An asset class is a link between the asset register and the general ledger. Asset classes enable you to organise assets with common characteristics together. For example, cost limit, default depreciation rates and methods, and so on. Asset classes are also used when generating journal entries.
Types of asset classes:
Motor vehicles (Australia only)
Tangible fixed assets such as vans, trucks and cars used for the operation of a business.
Plant and equipment
Plant applies to assets in a workplace such as a factory or warehouse. Equipment applies to assets within a plant used to generate revenue.
Office furniture and equipment
Office furniture applies to assets used within an office environment by employees being productive, or business clients providing the business with income. Equipment applies to assets within an office environment such as photocopiers and computers used in the course of business operations.
You must configure your asset classes before you can add assets.
Adding an asset class
Before adding an asset, make sure you've added an asset class.
Click the Add asset drop-down in the top-right corner and select asset class.
Enter a name for the asset class.
At the Link to account drop-down select:
Don't enter an account code If you're entering personal assets for an individual tax return.
<Account code> if you're entering business assets. If the Taxation integration section displays, map the accounts to the chart of accounts.
Click + Show default depreciation to see other depreciation fields
Select the appropriate Depreciation method:
For Taxation type, select
(Australia) Prime cost
(Australia) Temporary full expensing
(New Zealand) Straight line
Accounting type, select:
Exempt from depreciation
Select Calculate depreciation using preferences from the following options:
Effective life (Taxation): Based on the years and months entered. If applicable, tick the ATO commissioner's effective life checkbox.
Useful life (Accounting): Based on the useful life in years entered. Useful life is enabled if you've selected the straight line method.
Depreciation rate: Based on the rate that you enter in Rate year 1 and Rate year 2+.
In the Taxation - Integrated accounts section, select or enter account codes to post journals for each of the following:
Profit on sale
Loss on sale
Private use (must be a profit and loss account)
You can leave account fields blank. However, a blank integrated account field may mean the journal doesn't post to the general ledger.
Click Add class.