Setting Up Asset Types

Asset types are templates that define how different categories of fixed assets should be depreciated and which accounts to use for depreciation journals. You must create asset types before you can add any fixed assets to your register.

You can set up asset types in two ways. If your practice uses standard chart of accounts templates, we recommend setting them up once at the workspace level so they're applied automatically across your clients — this saves you recreating the same types entity by entity. You can also create an asset type directly on a single entity when that's all you need.

This article covers what asset types are, the information each one needs, how to create them across your workspace or for a single entity, and the rules to keep in mind:

• What are asset types?
• Required information
• Creating asset types across your workspace
• Creating an asset type for a single entity
• Rules & limits
• Creating child accounts for detailed categorisation
• Troubleshooting

What are Asset Types?

Think of asset types as categories or templates for your fixed assets. Each asset type defines:

• Default depreciation settings — method (straight-line or diminishing value), useful life, or depreciation rate
• Account mappings — which accounts to post to when recording depreciation
• Mixed-use support — optional account for the personal use portion

Examples of asset types:

• Motor Vehicles
• Computer Equipment
• Office Furniture
• Machinery & Equipment
• Buildings

Required Information

Every asset type — whether for your whole workspace or a single entity — is built from the same pieces. Here's what each one needs.

1. Basic details

Name (required)

• Must be unique within the entity
• Examples: "Motor Vehicles", "Computer Equipment", "Office Furniture"

2. Depreciation defaults

Depreciation method (required)

• Straight-line: same depreciation amount each month
• Diminishing value: higher depreciation in early years

Useful life OR depreciation rate (one required)

• Useful life (years): how many years assets typically last (e.g. 5 years)
• Depreciation rate (%): annual depreciation percentage (e.g. 20% = 5-year life)
• Provide one, but not both

3. Account mappings

Asset account

• Where the asset's purchase value is recorded
• Must be a fixed asset account (typically 150–199 range)
• Must be unique per asset type (see Rules & limits)
• Example: 161 "Motor Vehicles"

Accumulated depreciation account

• Contra-asset account tracking total depreciation
• Must be a fixed asset account (typically 150–199 range)
• Usually directly follows the asset account
• Example: 162 "Accumulated Depreciation - Motor Vehicles"

Depreciation expense account

• Expense account for monthly depreciation charges
• Must be an expense account (typically 600–699 range)
• Example: 610 "Depreciation Expense"

Private use account (optional)

• Only required if you plan to have mixed-use assets (business use < 100%)
• Records the personal use portion that can't be depreciated

Creating Asset Types Across Your Workspace

Workspace asset types let you define an asset type once — with its depreciation defaults and account mappings — and have Prosaic apply it automatically, rather than recreating it for every entity. For most practices this is the quickest way to set up.

They work by linking the asset type to one or more of your chart of accounts templates, with accounts matched by account code rather than by a specific entity's accounts. When you create a new entity using a linked template, Prosaic automatically creates the matching asset types on that entity. You can also apply a workspace asset type to your existing entities when you create it.

You'll find them under Fixed Assets → Asset Types, where the page is split into Entity and Workspace tabs.

How to create a workspace asset type

The name, depreciation defaults and account mappings are as described in Required information above — the workspace-specific parts are the toggle and choosing which templates it applies to.

1. Go to Fixed Assets → Asset Types and click New Asset Type
2. Turn on Make this a workspace asset type?
3. Enter a Name and select the Chart Templates it should apply to — new entities created with these templates will automatically get this asset type
4. Optionally turn on Apply to existing entities? to create the asset type on entities already using the selected templates
5. Set the depreciation defaults, then map the accounts by choosing the account codes from your templates
6. Click Save

Good to know

• Entities are skipped, never overwritten. When applying to existing entities, any entity that already has an asset type with the same name or the same asset account keeps its existing setup. Entities whose chart of accounts doesn't include the mapped account codes are also skipped.
• One asset type per asset account code. Each chart template can only have one workspace asset type per asset account code — the same rule as entity asset types.

