Add or Edit an Asset Classification

The Asset Classification page allows authorized users to add and maintain the asset classification codes assigned to system Asset Classification Levels. All assets will be assigned a classification via the procurement item used to create the asset. All procurement items will be assigned a classification and will have default information used for asset entry; reports can be run based on these classifications.

Classification levels are determined by the levels previously defined and set up on the Asset tab in New World ERP Settings. Normally a county or municipality will have either 1 or 2 levels.

Note: If while updating an asset classification you need to clear your changes, click Reset at any time to return to the previous state the page was in before you save your changes. 

  1. To access the Asset Classification page go to Maintenance > Financial Management > Asset Management > Asset Classifications.
  2. To create a new level one classification, click on the Asset Classifications folder at the top of the window and then click New. To create a new level two classification, select and highlight the level one classification that it belongs under and click New. Each sub-classification can have its own unique defaults. To edit an existing asset classification, click the Asset Classification level hyperlink to open the record.
  1. In Code, type a unique alpha-numeric identifier for the classification.
  2. In Description, describe the classification (e.g., Vehicles, Buildings, etc.).
  3. The Report Sequence, determines the order classifications appear when reports are run.
Defaults

The following fields are defaults; it is recommended that you enter the choice that will most often be used in your organization. At the time of asset entry, users can override all of these defaults and select other options.

  1. In Capital Assets-Minimum Dollar Value, assign a dollar threshold for capital assets within the classification. If an asset is created below this threshold, there will be a warning message stating that the asset must be reported as a controlled asset. Normally a $5,000 threshold is used for capital assets but it can vary.
  2. In Original Funding Source, select the source that originally funded the asset. This value is defined in Validation Set 74 and is a required field. Press CTRL and click the field to open the Validation Set Values List dialog box where you can add or edit a validation set.
  3. In Reporting Category, select the classification of the assets within the asset class as Capital or Controlled.
    • Capital — Assets valued above the minimum threshold.
    • Controlled — Assets valued below the minimum threshold.
  4. In Accounting Category, select the classification of the assets within the asset class as Governmental or Proprietary for accounting purposes. Remember these are just defaults and at time of entry, users decide the correct accounting category. So, if the majority of the building assets will be Governmental, then select it as the default here.
  5. In Depreciation Status, select the classification of the assets within the asset class as depreciable or non-depreciable. The available options are Non-Depreciable, Depreciable, and Fully Depreciated. For example, Land is Non-Depreciable and Vehicles is Depreciable.
  6. Depreciation Method is enabled and required if the Depreciation Status is Depreciable. This drop-down list contains the depreciation method ID used to depreciate the assets within the asset class.
  7. In Useful Life in Months, enter the depreciable life of the assets within the asset class. The system will depreciate the asset based on the number of months entered here.
  8. In Minimum Book Value, enter the minimum amount to keep on the books before fully depreciating/salvaging the asset (at the class level). The acceptable range of entry is $.01 through $999,999,999.99.
  9. In Responsible Department, select the department responsible for the assets within the asset class. Only departments where Asset Management - Maintenance in Process Manager has been associated with the department are displayed.
  10. In General Location, select the general location for assets of this classification. These locations come from the asset locations defined during setup. See Master Location for more information on Locations.
  11. In Specific Location, select the specific location for assets of this classification, if applicable. These locations come from the asset locations defined during setup. See Master Location for more information on Locations.
  12. In Responsible Employee, select the employee responsible for tracking assets within the asset classification. Select an employee set up in the HR application or Validation Set 38 if the HR application was not purchased.
  13. In Assigned Employee, select the employee to whom the assets within the asset class are assigned (i.e., person responsible for the asset). Select an employee set up in the HR application or Validation Set 38 if the HR application was not purchased.
  14. In Responsible G/L Organization, select the general ledger organization responsible for assets within the asset classification .This assigns the asset to the organization set it was purchased from. It also associates the asset to the function of government assigned to the organization set and is needed when creating your GASB reports.
  15. In G/L Distribution Profile, select the profile ID representing the debit and credit G/L accounts to which to apply asset transactions.
  16. In Insurance Policy, select the default insurance policy covering assets belonging to the asset classification.
  17. In Lease Contract, select the default lease contract to assign to new assets created for the classification.
  18. In Record in GL, select the check box to record the asset in the general ledger. This check box is usually not selected for Controlled assets since they are not depreciable.
  19. Click Save or Save/New to create another asset classification record. This enables the Accounts and User Defined Fields tabs of the newly created asset classification.

On the Accounts tab, accounts can be assigned to an asset classification. When a user enters a requisition/voucher, purchase order or an accounts payable invoice, the system will compare the classification tied to the item to the G/L account selected. If the account used is not listed here on the Accounts tab, a user will be given a warning upon saving. The system does not stop a user from using the selected account. Accounts can only be assigned to a level one classification; sub-levels do not inherit these accounts.

Click New to create a new account. Select an Account in the drop-down list and click OK. Click Save or Save/New to create another asset classification record.

To delete an account, click Delete. The Delete button is hidden or disabled if you do not have the appropriate security permissions. If you are authorized, when you click Delete you are prompted to confirm the deletion.

User defined fields can be created to store information the system does not track. This tab allows users to specify which user defined fields will appear on a particular asset classification. User defined fields do not show on any reports and are informational only.

To delete an asset classification record, click Delete.  

The Delete button is hidden or disabled if you do not have the appropriate security permissions. If you are authorized, when you click Delete you are prompted to confirm the deletion.

See also:

Asset Management Setup

Add an Asset

Edit an Asset

Insurance Policies

Lease Contracts

Asset Classification List