Setting Up Asset Types

Asset types define the depreciation defaults and linked accounts used by fixed assets. Set them up before adding assets so each new asset starts with the right method, rate and journal accounts.

You can create asset types for your whole workspace or for one entity. For most practices, workspace asset types are the best starting point because they can be applied automatically wherever you use the same chart template.

If you only need the shortest setup path, start with the Fixed Assets Quick Start Guide. This article covers the fields, workspace behaviour, editing rules and troubleshooting in more detail.

Choose workspace or entity scope

Go to Workspace → Asset Types. The page has two tabs:

Workspace contains reusable asset types linked to one or more chart templates. New entities using those templates automatically receive the asset type. You can also apply it to existing entities when you first create it.
Entity contains the asset types currently available on individual entities. Create one here when the setup is specific to a single entity.

A workspace asset type is a template. Prosaic creates a separate entity asset type from it. Editing or deleting the workspace version later does not change asset types that already exist on entities.

Asset type fields

Workspace and entity asset types use the same accounting fields. Workspace types map accounts by code across chart templates, while entity types link directly to accounts on one entity.

Identity and scope

Name identifies the category, for example Motor Vehicles, Computer Equipment or Buildings. An entity cannot have two asset types with the same name.
Chart Templates appears for a workspace asset type. Select every template that should create this type on new entities.
Entity appears for an entity asset type. Select the entity that will use it.

Linked accounts

Asset Account holds the asset cost. Each entity asset type needs a different asset account.
Accumulated Depreciation holds depreciation recorded against assets of this type.
Depreciation Expense receives the business-use share of depreciation expense.
Private Use Account is optional. Add it when assets of this type may have less than 100% business use.

Your chart may use different codes from another practice, so choose accounts by their accounting purpose rather than relying on a particular number range.

For a mixed-use asset, Prosaic calculates depreciation on the full depreciable amount. The business share is debited to Depreciation Expense, the private share is debited to Private Use Account, and the full amount is credited to Accumulated Depreciation. See Managing Fixed Assets for the full workflow.

Depreciation

Choose the default Method for assets of this type:

Straight Line records an even amount over the asset's useful life.
Diminishing Value records more depreciation while the book value is higher.
No depreciation is for assets that should remain in the register without depreciation, such as land.

For Straight Line or Diminishing Value, enter either Depreciation Rate or Useful Life, not both. These values become defaults when you create an asset and can be changed on a draft asset before activation. No depreciation does not use a rate or useful life.

Create a workspace asset type

Go to Workspace → Asset Types.
Click Create fixed asset type.
Enter a Name, then turn on Make this a workspace asset type?.
Select the Chart Templates that should use it.
To create the type on entities that already use those templates, turn on Apply to existing entities?.
Map the linked accounts by account code, then enter the depreciation defaults.
Click Create fixed asset type.

What happens when it is applied

Prosaic matches the linked account codes against each selected chart template. It then creates an entity asset type when you create a new entity using that template.

If you select Apply to existing entities?, Prosaic applies the type during creation and skips an entity when:

the required account codes are missing from its chart;
it already has an asset type with the same name; or
it already has an asset type using the selected asset account.

Skipped entities keep their existing setup. Prosaic does not overwrite their asset types.

Create or duplicate an entity asset type

Create an entity asset type when the setup only applies to one entity or the entity does not use a chart template.

Go to Workspace → Asset Types.
Click Create fixed asset type.
Leave Make this a workspace asset type? off.
Select the Entity.
Enter the name, linked accounts and depreciation defaults.
Click Create fixed asset type.

Duplicate an entity asset type

To reuse an existing entity type, open the Entity tab, click the ••• actions menu beside the type and select Duplicate. Choose the target entity and review the prefilled settings before creating the new type.

When duplicating to another entity, Prosaic matches linked accounts by code where possible. Select any accounts it cannot match.
When duplicating within the same entity, select new Asset Account and Accumulated Depreciation accounts. One asset account cannot be shared by two types.

Edit and delete asset types

Workspace asset types

You can edit a workspace asset type from the Workspace tab. Changes affect entities created from the linked templates after the edit. Existing entity asset types are not updated.

Deleting a workspace asset type stops it being applied to new entities. It does not delete entity asset types that were created from it.

Entity asset types

You can edit all fields while no assets are assigned to the type. Once an asset is assigned, most fields lock to protect the asset register and its journals.

If the type does not yet have a Private Use Account, you can add one after assets have been assigned. This is the only edit available while the type is in use.

An entity asset type can only be deleted when no assets are assigned to it. Depreciation defaults can be changed on individual draft assets, but an asset always uses the account mappings from its asset type.

Use child accounts for more detail

Because each entity asset type needs its own asset account, use child accounts when you want a more detailed breakdown.

For example, you could create Utes, Vans and Trucks as child accounts under Motor Vehicles, then create a separate asset type for each child account. This keeps the categories separate while retaining the parent total in your reports.

Troubleshooting

“A fixed asset type with this name already exists”

The entity already has an asset type with that name. Use the existing type or enter a different name.

“A fixed asset type assigned to this asset account already exists”

The selected asset account is already linked to another asset type on the entity. Choose another asset account or use the existing type.

The workspace asset type was not applied

Check that the entity uses a linked chart template and that its chart includes every mapped account code. Also check whether it already has a type with the same name or asset account.

The fields are locked

The entity asset type has one or more assets assigned. You can still add a missing Private Use Account, but other changes require a new asset type.

Next steps

Once your asset types are ready, use the Fixed Assets Quick Start Guide to add and activate your first asset. For imports, bulk actions, depreciation, rollback, disposal and deletion, see Managing Fixed Assets.

If you need help choosing account mappings or depreciation settings, use the 💬 button in Prosaic or email help@prosaic.works.