There are several reasons to track inventory. One important function is to monitor sales. Inventory tracking systems can follow your inventory (products) movements, as well as to calculate the cost of goods sold in your stores.
There are several reasons to track inventory. One important function is to monitor sales. Inventory tracking systems can follow your inventory (products) movements, as well as to calculate the cost of goods sold in your stores.
Compared to fixed asset systems, inventory tracking systems does not include the ability to plan and schedule maintenance on items in stock, even if such items normally require period stock taking when in service. For example, companies which sell fridges and equipment, don’t perform maintenance on the equipment in the inventory though customers who uses them are recommended to maintain it regularly.
If equipment in inventory is not in use, then it only needs maintenance only when it is sold and customer begin using it.
Fixed asset tracking systems on the other hand, have the ability to calculate and record each asset’s depreciation. The best fixed asset tracking systems have multiple depreciation methods to calculate periodic depreciation.
The most common method of depreciation is known as straight-line depreciation, which calculates the initial cost divided by its useful life. Other methods include double declining balance and sum of the year’s values.
To combat depreciation, fixed asset tracking systems should have the ability to track required and preventive maintenance on requirement. This allows companies to plan and schedule necessary servicing and repairs as and when required in turn prolonging useful life of its assets.
Fixed asset tracking systems can also monitor the check-out / check-in processes including tools or equipment such as computers or projectors. If fixed assets aren’t properly tracked, they can become lost or stolen. Both private and public sectors can benefit from a centralized software and database that automates the tracking process.