Asset Type Code

Unique identifier used to define the asset category. For example, buildings, motor vehicles, office furniture, computers.

Note: We recommend you create a unique identifier for each type of asset.

Description

Description of the asset type.

G/L Code

General ledger account used to record the cost of the asset.

Deprec'n Rate %

Depreciation rate applied to these types of assets, expressed as a percentage per annum. There is only one depreciation rate per asset type. If there are various depreciation rates for a type of asset you will need to create a new asset type for each depreciation rate.

Deprec'n Method

Method of depreciation can be either:

Fixed or Straight

The asset depreciates in value by a percentage of the original value every time the depreciation calculation program is run. The depreciation amount in this case is calculated on the original asset value.

For example, a piano is originally valued at $2000, and has a 10% depreciation. The first time the depreciation calculation is run, the piano's value becomes $1800 (-10% of 2000). The second time the program is run, the piano's value becomes $1600 (-10% of 2000). The third time the program is run, the piano's value becomes 1400 (-10% of 2000).

Reducing

The asset depreciation is calculated as a percentage of the written down value (WDV). The written down value is the original value less depreciation at the start of the year.

For example, a piano is originally valued at $2000, and has a 10% depreciation. The first time the depreciation calculation is run, the piano's value becomes $1800 (-10% of 2000). The next year, the piano's value becomes $1620 (-10% of 1800). The following year, the piano's value is $1458 (-10% of 1620).

G/L Deprec'n

Code relating to the depreciation account in the general ledger.

G/L Accrued Dep'n

Code relating to the balance sheet account used to record the accumulated depreciation for this asset type.

G/L Profit/Loss

Code relating to the account used to record gains/losses on sale of an asset.

G/L Private Use

Code relating to the private use account in the general ledger.

For example, a car is used:

• 50% for business, which:
  • You can claim.
  • Is allocated to the G/L Deprec'n general ledger code.
• 50% privately, which:
  • You cannot claim.
  • Is allocated to the G/L Private Use general ledger code.
  • Is recorded for each asset in the Private Use Rate field on the General tab of Asset Maintenance. See Asset Maintenance - General tab.

Launch into General Ledger Maintenance for the relevant record.

Add a new row to the asset definitions grid, creating a new asset definition.

Delete the highlighted asset definition. Type delete to confirm the deletion.

Note: You can only delete asset definitions if assets do not use them. If assets are using the asset definition you want to delete, change their Asset Type in Asset Maintenance. See Asset Maintenance - General tab.

Launch the Rename window, where you can rename the Asset Type Code.

Save your additions or changes and continue editing.

Note: If you click , the Asset Definitions Maintenance window closes. You will be prompted to save any unsaved changes.