Asset Types

Access this form using Maintain>Fixed Assets>Asset Types.

Use this form to set up asset types, which define a group of similar items that are depreciated with the same method and have the same coding for accounting entries. This allows you to process, view, manage, and report all of the assets of a particular type together.

At least one Asset Type must be created before an asset can be entered into the system (Maintain>Fixed Assets>Assets). In order to enter an Accumulated Depreciation Account and Asset Account, you must have created a General Ledger asset account (FAO) using Maintain>Chart of Accounts Codes. Likewise, to enter an Expenditure Account, you must have set up expense accounts when you defined your chart of account structure. To enter a Distribution Code, you must have previously created at least one code using Maintain>Distribution Codes.

Asset Type ID: Enter a unique ID to represent the asset type you are setting up, or use the drop-down list to select an existing asset type. We recommend using all numeric IDs. Numeric IDs are generally easier and faster to enter during transaction entry. We also recommend limiting your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoiding the use of symbols, such as: | and ".

Status: Specify the status of the Asset Type ID. When creating a new type, accept the default status, A (Active), or select I (Inactive) or D (Discontinued) from the drop-down list. 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 IDs appear on reports.
• Inactive (I) - Set an ID to inactive when you do not want to use it regularly, but you still may need to use it at some point. A warning message appears when you attempt to use an inactive ID. The warning message is for notification only; you can still use the ID throughout the system. Inactive IDs appear on reports.
• Discontinued (D) - Designate an ID as discontinued when you no longer use it. You cannot select an ID with a discontinued status; however, discontinued IDs appear on reports.

Description: Enter or change the description for the asset type you entered.

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 to the Asset Type ID code. For an explanation of the standard depreciation codes provided by the system or the custom depreciation codes you created, refer to the Maintain>Fixed Assets>Custom Depreciation Codes topic.
• 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.

Default Coding

• Distribution Code: Select a distribution code for this asset type. This code is used during depreciation and disposal transfer.
• 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 transfer.
• 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 transfer.
• Asset Account: Select a general ledger asset account (FAO account type) for the asset. This code is used for recording disposal entries.