You are on page 1of 2

Setting up Fixed Asset Categories in X3

The fixed asset category is a useful tool that will allow the user to default fields
such as depreciation methods, useful life, accounting codes, etc for all assets of
a particular group.

Go to Fixed Assets/ Categories

Note there should be a fixed asset category setup for each of your fixed asset
GL accounts setup in your chart of accounts.
For a given Category is it common to have two depreciation types, one for the
book depreciation and one for the tax depreciation
Click on New
Category: assign category #
Subcategory: assign subcategory (if applicable)
Depreciation Type: typically two options E (Book) and F (Tax)
Short Title: specify applicable short title
Fixed Asset Type: Choose applicable fixed asset type.
Fixed Asset Title: assign applicable title for category
Accounting Code: select predefined accounting code. This will govern the
accounting postings for the assets in this category
Maximum: This field is used to specify the depreciation base ceiling beyond
which the depreciations are no longer tax deductible (e.g. private vehicles).
The ceiling should be left at zero if the fixed assets of the category are not
subject to a ceiling for deduction of tax.
Depreciation Method
o Depreciation Method: depreciation options include the following
Sum of Years Digits
Accelerated Depreciation
Declining Balance
Straight Line
Manual
None
o Number of Years: useful life of the asset
o Rate: applicable depreciation rate
o Prorata Calculation: recommended to be set to monthly; governs
the periodicity of the depreciation expense entry.
Screenshot of the Fixed Asset Categories