Fixed Asset Management System

UNIVERSITY OF DAR ES SALAAM
SCHOOL OF BUSINESS
GROUP MEMBERS
NAME REGISTRATION NUMBER
MUSHI COLLINS AMON 2019-04-08624
MWAIPOPO RIZIKI M 2019-04-08821
TEMBA COLMAN APOLNARY 2019-04-12487
AUGUSTINO LUCIA G 2019-04-00583
Fixed asset management system.
Is an accounting process that seeks to track fixed asset

for the purpose of financial accounting, preventive
maintenance and theft deterrence .it enables an
organization to track and maintain its physical asset.
 Asset types include vehicles, furniture, machines and
computers
 Organizations faces significant challenges to track the
location, quantity, condition, maintenance and
depreciation status of their fixed asset.
 A popular approach to tracking fixed assets is by using
serial numbered asset tags, which are labels often with
bar codes for easy and accurate reading
Fixed asset register
Is an accounting tool used to keep lists of various assets that

a business owns and is used to summarize both accounting
and depreciation expenses.
 The fixed asset register will typically include details about
the assets such as what it is, where it is located and
purchases price. It includes details on all assets such as
condition, location and the owner
 It may take the form of a simple excel sheet or be
integrated with accounting software
It is important that the fixed assets must be recorded in the
fixed asset register because it is the proper way to keep
records and to maintain the proper control.
Purpose of fixed asset register
 The main purpose of fixed asset register is to enable the

accurate record and maintain both financial and non
financial information pertaining to each assets and to be
easy to identify and verify an asset when required
Contents of a fixed asset register
 the fixed asset register will typically contain the following
details about assets
• What it is
• Where it is located
• Purchase price
• Date of purchase
• Life of asset within the business
• Depreciated value of the asset after a particular point in
time
• Expected value at the end of its useful life
Coding techniques
Are the techniques used in assignment of numbers or letters

to items to classify and organize them.
 Through coding techniques an organization can represent
large amounts of complex information that would
otherwise be unmanageable
Types of coding techniques.
 Sequential coding technique.
Unique identifiers are assigned to data items in a sequence.
Numbers or letters are assigned in a specific order. A sequence
code contains no additional information other than an indication
of order of entry into a system
o Items are numbered consecutively to ensure that there will be
no gaps in the sequence, this enable the user to account for
all items.
 Block code.
Refers to the technique of adding extra bits to a digital
word in order to improve the reliability of transmission. The
designer of codes reserves certain numbers in the sequence
which will later used for certain classification.
Continued
The great advantage of block codes is that it allows future expansion of the
chart of accounts.
 Alphabetical coding technique.

This uses alphabets to present information.it is used mostly
with numbers
 Mnemonic codes.
Represents information or data item with a combination of
letters and numbers. The design team chooses the
combination so that clerks can more easily remember the
associated data items.
Suitable codes
We are going to use group code technique to capture all

information of fixed asset.
 Because group codes will enable us to add or delete items
without affecting others. Also we can assign meaning to
fixed assets without affecting other items
Codes description
Account category block
Land and buildings 1000-1999
Plant and equipment 2000-2999
Computer equipment 3000-3999
Office equipment 4000-4999
Furniture and fixtures 5000-5999
Motor vehicles 6000-6999
continued
Code location region

101 Dar es salaam
102 Arusha
103 Dodoma
104 Mwanza
Example
Id Description
6000-102-6001 Toyota FG 1.8 fork fit
2000-103-2004 Aquino T7 CNC machine
4000-101-4010 Office chair
3000-104-3001 Microsoft office 2010
Characteristics of a better coding system.
 Flexibility. A better coding system should be flexible. it should be
adaptable to the changes occurring in the business. To accomplish
this the code designer should create codes which will allow him to
incorporate changes in the business overtime.
 Simple as possible. A good coding system should be simple in
order to facilitate easy memorization of coding categories. Code
designer should not over complicate by including much details.
 Precision. All codes should be unique in order for a person to be
able to differentiate various types of assets and information
pertaining to that asset
continued
 Comprehensive
coding technique contain a lot of information concerning a
particular accounting information, for example a code can
be written as 200-300, this may indicate that there is a lot of
accounting information contained in the range of 200-300
 Brevity, a coding technique involve the systematically
process of summarizing accounting information in a simple
and easy way which can be understood easily by the user
of accounting information. For example an accountant can
write a code as 1999-2006 to indicate total fixed asset
owned by the company

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UNIVERSITY OF DAR ES SALAAM

Is an accounting process that seeks to track fixed asset

Is an accounting tool used to keep lists of various assets that

 The main purpose of fixed asset register is to enable the

Are the techniques used in assignment of numbers or letters

 Alphabetical coding technique.

We are going to use group code technique to capture all

Code location region

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