Overview of Fixed Assets

Fixed Assets

Fixed assets allows organization to keep track of asset details and allow companies to manage current and non-current assets effectively .

Fixed assets process starts with asset addition, assignments, calculate depreciation, retirements, calculate gain/losses.

Asset addition

a. Keep track of asset details

b. Asset category, key, tag number, serial number, asset description are recorded

c. Asset types - Capitalized, Expensed, CIP, and Group

d. Manufacturer, model number, warranty details are recorded

e. Ownership classification - Owned/Leased

f. Keep track of asset financial information

g. Determine asset cost, salvage value type (fixed or percentage), salvage value, useful life period

h. Date of place in service indicates start of using asset for production use Prorate basis & prorate convention values are recorded

i. Depreciation method should be determined

Financial inquiry

a. Asset cost, recoverable amount, net book value figures can be viewed

b. Year-to-date (YTD) depreciation value is accumulated and shown up

c. Monthly depreciation values are calculated and shown up.

d. Cost history will display the transaction entries like addition, transfer-in, and retirements

Depreciation

Run depreciation program will calculate depreciation for all fixed assets that are eligible for calendar period. 

Gain/Loss valuation, Projections, what-if analysis pictures out gain and losses and projects depreciation for future periods

Source lines

a. Supplier code, supplier name

b. invoice number, distribution lines, PO number

Assignments

a. Employee, cost center, and expense accounts