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Sheffiled Hallam University Fixed Assets Case Study

Sheffield Hallam University ensures FRS102 compliance with FMIS Fixed Assets

Leading University selects FMIS Fixed Assets to ensure compliance with FRS102 standard on a tight schedule.

IFRS 16 - what you need to know

IFRS 16 – What you need to know

IFRS 16 brings with it the biggest changes to Lease Accounting in 30 years. Here is what you need to know in brief to get compliant.

If Santa were an accountant

What if Santa were an Accountant?

How different would Christmas look if Santa were an accountant? Twelve ways Christmas would never be the same.

Fixed Assets Case Study Essex Fire Authority

Fixed Assets Case Study Essex Fire Authority

Essex Fire Authority use FMIS Fixed Assets to ensure compliance with IFRS, Component Accounting and additional standards.

Fixed Asset Forecasts

Fixed Assets Forecasts

Having the right tools for fixed assets forecasts could save thousands of pounds, improve accuracy and free up time for your staff.

ESA Purchase to Pay case study

Purchase to Pay Case Study with ESA

From Purchase to Pay with ESA – FMIS Purchase to Pay software allows ESA to manage stock and inventory for properties across London and the South East over the full asset life cycle.

Ghost assets

Ghost Assets

Ghost assets increase expenses, reduce productivity and exist in almost every company. Here is how to identify them, remove them and prevent them recurring.

3 Asset management project killers

The 3 big asset management project killers and how to avoid them

Game Over - 3 Asset management project killers

How to avoid the most common mistakes that will derail your project

Sam was enthusiastic and friendly as she told me about her project to look for a new asset management system. Her company had built the current system in-house, but as they grew they realised they needed something a bit more comprehensive. It sounded like a great project, but being new to asset management software I didn’t see the warning signs.

Fast-forward 9 months and Sam sounded a lot less enthusiastic and I felt the same. Despite all the initial enthusiasm, and a lot of work, we were still no closer to deciding if the project would go ahead. Where did it all go so wrong?

Looking back, we made three simple mistakes that can derail any asset management project before it even gets going:

1) Resources

Sam’s title should have been a red flag – “Project Support”. It was not her fault, but she did not have the experience or authority to drive through a project this big. When a project does not have an internal project sponsor or ‘champion’ with the authority to agree or veto changes, they usually just get passed on to the potential supplier as an additional feature request.

The lack of a clear, well thought through and targeted project specification increases the risk of an overly complex solution that is delivered late and over budget. The worst case  scenario is that the project gets bogged down through a lack of direction and multiple layers of complexity. It eventually gets shelved without ever being delivered, but still at a significant cost to the client.

CHECKLIST

 Plan for the project sponsor to be actively involved
 Ensure the sponsor has the authority to agree the scope and specifications
Establish the budget early on to avoid shocks at a later date

2) Planning

George Harrison’s lyrics to ‘Any Road‘ could have been the theme for this project – “If you don’t know where you’re going, any road will take you there”. Asset management systems can cover anything from purchasing through production and sales orders, as well as depreciation, tracking and maintenance.

Typically, asset management projects will involve finance, operations and IT as a minimum, so the potential for scope creep is a big risk. Sam’s task was to find the best system, except no one really knew what that looked like.

CHECKLIST

Establish a cross functional project team before you start
List your must-haves and nice-to-haves for any potential supplier
Agree scenarios for suppliers to show you rather than a generic demo

3) Integration

When I asked Sam which finance package her company used, she sounded a bit surprised and asked why I needed to know. It had not occurred to her that any asset she managed would need to be loaded from somewhere and its value posted back.

A recent survey by the Access Group estimates that almost half of employees in the UK waste 3 hours a day or more on inefficient systems. A lack of integration can wipe out the savings that your new system is intended to deliver.

CHECKLIST

Map the asset life cycle to see how and where each stage will be recorded
Check what software integration each supplier provides
Record all your interfaces centrally for future upgrades or new software

For more information on getting asset management systems right, have a read of the 10 Steps Guide to Asset Management.

FMIS fixed asset software case study: Express Newspaper Group

Fixed assets audit at the Express

Fixed asset audit at the Express

Fixed assets audit at the Express

The Daily Express Newspaper Group needed to reconcile their fixed asset register entries in PeopleSoft through regular barcode audits. FMIS provided a mechanism where data was extracted using core PeopleSoft routines to identify asset groupings, scope and boundaries. These extracts were loaded into the FMIS Barcoding module and then used to produce a set of automated matching criteria. A set of keywords, codes and classifications were downloaded onto barcode readers which were then used for the final audit at different sites. The key requirement was to audit high-value asset categories.

Express flow diagram

Express flow diagram

Planning and preparation

A number of key boundaries, scopes and objectives are set for sections of the fixed asset register. The key words are analysed from the field asset categories and description fields and used to build up a set of key markers on the barcode scanners.

Extract from PeopleSoft

PeopleSoft has in-built facilities to provide downloads for the fixed assets barcode audit exercise. Some particular audit runs are taken from the test system to prove the concept. Some developer time is required to ensure the pre-built routines are optimised.

Load FMIS matching routines

Using customer and location knowledge, a set of algorithms are loaded into their fixed assets register, allowing the system to automate the matching of items loaded into the barcode scanner with the details uploaded from the fixed asset register.

Conduct audit

Barcode scanners are used to load approximately 250 assets per day. Each asset is barcoded, and certain information entered from operator prompts on the barcode scanner. All data is uploaded through synchronisation.

Find matches and produce mismatch reports

Once the audit is complete matches are run and fine tuned until at least 90% of all equipment items are matched back to the fixed asset register using the intelligence built into the matching algorithm.

Produce bulk adjustments for PeopleSoft

Fixed Assets produces the results file in the correct format for PeopleSoft. This file is uploaded into PeopleSoft and a mass changes batch is run.

Produce final financial account in Fixed Assets

The fixed asset register within PeopleSoft has updated barcode, serial numbers and location information. Any disposals required are also processed. A match has been achieved between the physical barcode register and the fixed asset register.