Efficient management of fixed and inventory assets through xTrack AMS (Asset Management System)

Effective management of fixed and inventory assets is essential to the success and sustainability of a business because it is aimed at reducing losses and using them as efficiently as possible. Find out more about what fixed assets and inventory management process is and how you can optimize it with Axes Software’s xTrack AMS (Asset Management System) application.

What are fixed and inventory assets?

Fixed assets are tangible goods with a value that exceeds a certain minimum level (the minimum value that an asset must have to be considered a fixed asset changes from time to time through legislative changes), have a useful life of more than one year and produce long-term economic benefits.

Their correct identification is based on the Fixed Assets Catalogue, which is also updated regularly. According to this Catalogue, fixed assets are grouped into three main categories:

• Construction,
• Technical installations, means of transport, livestock and plantations,
• Furniture, office equipment, equipment for the protection of human and material assets and other tangible assets,

with additional sub-classifications, to which the codes and normal lifetimes (in years) for each of these are added.

Fixed assets should not be confused with inventory assets. Inventory assets have a maximum monetary value below the minimum level set for fixed assets and a useful life of less than one year. Also, unlike fixed assets (which are generally depreciable), they are recorded on balance sheets as a total expense when they are purchased and commissioned and therefore they do not depreciate.

What is fixed and inventory asset management?

The management of fixed and inventory assets is the complex process of tracking, managing and controlling all of a company’s assets in order to maximize the results of their use.Fixed asset and inventory management is the complex process of tracking, managing and controlling all of these assets of a company in order to maximize the results of their operation.

A company’s accounting department is directly involved in their management, as it is required to keep track of fixed assets and inventory, constantly monitoring their movement, increase in value or depreciation, scrapping or sale.

The management of these assets has not only a strictly accounting side, but also a logistical one, so the list of activities involved in this process is more extensive and is also of interest to production, warehouse or transport managers:

The management of these assets has not only a strictly accounting side, but also a logistical one, so the list of activities involved in this process is more extensive and is also of interest to production or transport managers:

• recording the assets in the accounts on receipt,
• calculation of depreciation (straight-line, declining balance or accelerated depreciation),
• keeping an up-to-date record of these assets in terms of acquisitions, theft, losses, replacements or scrapping,
• planning and tracking maintenance and repair activities as well as associated costs,
• full and detailed traceability of assets and maintenance work for each one,
• drafting reports or documents concerning the assets (handover-receipt or scrapping-related documents, etc.).

What are the challenges of managing fixed and inventory assets?

Companies frequently face a number of challenges in the process of managing fixed assets and inventory, of which we list a few:

Inaccurate records of assets held

When recording assets that become fixed or inventory assets of a company, inaccurate information may be entered relating, for example, to the date or cost of acquisition, the useful life, and, if applicable, depreciation and maintenance history.  This can create errors in financial reporting and valuation.

Poor traceability

Maintaining visibility of the location and movement of each asset at all times is certainly a difficult task, especially if the organization has a large number of fixed and inventory assets in multiple locations. Without a centralized tracking system, the opportunity to optimize the use of these assets is lost and the process of scrapping assets at the end of their normal useful life or for any other reasons (wear and tear, obsolescence, excessive repair costs, etc.) is made more difficult.

Errors in the fixed asset depreciation calculation

An accurate depreciation calculation is very important in financial reporting. Errors in calculation lead to erroneous asset values and incorrect financial statements.

Neglecting fixed asset maintenance

Inadequate maintenance can reduce the useful life of a fixed asset (especially, for example, in the case of machinery, equipment and machines used in production and transport) and thus lead to higher repair costs. Neglecting preventive maintenance results in unforeseen breakdowns, which can disrupt some of the company’s activities.

Manual management

Manual management is time-consuming and human errors can affect the way assets are managed as well as the accuracy of fixed asset and inventory records.

How do you solve these challenges?

Adopting modern automated systems to manage these (and other) assets can go a long way to solving these challenges, as well as the legal ones of complying with various accounting standards and tax regulations.

Also, the introduction of data capture technologies, based on barcode, QR or RFID tag reading, and the use of handheld devices in conjunction with software systems for managing fixed and inventory assets, is a major contributor to reducing the time required to establish and maintain a complete record of these assets, and to ensuring data accuracy.

Axes Software offers you a comprehensive fixed and inventory asset management solution, xTrack AMS. 

