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Fixed assets: register, depreciation, tax book and work in progress

Every machine, compressor, forklift, die and computer your factory owns sits in one register with its cost, depreciation and book value. A machine can depreciate by the hours it ran in production. Income-tax depreciation is worked out by block beside the books. A new shed gathers its cost until it becomes an asset.

PLANSScale only

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The problem it solves

The fixed asset register is an Excel sheet the accountant updates once a year, and the machines on it no longer match the floor.
Depreciation for the books and for income tax are worked out in two sheets that never agree.
A machine that runs three shifts is depreciated the same as one that runs one.

How it works

Your accountant sets up the asset categories once: Plant and Machinery, Buildings, Vehicles, Furniture and Fittings, Computers and IT, Tools. Each has its accounts, method and life.
Assets come in by themselves. Posting a supplier bill on a category's asset account makes a draft asset, one per unit if you ask. Serial-numbered items received into stock can also become assets.
Open the draft, check the cost, the custodian and the place, and link the machine: its Work Centre in production and its Equipment in maintenance. Press Confirm; the depreciation board is worked out to the end of its life.
Take a machine on Units of Use with hours as the unit. Each period's depreciation takes the hours its work centre ran in production from the time logs.
When a machine gets a new motor or moves to another bay, press Change. Revaluing, impairing and changing the life go through the Asset change chain first.
When you sell or scrap an asset, press Dispose. Once a year, open Tax Depreciation, pick the year and press Work It Out.

Everything it does

Depreciation

Straight Line, Written-Down Value, Declining to Straight Line, Units of Use, Manual Schedule, Not Depreciated (land)
Units of Use by machine hours: the productive and performance time of the asset's work centre in the period
First period: by days from the day in use (the default), the whole first month, from the next month, or half a year
Each month's line is Planned or Posted with its entry; Depreciation Schedule lists them by category, year and Entity

Machines on the floor

Work Centre on the asset, and an Assets button on the work centre
Make Equipment on the asset makes the maintenance equipment with its serial, cost and date in use; one equipment per asset
On the equipment, Fixed Asset shows the book value and opens the asset, or makes one
Running costs, contracts and insurance: see Asset care

The asset

Code FA/year/, name, serial number, category, cost, salvage value, Bought On and In Use From
Custodian (a user), Where (typed) and the analytic account
States: Draft, Running, Paused, Fully Depreciated, Disposed; book value always shown
Changes: Add Value, Revalue, Impair, Change Remaining Life, Pause, Resume, Move, each kept with date and who
Dispose as Sold (Make the Invoice on to start with) or Scrapped; depreciation up to the day

Tax book and work in progress

Tax blocks beside the books; the tax book posts nothing
India pack: blocks at 40 %, 15 %, 30 %, 10 %, 5 % and 25 %. Half the rate for assets used under 180 days in their first year
The report per block: opening, added at full and half rate, sale money, depreciation and closing
Work in progress: a project such as a new shed or a line being installed, with its budget. Cost So Far adds the posted lines. Capitalise makes the asset with that cost

Who uses it

Accountant (Asset Manager)Sets up categories and tax blocks, confirms assets, makes changes and disposals.

Maintenance or store head (Asset Incharge)Reads the register and finds a machine by its tag in the SmartMy Manufacturing app.

Every staff member (Asset User)Sees only the assets given to them, in With me in the app.

Owner or plant headApproves revaluations, impairments, sales and scrapping through the Asset change chain.

Where you use it

Web: Invoicing > Fixed Assets (Fixed Assets, Depreciation Schedule, Work in Progress, Tax Depreciation, Asset Requests); Invoicing > Configuration > Asset Categories
Web: the Assets button on a work centre, and Fixed Asset on a maintenance equipment
The SmartMy Manufacturing app: Find an asset by scanning its tag, for the Asset Incharge (built and in testing, not in the app stores yet)

What you control

Settings

Per category: Write Off Below, Make Assets from Bills (off), One Asset per Unit (on), Post Depreciation Each Month (on)
Per asset: the method, the unit (hours to read production time) and the work centre
Asset change chain: the asset managers to start with
Roles: Asset User (every staff login), Asset Incharge (nobody at the start), Asset Manager (the administrator at the start)

Approvals

Asset change: revaluing, impairing, changing the life, selling or scrapping 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 chain; in-app and email

Questions

Can a machine depreciate by the hours it runs?

Yes. Set the asset to Units of Use with hours as the unit and link its work centre. Each period takes the hours the work centre ran in production from its time logs.

Do we enter the machine twice, once for accounts and once for maintenance?

No. Press Make Equipment on the asset, or Fixed Asset on the equipment. The two stay linked, one to one.

Does it follow Indian income-tax depreciation?

It keeps a tax book by block beside the books, with half the rate for assets used under 180 days in the first year. The India pack gives starting blocks; your accountant checks them first.

Which plan has it?

Scale, with full accounting.

Related features

ASSETSAsset care, and assets issued and returnedKeep the warranty, maintenance contract (AMC) and insurance of your machines, compressors, forklifts and computers, and be told 30 days before each ends. Give a tool, a laptop or a gauge to a staff member, a job worker or a place. A staff member confirms it, on the web or the phone, before it moves to them. When it comes back, record its condition and any damage charge.ASSETSPhysical verification of assetsCount the machines, tools and equipment in each plant by scanning their QR tags with the phone or a barcode scanner. Each asset is marked found, found elsewhere, missing or not in the register. Those found elsewhere move to where they were found in one step.ACCOUNTINGFull accounting with GST returnsCustomer invoices, supplier bills, job workers' bills and payments post into your books on every plan, with the plant on each line. Scale adds the full accounting screens and Financial Reports, from ledgers to cash flow and consolidation, with GSTR-1 and GSTR-3B for India.PLANNING, QUALITY AND COSTPreventive maintenance by days, hours or cyclesEach machine gets maintenance plans that fall due by the calendar, by its running hours or by the pieces it has made. A due plan raises a maintenance request with its checklist and spares, and closing the request costs it and moves the plan on.ACROSS SMARTMY MANUFACTURINGApproval chainsDecisions that cost money or change how you build go to the right people in order before they take effect. They cover failed goods, engineering changes, corrective actions, store requests and asset changes. With no set-up the usual managers approve; you add levels without code.

See your shop floor on it.

Tell us what you make, how many machines and people you run, and how production is recorded today. We will set up a line with you and run a job on the terminal.

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