Verasset performs what are commonly referred to as “open inventories”. This means that business operations remain constant while the physical inventory is performed. While this is often necessary, it can be problematic. As regular business activities are occurring, assets are moving and conditions are changing. This potentially introduces the risk of inaccuracies. Consequently, the tighter […]
An important aspect of planning a physical inventory is establishing standards and conventions. These are used to align terms, methods, and actions. For example, it is common to align similar assets into categories, which are established as a convention. Another convention would embrace where data is sourced from and how it is recorded. Another would […]
When planning the data capture attributes of a physical inventory, there are various levels of optimization and automation that can streamline the process. First and foremost, pre-populating mobile inventory data collection devices with existing data sources (such as a fixed asset register or that of an asset tracking system) allows for real-time reconciliation and helps […]
There is a fine line between what information is helpful to capture, versus what is practical. To better understand this, there are two competing factors in conducting a successful physical inventory. These are ACCURACY and TIMING. Accuracy is the single most important factor in performing a physical inventory. However, timing is also very important. Timing […]
While it may seem straightforward to establish what types of assets need to be counted during physical inventory, most often, it is not. More often than not, the capitalization limit loses focus when individual assets that fall below the capital limit are bundled together as a capital line item on the fixed asset register. Further, […]
The ideal scenario is to maintain a single shared database (asset database) whereby assets are tracked and managed. This data source would also serve to align (or link) information related to each asset with other information sources, such as purchasing, shipping and financial records. Therefore, it is important that an asset is recorded into the […]
To recap, so far in this blog series we have: Defined the asset life cycle and some relevant terms Established minimum sets of data needed to manage and track capitalized assets Identified control points, touch points and opportunities to introduce errors into the information flow We will now provide more detail pertaining to the roles […]
In order to purchase new assets, a purchase order is created and submitted to a vendor. As the vendor delivers against the purchase order, packing lists and invoices are generated and remitted to the company making the purchase. The packing list is usually affixed to the packaging and shipped with the order. Invoices are normally […]
At a minimum, the following data elements should be accurately recorded and maintained: A unique means to identify each asset, such as a manufacturer Serial Number or an affixed Asset Tag Number Costs- both Purchase and Installed Costs Depreciation– current and accumulated Useful Life Location and/or Custodian of the asset In order to better understand […]
While information can take many forms and be used for many reasons, our focus will be placed on the bare minimum required to track, manage and report on capitalized fixed assets. It is equally important to identify several terms we will use. These include purchase and installed costs, accumulated and current depreciation, useful life and […]