Asset Management

What is an Asset?

An Asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Assets are reported on a company's balance sheet, and they are bought or created to increase the value of a firm or benefit the firm's operations. An asset can be thought of as something that in the future can generate cash flow, reduce expenses, improve sales, regardless of whether it's a company's manufacturing equipment or a patent on a particular technology.

Assets can be broadly categorized into short-term (or current) assets, fixed assets, financial investments and intangible assets. Assets are recorded on companies' balance sheets based on the concept of historical cost, which represents the original cost of the asset, adjusted for any improvements or aging. Historical cost is also called the book value.

The following is the Process to be followed in our System for Asset Management.

1. Setup Depreciation Master Table based on Government Guidelines

2. Create Asset Categories

3. Create Asset Item

4. Purchase Asset

5. Assign it to Employee / Cost Center / Project

6. Enter Asset Repair/Maintenance (Refer Asset Repair / Maintenance Document)

7. Run Depreciation (Refer Asset Depreciation Document)

8. Asset Reporting

1. Setup Depreciation Master Table based on Government Guidelines:

To Setup Depreciation Master, Click Asset Management -> Depreciation Master, Click Create New

Once the data is entered, Click ADD

2. Create Asset Categories:

To create Asset Categories, Click Inventory -> Item Categories -> Click Create New.

Once the data is entered, Click ADD.

3. Create Asset Item

To Create an Asset Item, Click Asset Management -> Asset Master -> Click Create New.

Once the above details are Entered, Click ADD.

Note: a. In this step price & purchase date are not important as it will be taken automatically once Asset is Purchased. 

b. This step is for creating Asset, but it doesn't mean that Asset is Purchased or is in stock.

c. Here Asset Name, Asset Code, Depreciation Account, Asset Account, Asset Type & Depreciation Frequency are the important fields which needs to be entered with care.

d. In this form or screen, you can create one Asset at a time.

e. To create multiple Asset at a time, refer to "Bulk Asset Creation"