Creating and Configuring Asset Classes
Last updated on 2024-12-16
Overview
An asset class is a group of assets that have similar characteristics and are subject to the same accounting treatment. This classification helps to make the structuring and management of lease components more efficient. Different asset classes can have different effects on financial indicators. For instance, buildings may have a longer depreciation period than vehicles.
To provide a basis for accounting leases, asset classes are created and edited in the workspace of the same name.
This article contains the following sections:
The ‘Asset Classes’ Workspace
The Asset classes workspace displays all the asset classes that have already been created:
The 'Asset classes' workspace
Creating an Asset Class
Click Add new asset class to create a new asset class.
The New asset class dialog is displayed:
The 'New asset class' dialog
Configuring an Asset Class
When configuring an asset class, the following options are available:
Fields marked with a * are mandatory fields.
Option
Description
Name
Asset class name
Asset class type
Type that is going to be assigned to the asset class
- The most common asset class types preconfigured in Lease Accounting are available for selection.
- You can select the required type in the drop-down list or search for it using the Search box.
Minimum depreciation period
Minimum depreciation period that will apply to the asset class, in months
Maximum depreciation period
Maximum depreciation period that will apply to the asset class, in months