Advanced Reference
Last update:Adopt FRS102
This document outlines the process for performing year-end procedures and adopting FRS102 for clients classified as Ltd Companies or Charities. It details the functionalities available in the Options tab, including changing format types, mapping nominal accounts, and deleting local accounts pages. Key steps include ensuring all nominal accounts are mapped before conversion and specific naming conventions for mapping files. It also highlights the need for editing the mapping file for Charities and advises saving local account pages separately, if necessary, for future use.
CCH Transaction Reporter 2.30
The document outlines updates for the Transaction Reporter module used with Trust Accounts, including compatibility with Trust Accounts 2020.1 and an updated help file format suitable for Windows 10. New fields related to client and fund performance metrics, securities transactions, and net income calculations have been introduced, enhancing reporting capabilities. A new FundPerformanceReport has been added to the Investment Ledger Master Reports. Notes indicate that some fields are report-specific, emphasizing targeted application in client and fund performance analysis.
Report Profiles
This document outlines the availability of report profiles for four specific reports: Nominal Ledger Print, Trial Balance, Investment Ledger Print, and Income/Acquisitions Schedule. It explains how users can save default report selections to streamline the reporting process. Users can set up these profiles through the System Management menu, where they can choose options to be saved for future use. When running a report, users can select a profile from a dropdown list, with the default selection applied if only one profile exists.
Tax Rates
CCH Trust Accounts provides a table of tax rates for dividends and interest, applicable for calculating tax credits through the Telekurs data feed, automating tax calculations in Data Entry for clients with a nominal ledger, and an obscure feature in the Autopost function. Tax rates are set for each UK tax year and vary for dividends and interest payments. For Unit Trusts, the system determines which tax rate to apply based on the "UK Unit Trust Interest" setting. The rates may not be applicable in other countries.
European Monetary Unit ( EMU)
The document outlines the initial complications faced during the introduction of the European Monetary Union (EMU), including specific rules for currency conversion (triangulation), changes in securities denomination and reporting currency, and adaptations in Trust Accounts. It mentions that automatic conversions were implemented to facilitate these changes, although few clients required adjustments to their reporting currency. Currently, handling the euro has become simpler, and CCH Trust Accounts remains equipped to support EMU-related features if necessary, indicating that it is "EMU-ready."
Year end roll back
The document explains the process and implications of the "Year End Roll Back" feature, which allows for modifications to prior year data without needing complicated adjustments. Key operations include deleting the current year's Opening Balance, adjusting comparative and precomparative balances, and rolling back year-end dates. It highlights that while this feature is beneficial for avoiding prior year adjustments, it may not regenerate last year's accounts accurately if there have been updates to account pages or Statutory Database information. Recommendations include keeping a PDF copy of accounts for reference.
Year End and Clear Down
The document provides an overview of the Year End and Clear Down process, detailing its use in completing year-end tasks and initiating new year's work. It encompasses various components, including the Options tab, Clear Down tab, Change Client Class tab, and adopting FRS102 standards, all crucial for effective account management in the CCH Trust Accounts system.
X Installing CCH Trust Accounts 2020.1
This document provides installation guidelines for CCH Trust Accounts and associated products. It outlines scenarios where a full connection string is necessary, detailing additional modules that may need installation, such as S6RDBOM, Telekurs, and Transaction Reporter. It emphasizes the importance of not skipping any installations due to potential connection issues with SQL Server. Additionally, it covers the installation of the Microsoft OLE DB Driver for SQL Server (MSOLEDBSQL), informing users of its necessity for proper database communication and how to check its installation status on workstations.
Why do I receive the message "Account xxx closes off to account yyy which itself has a closeoff"?
The document addresses an error encountered during Year End processing, where a message indicates that an account closes off to another account that has a closeoff, preventing progress. This issue typically arises when a profit and loss range is set on the client class, linking profit accounts to the Retained Profit account. The recommended solutions are to disable the profit and loss range on the client class or to reclassify the profit account into the balance sheet range, which can be done individually for each client or by updating the nominal account code in the master chart for widespread effect.
Stock Dividend
This document outlines the accounting treatment of stock dividends, detailing the options clients have to receive either cash or additional stock. For cash dividends, a single entry is made using the movement code SDC. If stock is chosen, two entries are required: one for the notional dividend (SDN) and another for the stock purchase (NSD). Additional instructions cover handling fractional cash amounts, Autopost settings, and variations in dividend generosity, including enhanced scrip dividends. Proper movement codes and accounting rules are provided for clear transaction recording.
SQL Server Connection String
This document provides a technical overview of the Trust Accounts software's database options, focusing on the differences between the C-Tree and SQL Server databases. It discusses limitations of an older SQL Server connection string method and introduces a new approach allowing for more flexibility, including support for Windows authentication and encrypted connections via TLS1.2. Users can now specify connection strings through DATABASE.INI or individual registries, enabling enhanced configuration. Additional explanations are provided for drivers and parameters necessary for optimal connection, improving integration with other systems like Central.
Setup TB loading instructions
The document outlines the functionality of the TB Loading Instructions screen, which displays a list of TB loading instructions identified by code and description. Typically, only one set of loading instructions can be employed per client. Users can add or edit these instructions through the "Add/edit TB Loading Instructions" screen, where they input a code and description. To further specify instructions, users can use the "New" button to add individual TB entries via the "Add/edit TB Loading Instruction Line" screen.