Creating an Asset Type for a Single Entity

If you only need an asset type on one entity — or you're not using chart templates — you can create it directly on that entity. It's the same as a workspace asset type (above), just without the template linking.

Step 1: Open Asset Types

1. Go to Fixed Assets → Asset Types
2. Click New Asset Type

Step 2: Enter the basic details

1. Entity — select which business entity this applies to
2. Name — enter a descriptive name (e.g. "Motor Vehicles")

Step 3: Set the depreciation defaults

1. Method — choose straight-line or diminishing value
2. Useful life or depreciation rate — enter one, not both

These auto-populate when you create assets, and can be overridden per asset.

Step 4: Map the accounts

1. Select the asset account, accumulated depreciation account and depreciation expense account (all required)
2. Add a private use account only if you'll have mixed-use assets

See Required information above for what each account should be.

Step 5: Save

Click Save to create the asset type. It's now ready to use when creating fixed assets.

Rules & Limits

One asset type per asset account

Each asset type must use a unique asset account — you can't have two asset types using the same asset account. If you need more refined categories, see Creating child accounts for detailed categorisation below.

Asset types lock after first use

Once you've created assets using an asset type, you cannot edit or delete it. This prevents inconsistencies in existing depreciation records. The one exception: you can add a private use account to an asset type that's already in use.

If you need to change other settings:

1. Create a new asset type with the correct settings
2. For individual assets, you can override depreciation settings without changing the asset type

Private use account

The private use account controls whether you can record mixed-use assets:

• If not set: you can only create 100% business use assets for this type
• If set: you can create assets with any business use percentage (1–100%)

If you didn't set one up front, you can add a private use account later — even once the asset type has assets assigned. This is the only change allowed on an asset type that's in use.

Recommendation: for asset types where mixed use is possible (vehicles, equipment), include a private use account from the start.

Defaults can be overridden per asset

Depreciation method, rate and useful life are defaults that auto-populate when creating assets — individual assets can override them. However, account mappings cannot be overridden per asset; the accounts defined in the asset type are used for all assets of that type.

Creating Child Accounts for Detailed Categorisation

Because each asset type needs its own asset account, more refined categories mean more accounts. You can create child accounts under a parent account and then create an asset type for each child.

Example: breaking down Vehicles. Instead of one "Motor Vehicles" asset type, you could create child accounts under a parent:

• Account 161 "Motor Vehicles" (parent)
• Account 161.1 "Utes"
• Account 161.2 "Vans"
• Account 161.3 "Trucks"

Then create a separate asset type for each:

• Utes → asset account 161.1
• Vans → asset account 161.2
• Trucks → asset account 161.3

Benefits:

• More granular reporting by vehicle type
• Different depreciation rates if needed (e.g. heavy trucks vs. light vehicles)
• Clearer categorisation in your balance sheet
• Better tracking of specific asset categories

Troubleshooting

"A fixed asset type with this name already exists"

Each asset type must have a unique name within an entity.

Solution: choose a different name, or check whether an existing asset type meets your needs.

"A fixed asset type assigned to this asset account already exists"

Each asset account can only be used by one asset type.

Solution:

• Choose a different asset account for this asset type, or
• Use the existing asset type that's already mapped to this account

"Cannot edit/delete fixed asset type with assigned assets"

This asset type has assets assigned to it and cannot be modified or deleted (other than adding a private use account).

Solution: to edit or delete, the assigned fixed assets need to be deleted first, then reassigned (in the case of editing).

My new entity didn't get the workspace asset types

Check that:

• The entity was created with a chart template linked to the workspace asset type
• The entity's chart of accounts includes all the account codes the workspace asset type maps to
• The entity doesn't already have an asset type with the same name or asset account

Next Steps

Once you've created your asset types, you're ready to:

→ Start adding fixed assets to your register

Your asset types will provide defaults and account mappings, making it quick to add individual assets.