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Managing Fixed Assets Classes

Set up Fixed Assets Classes

Super Administrator

Written By Grainne Reidy (Super Administrator)

Updated at December 13th, 2023

Introduction

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Info

The Fixed Asset menu will only be available if your user profile allows access. For more on user admin, see Managing Group and Entity Users‍.


Fixed Asset Classes must be set up before Fixed Assets, see Managing Fixed Assets. 


Every Fixed Asset must have a Fixed Asset Class. The Fixed Asset Class provides all its assigned Fixed Assets with a common:

  • Depreciation Method
  • Depreciation Rate
  • General Ledger Posting Accounts

Fixed Assets Classes are used in the Register to:

  • Record new Fixed Asset purchases.
  • Make additions to a Fixed Asset.
  • Calculate Depreciation for the resulting Gl postings.

See:

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Setting up an Asset Class

  1. Go to Fixed Asset Register > Fixed Asset Classes > New Class.


     
  2. In the Classes of Fixed Assets screen, create a new Asset Class or maintain an existing one by completing the following fields: 
  • Code: Enter a unique Code to identify this Class of Assets.
  • Description: Enter a short description of the Asset Class.
  • Purchase GL Code: Enter the General Ledger Code that will be used to record the Purchase of an Asset. This is informational only. All fixed asset purchases must be entered separately in the purchasing system as the two systems are not linked.
  • Accumulated Depreciation Asset GL Code:  This is the GL Balance Sheet Account that will hold the Accumulated Depreciation journal postings for this Asset Class.
  • Depreciation GL Code: This is the GL Expense Account in the P & L that will hold the Depreciation journal postings for this Asset Class. The Balance on this Account is the Accumulated Depreciation for this Asset Class. It could also be just the main P & L Depreciation Code if you just want a single Account in the P & L.
  • Depreciation Method: 
    • Straight-line: This spreads the cost of the fixed asset evenly over its useful life and the % Rate is applied to the Original Value of the Asset. 
    • Reducing Balance: This calculates the annual deprecation value based on the current value of the asset and spreads the annual deprecation over the financial year.
  • Annual Deprecation Rate (%):  The Annual percentage to be applied to either the Original Value or Current Value of the Assets in this Class.

    Graphical user interface, text, application, email Description automatically generated

    3. Click Process to update the Asset Class table. 

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Info

Any changes you make to an Asset Class only take effect from that point onwards. They will not update previous Depreciations, Values, or Postings.


As soon as the assets class is assigned to a fixed asset, the Purchase GL account in the Assets Class cannot be changed. However, everything else can be edited.

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Fixed Asset Class Grid

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To view summary details of your fixed asset classes, go to Fixed Asset Register > Fixed Asset Classes. 


Note the following columns:

  • Total Cost: (Display only) This is the Total of the Original Value of all the Assets in this Class from the Asset Register.
  • Total Depreciation: (Display only) This is the cumulative Depreciation Amount for all the Assets in this Class.
  • Total Net Book Value: (Display only) This is the Value of all the Assets in this Class after Depreciation.
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