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CCH Software User Documentation

Usage of Asset Class Nominals

 

 

The Asset Classes are set up on the Set up screen. This topic describes the usage of the Asset Class nominals in more detail. The Asset Class nominal accounts have two functions:

  • Trigger Accounts 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. We call these accounts "trigger accounts" as they act as a trigger for the Fixed Asset Register to spring into action.
  • Posting Account The nominal accounts that are used for automatic depreciation postings by the Fixed Asset Register.

Most nominal accounts act as either Trigger Accounts or Posting Accounts. The P/L on Disposals account acts as both. The different nominal accounts and their use are shown below.

 

Nominal account Trigger Account (Yes/No) Posting Accounts (Yes/No)
Cost B/Fwd Yes. Taking on an asset balance and its depreciation No
Additions Yes. Purchasing a new asset, or adding cost to an existing asset No
Revaluation Yes. Revaluing an existing asset. No
Cost of disposals No Yes. Cost eliminated on the disposal of an asset.
Depreciation B/Fwd Yes. Same as Cost B/Fwd No
Depreciation charge (B/Sheet) No Yes. The depreciation charged in the year.
Depreciation on revaluation No Yes. The depreciation to date eliminated as a result of a revaluation.
Depreciation on disposals No Yes. The depreciation eliminated on disposal.
Revaluation reserve No Yes. The depreciation to date eliminated as a result of a revaluation.
Depreciation charge (P/L) No Yes. The depreciation charged in the year.
P/L on disposals Yes. Posting the disposal proceeds on an asset sale Yes. The cost and depreciation eliminated on disposal

 

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