dump
Upload your bank statements or Pastel cash book export — one file per bank account
ℹ️
In Pastel: Cashbook → Reports → Cash Book → Export to Excel. Upload one file per bank account. Fincure will match transactions against the GL and flag unallocated items.
📥 Add Bank Account / Cash Book
🏦
Drag & drop cash book export here
or click to browse · Accepts .xlsx, .xls, .csv
Pastel: Cashbook → Reports → Cash Book → Export to Excel
✅
Cash book loaded successfully.
TB Dump
Upload your Pastel trial balance export — used by TB Roll-Forward and all balance sheet modules
ℹ️
In Pastel: Ledgers → Trial Balance → Export to Excel. Include both current year and prior year columns. Save as .xlsx and upload below.
📥 Upload Trial Balance
📊
Drag & drop your Trial Balance here
or click to browse · Accepts .xlsx, .xls, .csv
Pastel: Ledgers → Trial Balance → Export to Excel · Include current year + prior year
📄
file.xlsx
Ready to process
✅
TB processed successfully. Accounts loaded. Prior year column detected. Ready for TB Roll-Forward.
GL Data Dump
Upload your Pastel GL Detailed Ledger export — all modules read from this
ℹ️
In Pastel: Ledgers → General Ledger → Detailed Ledger → Export to Excel. Select the full financial year. Copy all rows including headers and paste below.
📥 Upload GL Export
📒
Drag & drop your GL Detailed Ledger here
or click to browse · Accepts .xlsx, .xls, .csv
Pastel: Ledgers → General Ledger → Detailed Ledger → Export to Excel
✅
file.xlsx
Ready to process
✅
GL processed successfully. 1,247 transactions loaded across 56 accounts. VAT control account (8400/000) detected. Salary control account (9601/000) detected. 3 lease accounts detected.
Same format as source TB — works with any FS package
📄
Working Papers PDF
Complete SAIPA-compliant working papers pack — all modules
📋 Journal Summary Export
All approved journals — ready to post into Pastel/Sage
Ref
Date
DR Account
CR Account
Amount
Narration
JNL-001
28 Feb 2025
7800/000
8602/000
R 8,734.44
ABSA finance charges accrual
JNL-002
28 Feb 2025
7600/000
1500/001
R 45,600.00
Vehicle depreciation FY2025
JNL-005
28 Feb 2025
7500/000
2300/000
R 15,000.00
Leave pay provision FY2025
Clients & Engagements
All saved engagements — auto-saved in your browser · Export backup any time
💾 All data saved automatically in your browser
📂
Loading saved engagements...
📅 Ready to roll over to the next financial year?
Carries forward all settings, archives prior year, resets working papers for a fresh start.
💡 How saving works: Fincure saves automatically to your browser's local storage whenever you make changes. Data stays on this device. Use "Export Backup" to save a copy you can restore on another device or share with your team.
TB Roll-Forward
Upload this year's opening TB and last year's closing TB — Fincure finds every difference and tells you exactly what to fix in Pastel
ℹ️
How this works: Upload two trial balances — the Current Year Opening TB (what Pastel shows as opening balances for this year) and the Prior Year Closing TB (last year's signed-off closing balances). Fincure compares every account. Any difference is a prior year adjustment that was not posted into Pastel — you get a journal to fix it.
📂 Current Year — Opening TB
This year's TB as it currently stands in Pastel — the opening balances Pastel rolled into this year. Pastel: Ledgers → Trial Balance → select current year → Export to Excel
📊
Current Year Opening TB
Drop .xlsx / .xls / .csv here or click to browse
✅
—
—
📁 Prior Year — Closing TB
Last year's final signed-off TB — from your working papers or Pastel prior year. Pastel: Ledgers → Trial Balance → select prior year → Export to Excel Tip: Your Draftworx/CaseWare prior year TB export also works here.
