Fixed Assets Register Maintenance and Records (SOP)

Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @
Review date: 2025-08-20
Next review date: 2026-08-20

This policy applies to all tangible assets owned by Easyterms Ltd. that meet the capitalization threshold as defined in Policy FIN-005.

1. Purpose

To define the systematic process for recording and maintaining accurate, complete, and timely records in the computerized Fixed Assets Register, supporting all related financial and physical control policies.

2. Scope

This SOP applies exclusively to the Administrative Department, which is responsible for the physical and data integrity of the Register, and the Financial Department for review and approval.

3. Related Policies

Fixed Asset Capitalization Policy (FIN-005)
Fixed Assets Identification Policy (FIN-008)
Fixed Assets Register and Records Policy (FIN-009)

4. Roles and Responsibilities

Administrative Department: Manages the data entry and physical records, ensuring immediate updates after any asset event (acquisition, tagging, disposal).
Accountant: Reviews a copy of the updated register for data accuracy before final posting of acquisition/disposal journals.
CFO: Approves the final, updated copy of the Register.

5. Procedure: Initial Recording of New Assets

Step	Action	Responsible Party	Documentation / Notes
5.1.1	Receive Source Documents	Administrative Dept.	Receives the Receiving Report and the Approved Vendor Invoice from the procurement process. (See Acquisition, Costing & Capitalization of Fixed Assets procedures).
5.1.2	Tag Asset	Administrative Dept.	Prepares and affixes the unique asset tag. Note: This step must be completed before data entry. (See Fixed Assets Identification procedures).
5.1.3	Update Register	Administrative Dept.	Immediately enters all mandatory data fields (as per Policy FIN-009) into the computerized Fixed Assets Register.
5.1.4	Submit for Review	Administrative Dept.	Provides the Financial Department (Accountant) with a copy of the updated section of the Register for review.
5.1.5	Review and Approval	Accountant & CFO	The Accountant reviews the data. Once verified, the CFO provides final approval on the updated records.
5.1.6	Final Filing	Administrative Dept.	Files an approved, updated copy of the Register (or a record of the update transaction) and the original Receiving Report in the fixed asset records file.

6. Procedure: Maintaining and Filing Records

Step	Action	Responsible Party	Documentation / Notes
6.1.1	Record Status Changes	Administrative Dept.	Updates the Register to reflect any changes in asset status, such as relocation, improvement, or betterment. This must be done immediately upon change.
6.1.2	Record Disposal	Administrative Dept.	Updates the Register to mark the asset as Disposed upon completion of the disposal transaction. (See Disposal of Fixed Assets procedures).
6.1.3	Central Filing	Administrative Dept.	All supporting documents for acquisition, identification, relocation, betterment, and disposal are centrally maintained and made available for external audit examination.

7. Review and Revision

This SOP will be reviewed annually by the Administrative and Finance Departments to ensure compliance with the Fixed Assets Register and Records Policy.