Asset class addition considerations

For asset class depreciation, proper 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 must be posted to the same accounting unit.

• Define the type or type and subtype solely for asset class asset. Do not use them for assets that are individually depreciated.

• Assets in one asset class must use a unique asset account. The asset account from the asset type or asset type and subtype is the default.

• If your asset class is not defined at the accounting unit level, then there must be a one on one correspondence between an asset type and an asset class. The asset account for each asset type must be used only for the asset class.

• If your asset class is defined at the accounting unit level, then one asset accounting unit and asset account combination must be used solely for one asset class. Asset classes at the accounting unit level 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.

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

• When adding an asset to an asset class, you must only use 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 your asset class is defined at the accounting unit level, then the asset class accounting unit must be used when adding an asset.

• Use an asset group for the asset class with its disposal accounts identical to the asset class type or subtype's accumulated expense account.

• All assets to an asset class must be associated with the same Part 32 book.