Part of the initial definition of an asset requires the user to determine whether an asset will be considered a composite asset. Composite assets consisting of multiple components are depreciated as a single asset based on depreciation attributes established on the asset header. Your site’s policies will govern whether assets should be flagged as composite. Policy may determine that all assets or only certain types of assets be flagged as composite. Typical examples of composite assets are infrastructure assets such as highways, roads and bridges.
To define as asset as a composite asset, you select the Composite Indicator check box in the Header section (under the Composite Asset Information subsection). Doing so affects what document components you can edit, as described below. These editing restrictions apply to recording new assets and to updating existing assets.
Composite Indicator check box’s Impacts on Document Editing
If the Composite Indicator check box is … |
Then … |
Selected |
Certain fields maintained under the Composite Asset Information subsection heading are required. Specifically, the Fixed Asset Type, Fixed Asset Group, Depreciation Method, Depreciation Structure, Useful Life and Acquisition Date are all required Composite Asset fields. Most of these fields will be inferred to the asset’s Component Lines (Acquisition Date and Useful Life are informational fields that must be entered Component Lines but are not used in Composite depreciation calculations). FA Catalog is optional and may be used to infer Fixed Asset Type, Fixed Asset Group, Depreciation Method and Useful Life. FA Catalog is also inferred to Component Lines. Valuation Date is only required if Valuation Amount is populated on the Component Line. |
Not selected |
The fields maintained under the Composite Asset Information subsection must remain blank. This information is populated on the asset’s Component Lines. Most of these fields exist on the Component Line under the Component Classification subsection. The Acquisition Date is under the Acquisition Details subsection. The Depreciation Method and Depreciation Structure are under the Cost, Valuation & Depreciation subsection. |
Once you have finalized this document, you cannot change the Composite Indicator check box. If you need to change this definition for the asset, you must dispose of the asset and then re-enter it as a new asset. (See the Record Asset Dispositions section for details on disposing of assets.)
Steps to create the Composite Assets are same as creating the new assets except the following:
For composite assets, the Composite indicator on the FA Header should be selected and composite asset details should be filled in at the header.
For non-composite assets, the flag should be set to false and the details should be filled in at the component level.