Portable Fixed Assets Transfer
Ver : 3.0 / AT/IT/SOP 14 / Date : May 1, 2012

1.  Objective

The objective of this procedure is to describe the process of portable Fixed Assets Transfer.

2.  Scope

The procedure covers the activities carried out by Purchase Coordinator, IT Team and the old/new users of a Fixed Asset.

3.  Inputs

·  PO Requisition form

·  LPO

·  Fixed Asset Receiving Form

·  Fixed Assets Transfer Form

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Portable Fixed Assets Transfer
Ver : 3.0 / AT/IT/SOP 14 / Date : May 1, 2012

4.  Activities

Activity: Ordering and receiving an portable Fixed Asset /
Input / Reference / Process Sequence / Process Step / Responsibility / Record Generated /
Need for a new Fixed Asset (Portable) / Fixed assets are requested using the PO Requisition and filling the form with brief details about the requested asset (brand, type, cost etc) / / Requestor:
Supervisor or dept. supervisor / Manager / Fixed Assets PO Requisition form
Fixed Assets PO Requisition form / Purchase Coordinator to do the supplier selection (if not listed) by contacting suppliers for quotations, and obtaining requested approvals – as per DOA. / / Purchase Coordinator / LPO raised to supplier
Receiving of Portable Fixed Assets / Receiving the Portable Fixed Asset from the supplier by the Purchase Coordinator with support of requesting department “to insure quality of delivery” , who confirms matching as per the requested specifications “both parties sign confirming delivery”
Finance department to prepare the ‘Assets Tag’ for the asset., by booking assets in ERP in IT location as a hub inventory (in case portable fixed asset is IT, else the admin department location for other portable assets).
Finance has to ensure that same tag is fixed on the assets itself.
‘Assets Tag’ created by Finance is totally different than bar codes used by other department (i.e. IT). / / Purchase Coordinator /
Finance Department (Fixed Assets) / New Bar Code Asset Tag
Hand over assets to hub inventory / Finance to hand over the tagged assets to concerned department (i.e. laptop to IT department) who will take the full responsibility and being accountable of assets.
Receiving department (i.e. IT department) signs confirmation of handover on supplier invoice copy stating “ Stock handed over next to signatory” / / Finance Department/ requested Department / Signatory + Stock handed over on Supplier invoice copy or inter-company stock transfer form
Assets Assignment / Upon request; the requested user/ department fills ‘Fixed Asset Transfer Form’ and get department/ channel head signatory and send it to concerned department “owner of stock currently” (i.e. IT department). The Asset will be assigned to a person with the department (in addition to assets ID and company name for the usage of Finance) to be the asset custodian. The custodian will be the user responsible and accountable for assets manner of any ****damage, lost or misused****.
(see below responsibility & accountability) / / Concerned (requested) Department/ user (custodian) / Fixed Assets Transfer Form
Portable Fixed Asset transfers to user / The concerned department (i.e. IT department) sends ‘Fixed Asset Transfer Form’ to Finance for review and confirm assets transfer in ERP to particular user/ department. No delivery/ hand over of Fixed Assets unless Finance approval is obtained on Fixed Assets Transfer Form. The Asset custodian / user to receive the asset from concerned department and sign for it to assume responsibility, using the ‘Fixed Asset Transfer Form’.
IT to update their IT fixed assets barcode tracker system based on the above movement. / / Concerned (requested) Department/ user (custodian) / Signed Fixed Asset Transfer form

