ERpnext Asset Management Procedure 260113

ERPNext Asset Management Procedure

Document Code: OP-IT-ASM-01
Title: IT Asset Management Procedure
Effective Date: 2025-10-30
Revision: 03
Prepared by: IT Department
Approved by: Management Representative

1. Objective

This procedure establishes a standardized system for identifying, tracking, maintaining, and disposing of IT assets using ERPNext's Asset Management Module. It ensures efficient utilization, lifecycle visibility, and compliance with accounting and data security requirements. The procedure incorporates custom fields and ERPNext module features to enhance traceability and decision-making.

2. Scope

This procedure applies to all IT hardware, software, and digital or consumable assets owned, leased, or managed by the Comfac Group of Companies. It covers the full lifecycle—from acquisition and deployment to maintenance, movement, depreciation, and disposal.

3. Definition

3.1 ERPNext Asset Management Fields

The following are standard and custom fields used within the ERPNext Asset DocType:

• Item Code – Unique identifier linked to inventory records.
• Asset Name – Name following the CGG naming convention.
• Item Name – Model, brand, or specifications of the asset.
• Model Date (Custom Field) – Indicates the manufacturing or model year for lifecycle tracking.
• Details (Custom Field) – Describes bundled or composite assets consisting of multiple sub-items.
• Custodian – Assigned employee or department responsible for the asset.
• Department – Department under which the asset is charged.
• Location – Office or project site where the asset resides.
• Asset Category – Classification following ERPNext's hierarchy (e.g., Computers, Network Devices, Tools, etc.).
• Asset Maintenance Team – Group or personnel responsible for maintenance tasks.
• Asset Maintenance Log – Record of maintenance or repair actions performed.
• Asset Repair – Record of repairs initiated for defective or damaged assets.
• Asset Capitalization – Conversion of items into capitalized fixed assets.
• Asset Depreciation and Balances – Tracks financial depreciation over time.
• Asset Activity – Logs updates, movements, and other actions related to the asset.

Reference: ERPNext Asset Module Documentation

3.2 Asset Naming Convention

To ensure uniform identification and traceability of assets across companies and departments, the following naming convention applies:

Format:

[Company Code]-[Department Code]-ast-[YYMMDD]-[####]

• Company Code – Refers to the legal entity (CSC, ESC, CF, CIT, etc.).
• Department Code – Refers to the department (e.g., MIS for IT, ENG for Engineering, HR, FIN, etc.).
• ast – Tag indicating that the record refers to an Asset (distinct from DocType series).
• YYMMDD – The asset creation or acquisition date.
• #### – Four-digit serial number starting from 0001, reset daily or monthly per IT policy.

Examples:

• CSC-MIS-ast-251030-0001 → 1st IT asset recorded on Oct 30, 2025, under Cornersteel Systems Corp.
• CF-FIN-ast-250801-0042 → 42nd Finance asset for Comfac IT recorded on Aug 1, 2025.

Item Naming Format

For the Item Name field, the format provides descriptive identification of the asset type:

[ItemType]-[YYMMDD]-[####]

Examples:

• desktop-251030-0005
• license-251030-0008
• router-251030-0002

Digital Asset Naming

Digital or intangible assets such as software licenses or subscriptions follow:

[Company Code]-[Department Code]-dg-[YYMMDD]-[####]

Examples:

• CSC-MIS-dg-251030-0003 → Microsoft 365 License assigned to MIS.

4. References

• IT Equipment Requisition Form
• IT Asset Monitoring Sheet
• ERPNext Asset Management Module
• ERPNext Asset Dashboard and Fixed Asset Register
• Accounting Policies on Depreciation and Capitalization

5. Responsibility

Role	Responsibilities
IT Department	Manages ERPNext Asset records, customizations, and lifecycle tracking; ensures data consistency.
End Users / Departments	Responsible for proper use and safekeeping of assigned assets. For individually issued items, the named Custodian is responsible. Important: If an asset is assigned to a Department or Section without a specific named individual in the employee field, accountability automatically defaults to the Department Head or Section Officer of that unit.
Requestor	Initiates IT Requests for new or replacement assets.
SPLD and Accounting	Collaborates on budgeting, procurement, depreciation, and disposal schedules.
HR Department	Notifies IT of employment changes affecting asset custody.

