Physical Inventory Auditing
Assertive Industries, Inc. (AI) conducts complete fixed asset physical inventory audits and reconciliation of clients’ assets nationwide. AI provides Asset Catalog inventory reports detailing asset Location Control Number, Description, Manufacturer, Model Number, Serial Number, and Bar Code Number. In addition, AI provides Reconciliation, New Asset, and Missing Asset Reports in Excel, Access, text, or CSV file formats for upload to PEER and other ERP financial systems.
Physical Inventory Process
AI recommends a durable, standard Code 3 of 9 format bar code label be utilized for asset tagging purposes. For office-based equipment, a premium polyester label with both bar code and human-readable numbers can be utilized. For any assets utilized in extreme environments, a metal bar-code label is required.
All bar codes supplied and utilized by Assertive meet the following specifications:
- Extremely durable, waterproof, scratch and smear-resistant
- UL approved
- The extra aggressive adhesive adheres to wood, plastic, and metal
- Available in all symbologies, various text sizes, and sequentially numbered
- Each bar code label includes a human-readable manufactured number which corresponds to the bar-code number
To ensure a successful physical inventory project, Assertive requires floorplans, facility addresses and square footage, key departmental contacts, and the fixed asset listing.
Upon receipt of the client’s information, Assertive conducts an analysis of the fixed asset records and facility base to facilitate the logistics and scheduling processes. In addition, Assertive works with the client to establish Asset Standards for consistency and efficiency in the collection of asset description information. This analysis facilitates the inventory and reporting processes and brings to light any issues prior to the commencement of the physical inventory. In addition, a review of your sample fixed asset listing enables Assertive to present estimated reconciliation costs.
Upon completion of the fixed asset record analysis, physical inventory and barcoding performed by Assertive Industries, shall include:
1. Site Analysis
Determine site parameters for inventory staffing and project duration
- Plan schedule to minimize interruption of daily business activities
- Prepare needs report (supplies or special equipment)
- Determine security procedures
2. Site Preparation
Identify all asset standards and bar-code parameters
- Outline floorplan sectors, label building, floor, division, workstations and rooms by department, agency, and organization
- Develop asset location verification set-up
- Conduct verification walk-through and cross-check
Control Number Utilization
Assertive utilizes Control Numbers to identify specific asset locations. The Control Number ties responsibility area (departments), buildings, addresses, etc. together and distinguishes a specific room, cubicle, or office within a building. The Control Number is a bar code label placed in the doorframe or on the cubicle of each space that is inventoried. The Control Number is noted on the floorplan to enable Assertive to conduct quality control spot checks and aids in the reconciliation process.
Utilizing the PEER\FA System, the Control Number will also allow the client to track asset transfers by simply scanning the bar code on the asset being transferred and scanning the Control Number where the asset is being moved. Because all the pertinent location information is tied to the Control Number-floor room, building, department- asset transfer and retirement changes are easily tracked. Assertive recommends Control Numbers in conjunction with the PEER\FA system for complete asset tracking control.
3. Data Collection Team Selection
- Data Manager oversees all data entry and performs periodic site audits
- Site Manager assigned to oversee data collection, and personnel performance
- Product team leaders are assigned to each asset squad
- Full training and site orientation is mandatory for all site technicians
4. Data Capture
On-site staging area is selected
- Site Manager orients team leaders before each data collection session
- Control number location identifiers are assigned and implemented
- Asset information is collected: Control Number location, description, manufacturer, model, serial, & asset tag numbers and optional end-user for IT equipment
- Bar-code labels are affixed to assets
- Each data collection session is cataloged and files backed-up
5. Data Audit
Asset location audits are periodically conducted during and after inventory capture
Inventory sample reports are examined
Data change forms are used to update base information
Control Number Utilization – PEER FA
AI has developed the PEER FA fixed asset management system to facilitate the physical inventory and reconciliation processes. AI utilizes the PEER FA system to compile physical inventory data, conduct physical inventory reporting, conduct reconciliation reporting, and present discrepancy reporting.
AI imports the client’s fixed asset records from your financial system in order to conduct a system reconciliation of our physical inventory findings. The physical inventory and system reconciliation reporting processes are outlined here:
- Client’s fixed asset file information is imported into PEER FA system for analysis
- AI downloads complete physical inventory data from Portable Data Collection Devices (PDCD) into PEER FA system
- AI compiles physical inventory Asset Catalog Report
- In PEER FA system reconciliation of Assertive ’s physical inventory findings with client’s existing records by serial number, bar code number or asset tag number is conducted
- AI provides client with reconciliation report
- AI provides client with “New Asset Report” (assets collected but not able to be matched to client’s fixed asset records by serial number, bar code or asset tag number)
- AI provides client with “Missing Asset Report” (assets on client’s fixed asset records but not able to be attached with physical inventory data by serial number, bar code number or asset tag number)
- System reconciliation results will vary based on client’s fixed asset record accuracy and detail within the Financial System asset listing
- Manual reconciliation will be necessary in order to maximize reductions in personal property taxes and insurance costs
AI provides client with fixed asset inventory reports: Asset Catalog, Reconciliation, New Assets, and Missing Assets in hard copy and Excel file format.
To learn more call 678-447-0028 or email us at firstname.lastname@example.org