Activity Decision Review & Approval
Activity: Transfer of fixed asset from one person/ department to another
Input / Reference / Process Sequence / Process Step / Responsibility / Record Generated
Need to transfer Asset from one location to another (within the same organization / company / entity) / For each and every transfer of fixed assets; ‘Fixed Assets Transfer Form’ should be filled properly, and sends to concerned department to verify and forward it to Finance Department.
In case of resignation/ termination; associate is requested to fill ‘Fixed Assets Transfer Form’ and enclose along with Final Checklist and get department/ channel head signatory. No hand over will be occurred to the fixed asset unless Finance approval is obtained.
IT to update their IT fixed assets barcode tracker system based on the above movement. / / User (custodian)/ Concerned Department (i.e. IT Department) / Fixed Assets Transfer form
‘Fixed Assets Transfer Form’ verified by concerned department / Finance department to review the same and confirm asset transfer in ERP to the new user/ department or keep it in concerned department’s hub inventory (department location) in case of no new custodian taking over the asset (i.e. IT inventory/ location).
IT to update their IT fixed assets barcode tracker system based on the above movement. / / Finance Department (Fixed Assets) / Approved Fixed Assets Transfer form
Fixed Assets transfer to new user/ department / The new user (new custodian) signs ‘Fixed Assets Transfer Form’ to assume responsibility and fixed assets hand over to him from concerned department. / / New user (Custodian) / Hand over of Fixed Asset to the new user

Activity Decision Review & Approval

5.  Responsibility & Accountability

·  The custodian will be the user responsible and accountable of assets manner for any lost, damage or misused.

·  In case of lost; the custodian should inform his manager in line of the incident; who is requested to provide police report and inform both Internal Audit & Finance Department (Country Finance Manager, Country Finance Controller or Fixed Assets Senior Accountant).

·  In case if there is any missing asset then after investigation* of the incidentand the results showed that it is the fault of the Custodian, The NBV (Net Book Value) or 500 AED which is higher (**Except the below list of assets we’ll use the deduction value from the list) of the missing assets will be charged to the Custodian for example (Outlet Manager, team leader ...etc).

·  Internal Audit department should be informed for any incident might happen to fixed assets (lost, damaged, misused etc.).

·  The manager in line will inform the concerned department (i.e. IT department in case of IT fixed assets) with the incident (i.e. damage, misuse), in order to evaluate the lost volume and determine whether it is useable, needs repair or damage beyond economical repair (dispose).

·  The concerned department (IT department) sends evaluation report/ email to Finance department & manager in line. Senior manager in line should approve the evaluation & determine the responsibility and finance will execute accordingly.

**Item / Amount
HP PHOTOSMART PRINTER 2050 / 190 AED
SYMBOL BARCODE SCANNER / 470 AED
LINKSYS WAG 120 ADSL MODEM / 285 AED
LINKSYS WRT 120 BROADBAND MODEM / 185 AED

* Investigation

1- Finance Department:-

·  In case that there is missing assets the Finance Department to make asset count to check that there are no other missing assets and then issue report with the variances Quantity and value per assets within three working days from receiving the e-mail from the Direct line manager of the custodian or the asset count date.

·  Finance Department to send official letter to the insurance company with the incident.

Notes: - in case the missing asset discovered during the normal asset count no need for re- count the asset.

2-Internal Audit Department

To review the results of the asset count and to investigate (only in certain cases where there is a necessity to do so), then issue the audit conclusion for the case.

3-Finance Department:-

In all Cases (whether it’s custodian fault or not) Finance Department to make asset retirement on the Fixed asset module in the ERP system to remove the asset from the system depends on the following approvals and send to the H.R department for deduction ( in case of Custodian fault ) :-

1-  Less Than or equal to10,000 AED approved by Finance Manager.

2-  Above 10,000 AED and less than 25,000 AED approved by CFO

3-  Above 25,000 AED and less than 100,000 AED approved by CEO.

4-  Above 100,000 AED approved by Executive committee.

6.  Outputs

·  Fixed Assets PO Requisition

·  LPO

·  Bar Code Asset Tag

·  Fixed Assets Transfer form

7.  Monitoring and Measurement

Refer to Process Control Sheet

8.  Forms and Records

Name

/

Reference

PO Requisition Form
LPO
New Bar Code Asset Tag
Fixed Asset receiving form
New Fixed Assets Transfer form

9.  Interfaces

Oracle for raising LPO, creating a Fixed Asset in the Fixed Assets Module and closing the LPO, IT system for the Fixed Assets Bar Code.

10. Process Tailoring

This procedure is applicable for IT Fixed Assets in All Countries.

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