📋
Prior Year Closing TB
Drop .xlsx / .xls / .csv here or click to browse
✅
—
—
📐 Expected column format (both files)
Column A
Account number e.g. 1010/000
Column B
Account description e.g. Bank — ABSA
Column C
Debit balance positive number or blank
Column D
Credit balance positive number or blank
⚡ Fincure auto-detects columns — if your export has different column names, Fincure will match by header keywords (Account, Description, Debit, Credit, Balance). You can also manually map columns after upload.
Accounts Compared
—
Agree — No Action
—
Differences Found
—
Journals to Post
—
📊 Account-by-Account Comparison
Account
Description
CY Opening Balance
PY Closing Balance
Difference
Fix Required in Pastel
Status
TOTALS
—
—
—
Correcting Journals — Post These in Pastel
⚠️
These are prior year adjustments that were processed in your working papers but not yet posted into Pastel. Post each journal in Pastel first, then re-run the TB Roll-Forward to confirm it clears. Once all differences are resolved, the TB Roll-Forward is clean and you can proceed.
✅
TB Roll-Forward is clean. Every account's opening balance in Pastel agrees exactly to last year's closing balance. No correcting journals required. Proceed to the compliance recons.
Invoice VAT Reconciliation
Paste Pastel debtor and creditor invoice listings · Checks output VAT per invoice vs VAT201 declared
ℹ️
In Pastel: Customers → Reports → Invoice Listing → Export to Excel. Select full financial year. Include all columns.
📤 Paste Debtor Invoice Listing
Expected: Date · Invoice No · Customer · Excl Amount · VAT Amount · Incl Amount · Tax Code
Total Invoices
—
Total Excl
—
Output VAT
—
vs VAT201
—
📊 Output VAT by Period
Period
Invoices
Excl Amount
Output VAT
VAT201 Declared
Variance
Status
📋 Invoice Detail
Date
Invoice No
Customer
Excl Amount
VAT Amount
Incl Amount
Tax Code
Status
ℹ️
In Pastel: Suppliers → Reports → Invoice Listing → Export to Excel. Ensure supplier VAT numbers are included in your Pastel supplier master.
📥 Paste Creditor Invoice Listing
Expected: Date · Invoice No · Supplier · Supplier VAT No · Excl Amount · VAT Amount · Incl Amount · Tax Code
Total Invoices
—
Total Excl
—
Input VAT
—
s20 Issues
—
📋 Creditor Invoice Detail
Date
Invoice No
Supplier
Supplier VAT No
Excl
VAT
Incl
s20 Status
⚠️
s20 of the VAT Act requires that a valid tax invoice must contain: supplier name, supplier VAT number, invoice number, date, description of goods/services, and VAT amount separately shown. Input tax may only be claimed on valid s20 tax invoices.
🔍
Process creditor invoices first
Go to the Creditors tab, paste your invoice listing, then come back here
Total Invoices
—
Compliant
—
Non-Compliant
—
🔍 s20 Compliance Detail
Supplier
Invoice No
VAT Amount
VAT Number
Invoice No
s20 Status
Action Required
ℹ️
Credit notes reduce VAT liability (output) or reduce input VAT claimable. Each credit note must reference the original invoice. SARS requires credit notes to meet the same s20 requirements as tax invoices.
📋 Credit Notes Received (Input — reduces VAT claimable)
Date
CN No
Supplier
Original Invoice
Excl Amount
VAT Reversed
Period
Status
Total VAT Reversed — Input
(R 450.00)
ℹ️
Debit notes increase VAT liability. A debit note issued to a customer increases your output VAT. A debit note received from a supplier increases your input VAT claimable. SARS requires debit notes to meet s21 requirements.
