Setting up subsequent accounting periods using Autoload
This section covers the Autoload functionality used to set-up subsequent accounting periods when producing Estate accounts using the Probate client class in CCH Trust Accounts.
Autoload
Setting up subsequent periods of account
Estate accounts are a form of periodic accounts. The accounts cover the period of administration starting on the date of death. If the period of administration covers more than one tax year, a separate Income Account is prepared for each tax year. The Balance Sheet shows the position at the accounts date.
The periods required are:
Date of Death
This period is for a single day and is used to show the opening position.
It is possible to use comparative balances to show the position at the date of death (DoD). However, it is simpler to set up a one-day period as adjustments are frequently made to DoD values during the period of administration. Changing current year values is easier than making prior year adjustments.
First tax year
This is the period starting the day following the date of death and ending on the first subsequent 5th April. This period is used for preparing the first Income Account.
Subsequent tax years
Each subsequent tax year of the period of administration ending on the 5th of April is set up as a period. The last period ends on the date of the end administration (accounts date).
These periods are set up in Nominal Client Details using Autoload and the period end dates are also set up in the Statutory Database in CCH Accounts Production.
Each period is assigned a letter starting from “g”. These letters are used in within the accounts formats to access balances for the relevant period.
Using Autoload
Autoload is used in CCH Trust Accounts-Estate accounts to set-up subsequent periods when the period of account spans more than one year. Each period is assigned a letter and name, dates are defined, and movements allowed.
Steps:
1. Select Autoload… from the Nominal Client Details screen (shown above), click the Setup button beside Setup Client TB Loading Instructions, then New…
2. Enter a Code (e.g. the client code) and a Description, e.g. MOR001, Periods of Account. Click the button New… and Yes to the Add/edit client TB loading instructions message that appears.
3. In the Add/edit client TB loading instruction line box, enter the first period of account being the date of death (DOD), see below, click OK.
When setting up these periods tick the Movements box to ensure that the balances shown on the Income Account are the balances for the tax year rather than cumulative balances.
Then click New… to open the box to set the details for the next period, OK to close.
Repeat the steps above until all are set.
e.g. h = for Year 1, i for Year 2 and j for Year 3 – see Add/edit client TB loading instructions screen shot below.
You may not know how long the period of administration will last and therefore may only set up the DOD and first year, then subsequently set-up future years/periods as they arise.
4. From the Client Details - Autoload screen, add the periods of account to this screen.
Click Client and the Select button to open the Client TB loading instructions screen, select e.g. “Periods of Account” that you have just set up.
The periods of account are now displayed in the Client Details - Autoload box. See below.
You must carry out the step above for the periods to feed through to CCH Accounts Production.
Period letters and nominal codes
With the periods defined, g,4101 picks up the date of death balance from account 4101 (Investments), whereas a,4101 picks up the current balance, i.e. the remaining probate value of any investments left at e.g. 28/02/2025; h,0001 picks up the balance on account 0001 (Investment Income) falling in the first tax year; i,0001 picks up investment income in the second year and so on; and a,0001 is the total of h,0001+i,0001+j,0001.
Income that arose on the date of death is part of the assets as at the date of death and is not posted as income.
The periods set out above will also need to be set up in Statutory Database as Accounting dates within CCH Accounts Production.
It is sometimes necessary to produce Interim Accounts during a long period of administration. In this case the Year End date in Trust Accounts is moved to the required accounts date and the periods in Trust Accounts and Statutory Database are adjusted in the same way.
Note: The Year End date in Trust Accounts is edited to make this change. Do not run a Year End. It may also be desirable to produce accounts showing the position at an earlier date than the current Year End date. In this case the Year End date in Trust Accounts can be edited back to the earlier date and the periods in Trust Accounts and Statutory Database edited to match.