What is a type?

A type defines the accounting behavior for the related asset.

For example, assets in governmental funds are required to report capitalization but are not required to report depreciation expenses while proprietary funds are required to report both capitalization and depreciation.

Use Capitalize Assets to move the asset cost from the expense account to a balance sheet account.
Use Depreciate Assets to allocate the cost of an asset over the life of the asset.
A report-only transaction is created for capitalization and depreciation based on the user-defined settings for the assigned asset types.

What is a type?

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