📋 Debit Notes Received (Input — increases VAT claimable)
Date
DN No
Supplier
Supplier VAT No
Excl Amount
VAT Added
Period
s21 Status
2024/11/03
SDN-002
Office Depot SA
R 800.00
R 120.00
Nov/Dec 2024
🔴 No VAT No
Total Additional VAT — Input
R 720.00
1 s21 issue
Full VAT Reconciliation
5-layer reconciliation — VAT201 returns · SARS SoA · GL control · Invoices · Cash book
⚙️ Engagement VAT Profile
📅 VAT Periods for FY2025
Periods are auto-determined from your year-end and filing frequency. Periods that straddle the year-end are flagged separately.
⚠️
Straddling period detected: The Jan/Feb 2025 return covers income earned in FY2025 but the payment and filing falls in March 2025 — outside the financial year. Fincure will show this separately in the reconciliation.
ℹ️
Enter your VAT201 figures manually for each period below. You can find these on eFiling under Returns → VAT → View Return. PDF extraction coming in a future release.
📊 VAT201 Returns Summary
Period
Tax Period
Type
F1 Turnover
F2 Zero-Rated
F3 Exempt
F4 Output VAT
F14+15 Input VAT
F20 Net
Status
ℹ️
Download your VAT Statement of Account from SARS eFiling: Returns → VAT → Statement of Account. Upload the PDF or paste the key figures below.
🏦 SARS Statement of Account
📄
Upload VAT Statement of Account PDF
From SARS eFiling · VAT → Statement of Account
Or enter manually:
Opening Balance
Total Returns Declared
Total Payments Made
Penalties / Interest
Closing Balance (SoA)
Outstanding per SARS
💳 Payments per SARS SoA
Period
Payment Date
Amount Declared
Amount Paid
Variance
SARSEF Receipt
Status
Mar/Apr 2024
25 May 2024
R 23,922.00
R 23,922.00
R 0.00
SARS-1234567
✅ Paid
May/Jun 2024
26 Jul 2024
—
—
—
SARS-2345678
🔴 Short paid
Jul/Aug 2024
25 Sep 2024
R 31,358.00
R 31,358.00
R 0.00
SARS-3456789
✅ Paid
Sep/Oct 2024
25 Nov 2024
R 23,444.00
R 23,444.00
R 0.00
SARS-4567890
✅ Paid
Nov/Dec 2024
24 Jan 2025
R 31,556.00
R 31,556.00
R 0.00
SARS-5678901
✅ Paid
Jan/Feb 2025 ⚠️ Straddles year-end
25 Mar 2025
R 22,222.00
R 22,222.00
R 0.00
SARS-6789012
Outside year
TOTALS
—
—
—
🔴 Outstanding
ℹ️
Enter your VAT201 figures in the Returns tab, upload your SARS SoA, and paste your GL/invoice data — then click Run Full Reconciliation on the Returns tab to populate this view.
🔍 5-Layer VAT Reconciliation
Layer
Output VAT
Input VAT
Net VAT
vs Layer 1
Status
Run reconciliation to populate
⚠️ Findings & Journals
Findings will appear here after reconciliation
Total Findings
—
Critical
—
Warnings
—
Info
—
🔍
Run the full reconciliation to see findings
Go to the Returns tab → enter your VAT201 data → click Run Full Reconciliation
📎
Upload all VAT supporting documents. These are stored with the engagement and referenced during the reconciliation review.
📄 VAT201 Return PDFs (All Periods)
eFiling → Returns → VAT → View/Print each submitted return. Select all periods at once.
📄
VAT201 Return PDFs
Enter figures manually in the VAT201 Returns tab above.
PDF auto-extraction coming in a future release.
🏦 SARS VAT Statement of Account
eFiling → Debt Management → Statement of Account → VAT. Download the full year.
🏦
VAT Statement of Account
PDF preferred · full financial year
✅ VAT Compliance Status
Optional: upload the SARS compliance status print for the engagement file.
Enter PAYE, SDL and UIF per EMP201 return for each month. These figures come from the EMP201 forms submitted to SARS. The total must agree to the GL PAYE control account and the sum of all IRP5 code 4001/4002/4003+4004.
