Example of a fixed asset

[richofing]

Can someone provided examples of what a fixed asset is?   The documentation provides a definition but no real examples: A fixed asset is a container that holds one or more individual assets, including hardware or software assets.

An example of a fixed asset would help me better understand how and when to use fixed assets.   Thanks!

Ric

[Chuck Tomasi · Accepted solution]

You might find this helpful.

Fixed Asset Definition | Investopedia

Fixed assets include buildings, computer equipment, software, furniture, land, machinery, etc.

[bryan_strasburg]

Fixed Assets are more an accounting concept than ServiceNow.   Check here: https://en.wikipedia.org/wiki/Fixed_asset

Fixed asset - Wikipedia

While articles like this speak to Fixed Assets being large things like a building, there are some things to know as far as applying this to IT and what you may be trying to do with ServiceNow:

Your goal may likely to be to track 1000 laptops purchased for a refresh.   Typically, perhaps historically, your accountants have assigned that block of 1000 laptops/assets a single number (Fixed Asset Number) and for depreciation and financial reporting purposed considered them one asset.   They may depreciate (determine the value of) that Asset every year (small business) or quarter (public reporting).

The thing to know, is that now you can (and should!) handle assets with more precision.   With a tool like ServiceNow, you are able to track every asset distinctly.   ServiceNow can depreciate each laptop and aggregate the residual value.   We, in IT, track each asset with a distinct Asset tag and we run our depreciation every night.   We can precisely state the value of our assets.

So, in practice, in today's IT world, the Fixed Asset concept doesn't really add value as we track at the distinct asset level, but we need to understand what Fixed Assets are in order to map back to the less precise accounting systems that the accountants use.

[richofing]

Wonderful, thank you for the informative reply.

Ric

[Chuck Tomasi]

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