Exploring Fixed Asset Register, Inventory Management, and Asset Evaluation Processes

Hi guys,

Kindly send me formats for fixed asset registers and inventory management.

Regards.

Hello Everyone,

I have this opportunity in my organization to evaluate matters pertaining to fixed asset inventory management. I would like to seek your guidance regarding the process to follow and the tool that can help me in maintaining the assets.

Thanks,
Richa

Dear Richa,

Fixed Assets and Inventory are completely different subjects. Secondly, in both cases, there is no "evaluation" as such. Rather, there can be an audit, either of fixed assets or inventory. Please clarify the task that you are going to handle.

Audit of the fixed asset becomes easy provided the company has maintained a "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.

Thanks,

Dinesh V Divekar

Dear Dinesh,

Thank you for your guidance. I have been researching 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 for the maintenance of the register and updating the assets. Based on my knowledge, we can follow the below process. Please suggest any modifications:

1. Listing all assets, dividing them into categories, giving numeric codes, and tagging the assets.
2. Making entries in the FA register.
3. Updating as and when assets are purchased or scrapped.
4. Verifying the working status of the assets every month.
5. At the end of the financial year, updating the FA on the closing stock of all assets and updating the opening balance in the next FY.

I await your response.

Dear Richa,

Fixed Assets and Inventory are completely different subjects. Secondly, in both cases, there is no "evaluation" as such. Rather, there can be an audit, either of fixed assets or inventory. Please clarify the task you are going to handle.

Audit of the fixed asset becomes easy provided the company has maintained the "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.

Regarding inventory, account reconciliation is one thing, and physical stock verification is another. Please clarify what you will do.

Thanks,
Dinesh V Divekar
Management Training Consultant
Bangalore - 560094
+91-99001-55394
dineshdivekar@yahoo.com
"Beware of false knowledge; it is more dangerous than ignorance"