Overview:
Assets are usually pieces of equipment related to your construction business, such as a crane, a truck, or a paint-spraying unit. Assets might also represent items like buildings for which you want PENTA to calculate and book depreciation. Alternatively, they can represent equipment items you want to manage as miniature profit centers—charging them to jobs and comparing the expenses and revenues they generate.
One “asset” may consist of several “pieces” of equipment. For example, scaffolding set may have 100 support pipes and 40 platform pieces. PENTA allows you to treat all these items as one asset, depreciating and disposing of them together. However, it also gives you the flexibility to move and rent those pieces independently.
PENTA uses asset information to perform a variety of functions:
- Maintain a record of the asset’s value and reports it on your Balance Sheet.
- Calculate depreciation for the Asset. “Depreciation” is a series of calculations that try to account for the wear and tear on an asset over time, and diminish its value in your books accordingly. PENTA can depreciate your assets differently for various reporting purposes. For example, PENTA can depreciate an asset quickly for tax purposes (e.g., using the MACRS method) and more slowly for your own books (e.g., using the straight-line method).
- Charge your jobs for the use of equipment assets. You charge a certain amount “per unit” of work, defining what a “unit” is through another window. This feature allows you to allocate equipment operation costs to the jobs that incur the costs.
- Charge your jobs and customers for rental of equipment items used on a job. This is similar to charging for use, except that PENTA bases its rental cost/billing calculation on the rate per period, length of the period, and duration of the rental. Using another Rental Schedule window, you can define duration-based rates and discounts in an equipment rental schedule, then associate a rate schedule with an asset. This lets you allocate operational costs to the jobs that incur the costs.
- Maintain where each asset is located and report that information at any given time. This helps you monitor your company’s property and schedule its use more effectively.
- Track the volume of usage an asset receives and automatically schedule preventative maintenance. You can assign an asset to one or more Maintenance Schedules, which are sets of pre-defined maintenance tasks that keep the Asset in good working condition. A Maintenance Schedule defines the milestones— called “triggers”— which measure the need for maintenance. A trigger tells PENTA what to measure, how to measure it, and what action to take when the measurement criteria is met (either schedule maintenance or warn you that it is due).
- Track asset-related costs like repair labor, fuel, lube, and replacement parts for each individual asset.
Benefits:
- Provides the ability to track locations of Fixed Assets within PENTA.
- Provides the ability to charge the usage of a fixed asset to Jobs/Work Orders.
- Provides the Ability to track multiple depreciation bases in PENTA.
- Provides the ability to asses an Asset's profitability over the entire life of an asset
Roles:
- Accounting Manager
- Accounting Clerk
- Fixed Asset Manager
- Controller
- Assistant Controller
Additional Content
- /wiki/spaces/KCSDEV/pages/5542282
- Select Correct Depreciation Method for Fixed Asset
- System Options relevant to Asset Information
- 194 = Determines whether Parent/Child Assets must have the same OU
- 195 = Determines whether or not PENTA will calculate Depreciation for an Asset if no "In Service Date" is set up for that Asset
- 219 = Determines the date for which PENTA will begin Depreciation Calculations. The choice is between the Asset's "In Service Date" vs the Beginning of the Accounting Period
- 248 = Determines whether PENTA Depreciates the Asset based on Original Cost or Book Value
Location:
- Fixed Asset Management> Asset Information
Video: