Tracking Off-Site Assets
Original Publication Date: 2002-Apr-06
Included in the Prior Art Database: 2003-Jun-21
Existing asset tracking systems generally track assets based on the work location of the employee who "owns" the asset. This, however, becomes a problem when assets are located in an area different from where the actual owner is currently located. In many cases, the work location does not represent the actual physical location of the asset, such as for employees who work remotely or from a home office or with respect to equipment that has been "loaned" out to a third party. Without more information, a company can easily find itself out of compliance with such tax laws, and face potential fines and penalties, as well as not know exactly where the asset is. In order to resolve this issue, an "asset tracking" process was created. This process allows an organization to track loaner fixed assets to their respective customer locations, which in turn puts the company in a better asset control posture and also enables them to correctly report PPT and SUT. Each loaner asset is assigned to a customer using a unique numbering scheme. Based on that number, the asset is reflected in the books at the physical location of the current customer. A couple of the advantages are listed below: Taxes would be paid based on the physical location of the asset rather than the owning employees location, which could reduce the company's tax bill in the event that the physical location has a lower tax rate, or no tax rate at all. From a controls perspective, the location of loaner assets can now be identified to their customer location. This reduces the chances of assets being lost in the midsts of transition between customers, thus reducing the number of “lost” asset writeoffs from the company's books.