Asset Classes

Asset classes help you organize fixed assets into groups of similar asset records. When you add a new asset class, you define the depreciation method, debit and credit accounts, accumulated depreciation account and depreciation expense account. These asset class defaults can save you time when you add new asset records.

The Asset classes list displays all the asset classes you have in the system. To access the Asset classes list, select Fixed assets, Settings. You can then edit asset classes or delete any not in use.

Add asset classes

On the Asset classes page, select Add asset class from the action bar. The Add an asset class screen appears.
Enter the Description for the new asset class.
Select the depreciation method. If you select "Straight line," you must enter the convention, useful life, and salvage value.
- The asset Convention determines how much depreciation you can take in either the year the asset is placed in service, or the last year depreciated. For more information, see Straight Line Depreciation Asset Conventions
- Useful life is the period of time that an asset is determined to have commercial value for depreciation purposes. Valid field values for useful life are any value between 2 and 99 years.
- Salvage value is the estimated value of the property at the end of its useful life. The salvage value must be less than the depreciation basis.
Enter the default debit and credit accounts for asset acquisition and improvement transactions.
Define starting and ending dates for each period in the Start date and End date columns. The Start date field will auto populate for all new future years and is not editable.
Under Distributions, enter the debit and credit accounts for the asset class.

Tip: To apply an account distribution set, select Apply account distribution set.
In the Interfund entry set field, select a set to balance the accounts if the debit and credit accounts aren't in the same fund.

Tip: You define interfund entry sets in the database view.
Select Save.