Asset Classes

Group similar fixed assets into classes to apply consistent depreciation and account defaults when you add asset records. Each class can define a depreciation method, debit and credit accounts, and accumulated depreciation and depreciation expense accounts. For an overview of related options, see fixed asset settings.

The Asset classes list shows your existing classes. To open it, select Settings, Fixed assets. From the list, you can edit classes or delete those that are no longer in use.

Add Asset Classes

1. On the Asset classes page, select Add asset class from the action bar.

2. Enter a Description for the class.

3. Select a depreciation method. For Straight line, enter a convention, useful life, and salvage value:

   • Convention determines how much depreciation applies in the year you place an asset in service or its final depreciation year. Review straight-line depreciation conventions to understand how each option affects those years.

   • Useful life is the period an asset is expected to have commercial value for depreciation. Enter a value from 2 to 99 years.

   • Salvage value is the asset's estimated value at the end of its useful life. Enter a value lower than the depreciation basis.

4. Enter the default debit and credit accounts for asset acquisition and improvement transactions.

5. Under Distributions, enter the class's debit and credit accounts.

   Tip: To use an account distribution set, select Apply account distribution set.

6. If the debit and credit accounts are in different funds, select an Interfund entry set to balance them.

7. Select Save.