Why Should You Use
Asset Management ?
When was the last time you conducted an inventory count?
Every company or organization acquires assets and equipment for various purposes—whether for office staff, production teams, or other departments. These assets, such as computers, phones, desks, and chairs, are often distributed across departments or temporarily assigned to employees. Regular inventory checks are conducted annually to verify the existence and condition of these assets. To streamline the process and save time in managing large numbers of assets, asset management software and barcode technology are essential tools.
The Purpose of Asset Counting
Asset counting helps verify the status of assets, such as whether they are operational, under repair, awaiting repair, or damaged. It also tracks the current location of the assets, identifies their users, and calculates their depreciation value.
Depreciation Calculation
Depreciation helps the company manage its assets efficiently. Additionally, it provides insights into which brands or types of assets the company should consider purchasing in the future.
How the Asset Management Works
Receiving
When new assets are purchased, they must be entered into the accounting system. Asset IDs are created and affixed via barcode or RFID tags. Commonly, QR codes are used nowadays to keep tags small and durable (e.g., plastic, aluminum), aiding annual asset counts using a reader.
Tagging Assets
• Soft Tags are used for non-metal assets.
• Hard Tags are used for metallic or water-exposed surfaces, or for outdoor durability.
Asset Management System
• Record asset information: asset ID, project number, PO number, brand, model, department, branch, serial number, warranty period, etc.
• Data can be entered manually or synced from the customer's ERP (e.g., SAP, Oracle, Dynamics AX).
• User roles and permissions are managed within the system.
Counting
• The system typically operates offline (due to limited Wi Fi coverage), though mobile (online) counting is also supported.
• Teams can count assets in separate zones or, if online, concurrently in the same area.
• The system flags missing or misplaced assets and allows status updates.
• Summaries can be generated and sent to an ERP.
• Barcode or RFID-equipped mobile computers enable real-time counting and processing.
Asset Management System
- Asset Relocation
- Repair Notifications: The system allows users to report broken assets and track their repair status, including repair costs and the service provider. This helps companies decide whether to repair or replace assets to minimize expenses.
- Retirement of Assets: The system also facilitates asset deactivation.
- Depreciation Calculation: Depreciation is calculated using the formula:
Depreciation = (Purchase Cost - Salvage Value) / Useful Life
- Purchase Cost: Includes the total acquisition cost of the asset.
- Salvage Value: The estimated value of the asset at the end of its useful life.
Report
• Export data to Excel or PDF.
• Interface with external systems (ERP) for importing asset data and exporting counting results via flat files, CSV, Excel, or API.
