Operations • Module glossary
This glossary explains common words and fields you’ll see when using Asset Management in XFatora.
Also known as: Fixed Equipment Management
What it is: Acquisition is the act of purchasing or obtaining an asset and recording it in the system.
When you use it: Use acquisition records to keep accounting and asset tracking aligned from day one.
Example: You record a new machine purchase with invoice, supplier, and cost.
Common fields (and what they mean):
Related terms: Procurement, Core Accounting
What it is: An asset is a valuable item your business owns for long-term use (equipment, machinery, vehicles, computers).
When you use it: Use asset records to track value, location, maintenance, and lifecycle from purchase to disposal.
Example: You register a company laptop as an asset assigned to an employee.
Common fields (and what they mean):
Related terms: Asset Register, Depreciation, Maintenance
What it is: Asset categories group assets by type (IT equipment, furniture, machinery).
When you use it: Use categories for reporting, depreciation rules, and maintenance schedules.
Example: All laptops are under IT Equipment category with a 3-year useful life.
Common fields (and what they mean):
Related terms: Depreciation, Reporting hooking
What it is: Asset disposal is retiring an asset—selling, scrapping, donating, or writing it off.
When you use it: Use disposal records to keep the register accurate and update accounting properly.
Example: You dispose of an old printer and record disposal date and method.
Common fields (and what they mean):
Related terms: Depreciation, Core Accounting
What it is: Asset location shows where the asset is physically located (office, warehouse, site).
When you use it: Use locations to reduce asset loss and speed maintenance response.
Example: A generator is located at Site B; maintenance team finds it quickly.
Common fields (and what they mean):
Related terms: Custodian, Asset Tag
What it is: An asset register is the central list of all assets and their details.
When you use it: Use it as the single source of truth for audits, insurance, and maintenance planning.
Example: Finance exports the register to review assets by category and value.
Common fields (and what they mean):
Related terms: Audit Trail, Core Accounting
What it is: An asset tag is a physical label or code used to identify assets quickly.
When you use it: Use tags to speed audits, prevent loss, and simplify maintenance tracking.
Example: A barcode tag on a laptop links directly to its asset record.
Common fields (and what they mean):
Related terms: Asset Register, Audit
What it is: Asset transfer is moving an asset from one custodian or location to another.
When you use it: Use transfers to keep records accurate during moves, role changes, or site transfers.
Example: An employee moves from Sales to Finance; their laptop is reassigned.
Common fields (and what they mean):
Related terms: Asset Location, Custodian
What it is: The custodian is the person responsible for an asset (user, department, manager).
When you use it: Use custodians to improve accountability and track who uses what.
Example: A laptop asset is assigned to an employee; they are the custodian.
Common fields (and what they mean):
Related terms: People Records, Asset Transfer
What it is: Depreciation spreads the cost of an asset over its useful life to reflect wear and value reduction over time.
When you use it: Use depreciation schedules for accurate financial reporting and budgeting.
Example: A vehicle depreciates over 5 years; depreciation is posted monthly.
Common fields (and what they mean):
Related terms: Core Accounting, Asset Category
What it is: Impairment is recognizing that an asset’s value dropped faster than planned (damage, obsolescence).
When you use it: Use impairment when the asset is no longer worth its recorded value, according to your accounting policy.
Example: A machine is damaged and loses value; you record an impairment adjustment.
Common fields (and what they mean):
Related terms: Core Accounting, Depreciation
What it is: An inspection is a planned check to ensure an asset is safe and functioning correctly.
When you use it: Use inspections for compliance, safety, and quality assurance.
Example: A safety inspection confirms fire extinguishers are within expiry date.
Common fields (and what they mean):
Related terms: Compliance, Maintenance
What it is: Asset maintenance includes servicing, repairs, and inspections to keep assets reliable and safe.
When you use it: Use maintenance tracking to reduce downtime and extend asset life.
Example: A forklift has a quarterly service schedule and repair logs.
Common fields (and what they mean):
Related terms: Maintenance Schedule, Service Record
What it is: A maintenance schedule plans maintenance activities based on time, usage, or compliance requirements.
When you use it: Use schedules for high-impact assets to avoid breakdowns.
Example: HVAC units are inspected every 6 months.
Common fields (and what they mean):
Related terms: Maintenance, Inspection
What it is: Replacement planning forecasts when assets should be replaced based on age, condition, and performance.
When you use it: Use it to avoid sudden breakdowns and budget surprises.
Example: You plan to replace laptops every 3 years and vehicles every 5 years.
Common fields (and what they mean):
Related terms: Useful Life, Budget
What it is: Residual value is the expected value of an asset at the end of its useful life.
When you use it: Use residual value to calculate depreciation accurately.
Example: A machine’s residual value is set to 10% of purchase cost.
Common fields (and what they mean):
Related terms: Depreciation
What it is: Useful life is the expected time an asset will be used before replacement or disposal.
When you use it: Use it to set depreciation schedules and replacement planning.
Example: IT sets laptop useful life at 3 years to match upgrade cycle.
Common fields (and what they mean):
Related terms: Depreciation, Replacement Planning
