Asset tracking or management is not a daunting task when the company is in its infancy. Sometimes employees are enough to handle them manually. However, as time goes by, when the procurement, production, sales and other quantitative data multiply as the size of the business grows, basic asset management systems or manual supervision are not enough. It can lead to slow production processes and fatal errors in accounting. Although the ERP software tool comes with an asset management module, most companies think it's too early to install software to handle asset management. They are unaware that the enterprise asset management module has been integrated into the ERP as a technology authorization system for organizing and tracking assets in different departments or levels of the production cycle.
The following is a brief description of why asset management is an essential part of ERP software.
#1 Avoid mistakes or duplication
Efficient ERP software undoubtedly simplifies asset management and makes asset management easier than ever. When there is a separate system to enter numbers or perform manual input to track incoming and outgoing assets, there is an opportunity for most repeated input or error handling information. As long as the assets are reported anywhere in the production chain, EAM [Enterprise Asset Management] in the ERP automatically performs all tasks of the data entry, eliminating any chance of duplication or miscalculation.
#2determine the current value of the asset
Specific asset management systems assist companies in assessing the current value of their assets and distinguishing them based on plant, machinery, vehicle, real estate, land, etc. In addition, advanced EAM modules generate targeted financial reports based on asset valuations, helping financial managers gain valuable insights into tax estimates, asset allocations and future asset acquisitions.
#3 Provide clear information about finances
On the one hand, the EAM module can accurately observe the life cycle of an asset, thereby improving the predictability of its returns. On the other hand, it helps entrepreneurs understand how asset management will affect finance.
#4 Better estimate depreciation value
There is no doubt that the company's fixed assets involve a large amount of investment. Therefore, incorrect calculation of its depreciation value during calculation can cause significant problems in the financial report or result in non-compliance with statutory requirements. Therefore, the organization must stop by manually calculating the depreciation value, but instead seek EAM's help to get an accurate number.
#5 Enhance uptime
When employees at different times are responsible for tracking assets, they often lose track. This usually happens when there are too many production facilities and different locations. EAM systems help companies stay in close proximity to their inventory so they can manage all sales calls, respond to sales fluctuations, repair and keep all equipment working. Any unexpected failure in the production cycle will cause great losses to the company, and EAM will definitely expect this.
These clear facts reveal why ERP software is an incomplete tool with EAM modules. While managing various types of rigorous assets has always been a complex and arduous task for commercial enterprises, EAM makes it as simple and seamless as possible.
Orignal From: 5 Convincing facts why companies need asset management modules in ERP
No comments:
Post a Comment