Fixed Assets
A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year’s time; is termed as Fixed Asset. Fixed assets are generally not considered to be a liquid form of assets unlike current assets. A fixed asset does not actually have to be “fixed,” in that it cannot be moved. Many fixed assets are portable enough to be routinely shifted within a company’s premises, or entirely off the premises. Thus, a laptop computer could be considered a fixed asset (as long as its cost exceeds the capitalization limit).
Using HoneycombERP® FAMS, all the facets of fixed asset management are covered in a comprehensive manner alongside detailed reporting is enabled against each functionality to help paint the true picture. With HoneycombERP® FAMS, you are never out of sync and always have the correct and updated picture of your all valuable assets.
Asset Acquisition & Registration
HoneycombERP® FAMS provides an easy way to register any asset alongside tagging all the important attributes of the asset being registered. These detailed attributes help managers track a particular record with a great deal of ease.
Asset Classification
Combining economic resources into categories according to their characteristics is termed as Asset Classification. In financial analysis, classification of assets provide the basis of evaluating the health of a company by examining how well each of the company’s type of assets is performing. With HoneycombERP® FAMS assets can be easily classified and a required link is established between the asset master record and the related posting to the accounting general ledger.
Asset Numbering based on Coding Scheme
HoneycombERP® FAMS maintains a customizable coding scheme for assets where an asset can be tagged with a unique code making a more traceable. Asset tagging is not merely tagging, that tag code is self-explanatory and just by reading the tags, critical information about asset is revealed like year of purchase, asset classification & serial number.
Multiple Depreciation Methods
Depreciation indicates how much of an asset’s value has been used up. With HoneycombERP® this systematic reduction in the recorded cost of a fixed asset can be managed with superior control and efficacy. Managers can choose the best fit depreciation method and associate it to an asset. This provides great control and flexibility as assets of different nature can be catered with a single depreciation method.
Composite Assets
Although separately categorized, situations arise where a bunch of assets are to be depreciated as if they were a single asset. HoneycombERP® FAMS provides unmatched control and ease when managers opt to depreciate assets collectively rather than individually. This single asset is termed a composite asset, and associated assets are known as composite members.
Asset Disposal/Retire
There are two scenarios under which organizations may dispose-off a fixed asset. The first situation arises when a fixed asset is being scrapped or given away because it is obsolete or no longer in use, and there is no resale market for it. In the second situation, there is some value of the asset at the time of disposal. HoneycombERP® FAMS provides thorough control against both scenarios and reporting against asset disposal can be generated on multiple criteria, facilitating managers to analyze and take better decisions in future.
Asset Revaluation
Revaluation of fixed assets is the process of increasing or decreasing their carrying value in case of major changes in fair market value of the fixed asset. With HoneycombERP® FAMS, asset revaluation process can be handled with ease and complete logging against a particular asset is also maintained and can be referred anytime later.
Profit/Loss Statement on Fixed Asset
Generating Profit / Loss statements on Fixed Assets is of critical value as without these standardized reports; no one can measure the value of the asset properly. Using HoneycombERP® FAMS, P&L statements can be generated on the basis of different criteria with each report complying IFR standards.
Asset Transfer
Asset transfer is an important process, though less commonly used as compared to other functionalities. Asset ownership can transfer from one individual / group / board to others. Using HoneycombERP® FAMS, asset transfer and related scenarios are handled in an uncomplicated manner. You can transfer assets based on the entire account structure (business unit, object, and subsidiary) or a portion of the account structure. Additionally asset transfers from one business unit or account to another can also be handled.
Fixed Asset Schedule
The Fixed Asset schedule is a special type of sub-schedule that details all the assets owned by a company. A fixed asset schedule is the complete listing of all fixed assets that comprise the fixed asset balances listed in the general ledger. With HoneycombERP® FAMS, a more detailed fixed asset schedule can also be generated that states the salvage value assumption (if any) for each fixed asset, as well as the annual depreciation ascribed to each asset, shown separately by year. Additionally the type of depreciation method and any impairment charges against an asset are also listed, thus making it a complete and comprehensive report for analysis.
Asset Taxation Record
For recovery of the cost of assets used in a business, HoneycombERP® FAMS allows a tax deduction mechanism. Using the system where the assets are consumed currently, the cost may be deducted currently as an expense or treated as part of cost of goods sold. However, the cost of assets not currently consumed generally must be deferred and recovered over time, such as through depreciation. HoneycombERP® FAMS handles both the options and eases managers by calculating tax values automatically.