Recording of Fixed Asset Details
Information recorded against a fixed assets will change from business to business, which means that the following procedure may need to be adjusted. Below are the steps to maintain fixed assets related information.
- Create record
Create a new record for the asset and assign the next sequential record number to it. If being recorded in a computer system, the software will assign the record number. If not, the fixed asset accountant will do so.
- Write a description
Describe the asset in one sentence. If this asset is similar to other company assets, use the same description format. Otherwise, consider using a manufacturer-provided description.
- Enter Tag Number
List the number on the company-provided tag (if any) affixed to the equipment. If no tag was used, enter “No Tag.”
- Enter serial number
Enter the manufacturer-provided serial number on the equipment. If you cannot find the serial number, contact the manufacturer to find out where it should be located. If there is no serial number, enter “No Serial Number.”
- Note asset location
Note the location of the asset. Where possible, specify the location at least by building, and preferably by room. If it is located in the production area, specify the work center in which it is located.
- Assign Responsibility
State the name or at least the position title of the person who is responsible for the asset.
- Record the acquisition date
State the month and year on which the asset was ready for its intended use, and whether it was actually used as of that date.
- Enter date
Enter the total initial capitalized cost of the asset. This should match the amount recorded in the general ledger or fixed asset journal for the asset. Do not use the amount listed on the supplier invoice, since other costs may have been added. This step assumes that the fixed asset software is not having information interfaced directly to it from the general ledger or fixed asset journal.
- Assign to asset class
Assign the asset to an asset class by comparing its characteristics to the standard asset classes used by the company. If in doubt, review related assets to determine the classes to which they were assigned. This is an important step, since useful lives and depreciation methods are frequently assigned automatically, based on the asset class.
- Enter useful life
If the system does not automatically assign a useful life based on the asset class, state the useful life.
- Approve Record
Have the controller review and approve the file. Correct any issues noted by the reviewer.
- Store the record
If the information is recorded in an entirely manual system, store it by asset class and then by record number in the fixed asset record files.
Tracet – Fixed Asset Management Solution eases the asset recording process through its user friendly interface. Users can save complete asset details, add images, documents and set notification/alerts regarding asset insurance, expiry, AMC & CMC. Tracet provides functionalities to track assets based on category, department, location, cost center and assignee etc. Users are benefited with effective tracking, optimal management and effortlessly complying with rules.