Simplify Your Asset Management with the Fixed Assets Module
Overview of Fixed Assets Features
The Fixed Assets module in Hinawi ERP helps manage resources from registration to disposal. It works with core modules such as Accounting, Real Estate, School Management, and the Garage module. Automating processes ensures greater financial accuracy and reduces the need for manual input.
This allows businesses to effectively track their resources’ financial and operational status in Accounting and Real Estate.
The Fixed Assets module is part of the Hinawi Software, established in Abu Dhabi, United Arab Emirates. It provides a seamless and efficient solution for asset management, specifically for tangible assets, meeting the needs of its users.
Unlocking the Secrets of Fixed Assets
Users can easily add new or existing resources like personal, depreciable, and real property to the system. They must enter basic details like name, code, description, department, and location.
The system also tracks classification, city, and the person responsible for the item. The system can register all resources, including land, real estate, vehicles, equipment, and computers. It automatically calculates monthly depreciation and updates the accounting system, reducing the user’s workload.
When a resource is added, the system links it to a set of accounts, including the original value, accumulated depreciation, depreciation expense, and the profit/loss account for resource disposal.
The module also provides warranties, maintenance schedules, resource images, and location information. Office equipment and furniture are examples of assets.
Furthermore, it integrates with the HR and Payroll module, allowing for the registration of resources assigned to employees, which they must return upon completing their service.
This seamless integration improves internal control, saves time, and reduces effort. The system generates detailed reports to track modifications and ensure data accuracy, making it an efficient and user-friendly solution for resource management.
It’s important to distinguish fixed assets from current assets. Depreciation: In this entry, you record periodic depreciation or a decline in net book value for tangible assets and amortization for intangible assets.
Depreciation
The module is designed to effectively handle monthly straight-line depreciation for various resources, including buildings, real estate, and equipment.
It carries out automatic monthly depreciation calculations and keeps financial records current. Depreciation ceases once the resource is fully depreciated or disposed of, ensuring precise tracking throughout the asset’s lifecycle.
Maintenance
This process allows users to manage requests, complaints, and work orders and generate invoices for completed tasks. It helps businesses track and account for expenses while ensuring efficient resource utilization.
The system accurately calculates maintenance costs and is integrated with Accounting and HR to facilitate accurate cost calculation, inventory management, and worker assignment.
Job cards can be opened for condition-based maintenance, and work orders must be monitored and closed upon completion to ensure accurate record-keeping and financial management of ongoing activities.
Disposal
When it’s time to retire a resource, the Disposal process simplifies the process of selling or fully depreciating it. The system calculates the remaining value, determines any profit or loss, and then automatically updates the accounting records to reflect the financial outcome.
Disposal can occur in two ways: either the resource is no longer usable and cannot be sold, or it can be sold through the system’s disposal interface.
In either case, the system calculates depreciation up to the disposal date, impacting the Profit and Loss accounts related to the resource’s retirement. The sales revenue is also reflected in the accounts if the resource is sold.
The system automatically records all these actions, ensuring that financial statements are accurate and up-to-date without the accountant manually creating entries.
Transfers Between Locations
When resources need to be relocated, the system tracks the transfer process between locations, departments, or projects with ease. The system automatically adjusts depreciation calculations based on the new location, ensuring that financial records remain accurate and all movements are fully documented.
One of the key features of the Fixed Assets module is the ability to seamlessly transfer resources between projects or departments.
Depreciation is calculated for the new project or department when a resource is transferred. Additionally, if the resource is used within the Contracting module of the Hinawi ERP system.
The depreciation is allocated to the project based on the duration the resource was in use, allowing businesses to determine the exact depreciation value for that specific project.
Integration with Other Modules
This module integrates seamlessly with accounting, automatically updating financial records for accurate income statements and balance sheets. When a resource is created, account numbers are assigned for its original value, accumulated depreciation, depreciation expenses, and any profit or loss from disposal.
It can also generate an invoice when a resource is sold. Depreciation is calculated monthly using the straight-line method, with the resource reflected in the balance sheet and depreciation expenses in the income statement.
This integration offers real-time insights into resource values and maintains strong financial control.
The Fixed Assets module also integrates with other modules in Hinawi ERP. It works with the Accounting Module for financial transactions, the Garage Module for vehicle and equipment maintenance, and the HR and Payroll Modules to track items assigned to employees.
The Property Management Module manages rental resources, improving tracking and management of leased items.
Settings
The Hinawi Fixed Assets module offers robust settings tailored to meet specific business needs. One of its key strengths is the system’s flexibility, allowing the admin user to establish policies for applying the Fixed Assets system.
This includes the pre-registration of accounts related to each resource, ensuring that all financial data is properly organized. Users can also predefine resource classifications, which helps prevent confusion and ensures smooth operations.
In addition, users can set the activity start date for resource registration, define depreciation monthly methods, and add custom fields to track additional information.
Other options include linking profit and loss accounts for sales and fields for deferred sales invoices. These customizations ensure that resource management aligns with the organization’s policies and requirements.
