It is broadly defined that it refers to maintain and monitors the asset value of entity and groups. It can be apply to both tangible (Buildings, Machinery and etc.) and intangible assets (Cash, Bank balance and etc.), Assets Management is a systematic process of maintaining, upgrading, operating and disposing of assets cost-effectively.
In Organizations, they usually have an inventory control function which is designed to track large capital assets. When organizations track their assets, however, the techniques which is used to track other capital assets may fall short and not deliver all the possible value to the organization.
Due to which customer go through some pain, here are some points:
• When the material received but somehow the security team fails to verify the documentation of material.
• Delay in reconciliation due to lack of compatibility in report vary by user.
• Material delivered directly to the customer, which delays in payment tagging of material and Stock recording.
• Delay in discrepancy report against the receipt of material may lead to compliance risk
The Responsibility for Asset management has to acquire:-
• Gate Pass preparation / Goods Receipt Note
• ERP/SAP/ Oracle Data receiving
• Courier Management
• Bill processing for payment
• Package delivery
• Packing & Unpacking
Process of Asset Management
Asset Management use software to identify the asset, here are some points how it’s works
• A unique Serial No. and Asset No. is generated/captured for each assets and it can be done either manually or through barcode.
• Assets can be assigned to a user definable multi-level Location / Project reference and an optional employee identification.
• Assets movement between location/employees/projects as well as inter-unit transfer, can be captured.
• Asset audit through manually or by barcode scanner.
Every Assets has it’s depreciate value, in Asset Management it records the value of assets until the value of assets become Nil. The assets are registered with different types of depreciation calculation under:
1. IT Act
2. Customs Act
3. Company Act.
In Income Tax Act (IT Act) the depreciation is defined in Tangible Assets and Intangible assets. In this depreciation Act the Tangible assets can have 5 to 40 percent as per new rates but Intangible assets has 25 percent of rates.
In this Act deprecation is permissible for computers and computers peripherals within 5 years and 10 years with quarterly depreciation. In same way for other Capital goods there is quarterly depreciation with different rates.
In this Act there are two types of depreciation Written Down Value (WDV) and Straight Line Method (SLM). In Written down Value the depreciation will be charged on decreasing book value (book value less depreciation). Whereas in Straight Line Method the depreciation is very simple from WDV it depreciation value is fixed until the assets value become Nil.
Here are some point why Asset Management is important:-
• Asset Management is important to reduce the total cost of operating assets.
• Visibility of complete asset life cycle.
• It improve the regulatory performance of the organization.
• Data Accuracy.
• Reduce the capital cost of investing in the assets base.
• Returnable and non-returnable consignment tracking.
• It also reduces legal risks associated with operating assets.
The key to good Asset Management is that it optimizes these benefits. Asset Management takes all the above into account and determines the best blend of activity to achieve the best balance for all the above for the benefit of the organization.