How do I select an asset class reporting structure?

When choosing an asset class reporting structure, remember that the lowest level of asset classification that you need to track individually must be associated with a unique asset account that no other classification uses.

To assign a unique asset account to an asset class, you can associate the asset class with one of these:

• A unique type (with a unique asset account assigned to the type)

• A unique type and subtype (with a unique asset account assigned to the subtype)

  Note: This structure lets you use the same type for multiple asset classes.

• A unique type and accounting unit combination (with a unique asset account assigned to the type and a unique accounting unit assigned to the asset class)

  Note: This structure lets you use the same subtype for multiple asset classes.

• A unique type, subtype, and accounting unit combination (with a unique asset account assigned to the subtype and a unique accounting unit assigned to the asset class)

  Lawson highly recommends that asset class depreciation users place access control on the asset accounts used by asset classes so that only the Asset Management application can post to these accounts. The accuracy of asset-class depreciation calculations relies on the integrity of the asset account balances. Incorrect balances result in incorrect depreciation calculations that are difficult to identify and correct. For more information on placing controls on posting accounts, see the General Ledger User Guide.

For the simplest reporting structure, you can define a one-on-one relationship between an asset class and an asset type. If you need to group asset classes for reporting, or if you need to have subclassifications, you have several methods to select from:

• You can use a type as a main classification and subtypes for subclassifications. Each type-subtype combination must be associated with a unique asset account. And you can assign a depreciation rate to each type-subtype combination. You can report on the depreciation by type, or by subtype.

  The type-subtype method may require you to define many type and subtype combinations, with their associated accounts.

• You can associate an accounting unit to a type or to a type-subtype. With this method, you can reuse the same detail account as the asset account but use accounting units to keep track of individual classes. You can report by accounting unit or by accounting unit list.

  The accounting unit method lets you use a single type or type and subtype, with its associated accounts, but may require you to create many accounting units.

• If your reporting needs are complex, you can use a combination of the type-subtype and accounting unit methods to meet your needs. For example, you may use subtypes to track related asset classes and accounting units to track multiple jurisdictions for the same asset class.