This section details how to create asset classes and also how to modify them. But first...
What is an asset class?
An asset class is a category or collection of similar assets that are treated the same from an accounting point of view.
For example, most companies have some type of equipment. Having an asset class for equipment ensures that all the equipment that the company owns is treated the same. A company may even have two or three equipment classes, to keep track of different useful lives; A copy machine may have a shorter useful life than say, a delivery truck. As another example, some companies may own land, which is a non-depreciable asset. Having asset classes allows us to apply rules to all the assets in that class, such as no booking of depreciation for land.
Asset classes also allow for ease of reporting fixed assets. Classes are automatically built into most reports so you can see your categories of assets separate from one another.
AssetEdge also works around what is call a 'fixed asset clearing account' or a 'waiting to be capitalized account.' This class will be created for you and is not editable.
Below is an example of common fixed asset classes. Your company may have as few as 4-5 or as many as you need to accurately treat your assets from an accounting standpoint.
