Defining an asset type

Asset types are groups of assets that are categorized based on similar characteristics, such as asset life, general ledger accounts, depreciation method, function, use, and so on. Common examples of asset types are furniture-and-fixtures, vehicles, computers, and lease-hold improvements. This procedure outlines the process for defining asset types.

Note: If you use a Part 32 book, you must define a separate asset type or type and subtype for each asset class that the Part 32 regulations require.

Define an asset type

  1. Access Type (AM06.1) or Types (AM06.2).
  2. Define the asset type. Specify this information:
    Asset Type

    Use this field to define the name of the asset type. You must define at least one asset type to process assets in the Asset Management application.

    Asset Subtype

    To further categorize assets within an asset type, define an asset subtype in this field.

    Note: A subtype cannot exist without a type.
    Property

    You must select the kind of property that is associated with the type (Personal, Land, Real, Stock, or Other).

    Inv (Inventory)

    You can select whether the assets that use the type are by default part of the physical inventory. You can override this value for individual asset items.

    Note: Assets that are part of the physical inventory are identified by item bar codes, and they can be added, transferred, disposed, and inventoried from a handheld terminal.
    Product Category

    Click this button to define a Product Category Workbook. A product category uniquely identifies a manufacturer and model number within an asset type or subtype. This is optional information you might want to keep for an asset item.

    Note: The Product Category Workbook contains unique product category bar codes.
    Asset, Accumulated Depr (Accumulated Depreciation), Depreciation Expense

    Use these fields to define the General Ledger posting accounts that is associated with the asset type.

    • The asset account contains the asset cost.

    • The accumulated depreciation account contains the year-to-date accumulated asset depreciation.

    • The depreciation expense account contains the expensed depreciation amount.

    Allocate

    Select Yes in this field if this type allows depreciation expense to be allocated among multiple accounting units.

    You must select Yes in the Allocate Depreciation Expense field on System Options (AM16.1) before you can define an allocation for the type.

    If you select Yes, you must also define the allocation on Depreciation Allocation (AM06.6).

    You can still define an allocation if this field is set to N (No), but the allocation is active only if the field is set to Yes.

    System Options Allocate (Display Only)

    This field displays the value of the Allocate Depreciation Expense field on System Options (AM16.1). If the value is No, you must change it to Yes before you can define an allocation for an asset type.

    Asterisks button (*)

    Click the asterisks to open Depreciation Allocation (AM06.6). Use this form to define an allocation that distributes depreciation expense among multiple accounting units.

    By Type and Event

    Click the By Type and Event button to transfer to Event Accounts (AM06.7) to add specific event accounts to the asset type. There are separate tabs for each event. Each tab contains Account, User Analysis, and Activity fields for asset and accumulated depreciation.

    The By Type and Event button does not display on the screen if the Use Event Accounts field is set to No on System Options (AM16.1). Defining system options

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