FAM Asset Types
Before creating an asset record, you must first set up asset types. Each asset must be assigned an asset type, which defaults some of the asset variables (on creation of new assets) and groups assets in reports and during processing.
To create an asset type:
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Go to Fixed Assets > Setup > Asset Types > New.
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Provide values for the following fields:
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Name – Enter a name for the asset type. For example, Furniture & Fixtures.
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Description – Enter a general description for the asset type.
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Accounting Method – Select the default depreciation method (formula) to use when creating assets of this type. This method determines how values are calculated before they're recorded in the accounting system.
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Residual Percentage – Enter the percentage of the original cost which the asset will be worth, at the end of its lifetime. For example, if you buy an asset for $1,000.00 and it's worth $100.00 at the end of its life, the residual value percentage is 10%. Entering a residual value will always override the default value calculated from the percentage.
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Asset Lifetime – Enter the expected lifetime of the asset, in multiples of the depreciation period.
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Operating Lease – Check this box if you'll use this asset type for assets generated from an operating lease. Clear this box if you're setting up an asset type for a finance lease.
Note:When you set the asset type to operating lease, you can't change it back to a normal asset type. Other Methods will also be tagged as Operating Lease.
Setting the asset type to Operating Lease will auto-compute the Residual Value Percentage.
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Enter values in the fields on each of the subtabs:
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Click Save.
After saving the record, the Lifetimes subtab becomes available.
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Enter values in the Asset Type Lifetimes Subtab.
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Click Save.