Asset class addition considerations

For asset class depreciation, the correct application is critical to avoid over-depreciation. These rules must be strictly enforced:
  • All assets that belong to the same asset class must use the same type and subtype and be posted to the same dimension code.
  • The type and subtype that are used must be specified solely for asset class assets. They cannot be used for assets that are individually depreciated.
  • Assets in one asset class must use a unique asset account that is not used by any other asset class or asset. The asset account is the default from the asset type and subtype.
  • If the asset class is not a category at the dimension code level, then there must be a one-to-one correspondence between an asset type/subtype and an asset class. The asset accounts that are specified for each asset type and subtype must be used only for the asset class.
  • Asset classes that are specified at the dimension code level must use one asset dimension code and asset account combination. The asset classes can share a type and subtype. They must be associated with:
    • a unique dimension code and type combination, or
    • with a unique dimension code, type, and subtype combination that points to a unique asset account.
  • The accumulated depreciation and depreciation accounts that are used by an asset class can be used by other assets or asset classes. All assets that belong to an asset class must use the same accumulated depreciation and depreciation dimension code and accounts.
  • After adding an asset that belongs to an asset class, use the dimension code or dimension code group with the same dimension code as the asset, the accumulated asset, and the depreciation expense accounts. If the asset class is defined at the dimension code level, then use the asset class dimension code when you add an asset that belongs to that class.
  • We recommend that you use an account group that is defined for the asset class. Its disposal accounts should be identical to the asset class type or subtype's accumulated expense account.
  • All assets belonging to an asset class must be associated with the same Part 32 book.