Editar

Compartir a través de


Support your organization’s business processes to manage internal assets

This applies to: Dynamics 365 Business Central, Dynamics 365 Finance, Dynamics 365 Supply Chain Management

This article describes how you can use Dynamics 365 products to support your organization's business processes to manage internal assets.

Introduction to manage internal assets

Managing internal fixed assets is a process that generally involves identifying and tagging fixed assets, maintaining asset register and books, running depreciation cycles, maintaining and reconciling asset details and reporting asset information.

A fixed asset book is a record of the fixed assets owned by a business or organization. Fixed asset books typically contain information such as the description, identification number, acquisition date, acquisition cost, depreciation method, net book value, and disposal date of each fixed asset. A fixed asset book helps to track the changes in the value and condition of the fixed assets over time. It also helps to comply with accounting standards and tax regulations regarding the reporting and valuation of fixed assets.

Fixed assets are subject to depreciation, which takes into account the value of the asset used over its useful life. Depreciation cycles are the periods of time over which fixed assets lose their value. Different types of fixed assets have different depreciation cycles, depending on factors such as their expected lifespan, their usage, and the tax regulations that apply to them. Depreciation cycles are important for businesses because they affect the amount of expenses and income that are reported on the financial statements. Depreciation also affects the net book value of fixed assets, which is the difference between their original cost and their accumulated depreciation. Net book value represents the current value of fixed assets on the balance sheet.

Insurance is a form of risk management that protects an organization from financial losses due to unforeseen events, such as theft, damage, or natural disasters. Insurance policies typically require the insured party to provide accurate and updated information about the assets covered by the policy, such as their location, value, and condition. By managing internal fixed assets, an organization can maintain an accurate inventory of its assets and provide the necessary information to its insurance provider. Thus, under or over insurance of the asset can be avoided which can otherwise result in either insufficient coverage or unnecessary premiums.

Transferring fixed assets is a process of changing the ownership or location of assets that have a long-term use and value. There are different reasons why a business may want to transfer fixed assets, such as selling, donating, leasing, relocating, or disposing of the asset. Depending on the type and purpose of the transfer, there may be accounting, tax, and legal implications that need to be considered. For example, transferring fixed assets may affect the depreciation expense, the net book value, the gain or loss on disposal, and the asset turnover ratio of the business. Additionally, transferring fixed assets may require updating the asset register, preparing journal entries, issuing invoices or receipts, and filing tax returns or forms. Therefore, it is important to follow the proper procedures and documentation when transferring fixed assets to ensure accuracy and compliance.

Manage internal asset stakeholders

Many people in an organization must contribute to the decision-making process and design of the internal asset management process in your Dynamics 365 project. Stakeholders include the roles listed in the following list:

  • Asset managers - responsible for managing the lifecycle of assets

  • IT department - responsible for maintaining and testing technology solutions

  • Finance department - responsible for tracking asset costs

  • Operations department - responsible for maintaining the maintenance schedule of the assets to support business operations and providing inputs if an asset requires any reactive maintenance

  • Human resources department – responsible for hiring and training users who will be maintaining and repairing the assets

  • Procurement department - responsible for purchasing spare parts and managing vendor relationships

  • Legal and compliance department - responsible for ensuring regulatory compliance related to asset management

  • Executive leadership - responsible for overseeing the acquisition and disposal of high-value assets and ensuring alignment with strategic goals

Manage internal asset process flow

The following diagram shows the high-level business process flow for managing internal assets.

Flow diagram with steps for the business process area that is further explained in the next paragraphs.

Each solid gray rectangle on the diagram represents an end-to-end business process. The solid blue rectangle represents the business process area. The diagram shows the subprocesses for the business process area. The arrows on the diagram show the flow of the business process in an organization. If a subprocess can lead to more than one other subprocess, the parallel subprocesses are shown as branches.

The manage internal asset business process area flow diagram covers the following steps.

  1. Start

  2. Acquire to dispose

  3. Manage internal asset

    1. Create and maintain fixed assets

    2. Update asset details

    3. Insure an asset

      1. Branch to update asset operational information

        Sub-branches to the end-to-end processes Hire to retire, Record to report, Case to resolution, Project to profit, and Forecast to plan

      2. Branch to transfer assets

        Sub-branch to the end-to-end process Record to report

  4. End

Manage internal asset benefits

There are many key benefits that can be used to monitor and measure the success of maintaining and repairing internal assets. The following sections outline the key benefits that an organization might monitor and measure to manage internal assets.

Maintain centralized information

One of the benefits of maintaining centralized fixed asset information is that it allows for better management and control of the assets. Centralized fixed asset information can help to track the location, condition, depreciation, and value of the assets, as well as to plan for maintenance, replacement, or disposal. Centralized fixed asset information can also facilitate compliance with accounting standards, tax regulations, and audit requirements. By having a single source of truth for fixed asset information, organizations can avoid errors, inconsistencies, and duplication of data, and improve their efficiency and accuracy. Learn more about how Dynamics 365 supports fixed assets at Fixed assets home page (Finance) and Managing Fixed Assets (Business Central), respectively.

Record asset status

One of the important tasks of an asset manager is to maintain a record of fixed assets. This record helps to track the status and value of the assets, as well as to comply with accounting and tax regulations. By maintaining a record of assets, an asset manager can ensure that these are properly accounted for and reported in financial statements. A record of fixed assets should be kept for a certain time duration based on policy and regulation requirements by the relevant authorities. Learn more about the ability to monitor and analyze leased fixed asset at Asset leasing reports (Finance) and Fixed Assets Reports and Analytics in Business Central, respectively.

Monitor insurance coverage cost

One of the responsibilities of a fixed asset manager is to monitor the insurance coverage and cost of the assets under their control. This involves keeping track of the current market value, depreciation, and replacement cost of each asset, as well as the terms and conditions of the insurance policies that cover them. By monitoring these factors, the fixed asset manager can ensure that the assets are adequately insured and that the insurance premiums are reasonable and affordable. Monitoring the insurance coverage and cost of fixed assets can also help the fixed asset manager identify any gaps or risks and take appropriate actions to mitigate the issue.

Improve operational efficiency

Here are some ways to achieve operational efficiency:

  • Investing in modern and efficient fixed assets that can perform tasks faster, more accurately, and with less waste than outdated or obsolete ones

  • Maintaining and repairing fixed assets regularly to prevent breakdowns, malfunctions, and safety hazards that can disrupt operations and cause losses

  • Optimizing the application and allocation of fixed assets to avoid idle capacity, overstocking, or underuse that can affect profitability and cash flow

  • Implementing asset management systems and practices that can track, monitor, and evaluate the performance, condition, and value of fixed assets and provide insights for improvement

Note

The manage internal asset business process area flow diagram shown above is described at a high level, and there may be variations in the process flow depending on your operating model and business process requirements.

Next steps

If you would like to implement Dynamics 365 solutions to assist with the management of internal asset business processes, you can use the following resources and steps to learn more.

  1. Plan and budget assets

  2. Acquire assets

  3. Manage internal assets. (The article you're currently reading.)

  4. Manage and report on asset financials

  5. Maintain and repair internal assets

  6. Retire and dispose of assets

You can use the following resources to learn more about the manage internal asset process in Dynamics 365.

Contributors

This article is maintained by Microsoft. It was originally written by the following contributors.

Principal author:

  • Harshad Puthran | FastTrack Solution Architect