A classification sorts assets into groups based on other assets that have similar characteristics. Common examples of classifications include Land, Buildings, and Equipment. Every asset is tied to a classification and a department.  

Note: A classification is required for every asset.

Adding a classification

1. Open Connect Asset Management > Organization > Classifications.

2. Click New (CTRL+N).

3. Enter the Classification name.

4. Enter the Estimated Useful Life.

5. Enter the Capitalization Threshold Override.

6. If you are updating to the General Ledger, enter the GL Accounts.

7. Click Save (CTRL+S).  

The record is saved.

Estimated useful life

The estimated useful life is an educated guess as to how long the asset will provide the needed good or service. Then, when you add an asset that belongs to the same category, Connect will assign the default value as the asset's estimated useful life. You can override the default estimated useful life when you add a new asset.

What is the estimated useful life for this classification?

• Use the Estimated Useful Life field to enter the average number of years the asset will be in service.  

Capitalization threshold override

The Capitalization Threshold Override is a dollar amount. When the asset's dollar value reaches the Capitalization Threshold Override amount the asset should be capitalized. Entering a value in the Capitalization Threshold Override field will not capitalize the asset for you. It determines what is eligible for capitalization.  

GL accounts

The next set of fields stores the GL accounts to acquire, capitalize, dispose, depreciate, sell, or transfer assets in this classification. Partial GL accounts are allowed.

Asset Management uses the asset classification and department (the asset owner) to determine where to update an asset transaction. For example, a building is assigned to the Admin department. Connect will merge the GL accounts from the asset classification and department to create a single GL account number. If the Admin department is 10-44-OOO and the asset classification is FF-DD-790, creating a transaction to depreciate the building will hit for depreciation expense: 10-44-790. This is called a partial GL account.

Warning! Call customer support at (800) 243-8275 for assistance if you're new to setting up partial GL accounts. The segment codes for partial GL accounts are specific to classifications and must be set up correctly. Setting up the segment codes the wrong way will create errors when it's time to update transactions to the General Ledger.

• If there's a full GL account recorded on the department, Connect will use it first. Connect looks at the department first.

• If the department uses a partial GL account, Connect will use the asset classification and department to create a GL account.

• If the GL account is blank on the department, Connect will use the GL account on the asset classification.

• If the GL account is blank on the department and asset classification, you'll need to add a GL account to the department, classification, or both. Otherwise, you may experience problems updating transactions.

If you've been running Asset Management as a standalone application and you've decided to start updating transactions to the General Ledger, call customer support at (801) 243-8275 for assistance. They can help you set up the GL accounts for departments and classifications.

Acquisition account

Enter the GL account for acquiring assets in this classification.

Capitalization account

Enter the GL account to amortize assets in this classification.

Disposition account

Enter the GL account for disposing assets in this classification.

Depreciation expense account

Enter the GL account for depreciating assets in this classification.

Accumulated depreciation account

Enter the GL account for accumulated depreciation on assets in this classification.  

Sales debit/credit account

Enter the GL account for recording the sale of an asset in this classification. You'll need both the debit and credit account.

Transfer debit/credit account

Enter the GL account for recording the transfer of an asset in this classification. You'll need both the debit and credit account.   

Partial GL accounts for classifications

A partial GL account uses a mask to format a complete GL account by using a department's GL accounts. If the mask type for an expenditure is FF-DD-OOO (F=Fund, D=Department, and O=Object), and then a partial GL account for an expenditure might be FF-DD-720. When the system records a transaction for a classification with this partial GL account, it will replace the FF with the fund number and DD with the account information that belongs to the department that is responsible for the transaction.  

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