FIXED ASSET MANAGEMENT

ORDERING PROCESS

On the process with regards to the Fixed Asset Management, the ordering process comes first. The
ordering process depends whether the asset is for a new store or for an existing store. In this case, the
Barongot Group of Companies, orders for a new store. The company’s design and engineering staff
prepared the ocular floor plan which was reviewed and approved by the operations manager. When the
ocular floor plan was approved, ordering process immediately started. Meanwhile, the project engineer
prepared the process request with three (3) duplicate copies. These copies are in white, blue and yellow
color distinctions. The purchase request was forwarded to the project manager for another approval. The
project manager then evaluated whether the requested assets were in accordance with the company’s
checklist.

The approved purchase request details were entered by the purchasing staff to the purchase request
system manually, after which, the purchase order which was prepared by the purchasing staff was also
forwarded to the Chief Executive Officer (CEO). Moreover, the CEO verified and approved the purchase
order. When the purchase order was approved by the CEO, the purchase order was sent to the supplier
through email and fax.

RECEIVING PROCESS

When the asset was received, the project manager inspected the asset. The project manager made sure
that all the source documents were presented such as sales invoice, delivery receipts and purchase order
sent recently to the supplier.

After inspection, the project manager verified the document and asset received. The project manager
observed that the asset’s source documents matched exactly with the asset received. After which, the
project manager signed the documents.

RECORDING AND DISBURSEMENT

The accounts payable department received and signed the three (3) documents which are the purchase
order, delivery receipt and sales invoice purchase. Then, the accounts payable staff reviewed the source
documents and confirmed that it matched the journal entry recorded. Since, the asset was acquired on
account, an accounts payable voucher was generated. The accounts payable head reviewed and approved
the documents which include the purchase order, delivery receipt accounts payable voucher, sales invoice
which were later on, filed. The four documents mentioned above were verified by the cash accountant
supervisor. When the accounts payable was paid, the cash accountant prepared the check voucher. The
check was sent to the supplier and the paper which the check was attached was returned back to the fixed
asset accountant for filing of documents. The fixed asset accountant entered the documents to the lapsing
schedule and to the journal entry in the system.
DISPOSAL

The store personnel monitored the performance of the Fixed Asset. The store personnel assessed that the
equipment is still working properly. Thus, the company would not dispose any equipment.

The store personnel monitored the performance of the Fixed Asset. The store personnel assessed that the
equipment was not working properly the project manager prepared an assessment form that contains
reasons and deficiencies of the asset, the assessment form was forwarded by the store personnel to the
project manager for the review and approval. The approved assessment form was sent to the design and
engineering staff. The design and engineering staff determined that the asset is for disposal. After which,
the project manager advised the fixed asset manager for disposal.