startHow do I set up an Asset Class with 3 nominals for Depreciation Cost of Sales, Distribution Costs and Administrative Expenses?
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How do I set up an Asset Class with 3 nominals for Depreciation Cost of Sales, Distribution Costs and Administrative Expenses?

CCH Fixed Asset Register
Last update: Reading time 1 minutes
System Administration

    The FRS102 chart of accounts has accounts for Depreciation - Cost of Sales, Depreciation - Distribution Costs and Depreciation - Administrative Expense. 
    You can only specify one Depreciation Charge account  on an Asset Class. 
    How can you get the correct analysis in the nominal ledger?

    E.g. setting up an Asset Class for Motor Vehicles. There are two approaches:

    Set up separate Asset Classes for Motor Vehicles  - Cost of Sales, Motor Vehicles  - Distribution Costs and Motor Vehicles  - Administrative Expense. However most nominal accounts would be the same on all 3 of these Asset Classes.

    Set up just one Asset Class for Motor Vehicles and post all depreciation to Depreciation - Administrative Expense. At the end of the year, journal out a proportion of the total Depreciation Charge to the other two Depreciation accounts. The balance on  Depreciation - Administrative Expense does not agree with the FAR depreciation charge for the year. Posting accounts, such as Depreciation Charge, are not reconciled on the Asset Class screen.

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