Creating asset class

This page allows you to create asset classes. Headings under which you want the assets to be classified in your financial statements or balance sheet are known as “Asset Class”. “Plant and Machinery”, “Furniture and Fixtures”, “Office Equipment” are typical examples of an asset class.

This page allows you to define codes identifying the asset class along with their description. You can also set whether the asset class is depreciable or not and the frequency in which the asset falling under this class must be verified. Once the asset class is set as depreciable, a default depreciation category will be created for that asset class in the “Depreciation Setup” business component. The system stores the user ID and the system date along with newly created asset class.

Select the “Create Asset Class” link under the “Asset Type Definition” business component..

The “Create Asset Class” page appears.

Enter the following fields in the “Asset Class Details” multiline:

Note: Data-entry must be completed in at least one row of the multiline.

Asset Class Code	A unique code identifying the asset class (Alphanumeric, 20). Mandatory.
Asset Class Desc.	A textual description of the asset class (Alphanumeric, 40). Mandatory.
Depreciable	Use the drop-down list box to set whether the asset class is depreciable or not. The system displays “Yes” by default.
Inventory Cycle	Use the drop-down list box to select the time period frequency in which the assets that fall under the class must be verified from “Yearly”, “Half-yearly”, “Quarterly”, “Monthly” and “Not required”.
	Yearly – indicates that the assets falling under the class must be verified once in a financial year.
	Half yearly – indicates that the assets falling under the class must be verified twice in a financial year.
	Quarterly – indicates that the asset falling under the class must be verified every quarter of the financial year.
	Monthly – indicates that the asset falling under the class must be verified every month of the financial year.
	Not required – indicates that there is no need for the assets that fall under the class to be verified.
Asset Numbering Prefix	The prefix for automatic asset number generation.
Leased Assets	Use drop list box to select whether assets is leased or not.

Click the “Create” pushbutton to create an asset class

The status of the asset class is updated to “Fresh”.

Note: An asset class is activated when an account code is mapped to it in the “Account Rule Definition” business component.

The system stores the login ID of the user and the system date along with the newly created asset class details.

If the class created is “Depreciable” the system updates the class in the “Asset Depreciation Setup” business component for creating a depreciation category.

What you can do in this activity

Create asset classes for multiple companies

Define the inventory cycle

Identify the depreciable asset class

Create asset classes for multiple companies

Asset classes are usually defined and deployed in the company level. The “Asset Capitalization” business component deployed at the organization unit level will take the information from either the company level or from the business component deployed at the organization unit level.

Go to “Create Asset Group” page.
Enter the necessary information.

Define the inventory cycle

Every asset in an organization must be verified at least once in a year statutorily. While defining the asset class you can also set the inventory cycle for it. The cycles that can be followed are “Yearly”, “Half yearly”, “Quarterly”, “Monthly” or “Not Required”.

Go to “Create Asset Group” page.
Define the inventory cycle.

Identify the depreciable asset class

Assets are usually depreciable over a period of time. You can specify whether the asset class level is depreciable or not.

Go to “Create Asset Group” page.
Identify the depreciable asset class.