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 ’10VEHIC’ 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, 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.
SunPlus recommends a coding nomenclature for Fixed Asset Class which is derived from the SDA Accounting Manual 1303.05 which is “NNABCDE”, where:
- NN = No. Of Years of the estimated life
- ABCDE = First five characters of the Asset Grouping
75BUILD Building with 75 years of estimated life
50BUILD Building with 50 years of estimated life
05EQUIP Equipment with 5 years of estimated life
10EQUIP Equipment with 10 years of estimated life
15IMPRO Improvements of Land with 15 years of estimated life
50RESID Residence with 50 years of estimated life
10VEHIC Vehicles with 10 years of estimated life