Add Fixed Asset Types

This guidance is only for IRIS Financials Version 7.0.2223 or later. If using version 7.0.2103 or earlier, go to Adding or Editing Fixed Asset Types .

To determine how fixed assets are depreciated (including their useful life, depreciation method, and so on), categories for fixed assets are created in the ASSETTYPE - Asset Type Accounts ledger.

If required, additional fixed asset types can be added. For example, you could create several IT Equipment categories based on a useful life of 24, 36, and 48 months, so that they can be depreciated accordingly.

Furniture, IT equipment, land/buildings, and motor vehicles are provided as default for IRIS Financials. Further asset types are not usually required, unless you might purchase plant and machinery, which requires creating new nominals to record the cost and depreciation of the fixed asset, together with the amending of applicable key lists.

  1. To add fixed asset types, create an account on the ASSETTYPE - Asset Type Accounts ledger, with the following details:
    • On General, enter the Code exactly as it was entered when the ASSET_TYPE keylist was created.
    • On Indices, select ACTIVITIES and FUNDTYPE may be mandatory, therefore if you do not want to use indices for reporting, select XNODET from Values.

    • On Analysis Fields, complete the required options:

      ITEM

      DESCRIPTION

      Fixed Asset Cost Nominal

      Select the balance sheet nominal code the asset cost should be recorded against. This is usually the same nominal used when the purchase invoice was posted.

      Useful Life

      Enter the number of months the asset type should be depreciated over. You need to create a separate asset type account for each type with a different useful life.

      Depreciation Method

      Straight Line (SL) — deducts the same amount of depreciation each month or year until the asset is written off.

      Reducing Balance (RB) — deducts depreciation based on a monthly ot yearly percentage, which reduces each month.

      Depreciation BS Nominal

      Enter the balance sheet nominal code the accumulated depreciation should be posted to.

      Depreciation IE Nominal

      Enter the depreciation expense nominal code the in year depreciation should be posted to.

      Depreciation Account

      Enter the cost centre account code the depreciation should be posted to. By default, the account is on the CAPITAL ledger. The account you enter must already exist in the system because assets created using this asset type use the same account.

    • Set the required security for user groups with access.

  2. After adding a fixed asset type, you must add the type to the ASSET_TYPE key list.