Functional Test Fixtures Owned by the Factory or the Buyer
Buyer-owned test fixtures require explicit PO line items, complete source files, and calibrated limit audits to prevent factory lock-in.
Fixed Asset Register
Equipment Inventory
Accounting records list every piece of capital equipment used within a manufacturing facility to track its value and location. A fixed asset register provides a detailed log of the pick-and-place machines, reflow ovens and specialized testers owned by the company. This document includes the date of purchase, the original cost and the current physical location of the machine on the factory floor.
It governs the management of long-term investments and stops applying only when the asset is sold or scrapped.
Depreciation Tracking
Maintaining this list is necessary for both tax compliance and internal financial planning. In the fixed asset register, each item is assigned a unique identification tag that corresponds to a physical label on the machine. This allows the accounting department to calculate the annual depreciation and determine the book value of the production line.
When a machine undergoes a major upgrade, such as the addition of a new vision system, the cost is added to the asset’s value. Periodic physical audits verify that the register matches the actual equipment in the building. This prevents ghost assets from remaining on the books and ensures that the company has an accurate view of its manufacturing capacity.
Audit Boundary
The register also serves as a reference during insurance valuations and mergers. An accurate fixed asset register helps the business demonstrate its technical capability to potential clients and investors. It provides the foundation for all capital expenditure decisions.