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CCH Software User Documentation

Prior period entries

 

The Fixed Asset Register allows Asset Movements to be made in a prior period unless it has been "finalised" in CCH Accounts Production. This follows the approach of  Accounts Production which allows nominal entries to be made in prior periods. The Fixed Asset Register also allows changes to be made that affect the depreciation calculation for prior periods without posting an Asset Movement. An example is changing the setting for Calculate a Full Period's Depreciation in the Period of Acquisition? Although these changes are permitted, it is important that you understand the effect of making them.

If you make a change that affects a prior period, depreciation is recalculated immediately in the prior period and in all subsequent periods. If you then go into the current period, you find that the Cost and Depreciation B/Fwd in the Fixed Asset Register have changed. But the Cost and Depreciation B/Fwd on the nominal ledger do not change automatically. This creates a difference between the Fixed Asset Register and the nominal ledger that appears on the Reconciliation screen. You may need to make entries in the nominal ledger to bring the nominal ledger into agreement with the Fixed Asset Register.

If a prior period adjustment is not required, a simpler alternative may be to only make the change in the current period, perhaps with an Adjustment entry.

 

 

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