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Dominic Vautier
updated 04-2012
again 01-2014
I want to give you a basic idea of the powerful capabilities of unit record operations in a business environment that had existed for many years and now is lost in the dusty files of history. Much more can be done to enhance the system briefly presented here, because this is really just basic and doesn't even begin to scratch the surface of a unit record process.
For an idea of what the flowchart symbols mean look here.
Any company that has a lot of assets needs to keep a close track on plant. This is done for a number of reasons; to have a good idea of company value, what can be acquired or sold, what the net worth if the company is at any time, how much can be borrowed or factored, depreciation values and quarterly reports and many other financial reasons come into play.
I think that one of the easiest and most worthwhile unit record applications is fixed assets. The system presented here ties closely into general ledger but for the purposes here I will limit the scope to just fixed assets.
Basic Design
An asset card master file is developed over time. This includes asset codes, building, structure, lines, tools, location, asset value, trucks, cars, office furniture, investments, work in progress, or any other thing of value that is fixed. Certain things are not included such as cash and goodwill.
Each record contains asset value, rates of depreciation, depreciation schedule, replacement costs, taxes, maintenance costs. Systems like the one I describe were used a lot in telecommunications and transportation.
On a timely basis, inventories are taken. The asset master file is updated to include asset sales, dates of sale, write offs, improvements, losses.Changes to the asset card master file are sorted and merged in and depreciation applied.
Accounting reports are produced and depreciation is calculated using the accounting machine .
A new master file is produced representing value after depreciation, sale, damage, etc.
The old master file is merged with the new one to indicate changes in company value.
There are other things that can be done with a fixed asset master file. It can generate summary cards by the accounting machine for use in other applications, such as general ledger, and quarterly tax statements.
I worked on just such a system. Any business that has significant plant needed something like this. The accountants loved me.
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