Upload each employee's IRP5 / IT3(a) PDF certificate. Fincure extracts all codes automatically. The totals are then reconciled against the EMP201 returns and the GL salary expense accounts. Directors and members are shown separately.
Directors / Members IRP5s
J.A. van der Merwe (Director)
IRP5 · Tax No: 1234567890 · Period: Mar 2024 – Feb 2025
Annual E@syfile reconciliation — the sum of all IRP5 certificates submitted to SARS must equal the cumulative EMP201 returns for the year. Any difference must be resolved before the IRP5 submission deadline (31 May).
🔗 E@syfile Annual Reconciliation — FY2025
Field
Per IRP5 Certificates
Per EMP201 Returns
Variance
Status
Notes
Total Gross Remuneration (3697)
R 894,560.00
R 894,560.00
R 0.00
✅ Agrees
—
PAYE Withheld (4001)
R 89,456.00
R 89,456.00
R 0.00
✅ Agrees
—
SDL — Employer (4002)
R 4,473.00
R 4,473.00
R 0.00
✅ Agrees
—
UIF — Employee (4003)
R 4,473.00
R 4,473.00
R 0.00
✅ Agrees
—
UIF — Employer (4004)
R 4,473.00
R 4,473.00
R 0.00
✅ Agrees
—
Medical Aid Fringe Benefit (3651)
R 24,000.00
R 0.00
R 24,000.00
🔴 Not on EMP201
Fringe benefit on IRP5 not captured on EMP201 — PAYE may be understated
Net Pay to Employees (4141)
R 771,685.00
R 771,685.00
R 0.00
✅ Agrees
Agrees to salary bank payments
🔴
E@syfile finding: Medical aid fringe benefit (code 3651) of R24,000 appears on the director's IRP5 but was not included in the EMP201 returns. This means the taxable income on the EMP201 is understated by R24,000 and PAYE may be understated by approximately R8,640 (@ 36% marginal rate). This must be corrected before the IRP5 submission.
ℹ️
Reconcile the IRP5 totals against what appears in the GL. The salary expense accounts in Pastel must agree to the IRP5 gross figures. The PAYE/SDL/UIF control accounts must agree to the EMP201 totals.
📒 GL Salary Expense vs IRP5 Totals
GL Account
Description
Per GL
Per IRP5s
Variance
Status
9601/000
Salaries & Wages
R 654,560.00
R 654,560.00
R 0.00
✅
9602/000
Director remuneration
R 240,000.00
R 240,000.00
R 0.00
✅
9603/000
Bonuses
R 20,000.00
R 20,000.00
R 0.00
✅
9605/000
SDL expense
R 3,890.00
R 4,473.00
R 583.00
⚠️ Variance
9606/000
UIF — employer
R 4,473.00
R 4,473.00
R 0.00
✅
2200/000
PAYE payable (control)
R 89,456.00
R 89,456.00
R 0.00
✅
2201/000
UIF payable (control)
R 8,946.00
R 8,946.00
R 0.00
✅
TOTAL SALARY COST
R 1,020,325.00
R 1,020,908.00
R 583.00
⚠️ SDL variance
💰 Net Pay — Bank vs IRP5
IRP5 Net Pay (4141)
R 771,685
Sum of all employees
Bank Salary Payments
R 771,685
✅ Agrees to IRP5
GL Net Pay Account
R 771,685
✅ Agrees to bank
Total Findings
2
EMP201 Issues
1
GL Variances
1
IRP5 Issues
0
🔴 Finding 1 — Medical Aid Fringe Benefit Not on EMP201
Director J.A. van der Merwe's IRP5 shows a medical aid fringe benefit (code 3651) of R24,000 for FY2025. This fringe benefit was not included in the monthly EMP201 returns — meaning taxable income was understated by R24,000 and PAYE may be understated by approximately R8,640 (@ 36% marginal rate). This must be disclosed and corrected on the E@syfile annual reconciliation before 31 May 2025. An amended EMP501 may be required.
