In order to effectively manage non-current assets and accurately report them in financial statements, it is crucial to maintain an inventory called the Asset Register, as recognized in accounting terminology. Our application simplifies the process of classifying assets into distinct categories, such as Equipment & Machinery, Property, Motor Vehicle, Furniture & Fitting, Computing Hardware, devices and software, Leased Asset/Right of Use, Intellectual Property, Goodwill, and Other Asset Class, which streamlines your asset management. Any assets that do not fit into those aforementioned specific categories should be recorded under the "Other Asset Class" classification.
To view a comprehensive inventory of individual items within each asset class, simply click on the asset class name and the detailed asset register will open up.
The detailed register entries are initiated from the Goods Received Note located in our BUY module. Upon receiving the asset from the vendor, a GRN is generated to record the receipt. In the event that an installation is performed prior to asset commissioning, we suggest that a completion report be prepared by the technical team to verify the readiness of the asset for use.
To update the Asset Register from the GRN table, select "Update Asset Register" from the Action Menu. You will need to complete the form displayed below to collect information that has not already been entered by the app, such as serial number, internally tag number, or bar code - important for identifying and tracking the asset. The app will have already entered details directly from the supplier's invoice, such as original cost, tax, and delivery cost. If the installation is performed by someone other than the vendor, the installation cost should also be entered. To compute depreciation, you must provide the depreciation rate, residual value, and the start date for the utilization of the asset, which is also the start date for depreciation.
The residual value is the estimated value you expect to recover from the disposal of the asset at the end of its useful life. This amount is excluded from the depreciation calculation.
After submitting your entries, navigate to the Asset Class Register. Then, access the applicable detailed Asset Register and select "Add Asset Item." The ensuing form will appear as shown below.
Within the dropdown, you will find a list of assets. Carefully select the appropriate asset before clicking the "Add" button located at the bottom right corner of the form. This will successfully add the asset to the register, as demonstrated below:
The Asset Class table provides a summary of assets by class. It is designed to represent information from the financial statements and interfaces with the general ledger by asset class. Each asset class has two ledger accounts assigned to it; one to record the original cost of assets and the other to record accumulated depreciation of all assets in that class. The net amount of the two accounts represents the total book value of all assets in that class.