ERP Solution for Fixed Asset Management

Dubai, March 5, 2016 (Newswire.com) - ​Fixed assets, also known as Property, Plant and Equipment, are tangible assets that are held by an entity for the production or supply of goods and services, for rentals to others or for administrative purposes. These assets are used for more than one accounting period. Fixed assets are generally not considered as a liquid form of assets unlike current assets. Examples of common types of fixed assets include buildings, land, furniture and fixtures, machines and vehicles. 

Examples of general categories of fixed assets are:

• Buildings
• Computer equipment
• Computer software
• Furniture and fixtures
• Intangible assets
• Land
• Leasehold improvements
• Machinery
• Vehicles

Fixed assets are initially recorded as assets, and are then subject to the following general types of accounting transactions:

• Periodic depreciation (for tangible assets) or amortization (for intangible assets)
• Impairment write-downs (if the value of an asset declines below its net book value)
• Elimination (once assets are disposed of)

A fixed asset does not actually have to be "fixed" but it cannot be moved. Many fixed assets are portable enough to be routinely shifted within a company. Thus a laptop computer could be considered as a fixed asset (as long as its cost exceeds the capitalization limit). 

The depreciation of a fixed can also be done by simply allocating the expense generated by the uses of an asset. It is the wear and tear of an asset which is basically dependent on the usage. It is also the cost of the asset which is less than the salvage value over its estimated period. http://www.facts.ae