24 | 25 | Fixed Assets Classes

Fixed Asset Classes Use Fixed Asset Classes to set up fixed asset classes. Depreciation for assets in the same class generally affects the same GL accounts for the asset investment, accumulated depreciation, and depreciation expense. Primary criteria for a class are: •Items are similar and grouping is reasonable. •Items are related for accounting purposes, affecting the same GL accounts. These accounts are set as the default entries for the class. •Items use the same books. •Items have the same service lives for calculating depreciation. •Items use the same depreciation methods for book and tax purposes. In Fixed Assets, accounts default from the class-book combination.