Adding or Editing Fixed Asset Types

Fixed assets need to be categorised in order to determine how they are depreciated (including their useful life, depreciation method, etc.) These categories are created in IRIS Financials by adding accounts in the ASSETTYPE ledger.

By default, four asset types are provided – furniture, IT equipment, land/buildings, and motor vehicles. Further asset types are not usually required unless you are likely to purchase plant and machinery. This would require the creation of new nominals to record the cost and depreciation of the fixed asset, together with the amending of applicable key lists.

You may however want to add additional categories of the same asset type, but with a different useful life. 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. This topic describes how to do this and how to check the default asset types and amend if necessary.

If you add new asset types here, you also need to add them to the applicable key lists. For more information, please see Adding a New Fixed Asset Type to the ASSET_TYPE Keylist .

  1. Select Maintenance, then select Accounts from the menu.

  2. The Select a ledger dialog is displayed. Double-select to select the ASSETTYPE - Asset Type Accounts ledger.

  3. The Account Maintenance window is displayed, labelled according to the selected ledger. Select ADD NEW, then select ACCOUNT.

  4. A <New item> is created with blank fixed asset fields displayed on the General tab.

  5. Enter an Account code (maximum 12 characters), e.g. ITEQUIP48 together with a suitable title, which should clearly identify the purpose of the asset type, e.g. Laptops with 48 months Depreciation. You are not able to amend the code in Account once the asset type has been saved. The code entered in Account must exactly match the code entered when the ASSET_TYPE was created on the ASSET_TYPE keylist.

  6. The Currency field only requires completion if the currency for this asset type is different to your default setting. If required, select Drill (...) in Currency, then double-select to select the required currency from the Select a currency dialog.

  7. The Initial State drop-down list defaults to Open. This means that any documents posted to this asset type have a status of open and can therefore be allocated, etc. An alternative option of Hold is available, although this would be uncommon.

  8. Next, select the Indices tab, which is used to determine how you want to report on the asset type. If you want to report on asset types under a particular funding arrangement, for example, select the required index check box. The ACTIVITIES and FUNDTYPE indices may be mandatory (depending on your system setup), therefore if you do not want to use indices for reporting, select XNODET from the Values panel.
    account-maintenance-asset-type-indices.png

  9. Next, select the Analysis Fields tab. Check/complete the fields as follows:

    ITEM

    DESCRIPTION

    Fixed Asset Cost Nominal

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

    Useful Life

    Enter the number of months that 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/year until the asset is written off. Reducing Balance (RB) - deducts depreciation based on a monthly/yearly percentage, which reduces each month.

    Depreciation BS Nominal

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

    Depreciation IE Nominal

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

    Depreciation Account

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


    The following graphic shows an asset type that has been created for IT equipment with a useful life of 48 months.

  10. Select the Security tab, which is used to determine who can access the asset type. We would advise restricting Modify access to the System Administrator, then View, and Post access for users as required.

  11. Select Drill (...) in View, Modify, and Post, then double-select to select the required role from the Select a role dialog.

  12. Once you have completed the relevant information, select SAVE. A warning is displayed if any mandatory information is missing, which needs to be completed before the asset type can be saved.

  13. An Update complete message is displayed. Select OK to close the message and return to the previous window.

  14. Select the X in the top right-hand corner to close the Account Maintenance window.

If you have added a new fixed asset type, you need to add the type to the ASSET_TYPE key list. For more information, please see Adding a New Fixed Asset Type to the ASSET_TYPE Keylist .