Fixed Asset Hierarchy

In MYOB Advanced, the fixed asset hierarchy is a group of relationships between parent and child assets. A fixed asset can have an unlimited number of child assets (also referred to as components) and only one parent asset. For example, renovation of a unit of equipment or a building represents an individual fixed asset that is a component of the related equipment or building.

To build a fixed asset hierarchy, you should take into account what assets consist of or make up, as well as how assets will be replaced at the end of their useful life. The hierarchy is implemented on a provisional basis. For example, nothing will happen with an asset's components if the parent asset is disposed of.

The asset hierarchy can be built for tangible assets only—that is, for fixed assets with a physical substance. Intangible items are to be individually recorded in the system.

Creating a Hierarchy of Fixed Assets

In MYOB Advanced, you can use the following forms to organize the hierarchy of fixed assets: Fixed Asset Classes (FA201000), Fixed Assets (FA303000), and Convert Purchases to Assets (FA504500).

On the Fixed Asset Classes form, you can specify a parent class for a fixed asset class. On the Fixed Assets form, you can select a Parent Asset for the fixed asset in the Selection area. If you do, the current (child) asset and its details will appear on the Components tab for the parent asset.

You can also organize the hierarchy of fixed assets as you convert purchased items into fixed assets. You can specify units of items that you want to convert as components of selected assets on the Reconciliation tab of the Fixed Assets form and on the Convert Purchases to Assets form.