Is it an asset or a part?

• Tip: To determine whether an item should classified as an asset, a component, or a subsystem, refer to Is it an equipment unit, an asset, or a subsystem?

Deciding whether to classify an item as an asset or a part (or both) depends on your organization’s needs and its plans for valuing and tracking the item.

Items that Should be Assets (or Components)

• Items that must be on a preventive maintenance schedule or undergo inspections
  Example: Need to track the inspections of a serialized firearm and show accountability for those inspections

• High-value items for which service or work orders must be tracked
  Example: Need to schedule regular service and work orders for an overhead hoist at a shop location

• Items for which depreciation is tracked
  Example: Need to track depreciation of above- and in-ground vehicle lifts at a shop location

Assets and components can have a department, but parts cannot. Inventory reports can filter based on department, but parts will not be included. Inspection reports also can filter based on department.

To assign a department ID to notify about preventive maintenance (PM), use the Data -> Equipment Units > Asset Primary Information screen. Using departments on this screen will affect the Allocation and Assignment Portal when you use the Inspections Due features.

Items that Should be Parts

• Note: If an item can be managed as inventory and you do not need to track maintenance, it can be a part.

• Items that use the same part number and will be purchased often or potentially be replaced frequently. The items may have different serial numbers, however.
  Example: A box of 12 flashlights has part number FL1234, but each flashlight has a separate serial number. Total cost:  $270. Another 12 flashlights, part number FL1234, will be purchased next year. The price, however, may change. This type of tracking can be done with parts.

• Note: Items with serial numbers can be managed as serialized parts, assets, or components. If tracking maintenance on the item is important, consider using assets or components. Otherwise, use serialized parts.

• Items that are low in cost or low in value and are disposable.
  Example: Shop items (rubber gloves, paper towels) or uniforms (shirts, pants) to be issued directly to a location or person.