DR: 9604/000 Fringe Benefits Expense R 24,000.00
CR: 2200/000 PAYE Payable R 8,640.00
CR: 9601/000 Salaries — net adjustment R 15,360.00 Narration: Medical aid fringe benefit correction — FY2025 director IRP5
R 8,640
⚠️ Finding 2 — SDL Expense GL Variance
The GL SDL expense account (9605/000) shows R3,890.00 but the EMP201 returns and IRP5 totals both show SDL of R4,473.00. The difference of R583.00 suggests that SDL was incorrectly posted in Pastel for one or more months. Likely a month where SDL was posted to the wrong account. Review the monthly SDL journal entries in Pastel.
Upload the OTP (Offer to Purchase) and/or the Amortisation Schedule PDF in Intake and Fincure will auto-populate this register. Or use the manual entry form below.
✅ OTP data received from Intake
🚙 Nissan Navara 2.5DDTI XE — Account 85368731478
EG Shopfitting · Suzuki Mobility Finance · Started Jan 2024
PK Industrial Supplies · Caledon Toyota · Purchased Aug 2021
✅ OTP uploaded⚠️ Amort schedule needed
⚠️
OTP uploaded — principal debt confirmed at R363,750.00. No amortisation schedule yet. Fincure has reconstructed an estimated schedule using the principal debt and prime rate history. Upload the bank's amortisation schedule to confirm.
Account 85368731478 · Principal R269,613.00 · Effective interest method
Extracted from PDF
Month
Opening Balance
Instalment
Interest
Capital
Closing Balance
Rate
Status
ℹ️
Each monthly instalment per the amortisation schedule is compared to the GL cash book entries. Variances flag missed payments, incorrect amounts, or postings to the wrong account. Bank charges and insurance are verified separately.
💳 Payment Verification — Nissan Navara FY2025
Month
Amort Schedule
Per GL / Cash Book
Variance
GL Account
Status
✅
All 12 instalments verified. Total payments of R65,840.24 agree to amortisation schedule. No missed or short payments detected. Postings confirmed to HP liability account.
Balance Sheet Split at Year End — 28 Feb 2025
📋 Nissan Navara — B/S Classification at 28 Feb 2025
Closing balance split into current (next 12 months) and non-current (beyond 12 months)
Total Closing Balance
R 232,887
Per amort schedule Feb 2025
Current Portion (Short Term)
R 36,755
Capital repayable Mar 2025 – Feb 2026
Non-Current (Long Term)
R 196,132
Capital repayable after Feb 2026
Period
Capital Repayable
Classification
Mar 2025 – Feb 2026 (next 12 months)
R 36,755.31
Current liability
Mar 2026 – Feb 2030 (remaining term)
R 196,132.13
Non-current liability
Total
R 232,887.44
Year-End Journals — 28 Feb 2025
Journal 1 — Reclassify HP Short/Long Term Portion
DR: 8602/001 HP Liability — Long Term R 196,132.13
CR: 8602/002 HP Liability — Short Term R 36,755.31
CR: 8602/000 HP Liability — Control R 232,887.44
Narration: Reclassify Nissan Navara HP — current vs non-current at 28 Feb 2025 per amortisation schedule
Journal 2 — Finance Interest for FY2025
DR: 7200/001 Finance Charges — HP Interest R 34,377.69
CR: 8602/000 HP Liability — Control R 34,377.69
Narration: HP interest expense FY2025 — Nissan Navara per effective interest method (amort schedule)
Journal 3 — Vehicle at Cost (from OTP)
DR: 1200/005 Motor Vehicles — Cost R 384,565.22
DR: 2100/VAT Input VAT R 57,684.78
CR: 1100/000 Bank — Deposit paid R 80,000.00
CR: 8602/000 HP Liability — Nissan Navara R 269,613.00
CR: 8602/001 HP Liability — Toyota Hilux R 363,750.00
Narration: Vehicle purchase — principal debt per OTP O9509397 — 31 Aug 2021
⚠️ Verify against GL — confirm vehicle is not already posted at incorrect amount
GL Verification — HP Account vs Amortisation Schedule
📒 HP Liability GL vs Amort Schedule
Description
Per GL
Per Amort Schedule
Variance
Status
Opening balance (Mar 2024)
R 269,613.00
R 269,613.00
R 0.00
✅ Agrees
Total instalments paid
R 65,840.24
R 65,840.24
R 0.00
✅ Agrees
Interest charged to GL
R 31,462.55
R 34,377.69
R 2,915.14
🔴 Variance
Closing balance (Feb 2025)
R 235,235.31
R 232,887.44
R 2,347.87
⚠️ Check interest posting
⚠️
The GL HP account shows less interest than the amortisation schedule. This is typically because Pastel posts the full instalment to the HP account without splitting interest from capital. Journal 2 above corrects this — posting the interest portion to the income statement.
