Asset Types

To access this form, go to Maintenance>Fixed Assets>Fixed Assets>Asset Types

Asset Types are used to define a group of similar items that are depreciated with the same method and have the same coding for accounting entries. Having asset types allows you to process, view, manage, and report multiple assets of the same type together. Some common examples of asset types include Furniture, Vehicles, or Office Equipment.

An asset's type determines what accounting entries are made for it. Asset types include the following transaction coding:

• The fixed asset general ledger account (used for disposals)
• The accumulated depreciation general ledger account (used for all types of depreciation entries)
• The depreciation expense general ledger account (used for depreciation entries)
• The distribution code

 

Use this form to set up new asset types, or editing existing asset types. You must have at least one Asset Type set up before an asset can be entered into the system.

Note: Once you’ve set up an Asset Type, the Administrator of your organization can define a default asset type by going to Organization>Set Up Modules>Fixed Assets. The default asset type will auto-populate when you add a new asset to the system (see Adding New Assets).

 

The Asset Types page displays all your existing asset types.

To create a new asset type, click the button.

Click to open the "Asset Type" form

Note: You can also copy an existing asset type by selecting an asset type from the grid and clicking the Copy Asset Type button. After copying, select your new asset type to make changes.

 

Fill out the fields on the form. See below for more information on each section of the form and its fields.

Asset Type	Enter a unique ID for this asset type
Status	Specify the status of the Asset Type ID. Below are valid status entries and their descriptions: Active (A) - Select "Active" when you want to use an asset type ID throughout the system. Active asset type IDs appear on reports. Inactive (I) - Select “Inactive” when you don’t want to use the asset type regularly, but may still need to use it at some point. A warning message will appear when you attempt to use inactive asset type IDs. Inactive IDs still appear on reports. Discontinued (D) - Select "Discontinued" when you no longer want to use the asset type. When adding new assets, you cannot assign it a "Discontinued" asset type; however, discontinued asset type IDs will still appear on reports.
Description	Enter the description for the asset type

Depreciation Information

Depreciation Code	Select a depreciation code from the drop-down list. You can select a standard code (SL, SYD, DB150, DB200, or NO), or a custom code you created. This depreciation code is used for every asset assigned this asset type. To add or edit a depreciation code, see Custom Depreciation Codes.
Switch Depreciation Code	Select an alternate depreciation code for the asset type when you use an accelerated depreciation method. When the corresponding SL depreciation amount exceeds the amount calculated in the accelerated depreciation schedule, the asset is "switched" to the straight-line method for the remaining life of the asset.

Note: If you "switch" your depreciation code to Straight Line, it must remain Straight Line. Regardless of the custom depreciation you set up, you cannot switch your depreciation to another code.

Default Coding

Distribution Code	Select a distribution code for this asset type. This code is used during depreciation and disposal transfers. Click here for a note for Multicurrency Users For multicurrency users, the Distribution Code field only displays codes that either share the same currency as the function currency, or have a currency of ANY.
Expenditure Account	Select a general ledger expense account (EXP account type) for this asset type (this account is the debit for the entry). This code is used during depreciation and disposal transfers. In order to enter an expenditure account, you must have already created expenditure accounts in your chart of accounts (Maintenance>General Ledger>Chart of Accounts). For more information on creating and maintaining account codes in your Chart of Accounts, click here
Accumulated Depreciation Account	Select a general ledger asset account (FAO account type) for accumulated depreciation (this account is the credit for the entry). This code is used during depreciation and disposal transfers.
Asset Account	Select a general ledger asset account (FAO account type) for the asset. This code is used for recording disposal entries. In order to enter an Accumulated Depreciation Account and Asset Account, you must have created a general ledger asset account (FAO) in your chart of accounts (Maintenance>General Ledger>Chart of Accounts). For more information on creating and maintaining account codes in your Chart of Accounts, click here

Note: If you do not have any EXP or FAO account types set up in your Chart of Accounts, you will not be able to select an Expenditure, Accumulated Depreciation, or Asset account. You must set these up in your Chart of Accounts before proceeding (see Setting Up the Fixed Assets Module).

Note: If you selected "No Depreciation Calculated" on the Maintain>Fixed Assets>Custom Depreciation Codes form, you do not need to enter any information in the Expenditure Account and Accumulated Depreciation Account boxes.

 

Click to save the asset type.