What is an Asset?

Understanding what qualifies as an "asset" is critical for effective asset management. This guide defines assets, explains the difference between assets and consumables, and provides a decision framework.

Definition

In UniAsset, an asset is a physical or digital item of value that:

1. Has measurable value (purchase cost, replacement cost, or fair market value)
2. Has a useful life > 1 year (not consumed immediately)
3. Is individually identifiable (has a unique serial number or asset tag)
4. Requires tracking (for maintenance, compliance, or financial reporting)

Tangible vs Intangible Assets

Tangible Assets (Physical)

Definition: Physical items you can touch.

Examples:

• Computers & IT: Laptops, desktops, servers, monitors, network switches
• Furniture: Desks, chairs, filing cabinets, tables
• Vehicles: Cars, trucks, forklifts, delivery vans
• Equipment: Manufacturing machinery, medical devices, power tools
• Instruments: Test equipment, diagnostic devices, lab instruments

Characteristics:

• Have a physical location
• Can be photographed
• Subject to physical wear and depreciation

Intangible Assets (Digital/Intellectual)

Definition: Non-physical assets with value.

Examples:

• Software licenses: Microsoft Office, Adobe Creative Cloud, AutoCAD
• Digital certificates: SSL certificates, code signing certificates
• Patents and trademarks: Intellectual property
• Domain names: Registered domain names

Characteristics:

• No physical location
• Represented by license keys, certificates, or legal documents
• Expire or renew periodically

💡 TIP: UniAsset primarily focuses on tangible assets but can track intangible assets (software licenses) using custom categories. For pure software asset management (SAM), consider specialized SAM tools.

Asset vs Consumable: What's the Difference?

The key question: Should I track this as an individual asset, or as consumable inventory?

Decision Tree

Start: Do I need to track this item?
│
├─ Is it worth > $500?
│   ├─ YES → Track as individual asset
│   └─ NO → Continue to next question
│
├─ Does it require maintenance/servicing?
│   ├─ YES → Track as individual asset
│   └─ NO → Continue to next question
│
├─ Is it regulated or compliance-critical?
│   ├─ YES → Track as individual asset (medical devices, safety equipment)
│   └─ NO → Continue to next question
│
├─ Does it have a unique serial number?
│   ├─ YES → Track as individual asset
│   └─ NO → Continue to next question
│
├─ Do I need to assign it to a specific user?
│   ├─ YES → Track as individual asset
│   └─ NO → Track as consumable inventory

Asset (Individual Tracking)

Characteristics:

• ✅ High value (typically > $500, but threshold varies by org)
• ✅ Long useful life (> 1 year)
• ✅ Unique serial number or asset tag
• ✅ Requires maintenance or servicing
• ✅ Assigned to specific users or locations
• ✅ Subject to depreciation
• ✅ Needs audit trail (who has it, when it was serviced, etc.)

Examples:

• Laptop ($1,200) → Track individually
• Vehicle ($30,000) → Track individually
• Medical ultrasound machine ($50,000) → Track individually
• Cordless drill ($150) → Track individually if assigned to specific technician

How to track:

• Create individual asset records in UniAsset
• Assign unique serial number or asset tag
• Log all maintenance and repairs
• Track location and assignment
• Monitor TCO (purchase price + maintenance costs)

Consumable (Quantity Tracking)

Characteristics:

• ✅ Low value (typically < $500)
• ✅ Short useful life (< 1 year or single use)
• ✅ No unique serial number (generic items)
• ✅ Consumed or depleted with use
• ✅ Tracked by quantity, not individually
• ✅ No maintenance required

Examples:

• Office supplies (pens, paper, staplers)
• Cleaning supplies
• Light bulbs
• Disposable gloves
• USB cables

How to track:

• Use UniAsset Consumables feature (track by quantity, not individual items)
• Set reorder thresholds (alert when quantity drops below X)
• Track total spend, not per-item costs

See: Consumables Management Guide

The Value Threshold Question

What dollar amount qualifies as an "asset"?

