Using Asset Categories

Categories, which are required for asset entry, classify assets and provide data entry defaults during asset entry. When you create a category, you indicate default depreciation data such as a default life and depreciation method. Depreciation information entered in a category is applied to each book associated with an asset automatically. You can change some of this default data if it does not apply to a specific asset or book associated with an asset.

Example you create a category called COMPUTERS for all computing equipment used in your organization's offices. You enter the most commonly used depreciation method and property type for this category. LN then assigns this default data to each computer asset you create.

When you add an asset, you assign a predefined category to the asset. The category provides default data for each of the books you associate with an asset. You choose a subcategory for the selected category to further classify the asset for reporting and inquiry purposes.

Example an accountant at your company enters an asset to record the purchase of a dryer used to manufacture newsprint. The accountant assigns it the category DRYERS and the subcategory NEWSPRINT. If the accountant later wants to perform an inquiry to determine the total depreciation for dryers for the newsprint product, he can select all assets with the category Dryers and the subcategory Newsprint.