📊 Total Fixed Assets — Per Balance Sheet — 28 Feb 2025
Asset Class
Cost
Acc Dep b/f
Dep FY2025
Acc Dep c/f
CV c/f
Pledged
Land & Buildings
1,100,000
136,000
17,000
153,000
947,000
Bond
Furniture & Fittings
73,500
35,550
7,350
42,900
30,600
—
Plant & Machinery
755,000
278,000
115,250
393,250
361,750
—
Motor Vehicles
654,178
152,059
110,836
262,895
391,283
HP
IT & Loose Tools
147,400
40,333
50,733
91,067
56,333
—
TOTAL
2,730,078
641,942
301,169
943,112
1,786,966
ℹ️
The 20 TB sheet tracks the SARS tax base — what SARS allows as a deduction using IN47 rates. No residual value is deducted for SARS. The tax base is used to calculate recoupment and CGT on disposal, and deferred tax at year-end.
🏛️ 20 TB — Tax Base Register (SARS IN47 basis) — 28 Feb 2025
Asset
SARS Life
SARS Rate
Cost
Acc W&T b/f
W&T FY2025
Acc W&T c/f
Tax Base c/f
Factory Building
20yr
5%
850,000
34,000
42,500
76,500
773,500
Furniture & Fittings
6yr
16.67%
73,500
42,900
12,250
55,150
18,350
Injection Moulding Machine
10yr
10%
450,000
202,500
45,000
247,500
202,500
Conveyor System
10yr
10%
185,000
55,500
18,500
74,000
111,000
Forklift
5yr
20%
120,000
24,000
24,000
48,000
72,000
Motor Vehicles
5yr
20%
654,178
152,059
110,836
262,895
391,283
IT & Tools
3yr
33.33%
147,400
40,333
50,733
91,067
56,333
TOTAL
2,480,078
551,292
303,819
855,112
1,624,966
ℹ️
Comparison of accounting depreciation (20 FA) vs SARS wear-and-tear (20 TB). Where SARS is faster → the tax deduction is larger in early years → temporary difference → deferred tax liability. Where SARS is slower → deferred tax asset.
Enter the disposal details below. Fincure calculates: (1) accounting profit/loss, (2) SARS recoupment (s8(4)) if selling price > tax base but ≤ original cost, (3) capital gain if selling price > original cost, (4) deregistration journals for the FA register.
