Fixed Asset registration 2579



  • Hi, I have a question concerning the tagging of newly bought fixed assets. Do you see a risk in not having new assets tagged (i. e. the assets have a distinct asset/inventory ID which is entered into the fixed asset register but not tagged to the asset)?



  • Hi,
    If the asset is uniquely identifiable, it might not be necessary to tag the fixed asset with an inventory ID.
    However, if the assets are similar or are not easily distinguished from one another, and the asset is not attached so that it can be relocated or improperly transferred, it might be a good idea to tag the asset.
    Tagging like assets with a unique inventory ID provides additional assurance regarding the completeness of assets included in the Fixed Assets Ledger and the accuracy of the related account balance.
    Milan



  • would be a better practice to have assets tagged which make them easy to track and evaluate during different phases of the asset’s life.
    If the new asset is all that you have there is no need for tagging at all 🙂
    jokes apart, Tagging and tracking of assets saves the effort of digging through the invoices to identify the physical location of assets, when a need arises( let us say periodic assessment of impairment, or Physical inventory count)



  • Hi,
    If the asset is uniquely identifiable, it might not be necessary to tag the fixed asset with an inventory ID.
    However, if the assets are similar or are not easily distinguished from one another, and the asset is not attached so that it can be relocated or improperly transferred, it might be a good idea to tag the asset.
    Tagging like assets with a unique inventory ID provides additional assurance regarding the completeness of assets included in the Fixed Assets Ledger and the accuracy of the related account balance.
    Milan
    What he said 😉


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