Asset Setup

Asset setup defines the categories, books, products, depreciation behavior, locations, and accounting integration used by the asset lifecycle.

Workspace Reference

Workspace	How Users Reach It	Main Actions
Asset Types	Assets -> Setup -> Asset Types	Use Add Asset Type, edit asset types, and link default depreciation behavior.
Asset Books	Assets -> Setup -> Asset Books	Use Add Asset Book for financial, tax, or management valuation views.
Asset Products	Assets -> Setup -> Asset Products	Add product templates that standardize repeated asset registration.
Depreciation Rules	Assets -> Setup -> Depreciation Rules	Use New Depreciation Rule to configure depreciation method, life, residual value, and status.
GL Integration	Assets -> Setup -> GL Integration	Configure posting rules, financial events, and disposal methods.
Locations	Assets -> Setup -> Locations	Add or review shared operational locations for custody, transfer, and verification.

Asset Types

Asset types classify assets for reporting, policy, and accounting behavior. Examples include vehicles, buildings, furniture, equipment, computers, and machinery.

Important attributes include:

• type name;
• category such as tangible, intangible, IT, infrastructure, financial, biological, or natural;
• subtype such as land, building, vehicle, software, patent, livestock, or network device;
• lifecycle model such as standard, simple, component-based, refresh cycle, pooled, or right-of-use;
• default depreciation rule;
• capitalization threshold;
• active and approval status.

Use asset types to keep reporting and depreciation behavior consistent. Do not create a new type when an existing approved type already fits the asset class.

Setup Field Implications

Setup Area	Important Fields	Operational Impact
Asset Type	Type name, category, subtype, lifecycle model, default depreciation rule, capitalization threshold.	Controls classification, depreciation defaults, capitalization review, and reporting.
Asset Book	Book name, code, type, currency, active status.	Determines which valuation view is used for depreciation and reporting.
Asset Product	Product name, asset type, manufacturer, model, depreciation rule, useful-life assumptions, governance settings.	Pre-fills and standardizes repeated asset registration.
Depreciation Rule	Method, useful life, residual value, pro-rating, start rule, approval status.	Determines periodic depreciation calculation and finance review outcomes.
GL Integration	Posting rule, financial event type, disposal method, account mappings.	Determines whether acquisition, depreciation, revaluation, impairment, and disposal can post correctly.
Location	Location name, type, parent location, status, operational context.	Supports transfer, custody, maintenance, insurance, and physical verification.

Asset Books

Asset books define the valuation and depreciation view used for assets. An organization may use different books for financial reporting, tax reporting, or management reporting.

Typical book attributes include book name, book code, book type, currency, active status, and approval status.

Select the correct book before running depreciation or reviewing asset financial events. A tax book and a financial-reporting book may produce different depreciation results.

Asset Products

Asset products define reusable asset templates or classes. They help standardize registration, depreciation policy, accounting behavior, and operating expectations.

Important attributes include product name, product code, asset type, category, manufacturer, model number, depreciation rule, lifecycle behavior, useful-life assumptions, governance settings, and status.

Use an asset product when many assets share the same operating profile, such as laptops, tills, delivery motorcycles, printers, or production machines.

Depreciation Rules

Depreciation rules define how asset value is expensed over time. Users should confirm method, useful life, residual value behavior, and start rules before assets are posted.

Common setup choices include:

• depreciation method, such as straight-line or reducing balance;
• useful life;
• residual value or residual rate;
• pro-rating behavior;
• start date or commissioning rule;
• whether the rule is active and approved.

Asset GL Integration

Asset GL integration controls how acquisitions, depreciation, revaluations, impairments, disposals, and other asset financial events are posted.

Finance users should confirm these rules before approving financial asset activity.

The GL Integration workspace includes posting rules, financial events, and disposal methods. Posting rules connect asset events to the finance accounts expected by the organization. Financial events show pending or posted asset accounting activity. Disposal methods standardize sale, scrap, write-off, donation, theft, or retirement handling.

Before live use, finance should test acquisition, depreciation, and disposal because these are the highest-impact asset accounting events.

Locations

Assets use operational locations to show where they are held, used, stored, or verified. Location setup should be maintained centrally so asset records do not create a separate location list.

Locations are shared with other operational areas. Use the Assets setup location view to review or add shared locations used by asset registration, transfers, custody, and physical verification.

Setup Checklist

Before users register assets:

• Confirm asset types and subtypes are approved.
• Confirm books match financial, tax, and management reporting needs.
• Confirm products are ready for the assets users will register repeatedly.
• Confirm depreciation rules are approved and mapped to the right asset types or products.
• Confirm disposal methods are available where disposal is expected.
• Confirm accounting integration is complete for acquisition, depreciation, transfer, revaluation, impairment, and disposal.
• Confirm operational locations are accurate.
• Test one asset registration, acquisition, depreciation run, transfer, maintenance log, insurance policy, verification, and disposal in a controlled environment.