🧮 Disposal Calculator — Live
Asset
Selling Price (excl VAT)
Disposal Method
Worked Example — Toyota Hilux Trade-In (from OTP data)
🚗 Toyota Hilux Extra Cab — Trade-In Scenario
Vehicle purchased Aug 2021 · Cost R384,565 · Traded in at R250,000 · Feb 2025 · Acc dep R201,011 · CV R183,554 · SARS tax base R391,283
Original Cost
R 384,565
Per OTP O9509397
Accumulated Dep
R 201,011
Per 20 FA register
Carrying Value
R 183,554
20 FA closing value
SARS Tax Base
R 391,283
20 TB — fully w/t
Accounting Profit
R 66,446
R250,000 − R183,554
SARS Recoupment (s8(4))
R 0
Price < Tax base — no recoupment
Capital Gain
R 0
Price < Cost — no CGT
Net Tax Effect
R 0
No SARS tax consequence
✅
Trade-in price of R250,000 is less than both the original cost (R384,565) and the SARS tax base (R391,283). There is no recoupment and no capital gain. The accounting profit of R66,446 is taxable as normal income (not a capital gain). The HP liability must also be settled.
⚙️ Injection Moulding Machine — Sale with Recoupment
Sold for R350,000 · Cost R450,000 · CV R180,000 · SARS tax base R202,500
Original Cost
R 450,000
Purchase price
Carrying Value
R 180,000
After acc dep
SARS Tax Base
R 202,500
Cost less SARS W&T
Selling Price
R 350,000
Fair market value
Accounting Profit
R 170,000
R350k − R180k
Recoupment (s8(4))
R 147,500
R350k − R202,500 tax base
Capital Gain
R 0
Price < Original cost
Tax @ 27% on recoupment
R 39,825
R147,500 × 27%
⚠️
Recoupment arises because the selling price (R350,000) exceeds the SARS tax base (R202,500). SARS requires the R147,500 difference to be included as gross income in the year of disposal — this "recoupment" represents W&T previously claimed that must now be given back. The recoupment is taxed at the full corporate rate (27%), not CGT. Post correcting journal to derecognise asset and raise tax liability.
🏢 Factory Building — Sale with CGT
Hypothetical sale at R1,200,000 · Cost R850,000 · CV R697,000 · SARS tax base R773,500
Accounting Profit
R 503,000
R1.2m − R697k
Recoupment (s8(4))
R 76,500
Cost − Tax base: R850k−R773.5k
Capital Gain (8th Schedule)
R 350,000
Proceeds R1.2m − Base cost R850k
CGT Incl in Income (80%)
R 280,000
80% inclusion for companies
📌
Three-layer tax analysis required: (1) Recoupment R76,500 included in gross income at 27% = R20,655 tax. (2) Capital gain R350,000 × 80% inclusion rate = R280,000 included in taxable income × 27% = R75,600 effective CGT. Note: Land disposal is CGT only (no W&T ever claimed on land). Small Business Relief: If entity qualifies as small business with assets < R10m market value, partial CGT exclusion may apply.
ℹ️
The disposal register corresponds to the 20 PL sheet in the ACT workbook — "Profit with sale of assets (Carrying value)". Each disposal is listed by asset class with cost, accumulated depreciation, carrying value, selling price, and profit/loss on sale.
📋 20 PL — Profit/Loss on Sale of Assets — FY2025
Asset Class
Description
Date Sold
Method
Cost
Acc Dep
CV (Book)
Selling Price
Profit / (Loss)
Auth
Motor Vehicles
Toyota Hilux (trade-in)
28 Feb 2025
Trade-in
384,565
201,011
183,554
250,000
66,446
✅ Approved
TOTAL DISPOSALS FY2025
384,565
201,011
183,554
250,000
R 66,446 profit
Disposal Journals — FA Deregistration
Journal 1 — Derecognise Toyota Hilux from FA Register
DR: 8100/004 Acc Dep — Motor Vehicles R 201,011.00 (remove acc dep)
DR: 1300/001 Asset Disposal Account R 183,554.00 (CV transferred out)
CR: 1200/004 Motor Vehicles — Cost R 384,565.00 (remove at cost)
Narration: Derecognise Toyota Hilux — disposal Feb 2025 — Chassis AHTJB3DC604492999
Journal 2 — Record Disposal Proceeds
DR: 1100/000 Bank / Trade-in Receivable R 250,000.00
CR: 1300/001 Asset Disposal Account R 250,000.00
Narration: Proceeds on trade-in of Toyota Hilux — Feb 2025
Journal 3 — Close Disposal Account to Income Statement
DR: 1300/001 Asset Disposal Account R 183,554.00 (CV)
CR: 6200/001 Profit on Disposal of Assets R 66,446.00 (profit to P&L)
CR: 1300/001 Asset Disposal Account closes out
Narration: Profit on disposal — Toyota Hilux — R66,446 — normal income for tax purposes
✅
After posting journals 1–3: remove Toyota Hilux from the FA register, update HP liability module (settle outstanding HP balance), update insurance schedule, and update SARS tax base register (20 TB).
