Assets management
Assets management is about the financial overview of your fixed assets, and the automation and control of the depreciation of them.
Output from assets management process
Overview of your investments.
Automatic monthly depreciations.
Prognosis over your depreciation costs.
Possibilities to create reports used in audits.
In addition to full control of the periodic costs, you will get prognosis of future depreciations and an overview of when the assets will be phased out. Used together with accounting dimensions, you will have an overall view of the depreciations, operating costs and incomes on each asset.
Tasks involved in this process
Activate fixed assets - An investment is a tangible fixed asset that exceeds a value given by the authorities. If the purchase price exceeds this value, the tangible fixed asset must be activated in a register. This is usually done when the invoice is received.
Make depreciations - Depreciation of the asset is a periodic activity usually done every month. If the fixed asset register is updated, the depreciation can be done with a few keystrokes.
Depreciation rules - The tangible fixed assets' financial lifetimes vary. A large machine in a manufacturing company might have 10 years financial lifetime, or more. An expensive computer might have 3 years financial lifetime. Land and buildings have very long financial lifetimes, sometimes eternal value. All of these scenarios must have separate depreciation rules.
Write-down of fixed assets - If tangible fixed assets get obsolete, damaged etc. the value decreases. You perform write-down of the fixed assets to update the general ledger with correct values.
Register assets - Fixed assets are registered based on supplier invoices. The system provides an efficient way of importing information from the supplier invoices into the fixed assets register.
Register assets manually - It is possible to manually register the fixed assets directly into the register. Possible reasons for doing this:
Initial system setup.
The asset is already in use.
The asset is for some reason not registered yet.
An accounting error.
Adjustments on existing assets - It is possible to adjust a fixed asset's postings in the general ledger. A reason for adjusting can be that the depreciation is not set up correctly.