This document discusses asset recording and amortization. It notes that assets can be recorded in either the general ledger or ancillary systems like purchasing, inventory, or asset management modules, depending on the chosen software. Key information needed includes the asset's linkage to administrative structure, location, physical characteristics, historical cost, cost of carriage and insurance, lifespan, maintenance costs, amortization period, total previous amortization, and current year's amortization. Examples of asset recording practices from the Philippines, Abu Dhabi, and Brunei are provided, as well as SAP's inventory module.

1. Asset Recording
and
Amortization
Jean-Marc Lepain
PFM Advisor

2. CoA and Asset recording
• The way that assets are recorded in the CoA can depend on the
choice of the software.
• Information on a specific asset can be hold either in the General
Ledger or in ancillary systems such as a Purchasing Module, an
Inventory Module, an Asset Management Module.

3. What is the information we need
• Linkage to Administrative structure
• Location
• Physical characteristics
• Historical price/cost
• Cost of carriage and insurance paid (CIP)
• Life span
• Maintenance cost (Budget Report)
• Period of amortization
• Total amortization before the current year
• Amortization for the fiscal year

4. Philippine Asset recording

5. CoA of Abu Dhabi

6. Brunei possible solution

7. SAP Inventory

9. THANKS