ℹ️
Three possible tax outcomes on disposal — can occur simultaneously. The 50 Cur sheet in ACT workbook has lines for: accounting profit on sale, recoupment (s8(4)), and capital gain (8th Schedule). All three must be populated correctly in the tax computation.
Scenario 1 — Selling price < Tax base
Selling price is below what SARS has already allowed as wear-and-tear. No recoupment, no CGT. Accounting profit/loss flows to P&L as normal income.
✅ No tax consequence
Scenario 2 — Tax base < Selling price ≤ Cost
Recoupment (s8(4) ITA): The excess of selling price over tax base is "recouped" — SARS treats this as gross income because wear-and-tear previously claimed is recovered. Taxed at full corporate rate (27%). No CGT arises.
Recoupment = Selling price − SARS tax base
Tax = Recoupment × 27%
Post to: 50 Cur — "Recoupment on sale of assets"
Scenario 3 — Selling price > Original cost
Both recoupment AND CGT arise. Recoupment = full W&T previously claimed (cost − tax base). Capital gain = proceeds − original cost. Companies: 80% of capital gain included in taxable income × 27% = effective CGT rate 21.6%.
Recoupment = Cost − Tax base → taxed @ 27%
Cap gain = Proceeds − Cost → × 80% × 27%
Small biz relief: assets < R10m market value
🏛️ 50 Cur — Tax Computation Lines for Disposals
50 Cur Line
Description
Amount FY2025
Treatment
Accounting profit with sale of assets
Add back accounting profit (it's already in P&L)
(66,446)
Reverse from taxable income
Recoupment on sale of assets (s8(4))
SARS recoupment — taxable as gross income
0
R0 — price < tax base
Capital gain on sale (gross)
8th Schedule gain × 80% inclusion
0
R0 — price < cost
📌
Involuntary disposals (theft, fire, damage): special rules under s11(4A) allow deferral if insurance proceeds are reinvested in a replacement asset within 12 months. Document the replacement and notify SARS if proceeds exceed cost of replacement.
ℹ️
The method of disposal must be documented for audit purposes. Ensure the method is appropriate for the asset value and type, and that an authorised signatory has approved the disposal before the asset leaves the entity.
Deemed proceeds = market value (R0 if truly worthless). SARS may challenge
🔥 Involuntary (insurance)
Fire, theft, natural disaster
Police/fire report, insurance claim documents
s11(4A) rollover relief — reinvest in replacement within 12 months
📋 Disposal Checklist — Before Recording
0 of 12 items completed
Add Manual Journal
✓ Saved
📅 Year-End Rollover
FY2024 → FY2025 · Client
What happens on rollover:
✅ New engagement created for FY2025 automatically
✅ Client info, entity type, VAT & payroll settings carried forward
✅ VAT SOA closing balance → opening balance for new year
✅ FA register closing values → opening values for new year
✅ Prior year archived — accessible any time from Clients page
✅ TB, GL and working data cleared for a fresh start
📅 New year end: 28 Feb 2025
Current year completion status:
⚠️
Ideally complete all items above before rolling over. Prior year stays archived and accessible from the Clients page at any time.