I have got this opportunity in my organisation to evaluate matter pertaining to fixed asset inventory management. Would like to seek your guidance in regards to the process to follow and the tool that can help me in maintaining the assets.
5th August 2014 From India, Mumbai
Fixed Assets and Inventory both are completely different subjects. Secondly, in both the cases there is no "evaluation" as such. Rather there can be audit, either of fixed assets or inventory.
Please clarify on the task that you are going to handle.
Audit of the fixed asset becomes easy provided company has maintained "Fixed Asset Register" properly. First check whether this register is maintained or not. If not then first develop this register. This will be a big task for you.
As far as inventory is concerned, account reconciliation is one thing and physical stock verification is another. Please clarify what you will do.
Dinesh V Divekar
5th August 2014 From India, Bangalore
Thank You for your guidance. I have been researching about the fixed asset audit as you rightly said and have come across some formats for the FA register. I do have a register containing all the details of the assets. I am now framing a process to follow on the maintainence of the register and updating the assets. As per my knowledge, we can follow the below process. Please suggest for any modification:
1 Lisitng all assets, dividing into categories, giving numeric codings and tagging the assets.
2. Making entries in the FA register.
3. Updating as and when assets purchased or scraped.
4. Verifying every month on the working status of the assets
5. At the end of financial year, update the FA on the closing stock of all assets and updating opening balance in the next FY.
Await your revert.
6th August 2014 From India, Mumbai