You can create various trade types in CCH Corporation Tax.
The software supports the creation of trades in long periods of account (POAs) with multiple accounting periods (APs), as well as in standard single accounting periods.
It also supports the cessation of trades by ensuring the correct treatment of capital allowances and other areas where balances should no longer be carried forward.
The software also has additional validations to ensure that, in specific circumstances when creating POAs you will be prompted to create a trade before being able to continue, to ensure you have the correct trading scenarios present.
Creating a trade
You can create a trade when:
When a trade ceases you must enter a date in the Trade Cessation column. The software will make various calculations based on this cessation date, which you will then need to review or amend.
Creating periods of account
If you create a POA which gives rise to 3 APs, you will have to create a trade before progressing further with the POA set-up.
As it is not possible to have 3 trading APs, your new trade must have the correct commencement or cessation dates to ensure there are only 2 trading APs before the POA can be created.