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Fixed assets: register and depreciation

Every bed, mattress, AC, geyser and washing machine your hostels own sits in one register with its cost, depreciation and book value. Depreciation posts to your books each month, and selling or scrapping an asset goes through your approval chain first.

PLANSScale only

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The problem it solves

The asset list is an Excel sheet the accountant updates once a year for the audit, and nobody trusts its figures.
You buy 40 beds and 40 mattresses on one bill, and nobody can say which block or room each one went to.
An AC is moved from a room to the warden's office, or a geyser is scrapped, and the books never hear of it.
The owner asks what the furniture and machines of each hostel are worth today, and the answer takes a week.

How it works

Your accountant sets up the asset categories once: Furniture and Fittings for beds and wardrobes, Plant and Machinery for geysers and washing machines. Each has its accounts, method and useful life.
Assets come in from bills. With Make Assets from Bills on, a vendor bill posted on the category's asset account makes draft assets. One per unit if you ask: a bill for 40 beds makes 40 assets.
Open the draft, check the cost, the custodian and the place (typed, such as Block A Room 204 or Laundry Room), and press Confirm. The depreciation board is worked out to the end of the asset's life.
When an AC moves to another room or a washing machine gets a costly new motor, press Change. Revaluing, impairing and changing the life wait for your Asset change approval chain.
When you sell or scrap an asset, press Dispose. The request waits for the same chain. Once approved, the entry takes the asset off the books with its gain or loss, and a sale can raise the buyer's invoice.

Everything it does

Depreciation

Methods: Straight Line, Written-Down Value, Declining to Straight Line, Units of Use, Manual Schedule, Not Depreciated (land)
First period: by days from the day in use (the default), or whole first month. Or from the next month, or half a year in the first year
Written-down value works on each financial year's opening value, so it follows your Entity's financial year
Each month's line is Planned or Posted, with its journal entry. Depreciation Schedule shows every asset's lines as a list or pivot by category, year and Entity

The asset

Code numbered FA/year/, name, serial number, category, cost, salvage value, Bought On and In Use From
Custodian (a user, such as a block's warden), Where (typed, such as Block B Mess Hall) and an analytic account per hostel if you like
States: Draft, Running, Paused, Fully Depreciated, Disposed; book value always shown

Changes and disposal

Add Value (Improvement), Revalue, Impair, Change Remaining Life, Pause, Resume, Move / New Custodian
Each change is kept on the Changes tab with the date, from, to and who made it. The board is worked out again from that day
A paused asset, such as a block closed for the summer, stops depreciating; resuming carries on with the months that were left
Dispose as Sold (Sold For, the buyer, Make the Invoice: on to start with) or Scrapped. Depreciation is posted up to the day, part month by days

With the Inventory app

Room kits use the Inventory app; where it is installed, a product category can name a Fixed Asset Category
Serial-numbered products of that category then become assets when received, one per serial, with the stock location the serial is in

Who uses it

The accountant (Asset Manager)Sets up categories, adds and confirms assets, makes changes, sells or scraps assets and reads the depreciation schedule. Only this role adds or changes assets.

Hostel manager (Asset Incharge)Reads the register and where each asset is, once they also have an Invoicing role. Gives assets out, takes them back and counts them.

Every staff member (Asset User)Sees only the assets given to them, in the SmartMy Hostel Staff app or from the message.

The ownerApproves revaluations, impairments, life changes, sales and scrapping through the Asset change chain, when added as an approver.

Where you use it

Web: Invoicing > Fixed Assets (Fixed Assets, Depreciation Schedule, Asset Requests)
Web: Invoicing > Configuration > Asset Categories
The SmartMy Hostel Staff app: Find an asset for the Asset Incharge. Scan the QR tag or type the serial number to see where the asset is and who has it. The app is built and in testing, not in the app stores yet
Not in the app: adding or changing assets, and depreciation
Not in the SmartMy Hostel app for residents or on the resident portal
Not linked to the hostels, rooms and beds you set up in Hostel: Where is typed on each asset
Not linked to the room kits and condition reports of Room assets: a bed on a room kit is not its fixed asset
Not in SmartMy Hostel: a tax book for income-tax depreciation by block, and capital work in progress

What you control

Settings

Per category: method, useful life (60 months to start with), rate, salvage share, first period (by days to start with)
Per category: Write Off Below, Make Assets from Bills (off), One Asset per Unit (on), Post Depreciation Each Month (on)
Asset change approval chain: the asset managers to start with, with levels you add under Approvals > Configuration > Approval Chains
Roles: every staff login has Asset User by itself. Nobody has Asset Incharge to start with. Only the administrator has Asset Manager: give it to your accountant

Approvals

Asset change: revaluing, impairing, changing the remaining life, selling or scrapping an asset waits for the chain (the asset managers to start with). Improvements, moves, pause and resume go through at once.

Notifications

Request Waits for Your Approval: to the approvers of the Asset change level, in the app and by email. App push comes once the apps are in the stores. They also get a to-do in the back office

Questions

We bought 40 beds for a new block on one bill. Do we enter each one?

No. Turn on Make Assets from Bills on the Furniture category. The bill line of 40 makes 40 draft assets at one-fortieth of the cost each. You type the place and confirm.

Can we see assets for each hostel?

Group the register by Where to see each block or room. For value by hostel, give each asset the hostel's analytic account; depreciation posts with it. Each Entity keeps its own register.

Does it work out income-tax depreciation?

No. SmartMy Hostel keeps depreciation for the books, including written-down value at a yearly rate. The income-tax block book is not part of it; your accountant works that out separately.

Can a manager scrap a broken geyser alone?

Dispose makes a request that waits for the Asset change chain. With no set-up any asset manager approves it. Add a level with the owner to see every sale and scrapping.

Which plan has it?

Scale. The register and depreciation come with care, issue and return, and physical verification.

Related features

ASSETSAsset care, and assets issued and returnedGive a laptop to a warden, a mattress to a room or an iron to a resident. A member of staff confirms what they receive, in the app or from the message, and the asset moves to them only then. Record its condition when it comes back. Keep the warranty, AMC and insurance of each AC, geyser and washing machine; the person looking after it is told 30 days before each ends.ASSETSPhysical verification of assetsCount the beds, ACs, geysers and furniture of each block and room by scanning their QR tags. See at once which were found, which are missing, which turned up in another room and which are not in the register. The count is kept with who saw each asset and when.CHECK-OUT AND SETTLEMENTRoom kits and their condition at check-in and check-outEach room type has a kit (cot, mattress, cupboard, fan), and each room holds its kit in stock. The room's condition is recorded when a resident checks in and when they leave. Damaged and missing items become charges on the stay.ACROSS SMARTMY HOSTELApproval chainsEvery approval in SmartMy Hostel goes through a chain. That covers leave and out-passes, room change requests, final settlements, club events and club joining, and changes to fixed assets. With no set-up the usual people decide; you add levels, such as the chief warden after the warden, without code.PRIVACY, AUDIT, PLATFORMSeveral entities in one accountRun hostels owned by different firms, trusts or partners in one SmartMy account. Each Entity has its own hostels, invoices, numbering, approval chains and message settings, and the owner still sees all of them together.

See it with your own blocks and classes.

Tell us how many hostels and students you have. We will show you an allotment, a leave request approved by a parent and a night roll call, set up the way your hostel works.

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