An asset class is a link between the asset register and the general ledger. Asset classes enable you to organise assets with common characteristics together. For example, cost limit, default depreciation rates and methods, private use percentage, and so on. This is also where you set up the general ledger accounts that are later used when generating the journal entries.

You must configure your asset classes before you can add assets.

Common types of asset classes are:

• (Australia) Motor vehicles
  Tangible fixed assets such as vans, trucks and cars used for the operation of a business.

• Plant and equipment
  Plant applies to assets in a workplace such as a factory or warehouse.
  Equipment applies to assets within a plant used to generate revenue.

• Office furniture and equipment
  Office furniture applies to assets used within an office environment by employees being productive or business clients providing the business with income.
  Equipment applies to assets within an office environment such as photocopiers and computers used in the course of business operations.