In managing fixed assets, it's crucial to classify them properly for accurate depreciation and financial reporting. The Fixed Asset Class feature allows you to define different asset classes, assign depreciation rates, and organize assets under a structured hierarchy.

Accessing Fixed Asset Class Settings:

To manage your fixed asset classes:

• Navigate to Fixed Assets > Settings > Fixed Asset Classes.

Adding a New Fixed Asset Class:

1. Click the "Add New" Button:

   • To add a new asset class, click the "Add new" button on the fixed asset class management screen. This will open a new form for entering the asset class details.

2. Enter Fixed Asset Class Details:

   • Parent Class: If the new class is a subcategory of an existing class, select the appropriate parent class from the dropdown. If not, leave it as "No parent selected."
   • Fixed Asset Class: Enter a unique 3-letter alphanumeric code for the asset class. This code is required and must not contain any symbols or spaces.
   • Description: Provide a concise description of the asset class (e.g., "Fixed Asset").
   • Long Description: Optionally, you can enter a more detailed description of the asset class, explaining its purpose or characteristics.
   • Basic Depreciation Rate: Specify the depreciation rate for the asset class as a percentage per year. This rate will be used to calculate the depreciation expense for assets categorized under this class.

3. Save the Asset Class:

   • After entering all required information, click the "Add new" button to save the asset class. The new class will now appear in the list of available asset classes.

Editing or Deleting an Asset Class:

• Edit: To edit an existing asset class, click the edit icon next to the class in the list. This will allow you to modify any of the details.
• Delete: To delete an asset class, click the red delete icon. Be cautious when deleting classes, as this action cannot be undone, and it may affect assets already categorized under that class.

Best Practices:

• Ensure that each fixed asset class is unique and appropriately categorized to reflect the asset’s nature.
• Regularly review and update the depreciation rates to align with the latest financial policies and regulations.
• Use descriptive names and codes for asset classes to facilitate easy identification and management.

When setting up fixed assets in your system, it's essential to start with a set of common fixed asset classes. These classes help you categorize your assets effectively and ensure that depreciation and financial reporting are handled accurately. Below is a list of typical fixed asset classes you might consider setting up by default:

1. Land (LND)

   • Description: Land owned by the business, including plots, acres, or land used for business operations.
   • Basic Depreciation Rate: 0% (Land is generally not depreciated).

2. Buildings (BLD)

   • Description: All types of buildings owned by the business, including office buildings, warehouses, and factories.
   • Basic Depreciation Rate: 5% per year.

3. Vehicles (VEH)

   • Description: Company vehicles such as cars, trucks, and delivery vans.
   • Basic Depreciation Rate: 15% per year.

4. Machinery (MAC)

   • Description: Manufacturing machinery, tools, and heavy equipment used in production.
   • Basic Depreciation Rate: 10% per year.

5. Office Equipment (OFE)

   • Description: Office equipment including computers, printers, and copiers.
   • Basic Depreciation Rate: 20% per year.

6. Furniture & Fixtures (FUR)

   • Description: Furniture, fittings, and fixtures such as desks, chairs, shelving, and lighting.
   • Basic Depreciation Rate: 10% per year.

7. Computer Equipment (CMP)

   • Description: Computers, servers, and related IT equipment.
   • Basic Depreciation Rate: 33.33% per year.

8. Intangible Assets (INT)

   • Description: Non-physical assets such as patents, trademarks, and copyrights.
   • Basic Depreciation Rate: Typically amortized over their useful life.

9. Leasehold Improvements (LHI)

   • Description: Improvements made to leased property, such as renovations or installations.
   • Basic Depreciation Rate: Depreciated over the shorter of the lease term or the useful life of the improvement.

10. Tools (TLS)

    • Description: Small tools and instruments used in operations, maintenance, or production.
    • Basic Depreciation Rate: 25% per year.

These classes serve as a starting point for categorizing your fixed assets. You can adjust the depreciation rates based on your local accounting standards and business needs.