Reports
The Fixed Assets module provides various reports for asset tracking and management. The Detailed List and Depreciation Report offers a comprehensive overview of all registered items, including their depreciation data.
Monthly and annual depreciation reports track the rate of depreciation and monitor disposed items over time.
Expired Resources and Insurance insights into expired items and provide details on insured items, including relevant policy information.
Other reports include the Accumulated Depreciation and Maintenance Reports, which monitor cumulative depreciation and display maintenance operations performed.
The Attachment and Transfer Movement Reports track attachments and movement of items between locations or departments, providing clear visibility of transfers.
To ensure financial accuracy, the module includes the Accounting Entries Report, which provides detailed accounting and detailed accounting entries related to resource operations to ensure financial accuracy and balance financial accuracy.
This report provides detailed accounting and detailed accounting entries related to resource operations to ensure financial accuracy balances.
Standard Features of Hinawi ERP
User Interface and Usability
Hinawi ERP offers an intuitive and easy-to-navigate user interface that caters to users of all skill levels. Customizable access permissions allow administrators to restrict specific system areas, enhancing security and workflow management.
System Integration and Scalability
The Accounting Module integrates seamlessly with other Hinawi ERP modules, such as Fixed Assets, HR, School Management, Garage Contracting, and Real Estate.
This integration boosts operational efficiency and ensures that all activities are accurately tracked and reported. The system is scalable, making it suitable for businesses of all sizes.
Installation and Configuration
Proper installation and configuration are vital for the smooth operation of the property management accounting system. Start by evaluating current practices and software to customize the Hinawi module accordingly.
Ensure that your hardware and network meet the system requirements to optimize performance and reduce downtime. Comprehensive staff training should be provided for effective system use.
QuickBooks Accounting
We take pride in being among the first Pro-Advisors and licensed resellers of QuickBooks in the Middle East.
Our Hinawi Software ERP was designed to fill the gaps not covered by QuickBooks, especially for businesses in Abu Dhabi, Dubai, the UAE, and the MENA region. It offers comprehensive real estate, schools, HR, School, and fixed assets modules.
We recommend that QuickBooks users consider transitioning to Hinawi ERP. Its bilingual interface, available in Arabic and English, is user-friendly and highly customizable, making it ideal for companies in Arabic-speaking regions.
QuickBooks only supports real-time posting, but Hinawi has a batch and real-time posting feature.
Access Permissions
Hinawi ERP ensures high security through its comprehensive access management system. This system allows company administrators to control and specify which information and operations users can access, which is crucial for maintaining data security and operational efficiency.
Permissions are granted based on what appears in the menus, item by item, ensuring that the main user (admin) can precisely assign permissions, making the system secure and reliable.
The permissions screen covers all modules within the software, allowing permissions to be copied from one user to another, saving time. Additionally, a feature enables viewing-only permissions without granting any modification or editing rights.
The module helps track purchases, maintenance, depreciation, and disposal, improving efficiency, transparency, and financial control.
You can easily register items through the designated creation tab by entering details such as name, code, description, and classification.
The module offers reports, including resource lists, depreciation by item, monthly and annual summaries, and reports on disposed items.
The maintenance tab handles tasks such as creating and tracking work orders, managing complaints, and issuing related invoices.
Items can be transferred between locations, departments, or projects, with complete tracking and automatic depreciation recalculation based on the new location.
The module can record disposals, calculate the remaining value, and generate accounting entries for profit or loss, ensuring financial accuracy.
Depreciation is the process of allocating a resource’s cost over its useful life, gradually reducing its value due to wear and tear or obsolescence.
Straight-line depreciation is a method that allocates a resource’s cost evenly over its useful life, recording the same expense each year until full depreciation or salvage value is reached.
Accumulated depreciation is the total depreciation recorded over time, subtracted from the original cost of a resource in financial records.
It integrates seamlessly with accounting, garage, HR, payroll, and property management modules, ensuring smooth resource management across the system.
Module settings allow for customization of the system, including options for depreciation methods, custom fields, and profit/loss accounts for sales.
Salvage value is estimated based on the resource’s condition, expected useful life, and potential resale value.
Revaluations adjust a resource to reflect its current market value, recording the difference in a revaluation reserve and updating future depreciation accordingly.
The module enhances control by tracking operations, providing monitoring reports, and issuing alerts for data deficiencies or incomplete procedures.
When an item is sold or disposed of, the difference between its sale price and net book value is recorded as a gain or loss, and the item is removed from the records.
Fixed assets include long-term tangible items like buildings, machinery, vehicles, equipment, and furniture, which are used in business operations and have a useful life of more than one year.
A fixed asset is a tangible resource owned by a business, used in operations, and not expected to be sold quickly. It is depreciated over time as its value decreases due to use.
A fixed asset has a useful life over one year, is used in operations, is tangible, and is not for immediate sale. Its value depreciates over time.
Current assets are short-term, easily converted to cash, like inventory and receivables, while fixed assets are long-term and used in operations, depreciating over time.
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