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CCH Software User Documentation

Buying and Selling Assets

 

During the year, assets are bought and sold and the Fixed Asset Register needs to be updated. This topic describes some common events.

Buying a new asset

Buying an asset starts in CCH Accounts Production data entry, probably with a Bank Payment. Suppose you purchase a motor vehicle.

  1. You enter the Bank Payment in CCH Accounts Production in the usual way.
  2. The entry debits the Motor Vehicles Additions account.
  3. This account is listed on the Motor Vehicles Asset Class as the Additions account. The system recognises it and asks "Analyse in Fixed Asset Register?". You can answer Yes or No.
  • No If you answer No, then you can continue to your next entry in data entry, leaving Motor Vehicles Additions in the nominal ledger out of sync with the total of Motor Vehicles additions in the Fixed Asset Register. You can go into the Fixed Asset Register later to reconcile them.
  • Yes If you answer Yes, then a new tab opens showing the Fixed Asset Register.
    • You are taken to the Asset screen to add the new motor vehicle. Add the Asset and, on clicking Save, you are taken to the Asset Movement screen to create the Addition entry.
    • The Movement defaults to Addition. The Date, Description and Value all default to the values on the Bank Payment. 
    • It could be that the entry does not represent a single new motor vehicle. It could be an addition to the cost of an existing motor vehicle, or it could represent multiple motor vehicles. In either case, you can use the Fixed Asset Register to make the necessary changes.
    • When work is complete, close the Fixed Asset Register tab to continue with data entry in CCH Accounts Production.
       

Selling an asset

Selling an asset also starts in CCH Accounts Poduction data entry, probably with a Bank Receipt. Suppose you sell a motor vehicle.

  1. You enter the Bank Receipt in CCH Accounts Production in the usual way.
  2. The entry credits the Motor Vehicles P/L on Disposal account.
  3. This account is listed on the Motor Vehicles Asset Class as the P/L on Disposals account. The system recognises it and asks "Analyse in Fixed Asset Register?" You can answer Yes or No.
  • No If you answer No, then you can continue to your next entry in data entry, leaving the disposal proceeds on the P/L on Disposal account in the nominal ledger out of sync with the disposal proceeds in the Fixed Asset Register. You can go into the Fixed Asset Register later to reconcile them. In this case, the P/L on Disposal account in the nominal ledger may relate to more than one Asset Class, but the system can still detect that the balances disagree with the Fixed Asset Register.
  • Yes If you answer Yes, then a new tab opens showing the Fixed Asset Register.
    • If the P/L on Disposal account  relates to only a single Asset Class then you are taken into that Asset Class to select the asset that was sold. On selecting the asset, the system automatically takes you into the Asset Movement screen to complete the entry.
    • If the P/L on Disposal account  relates to multiple Asset Classes, you are taken into the Asset Summary screen to select the Asset Class before you can select the particular asset. But otherwise the process is the same.

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