Fixed Asset Management (Capex Lifecycle)

1. Goal: Bridge the Gap Between Buying and Owning

Problem: Accounts Payable (AP) pays for a $3,000 laptop or a $50,000 machine. Then, the invoice is filed, and a Finance Manager manually types the details into a separate "Asset Register" Excel sheet to track depreciation. This disconnect leads to "Ghost Assets" (paying taxes on assets you lost) and "Zombie Assets" (using assets you wrote off). Solution: Automatically detect Capital Expenditures (CapEx) during invoice processing and spawn the Asset Lifecycle record immediately.

2. Core Value Proposition

• Automation: No manual data entry for the Asset Register.
• Traceability: Every asset is linked back to its original Invoice and PO (Audit proof).
• Financial Control: Automated Depreciation postings to the GL.

3. Workflow: The "Asset Spawn"

1. Detection: AP Engine spots a high-value item coded to a Fixed Asset GL (e.g., 0700 Office Equipment).
2. Creation: System auto-creates a "Draft Asset Card".
   • Name: "MacBook Pro 16 - Serial XYZ" (extracted from line item).
   • Acquisition Cost: Taken from Invoice.
   • Date: Invoice Date.
3. Enrichment (The Human Loop):
   • System asks: "Who is this assigned to?" or "Which Office?"
   • User assigns: "Employee: Max Mustermann".
4. Activation: Asset becomes "Active". Depreciation schedule is generated.

4. Data Model

AssetCard

• asset_id
• source_invoice_line_id (Link to AP)
• asset_name
• serial_number
• category_id (e.g., IT, Furniture, Machinery)
• location_id / employee_id (Assignment)
• acquisition_cost
• acquisition_date
• useful_life_months (e.g., 36 for laptops)
• depreciation_method: STRAIGHT_LINE | DECLINING_BALANCE
• status: DRAFT | ACTIVE | DISPOSED | WRITTEN_OFF

DepreciationSchedule

• schedule_id
• asset_id
• posting_date (Month End)
• amount
• posted: boolean

5. UX/UI

• The "New Asset" Queue: "We found 5 potential assets from this week's invoices. Please confirm details."
• The Asset Register: Searchable list of all company property.
• The "QR Code" Generator: Button to print a sticker label for the physical asset.

6. Integration

• Inputs: AP Invoices (CapEx detection).
• Outputs: Monthly Depreciation Journal Entries to GL.