The Set Up screen is used to set up the client's Asset Classes such as Fixtures and Fittings or Motor Vehicles. Every Asset must belong to an Asset Class.
The Asset Class provides:
- The nominal accounts that act as control accounts for the Fixed Asset Register. When postings are made to these accounts in CCH Accounts Production, the system asks "Analyse in Fixed Asset Register?" so that the posting can be broken down into its effects on individual assets.
- The nominal accounts that are used for depreciation postings.
- Defaults that are used when an asset is set up, e.g. the Depreciation Method.
The columns are as follows:
- Code The code of the Asset Class, e.g. FF for Fixtures and Fittings.
- Name The name of the Asset Class, e.g. Fixtures and Fittings.
- Balance Sheet Category The description used on CCH Accounts Production's fixed asset note for this Asset Class. Assets brought into Corporation Tax are grouped by Balance Sheet Category. For instance, there could be Asset Classes in the FAR for "Freehold Property" and "Leasehold Property", but both Asset Classes could be aggregated as "Land and Buildings" on the fixed asset note. In this case both Asset Classes would have a Balance Sheet Category of "Land and Buildings".
- Nominal Accounts The next 11 columns are for nominal accounts. These are selected in the same way as in CCH Accounts Production. You can enter a word from the account name and all matching accounts are displayed. For instance, you can enter "motor" and all motor vehicle accounts are displayed. Alternatively, enter the first few digits of the accounts code and all matching nominals are displayed. The nominal accounts cannot be overridden on individual Assets.
- Depreciation Method This is None, Straight Line or Reducing Balance. It can be overridden on individual Assets.
- Depreciation Percentage Like the Depreciation Method, this is a default that can be overridden on individual Assets.
The screen has one button:
- View Master Asset Classes The Master Asset classes hold defaults to speed up setting up the Asset Classes. They are explained in the Notes below.
- Every client with a Fixed Asset Register needs Asset Classes set up. They are usually set up once and do not need to be altered in subsequent years unless the client buys a new type of asset.
- When you click on the Code field to add a new Asset Class, the system asks "Create from a Master Asset Class?" If you answer Yes, then the Master Asset Class can be selected. The Master Asset Class has default nominal accounts already set up. This saves you from having to select all the nominal accounts each time an Asset Class is set up.
- The Asset Classes are saved at client level. So whichever Accounting Period you go into for a client, you see the same Asset Classes. However if a client converts to FRS102, then the nominal accounts on the Asset Class are invalid in the new year. If this happens, then you are warned when you first open the Fixed Asset Register in the new year and you are taken into the Set Up screen to correct the Asset Classes for the new year. This is a little laborious as the Master Asset Classes only speed up adding a new Asset Class; there is no way to speed up editing an existing Asset Class.
- More detail on the Usage of the Asset Class Nominals can be found here.