Several transactions on the same date
This document outlines the processing and reordering of transactions for Capital Gains Tax (CGT) when multiple transactions occur on the same date. It explains procedures for clients with and without a nominal ledger to correct transaction order. An exception exists for transactions governed by A2, A3, or A4 rules, which are processed at the start of the day. Additionally, it addresses issues that arise during demergers, specifically with cash fractions, and provides solutions to avoid errors in the CGT report.
Sale of Fractions
The document explains the Capital Gains Tax (CGT) treatment regarding the sale of fractions, similar to sales rights below 5%. It highlights complications that may arise during demergers, particularly when sales occur concurrently with acquisitions, leading to CGT calculation issues. If the sale of fractions is recorded after an acquisition, a message indicating no prior transactions may appear. To resolve this, it advises adjusting the transaction date to one day later. A table summarizes the CGT/accounting rule related to the sale of fractions.
Sale of Rights
This document outlines the process for entering a Sale of Rights based on whether a client has a nominal ledger. It details movement codes (SRT, SR5, and SRG) used for transactions, and their implications for capital gains tax (CGT) and accounting rules. For clients without a nominal ledger, different codes are applied depending on proceeds. For clients with a nominal ledger, the SRG code allows for automatic calculation of market value. The document also discusses methods for determining market value, emphasizing the choice between using the First Day Price or entering the market value directly in specific cases.
Revaluations
The document discusses the process of revaluing a holding without influencing Capital Gains Tax (CGT) upon disposal. It details using an A1 purchase with zero units, which appears on CGT reports without altering the CGT cost if no other entries exist for that day. The investment schedule reflects this entry as zero unit acquisition. Furthermore, for downward revaluations, a negative amount should be recorded, and the logged account should be designated as the Revaluations account.
Property Authorised Investment Funds
The document outlines the characteristics and operational changes related to Property Authorised Investment Funds (PAIFs), a type of Open Ended Investment Company (OEIC). PAIFs can distribute three types of payments: a normal dividend, a Property Income Distribution (PID) taxed at 20%, and an interest payment. Enhancements for processing PAIFs on Trust Accounts include a new checkbox for identifying UK PAIFs and improved reporting on Property Income Distributions, which now includes both REIT and PAIF PIDs. Additionally, PAIF PIDs are integrated into Personal Tax records.
Overview: Year End and Clear Down
The document outlines the processes for conducting a Year End and Clear Down in accounting systems. It details how nominal ledger accounts are closed and balances carried forward, as well as methods for specifying close-off accounts. It also explains the Clear Down function, which deletes old entries to optimize system performance while preserving current year data. Additionally, it discusses options for changing client classes and adopting FRS102 standards, emphasizing the need for backups before making irreversible changes. Security measures, including password protection for the Year End and Clear Down option, are also mentioned.
Overview: Autoload Trial Balances
The Autoload feature enables automatic loading of extra trial balances into the accounts formatter for various purposes, including specific periods, divisions, client accounts, calculated balances, and beneficiary-specific balances. Each loading set, termed 'TB Loading Instructions', has a unique code and description, consisting of multiple lines for trials. These are integrated as Saved Trial Balances in CCH Accounts Production, which are automatically updated in real-time with any changes from CCH Trust Accounts, eliminating the need to restart the application.
Options tab
This document outlines the functionalities available in the Year End and Clear Down screen, detailing various options. Users can execute a year end and adopt FRS102 for specific client types, perform a standard year end, or opt for no year end to focus on clear down and client class changes. Additionally, it provides information on setting a new financial year end date, clearing old entries, and changing client classification. Each option is accompanied by links for further guidance.
Offshore Income Gains
The document discusses the taxation of offshore income gains in the UK, detailing changes made since 1984 that prevent converting income into capital gains to avoid tax. It explains how the Inland Revenue categorizes Non-Distributor Funds and outlines the required procedures for handling these gains, including the need for specific attributes and movement codes in financial software. The document emphasizes the importance of correctly identifying and manually processing income gains and losses to ensure compliance with tax regulations.
Normal TB
The document outlines functionalities of CCH Accounts Production regarding trial balances (TB). It explains the use of letter codes for retrieving account balances, naming saved trial balances, and accessing trial balances across different clients. The report can be generated for various date ranges, including the client's year and comparative periods. Additionally, the document details options such as automatic valuation of the client’s portfolio at the trial balance end date and reflecting account movements during the reporting period. Users are guided on selecting specific options for accurate reporting.
New Issues
The document outlines rules for accounting and capital gains tax (CGT) treatment of share purchases. It specifies that fully paid shares issued for a single payment are treated as a normal purchase under code A1. For shares paid by instalment or partly paid, the initial purchase uses code A5 for the first call and code A6 for subsequent calls. It notes that indexation starts automatically with the A5 and A6 codes if the interval between calls is under 12 months, except in specific privatisation cases or inter-spousal transfers where the CGT Override Date may be needed for accurate indexation.
Multicurrency - Frequently asked questions
This document addresses a frequently asked question regarding the absence of profit on exchange after selling a holding in investment management software. It explains that profit on exchange is not calculated if the option "Calculate Inv Profit on Exch" is not selected in client classes. The document outlines steps to enable this feature, warns of potential complications such as the need for data backup and the risk of duplicate cost write-downs if manual adjustments were made previously. It recommends testing the setting in a standalone system before proceeding.