How To
Posting Depreciation
CCH Fixed Asset Register
There is no need to tell the system to calculate depreciation, as the system recalculates depreciation automatically after every Asset Movement. So after posting the Asset Movements for the year, you may wish to print out a Fixed Asset Report showing the calculated cost and depreciation for all assets for the year. The option is Asset Summary > FAR Report.
The next step is to post the depreciation entries back to CCH Accounts Production. The option is Asset Summary > Post Depreciation.
For each Asset Class, Post Depreciation generates up to 3 journals:
- Depreciation Journal Debits: P&L account for Depreciation Charge. Credits: B/S account for Depreciation Charge. This entry represents the depreciation for the year.
- Revaluation Journal Debits: Depreciation on Revaluation. Credits: Revaluation Reserve. This entry eliminates the depreciation which has been charged to date on the asset that has been revalued. From this point depreciation will be calculated on the revalued amount.
- Profit/Loss on Disposal Journal Credits: Asset Cost of Disposals. Debits: Depreciation on Disposal. Debits: P/L on Disposal. This entry eliminates the cost and depreciation that has been charged to date on the asset, leaving both the cost and depreciation to be carried forward as zero.
Notes
- If Post Depreciation is rerun, the previously generated entries are replaced with newly calculated entries. For this reason the user should not edit entries generated by the Fixed Asset Register.
- The nominal accounts that are used for these postings are set up on the Asset Classes on the Set up screen.
- After running Post Depreciation, you may click on the Accounts Production tab to see the effect of the postings. The data in the Accounts Production tab is not immediately refreshed and you will still see the data from before posting depreciation. You need to click away to another screen in Accounts Production, e.g. the Trial Balance screen, to see the effect of the postings.
Related documents
Part Disposals
Part Disposals
Changing Entity Type
Changing Entity Type
Asset Movement
The document outlines the functionality of the Asset Movement screen, detailing how asset transactions are recorded in the Fixed Asset Register, independent of CCH Accounts Production. It describes five types of movements: Cost B/Fwd, Addition, Adjustment, Revaluation, and Disposal, each with specific criteria and purposes. The document also covers the protocol for asset movement dates, especially concerning finalized periods, and discusses the Change of Method movement for altering depreciation methods. Additionally, it includes guidelines on how movements affect nominal accounts and the conditions under which movement deletion is permissible.
Asset Classes
The Asset class section is used to define the ledger accounts which must be used for the posting of the asset transactions and the method of depreciation.
Master Asset Classes: Fixed Asset Register
The document outlines the functionality of Master Asset Classes within the Fixed Asset Register's Set Up screen in CCH Accounts Production. These classes provide default settings for client-level Asset Classes and are integral to the CCH chart of accounts versioning system. While Master Asset Classes cannot typically be edited, users can modify them when creating a new Practice Master Pack. Access to Master Asset Classes is through the Set Up screen or the menu path: File > Maintenance > Accounts > Master Asset Classes.