There's no universal answer, but here are guidelines:

Industry Standards

• Accounting standard (capitalization threshold): $500-$5,000

  • Items below this are often expensed (not capitalized)
  • Items above are capitalized as fixed assets on the balance sheet

• IT asset management: $500-$1,000

  • Track laptops, servers, network equipment

• Manufacturing: $1,000-$5,000

  • Track production machinery, tools, vehicles

• Healthcare: $500-$1,000

  • Lower threshold due to compliance (FDA, HIPAA)
  • Even low-value medical devices may require tracking

UniAsset Recommendation

Default threshold: $500

• Track individually: Items worth $500 or more
• Track as consumables: Items worth < $500 (unless they fall into exception categories below)

Exceptions (track even if < $500):

1. Regulated items: Medical devices, safety equipment (compliance requirement)
2. High-theft risk: Smartphones, tablets, cameras (accountability)
3. Assigned equipment: Power tools, diagnostic devices assigned to specific users
4. Maintenance-intensive: Items requiring regular servicing regardless of cost

💡 TIP: Set your organization's threshold in Settings → Organization → Asset Capitalization Threshold. This helps your team decide what to track.

Examples: Should I Track This?

✅ YES - Track as Individual Asset

❌ NO - Track as Consumable

🤔 MAYBE - Depends on Your Organization

Special Cases

Software Licenses

Should I track software licenses in UniAsset?

Basic software (SaaS subscriptions): ❌ No

• Microsoft 365, Google Workspace, Slack
• These are operating expenses, not assets
• Track in accounting software or subscription management tools

Perpetual software licenses: ✅ Yes (as intangible assets)

• Adobe Creative Suite (perpetual license), AutoCAD perpetual
• Track as assets because they have long-term value and require renewal/compliance tracking

How to track:

1. Create a "Software Licenses" category
2. Use license key as "serial number"
3. Set expiry date for time-limited licenses
4. Assign to user or department

Leased Equipment

Should I track leased assets?

✅ YES - Track leased equipment in UniAsset:

• You have custody and responsibility for maintenance
• Track location, assignment, and usage
• In "Notes" field, indicate "Leased from XYZ Leasing, expires 2025-12-31"

Financial treatment:

• In accounting, leased assets may be treated differently (operating lease vs capital lease)
• UniAsset focuses on physical tracking, not financial accounting

Donated/Gifted Assets

How to handle zero-cost assets?

✅ YES - Track donated equipment:

• Enter fair market value as purchase price (what you'd pay to buy it)
• Or enter $0 if FMV is unknown
• Still track maintenance, location, and assignment

Component Parts

Should I track components separately from parent assets?

Examples:

• RAM module inside a server
• Tire on a vehicle
• Battery in a laptop

Guideline:

❌ Do NOT track components separately UNLESS:

• Component has independent value > $500 (e.g., expensive server RAM)
• Component requires separate maintenance tracking
• Compliance requires separate tracking (e.g., aircraft parts)

For most organizations:

• Track the parent asset (laptop, vehicle, server)
• Log component replacements in maintenance logs (e.g., "Replaced 16GB RAM module")
• Do NOT create separate asset records for every RAM stick or tire

Summary: Asset Tracking Checklist

Before adding an item to UniAsset, ask:

• ✅ Is it worth > $500? (or your organization's threshold)
• ✅ Does it have a useful life > 1 year?
• ✅ Does it have a unique serial number or can I assign an asset tag?
• ✅ Will I need to track maintenance, repairs, or servicing?
• ✅ Is it assigned to a specific user or location?
• ✅ Is it regulated or compliance-critical?

If you answered YES to at least 2 questions, track it as an individual asset.

If you answered NO to most questions, consider tracking as a consumable or not tracking at all.

Related Articles

• Understanding Asset Lifecycle — Phases from acquisition to disposal
• Categories, Locations, and Departments — Organizing your assets
• Consumables Management — Tracking quantity-based inventory
• Creating Your First Asset — How to create an asset record

Need Help?

If you're unsure whether to track a specific item type, contact support at support@uniasset.app with details about the item and your use case.