Managing Asset Profiles in Axanta ERP

Asset Profiles provide standard accounting and depreciation settings for groups of similar assets. For example, separate profiles can be created for computers, furniture, vehicles and machinery.

Go to Accounting → Configuration → Asset Profiles and click New.

Selecting an Asset Profile applies its accounts, depreciation method, useful life, frequency, asset groups and analytic distribution to the asset.

1. General Information

Field	Explanation	Example
Profile Name	Enter a clear name identifying the asset category and, where useful, its expected life.	Computer Equipment - 5 Years
Company	Select the company that will use the profile. Accounts and journals must belong to the same company.	Axanta Company
Notes	Enter internal instructions or information about the accounting policy.	Use for computers and laptops.

2. Depreciation Period

Field	Explanation	Example
Time Method	Select Number of Years or End Date when depreciation is based on useful life. Select Number of Depreciations when a fixed number of entries is required.	Number of Years or End Date
Number of Years	Enter the expected useful life when the Time Method is based on years.	5 years
Number of Depreciations	Enter the total number of entries when the Time Method uses a fixed number of depreciations.	60 entries for 5 years monthly
Period Length	Select how often depreciation should be scheduled.	Month
Calculate by Days	Calculates each amount using the actual number of days in the depreciation period.	Used for partial periods
Use Leap Years	Considers whether a year has 365 or 366 days. This option is hidden when Calculate by Days is enabled.	Schedule includes 2028

When using Number of Depreciations, enter the number of entries, not the number of years. Five years with monthly depreciation requires 60 entries.

3. Depreciation Method

Method	Explanation	Example
Linear	Spreads Purchase Value minus Salvage Value over the useful life.	($6,000 − $600) ÷ 5 = $1,080 yearly
Linear up to Salvage Value	Calculates using the full purchase value and stops when the salvage value is reached.	Depreciation stops at $600
Degressive	Applies a percentage to the remaining value. Earlier depreciation is normally higher.	$6,000 × 30% = $1,800
Degressive-Linear	Starts as Degressive and changes to Linear when the Linear amount becomes higher.	Accelerated depreciation
Degressive up to Salvage Value	Uses Degressive depreciation but does not reduce the value below the salvage value.	Depreciation stops at $600
Degressive Factor	Enter the percentage used by a Degressive method.	Enter 0.30 for 30%
Prorata Temporis	Starts depreciation from the actual Asset Start Date. It is enabled by default.	Asset starts on 15 March

Degressive-Linear is available only with the Number of Years or End Date Time Method.

When the Time Method is Number of Depreciations, Prorata Temporis remains enabled and cannot be manually disabled.

4. Depreciation Accounting

Field	Explanation	Example
Journal	The general journal used for depreciation entries.	Asset Depreciation Journal
Asset Account	Records the original purchase or capitalized value.	Computer Equipment Cost
Depreciation Account	Records accumulated depreciation.	Accumulated Depreciation - Computers
Depr. Expense Account	Records depreciation expense when an entry is posted.	Computer Depreciation Expense
Asset Groups	Classifies assets for searching and reporting. Assets using this profile receive the selected groups.	IT Equipment

Critical accounting note: Review the journal and all three accounts before using the profile. These settings control the accounting entries created for its assets.

5. Disposal Accounting

Field	Explanation	Required Account Type
Residual Value Account	Receives the remaining book value when the Residual Value removal policy is used.	Based on company policy
Loss on Disposal Account	Records a loss when sale proceeds are lower than the asset’s book value.	Expense, Depreciation Expense or Direct Cost
Gain on Disposal Account	Records a gain when sale proceeds are higher than the asset’s book value.	Income or Other Income

These accounts are proposed automatically when the asset removal window is opened. They can be reviewed before generating the removal entry.

6. Analytic Distribution

Field	Explanation	Example
Analytic Distribution	Provides the default department, branch, project or cost centre allocation for assets using the profile.	Finance Department 100%

For assets created from vendor bills, the bill line’s analytic distribution is copied to the asset.

7. Additional Options

Option	Explanation	Example
Skip Draft State	Automatically confirms assets created from vendor bills. When disabled, generated assets remain in Draft for review.	Enable for automatic confirmation
Allow Reversal of Journal Entries	Provides a reversal process when a posted depreciation entry must be corrected.	Reverse instead of deleting
Create One Asset per Unit	When enabled, each unit on a vendor bill line creates a separate asset. When disabled, the total line creates one combined asset.	Quantity 3 at $500 creates three assets at $500 each

Enable Skip Draft State only when the profile is fully reviewed. The generated asset will bypass the normal Draft review.

8. How Profiles Are Used

Process	How to Use the Profile	Result
Manual Asset Creation	Select the Asset Profile on the asset form.	The depreciation and accounting defaults are applied.
Vendor Bill	Select the Asset Profile on the vendor bill line.	An asset is created when the bill is posted.
Asset Import	Enter the Asset Profile name in the import file.	The imported asset uses the profile defaults.

9. Updating or Archiving a Profile

Action	Guidance	Result
Update	Review the effect on new assets before changing an active profile.	New assets use the updated settings.
Archive	Archive a profile that should no longer be selected for new assets.	Historical assets retain the profile while it is hidden from normal profile searches.
Review Archived Profiles	Use the Archived filter in the profile list.	Archived profiles become visible for review.

Archive an unused profile instead of deleting it when historical assets are linked to that profile.

10. Final Review

Check	Required Review	Completed
Profile Name	The asset category and policy are clearly identified.	Yes / No
Depreciation Period	Time Method, useful life and frequency are correct.	Yes / No
Depreciation Method	Method, factor and Prorata Temporis follow company policy.	Yes / No
Accounting	Journal, Asset Account, Depreciation Account and Expense Account are correct.	Yes / No
Disposal Accounts	Residual value, gain and loss accounts are correct.	Yes / No
Analytic Distribution	The required default allocation is entered.	Yes / No
Additional Options	Automatic confirmation, reversal and one-asset-per-unit settings are correct.	Yes / No

Final critical note: The Asset Profile cannot be changed on an asset after accounting entries have been created. Select and review the correct profile before posting depreciation.