Create an asset classification—Fixed Assets Management

Create asset classifications to ensure consistent treatment of similar assets from an accounting point of view. Asset classifications also allow for ease of reporting on different asset categories. Common examples of classifications include Computer Equipment, Furniture and Fixtures, and Buildings.

Create asset classifications (5:47)

Each asset classification includes information about General Ledger accounts and depreciation rules, which are copied over to assets. You do not have to use the default values provided by the classification. You can customize the General Ledger accounts and depreciation rules on individual assets as needed. Sage Intacct uses this data, along with other asset details, to generate depreciation schedules.

Before you begin

• Create journal posting rules

Create an asset classification

1. Go to Fixed Assets Management > All and select Add (circle) next to Asset classifications.

2. Enter a unique Asset classification ID.
   

   As a best practice, avoid leading zeros. Use letters to prefix your ID, for example: CE-001 for Computer Equipment or FF-001 for Furniture and Fixtures.

3. Enter an Asset classification name.
   

   For example, Computer equipment, Furniture and fixtures, or Buildings.
   

4. Set the Status to Active.
   

   An Active status means that the classification appears in lists and is available to use. If you are no longer using a classification and want to hide it from lists, set the status to Inactive.

5. Assign the General Ledger accounts.

   The accounts must be active, non-statistical, and not linked to a bank account or credit card. For non-depreciable asset classifications, you only need the Asset and Disposal GL accounts.

   What are the GL accounts used for?

   These will be the default accounts for assets in this classification. You can still change the accounts at the asset level.

   • CIP GL account: This field only applies to CIP assets. The General Ledger account used to track costs for assets in the Construction in Progress state. When the asset is capitalized, amounts are transferred from this account to the Asset GL account.

   • Asset GL account: The General Ledger account where transactions involving asset cost and disposal are recorded as debits and credits. For example, Buildings, Computer Equipment, or Vehicles accounts.

   • Accumulated depreciation GL account: The General Ledger account where depreciation transactions are recorded as credits. It offsets the Depreciation expense GL account.

   • Depreciation expense GL account: The General Ledger account where depreciation transactions are recorded as debits.
     

   • Disposal GL account: The General Ledger account where the Sales price is recorded as a debit during asset disposal. Typically, it is a depreciation expense account, a gain and loss account, or some other special disposal account.

   • Provision derogatory GL account: The General Ledger account used to record derogatory depreciation provisions. This field only applies to entities operating in France that use the Derogatory depreciation method.

   • Accumulated provision derogatory GL account: The General Ledger account used to track the cumulative balance of derogatory depreciation provisions. This field only applies to entities operating in France that use the Derogatory depreciation method.

   • Reversal derogatory GL account: The General Ledger account used to record reversals of derogatory depreciation provisions. This field only applies to entities operating in France that use the Derogatory depreciation method.

6. For asset classifications that will have depreciable assets, add depreciation rules.

   1. In the Depreciation rules section, select Add row or Add (circle).

   2. Select a Depreciation method.
      

      Supported depreciation methods
      

      Supported depreciation methods and conventions

      Depreciation method	Full month convention	Half year convention	Full year convention
      Straight line (SL)
      Daily (DR)
      150% declining balance (150DB)
      200% declining balance (200DB)
      Custom declining balance with true-up (CDBT)
      Custom declining balance without true-up (CDB)
      Derogatory (DER)

   3. If you selected a custom declining balance method, enter a Depreciation rate (%) from 1.00 to 100.00.
   4. Select a Journal posting rule.

      The Journal posting rule populates the Useful life units, Convention, Journal ID, and Book ID fields from Fixed Assets Management setup. You can only use each journal posting rule once per classification or asset.

   5. Enter a number for Useful life.

      Review the Useful life units field to determine whether the Useful life is entered in months or years. A useful life of up to 1500 months or 125 years is supported.

   Repeat these steps to add additional rules as needed.

7. Select Save.