6. Process

6.1 Acquisition and Registration

1. End user submits an IT Request (ITR) for new or replacement equipment.
2. IT validates need, checks available inventory, and identifies custodian.
3. A Material Request (Purchase) is created in ERPNext, specifying the department or project charge.
4. Upon delivery, IT records the asset in ERPNext with complete details, including Model Date and Details fields.
5. For purchased items, link the asset to the Purchase Invoice/Receipt for accurate valuation.
6. For existing assets, check Is Existing Asset to register without new procurement.

6.2 Movement and Custody Changes (Asset Movement)

All physical movements or changes in accountability must be recorded using the Asset Movement DocType in ERPNext. The specific Purpose selected determines the flow of the transaction:

A. Purpose: Issue

Definition: Assigning an asset that is currently in stock or unassigned to a specific employee (Custodian).

• When to use: When providing a standard peripheral (e.g., mouse, keyboard) from IT stock to an employee.
• Action:
  • Source: Company Asset Stock (None).
  • Target: Employee (Custodian).

B. Purpose: Receipt

Definition: The return of an asset from an employee (Custodian) back to the company/IT Department.

• When to use: Employee resignation, clearance processing, or when an item is surrendered for repair/replacement.
• Action:
  • Source: Employee (Custodian).
  • Target: Company Asset Stock (None/IT Warehouse).

C. Purpose: Transfer

Definition: Moving an asset from one physical location to another, or changing the Department assignment without issuing to a specific person.

• When to use: Moving a server from the HQ Server Room to the Branch Office Server Room, or moving shared office equipment (e.g., printer, projector) from one department to another.
• Action:
  • Source: Current Location / Department (No "From Employee" required).
  • Target: New Location / Department.

D. Purpose: Transfer and Issue (Standard Deployment)

Definition: Simultaneously moving an asset from a storage location (Warehouse) to a specific operational location and assigning it to a specific person.

• When to use: This is the most common workflow for deploying new hardware. For example, issuing a new laptop from the IT Storage Room directly to a Project Manager at a Client Site.
• Action:
  • Source: IT Warehouse (Storage).
  • Target Location: Production Floor / Project Site / User Office.
  • Target Custodian: Specific Employee Name.

Important Notes:

• All issuances and receipts must have a printed receipt generated from ERPNext and signed by the custodian. This serves as the official proof of accountability.
• Department Accountability: When a movement targets a Department/Section (Transfer) but leaves the Employee/Custodian field blank, the Department Head or Section Officer is automatically considered the accountable person for that asset.

6.3 Maintenance and Repairs

1. Schedule preventive maintenance under Asset Maintenance.
2. Assign maintenance tasks to the Asset Maintenance Team and record completion in the Asset Maintenance Log.
3. For defective assets, log under Asset Repair and track progress until resolution.

6.4 Depreciation and Capitalization

1. Coordinate with Accounting to configure Depreciation Schedules.
2. Periodically review Asset Depreciation and Balances.
3. Use Asset Capitalization for conversion of inventory items to fixed assets.

6.5 Disposal and Repurposing

1. Identify end-of-life assets using Model Date and depreciation data.
2. Securely erase data before repurposing or disposal.
3. Update ERPNext and monitoring sheets with final status.

6.6 Reporting and Monitoring

• Use Asset Dashboard and Fixed Asset Register for real-time asset visibility.
• Filter reports by Model Date to identify aging assets.
• In the Asset DocType, filter by Custodian to quickly check if an employee has any assigned assets.
• Update the IT Asset Monitoring Sheet for audit traceability.

7. Documentation

• All asset-related transactions and movements must be logged in ERPNext.
• Custom fields (Model Date and Details) must be included in all asset reports.
• Maintain digital copies of receipts, repair logs, and disposal forms under the Asset Document Attachments section.
• All revisions to ERPNext fields or workflows must be recorded in the IT Customization Log.

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Version: 251030
Maintained by: Comfac IT Department
Next Review: October 2026