Fixed Assets
Processes around enterprise asset management
Your guide to business processes supporting the management of an organization's assets
TechnoFunc brings to you detailed learning resources on assets, asset management, asset classification, investment management, and enterprise asset management. Build your foundation around asset definition, classification of assets, asset lifecycle, and management. Learn the systematic process of operating, maintaining, and upgrading assets cost-effectively. Get the knowledge and skills required to apply internal control principles to manage assets effectively. Quickly upgrade your knowledge on the latest business processes and industry best practices!
What are different assets
An asset is anything that will probably bring future economic benefit. Every company must take actions to safeguard, control, and manage the assets it owns. Cash Assets needs to be managed effectively to safeguard and utilize them efficiently. In this section, we will start with understanding what are assets, what are various classification of assets and then we will focus on Asset Management.
Fixed Assets - Process Flow
“Fixed Assets” is a six-step process and starts with initiating and approving the request to acquire the asset and after maintaining and depreciating for useful life ends with the final disposal of the fixed asset. These steps are cyclic in nature and most of them happen in any fixed management lifecycle. Some optional steps may happen only in certain business scenarios or in specific industries.
Fixed Assets - Key Terminology
In this article, we have explained the meaning and usage of key generic terms that are used in almost every FA management system/ Fixed Assets process. Understanding these terms is a prerequisite to building a solid understanding of the fixed assets business process.
Asset Maintenance – Tagging & Physical Verification
Most organizations need to deal with hundreds or even thousands of physical assets. In such a case, it’s important to know the operating condition and location of the assets owned by them at periodical intervals. Identifying, tracking, and controlling assets are a critical step in ‘Asset Maintenance’.
Introduction to Capital Asset Planning
Before you purchase an asset in any organization, you must justify the decision to purchase the asset and get requisite approvals to make investment and release the funds. These series of analysis steps where cost-benefit analysis is performed to justify the decision to purchase a prospective asset is called the process of capital asset planning or simply as capital budgeting.
Key challenges in managing FA process
As organizations grow in scale they need a more detailed justification of capital expenditure. This leads to many functions getting involved in the fixed asset management process with significant “hand-offs” at each step/stage. In this chapter, we will address a broad array of issues involved in the process of fixed assets in any large scale organization.