What is xTrack AMS (Asset Management System)?

xTrack AMS is a modern digital solution designed to manage fixed and inventory assets. With Axes Software xTrack AMS you ensure the traceability of fixed assets, inventory assets and operations related to them: acquisition, storage, allocation of each asset per person or production unit/warehouse, transfer from one employee to another/from one location to another, scrapping, software updates.

With xTrack AMS software, you can efficiently manage these assets in companies of any size, based on relevant, appropriately set performance indicators. The main goal of this solution is to facilitate the efficient tracking, management and reporting of assets from acquisition to derecognition/write-off/removal from financial statements. This management system is an application that relies on powerful integrated digital technologies so as to provide companies with a complete view of all the fixed and inventory assets they own.

What features does Axes Software’s xTrack AMS have?

xTrack AMS functionalities include the management of fixed and inventory assets, real-time monitoring and verification by location and responsible persons, automatic generation and issuing of documents, interfacing with ERP applications.

Axes Software’s xTrack AMS enables companies to track asset-related activities in real time, providing a clear up-to-date picture of their status. In addition, the implementation of xTrack AMS is another important step in the digitization of companies’ logistics activities, enabling them to manage data in an efficient, dynamic and interactive way.

Users can add, update and delete information depending on their access rights and the completion of certain steps (in the case of scrapping, for example, the process involves several steps and/or validations by several people). Through one of its key functionalities, the generation of reports and documents based on predefined templates, xTrack AMS allows users to customize them (and print them if necessary) in a very short time, according to the specific needs of the company.

According to the specifics of the company’s activities, the application can be used to schedule maintenance periods and maintenance work for fixed or inventory assets requiring such operations. Managers can thus avoid situations where workflows are affected by preventable breakdowns or extend the service life of equipment through timely maintenance work.   

Benefits of using xTrack AMS for fixed and inventory asset management

Using xTrack AMS has many advantages. First of all, this system allows a significant optimization of fixed and inventory asset management processes, saving time and resources. Using the application reduces the risk of errors and ensures traceability of operations. In addition, with xTrack AMS, companies can have better control over these assets, leading to better use of resources and increased efficiency for the whole company.

The way xTrack AMS works is simple, but effective. All information related to fixed and inventory assets is entered into the system either manually or by importing data from other sources (e.g. ERP). Once the data is in the system, it can be easily updated and managed so that users have a clear record of all existing assets as well as those that are no longer in use (scrapped, sold, stolen or lost). The system provides a range of tools that allow users to analyze data in a variety of ways to gain a better understanding of the status of assets. In addition, xTrack AMS allows the generation of customized reports that can be used to make informed decisions about the management of fixed and inventory assets.

Tracking and monitoring their assets, equipment, machinery, etc. across multiple locations for maintenance needs help companies reduce their maintenance and repair costs and significantly improve their operational efficiency.

Data security and privacy is a key component of xTrack AMS, which comes with advanced safeguards. These include data encryption, authentication, access control, and security auditing. Each user has a personal account, registered in the system, and access is granted via a unique username and password. By controlling access to xTrack AMS, it is established from the outset who can access certain types of information and what levels of access are allowed.

How to implement Axes Software’s xTrack AMS

xTrack AMS implemention is a process that requires careful planning. The first step is to assess your company’s needs. This involves identifying all fixed and inventory assets, as well as defining the specific requirements for each of them. Based on this assessment, the most appropriate xTrack AMS service plan for your company’s needs will be selected.

Once the plan has been selected, the configuration of the system follows. This process involves adapting the solution structure, setting specific parameters and entering all relevant data into the system. Correct configuration of the system is essential to ensure efficient management of the targeted assets. Training the staff who will use the xTrack AMS system is an important step in the implementation process. Axes Software specialists provide assistance before, during and after implementation, training for employees as well as technical support to solve any problems that may arise during the use of the system.

xTrack AMS offers robust integration features that allow seamless connection with other systems. An important aspect of the xTrack AMS implementation is the integration with other existing systems used by the company, such as ERP systems. This ensures the import or export of relevant data.

Finally, xTrack AMS offers business customization and scalability options. The system can be tailored to suit your company’s specific needs and expanded as your company grows. This means xTrack AMS can continue to provide you with effective support, no matter the size or complexity of your operations.

Using xTrack AMS to manage fixed and inventory assets brings financial benefits, improves productivity and reduces operational risk. All of this makes Axes Software’s application an effective solution for any company looking to streamline its processes and improve its financial and operational performance.

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Choose an intelligent asset management solution that allows you to minimize inventory losses, equipment failure and downtimes, and can help improve their lifetime value.