The equipment inventory will give you a snapshot of the company’s assets, their worth, their rate of devaluation and their current value. It will also be used as an estimator of the company’s total equipment worth.
The inventory tool will enable staff to know where every asset is located, its usable state and how many years of service it has left. This will help them to make decisions before hand on when to place an order for replacement or if it needs repair which vendor to contact for which equipment.
The management will be able to use the same tool to estimate the real worth of their assets by comparing the total loan value to the end of the loan term while considering the number of years it will have given the company service.
With the Inventory tool in place it is easy to come up with a filing system with all the details of each equipment.
The inventory has two very important features this is the physical state and the financial state of the equipment.
Under the physical state feature.
• Column A gives you the serial number of the asset.
• Column B shows the model of the equipment. This will help in making comparisons to other models from other vendors so that the company can invest in equipments that will serve them longer.
• Column C gives the exact location of all equipment that will necessitate easy tracking of assets regardless of multi locations.
• Column D defines the state of the equipment, whether it is in a good condition or not.
• Column E shows if the vendor who supplied the equipment is located within or without the country. This eases the work of finding contacts in case you need repairs or parts for a broken down equipment
• Column F details the years of service left for every equipment.
The Financial part of the equipment inventory consists of the following
• Column G – K gives you a quick glance at how much each equipment will cost by the end of the loan period by checking Column G(Initial value) against a computation of Column H, (deposit paid), Column K( Interest rate on the loan ) and Column J (loan term in years)
• Column I (date of purchase) will help you to know how long you have to go to finish paying the loan when you compare in with column J
• Column L and M give you the monthly expenditure on the asset in terms of loan repayment and the operating cost respectively. Column N adds up the monthly costs and this will make monthly financial reports easy to compile.
• Column O – R helps staff be able to evaluate the actual worth of the asset while putting into consideration the annual depreciation of the item (Column P) and column Q (monthly depreciation) which is a reflection of P/12. Column O represents the expected value of at the end of the loan term, and Column R shows the current value.