Asset class addition considerations

How is asset class depreciation calculated?

How do I select an asset class reporting structure?

For asset class depreciation, correct implementation 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 or type and subtype (and therefore, the same asset account, accumulated depreciation account, and depreciation expense account) and be posted to the same accounting unit.

• The type or type and subtype used must be defined solely for asset class assets and cannot be used for assets that are depreciated individually.

• Assets in one asset class must use a unique asset account not used by any other asset class or asset. The asset account is defaulted from the asset type or asset type and subtype.

• If the asset class is not defined at the accounting unit level, there must be a one-on-one correspondence between an asset type (or asset type and subtype) and an asset class, and the asset account defined for each asset type (or asset type and subtype) must be used only for the asset class.

• If the asset class is defined at the accounting unit level, one asset accounting unit and asset account combination must be used solely for one asset class. In other words, asset classes defined at the accounting unit level can share a type and subtype, but must be associated with a unique accounting unit and type combination or with a unique accounting unit, type, and subtype combination that points to a unique asset account used solely for the asset class.

• The accumulated depreciation and depreciation accounts used by an asset class can be used by other assets or asset classes as well, but all assets that belong to an asset class must use the same accumulated depreciation and depreciation accounting unit and accounts.

• When you add an asset that belongs to an asset class, you should either use only the default accounting unit, or use an accounting unit group that has the same accounting unit defined for the asset, accumulated asset, and depreciation expense accounts. If the asset class is defined at the accounting unit level, you should use the asset class accounting unit when you add an asset that belongs to that class.

• Lawson strongly recommends that you use an account group defined specifically for the asset class, with its disposal accounts 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.