Introduction
Asset management is an essential part of any business. Organizing and managing your assets efficiently can lead to better financial reporting and decision making. In Empress, we make this process easier with the Asset Category feature.
Introduction to Asset Category
The Asset Category feature allows you to categorize and manage different assets within your business. For example, you might create an Asset Category called “Electronic Equipment” for all your laptops and desktops.
This feature also enables you to set a default depreciation method, periodicity, and depreciation-related accounts for each Asset Category. These settings will apply to all assets under that category, ensuring consistency and efficiency in your asset management.
To access the list of Asset Categories in Empress, simply navigate to:
Home > Asset > Assets > Asset Category
Creating an Asset Category
Creating an Asset Category in Empress is a straightforward process. Here’s how to do it:
- Enter a unique name for the Asset Category.
- If you want to record assets under a temporary balance sheet account instead of the corresponding asset account, tick the ‘Enable Capital Work in Progress Accounting’ box.
- Click on ‘Save.’
Additional Options in Asset Category Creation
When creating an Asset Category, you have the option to enable Capital Work in Progress Accounting. If you choose to activate this feature, accounting entries for assets under this category that are not currently in use will be posted in the Capital Work in Progress accounts. This is particularly useful when the ‘Available for Use Date’ for your assets is set for a future date. If all your assets are immediately in use, you can disable this feature.
Key Features of Asset Categories
Finance Book Details
The Asset Category feature allows you to associate a Finance Book to the asset category. This is useful if you need different depreciation reporting methods. Here are the fields you can fill out:
- Depreciation Method: Choose the way in which depreciation for assets in this category will be recorded.
- Frequency of Depreciation (Months): Specify the time frame within which depreciation will be booked.
- Total Number of Depreciations: Indicate the number of depreciations to be booked within the chosen time frame.
- Rate of Depreciation: Set the rate of depreciation for the chosen period. This will be calculated based on your selected Depreciation Method.
Accounting Details
You can also set up account details to record asset values in the ledger. These include:
- Company
- Fixed Asset Account
- Accumulated Depreciation Account
- Depreciation Expense Account
- Capital Work In Progress Account
Conclusion
By effectively using the Asset Category feature in Empress, you can significantly improve your asset management process. This feature not only assists in efficient record-keeping but also provides valuable insights for financial reporting. For more detailed information or additional support, please visit our Empress Help Centre or contact our support team.