Asset Repair
Asset Repair is any remedial work undertaken to get a faulty or impaired asset back to operating at optimal capacity. The repairs can take place outside scheduled maintenance and are usually unforeseen, brought about by machinery breakdown, wear and tear, or inadvertent damage.
ERPNext enables logging of detailed repair history for every asset, even for ones not covered under scheduled Asset Maintenance, allowing companies to have a complete record of all the asset-related problems. It increases traceability, cost tracking and pre-budgeting to allow replacement or upgrades. Periodic logging of even minor repairs is advisable- logging that will bring to light recurring failures or assets which might be incurring disproportionate costs over time.
To view the Asset Repair list, navigate to:
1. Prerequisites
Prior to creating and utilizing Asset Repair, confirm the following:
- An Asset should already be present in the system, ideally with proper acquisition and location information.
2. How to create an Asset Repair
Accruing an asset repair aids in costs tracking, asset dependability, and replacement and continued-use decisions. To record an Asset Repair:
- Go to the list of the Asset Repair and select New.
- Pick the Asset which needs to be repaired.
- Input the Failure Date, the date when the problem was reported or the problem occurred.
- Give the Repair Cost incurred (if any).
- Click Save.
- Update the Repair Status from:
- Pending: Repair yet to be completed
- Completed: Repair successfully done
- Canceled: If the repair was aborted or no longer required
- If Repair Cost is more than zero and processed through a vendor, choose an associated Purchase Invoice to associate the cost transaction. Always associate a Purchase Invoice when costs are incurred by outside service providers since it will ensure financial responsibility and trace expenses directly back to asset performance.
- Click Submit to complete and record the repair activity.
Note: Or you can create an Asset Repair straight from the Asset master record. Open the asset you want to repair, click on the "Repair Asset" button under the Manage dropdown, and follow step 3 and beyond to log the details required.
2.1 Further Choices When Creating an Asset Repair
Capitalize Repair Cost: When this checkbox is checked, the Repair Cost entered will automatically increase the book value of an asset. This applies where repair has substantially increased the utility of the asset or its life and as such the repair capitalization should occur under the accounting standards. Capitalized expenses will be recorded in the amended depreciation account of assets to maintain timely financial reports and meeting of regulations.
Increase in Asset Life (Months): The Capitalize Repair Cost option should also be enabled, then the number of months in which the repair will increase the useful life of the asset can be typed in. ERPNext will then automatically revise the Depreciation Schedule to account for the prolonged period. This way, the asset will still depreciate according to its revised lifespan and stay consistent with asset management best practices. It is advisable to establish this value after consulting with the asset custodian or maintenance lead, depending on the type and level of the repair.
Stock Consumed During Repair: When this feature is turned on, you can document and track stock items- such as spare parts, lubricants or other consumables- used during the repair. This enhances traceability, inventory valuation, transparency on the cost of repair as well as audit readiness. This is most helpful when you are using your own stock as compared to outsourcing the job.
Warehouse: You must specify the Warehouse where they are issued when materials are being used in consumption during repair. This enables ERPNext to generate accurate Stock Ledger Entries (SLE) and that a proper record of material consumption is being listed properly in both inventory and accounting modules.
Stock Items: In this column, add the materials or components utilized during the repair. When submitted, ERPNext will create a Stock Entry of Material Issue type, lowering the quantity of items from the warehouse specified. General Ledger (GL) postings will also be created to account for the financial effect of the consumption of materials. When serialized items are the case, you can click the "Add Serial No" button under the respective row to apply specific serial numbers. This enhances traceability and enforces warranty or tracking compliance for regulated assets.
Error Description: In this case, the description of the fault or issue in the asset can be made in detail. Adequate records of the issue will aid in establishing a service history and also in troubleshooting in the future.
Actions Performed: It is a field that allows maintenance staff to record details of all the specific repair procedures that they have conducted step-by-step. They may include disassembly, replacement of parts, recalibration, test and verification. It provides the operational transparency and adds to the acquaintance of the new technicians to the history of asset repair.
3. Features
3.1 Accounting Dimensions
ERPNext enables you to tag a transaction, e.g. repairing an asset with Accounting Dimensions, e.g. Branch, Territory, or Customer. This allows businesses to better track and report dimensionally on financials. You might, for instance, follow repair costs differently for different departments or locations. The system has default dimensions called Project and Cost Center. This is because dimensions will allow a more precise financial analysis, and internal chargebacks or segment level reporting.
3.2 Purchase Invoice
A Purchase Invoice can be associated with the Asset Repair in case the repair involved purchased materials or external services. This assists in grouping all relevant expenditure and ensuring repairs are completely accounted for in asset as well as financial accounts. Linking the invoice also makes vendor handling and auditing easier.
3.3 Total Repair Cost
When Stock Consumed During Repair is used the Repair Cost will be calculated to add to the value of all stock items consumed to the manual input of the repair cost to give the total repair cost. This will give the real and complete view of the amount spent on the repair and this can be critical in valuation of assets and analysis of ROI.