Setting up an Asset

An asset record holds the static information about each asset. It also contains the gross value, net book value and accumulated depreciation for the asset. Each asset record is identified by a unique asset code.

The structure of your asset codes is important. There are many functions within the fixed asset register that allow you to choose a range of asset codes, so it is useful if similar assets are grouped together. This can be done with asset classes, with asset analysis, with structured asset codes, or any combination of these. You may choose to have a certain type of asset beginning with a specific code, for example, the asset codes for cars might begin with the letters 'CAR'. This can aid reporting and speed up identification of specific assets, however, if you need to group together many assets that share similar attributes or depreciation parameters, then you are recommended to use asset classes, as described below.

In a multi-currency environment, the asset values can be held in a transaction currency as well as the base currency. They can also be maintained in the second base or reporting currency for the business unit, if the Assets in Second Base/Reporting Currency option is set in Ledger Setup (LES). Depreciation can, therefore, be calculated in different currencies and using different depreciation schemes in order to meet local accounting requirements.

Additional information can be maintained for each asset using asset notes and asset posting presets.

You can set up asset budgets to maintain different valuations for the asset and apply different depreciation methods for budgeting, forecasting or reporting purposes. For example, you may want to analyze the effect of changing the depreciation method or life of an asset, or maintain a current cost valuation.

Using Asset Classes

Use asset classes to group together similar assets that share certain data, such as depreciation method, percentage and accounts. For example, you might create an asset class 'VEH' for all vehicles, assuming the same depreciation parameters apply to all the different types of vehicle. You can create any number of asset classes using Fixed Asset Class (FAC), and assign the relevant class to each asset record. This has two important benefits:

  • When creating new assets that pertain to an asset class, the default asset data fields for that class are automatically copied to the asset record being created. This avoids the need to repeatedly enter the same data for several assets, hence saving time and reducing manual errors.
  • Similar assets that are grouped together by asset class can be quickly selected for queries or reporting, and for asset processes such as depreciation, disposal, and so on. Similarly, classifying assets can enhance the readability of reports, for example, when summarizing by asset class.

Analyzing Your Assets

An asset record can contain up to ten analysis dimension codes. These can be used to analyze the assets into ten different categories. In addition, up to ten other analysis dimension codes can be entered on each ledger transaction posted to an asset code. The transaction analysis codes can be preset for an asset using asset posting preset subcodes. Several asset subcodes can be defined for an asset to contain alternative transaction analysis code requirements.

Asset Records (FAS)

The Asset Records form contains the following:

  • Header Information
  • General
  • Analysis
  • Value 1 Depreciation
  • Value 2 Depreciation
  • Value 3 Depreciation
  • Asset Notes
  • Asset Posting Presets.