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 .. 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 Description |
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”.
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Asset Group Code |
A unique code identifying the asset group (Alphanumeric, 25). Ensure that the code entered here is an ‘Active’ asset group. Entry in this field is mandatory, if the “Level at which the Assets are mapped to Asset Group” field is set as “Asset Class” in the “Component Parameter Setup’ business component. Help facility available. |
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
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.
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.