Fixed Assets Identification (SOP) | Policies and Procedures

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

This SOP applies to the Administrative Department (primarily responsible for tagging) and the Financial Department (primarily responsible for verification).

1. Purpose

To define the step-by-step procedures for assigning, affixing, and verifying unique identification tags on all newly acquired and existing fixed assets, ensuring adherence to the Fixed Assets Identification Policy (FIN-008).

2. Scope

This SOP applies to the Administrative Department (primarily responsible for tagging) and the Financial Department (primarily responsible for verification).

3. Related Policies

Fixed Asset Capitalization Policy (FIN-005)
Fixed Assets Identification Policy (FIN-008)

4. Roles and Responsibilities

Administrative Department: Tags assets, maintains a list of used identification codes, and updates the Fixed Assets Register with tag details.
Accountant: Conducts semi-annual sample checks and reconciliations between physical tags and the Fixed Assets Register.

5. Procedure: Initial Tagging of Newly Acquired Assets

Step	Action	Responsible Party	Documentation / Notes
5.1.1	Receive Documentation	Administrative Dept.	Receives a copy of the Receiving Report for newly acquired (capitalized) fixed assets from the Financial Department.
5.1.2	Generate Tag Number	Administrative Dept.	Prepares a new, unique identification number composed of the required four components (Fiscal Year, Asset Type, Location, Sequential Number).
5.1.3	Prepare and Affix Tag	Administrative Dept.	Prepares the physical tag label and immediately affixes it securely to the acquired asset.
5.1.4	Update Register	Administrative Dept.	Immediately updates the Fixed Assets Register (sub-ledger) with the new asset's full details, including the unique identification number/tag. (See Fixed Assets Register and Records Procedures).
5.1.5	Update Code List	Administrative Dept.	Maintains and updates a central list of all used identification codes to prevent duplication.

6. Procedure: Fixed Asset Tag Verification and Reconciliation

Step	Action	Responsible Party	Documentation / Notes
6.1.1	Perform Sample Check	Accountant	Semi-annually, performs a physical count and comparison on a sample basis.
6.1.2	Verification Process	Accountant	Compares the physical tag number and asset existence against the recorded details in the Fixed Assets Register. The check ensures assets are properly identified/tagged. (See Fixed Assets Physical Count and Reconciliation).
6.1.3	Variance Report	Accountant	Reports any variances found between the physical count/tag and the Fixed Assets Register to the CFO.

7. Review and Revision

This SOP will be reviewed annually by the Administrative and Finance Departments to ensure continued efficiency and adherence to the Fixed Assets Identification Policy.