Glossary
Asset management, defined
Plain-English definitions for the terms you meet when tracking company assets - from asset tags and audit trails to depreciation and reorder points.
167 terms and counting
Asset tracking basics
- Movable Assets Movable assets are physical items that can be relocated without altering them or the property, such as laptops, tools, vehicles, and furniture.
- Tangible vs Intangible Assets Tangible assets are physical items like equipment and vehicles; intangible assets are non-physical ones such as software licences and patents.
- Fixed Asset A fixed asset is a long-term tangible item a business owns and uses in its operations, such as equipment, vehicles, or furniture, rather than for resale.
- Ghost Asset A ghost asset is an item still listed on the books that is physically missing, stolen, or unusable, so records overstate what the business owns.
- Zombie Asset A zombie asset is a physical item in use at an organisation that never made it into the asset register, so it exists but is untracked.
- Asset Audit An asset audit is a physical check that verifies the assets an organisation actually holds match what its register says it owns.
- Asset Custodian An asset custodian is the person responsible for an assigned asset's safekeeping, correct use, and condition while it is in their care.
- Asset Hierarchy An asset hierarchy is a parent-child structure that organises assets by site, system, and component, showing how each item relates to the others.
- Asset Inventory An asset inventory is a catalogued list of everything an organisation owns, created by counting and recording assets and kept current over time.
- Asset Number An asset number is the unique identifier assigned to one asset in a register, used on its tag and in records to tell it apart from similar items.
- Asset Record An asset record is the stored profile of a single asset, holding details such as its ID, description, location, custodian, cost, and history.
- Asset Register An asset register is a complete record of an organisation's assets, listing each item's details such as location, owner, value, and condition.
- Asset Tracking System An asset tracking system is the combination of software, labels, and scanning hardware used to record asset identities, locations, and movements.
- Equipment Log An equipment log is a running record of an item's use, checkouts, maintenance, and condition, kept so anyone can review its history.
- Asset Accountability Asset accountability means making a named person answerable for each asset, so its location, condition, and use can always be traced to someone.
- Asset Location Tracking Asset location tracking is recording where each asset currently is, either by scanning it at a place or by live methods such as GPS or RFID.
- Asset Management Asset management is the coordinated process of acquiring, tracking, maintaining, and disposing of assets to get the most value from them.
- Asset Tracking Asset tracking is the practice of recording where physical assets are, who has them, and what condition they are in throughout their useful life.
- Chain of Custody Chain of custody is the documented record of who has held, moved, or handled an asset over time, proving accountability at every handover.
- Equipment Tracking Equipment tracking is the process of logging where tools, machines, and devices are, who is using them, and when they are due back or due for service.
- Asset Lifecycle The asset lifecycle is the series of stages an asset passes through, from planning and purchase to deployment, maintenance, and final disposal.
IT asset management
- Perpetual License vs Subscription License A perpetual license is bought once and used indefinitely; a subscription license is paid monthly or annually and ends when payments stop.
- CMDB (Configuration Management Database) A CMDB is a database that stores information about IT assets (configuration items) and the relationships between them.
- Configuration Item (CI) A configuration item (CI) is any component, such as hardware, software, or documentation, tracked in a CMDB because it supports an IT service.
- Golden Image A golden image is a pre-configured master copy of an operating system and software used as a template for setting up new devices identically.
- Hardware Refresh Cycle A hardware refresh cycle is the planned interval, often three to five years, at which an organisation replaces laptops, servers, and other equipment.
- Software Entitlement A software entitlement is the right to use software under specific terms, defining how many users, devices, or installs a purchase actually covers.
- True-Up A true-up is a periodic reconciliation where a customer reports actual software usage and pays for any licenses used beyond what was purchased.
- Asset Agent An asset agent is a small program installed on a device that reports its hardware and software details back to an asset management system.
- Endpoint An endpoint is any device that connects to a network, such as a laptop, desktop, phone, tablet, or printer, and is managed and secured by IT.
- IT Inventory An IT inventory is a complete, current record of an organisation's hardware and software assets, including who holds each item and its status.
- Asset Discovery Asset discovery is the automated scanning of a network to find and identify connected devices and installed software for an asset inventory.
- BYOD (Bring Your Own Device) BYOD (bring your own device) is a policy that lets employees use personal phones, tablets, or laptops for work, usually under set security rules.
- Hardware Asset Management (HAM) Hardware asset management (HAM) is the tracking of physical IT equipment such as laptops, servers, and peripherals from purchase through disposal.
- IT Asset Disposition (ITAD) IT asset disposition is the managed final stage of the hardware lifecycle - sanitising data, choosing a disposal route, and documenting where each retired device went.
- ITAM (IT Asset Management) ITAM (IT asset management) is the practice of tracking and managing an organisation's hardware and software through their full lifecycle.
- MDM (Mobile Device Management) MDM (mobile device management) is software that lets IT teams configure, secure, monitor, and wipe phones, tablets, and laptops remotely.
- Per-User (Seat) Licensing Per-user (seat) licensing prices software by the number of named users, with each person who needs access counting as one paid seat.
- Shadow IT Shadow IT is hardware, software, or cloud services used inside an organisation without the knowledge or approval of the IT department.
- Software Asset Management (SAM) Software asset management (SAM) is the practice of tracking software licenses, usage, and costs to stay compliant and avoid overspending.
- License Compliance License compliance means using software strictly within the terms of its license agreement, including seat counts, versions, and usage rights.
- Software License Management Software license management is the process of tracking license purchases, renewals, and usage so an organisation stays compliant and controls cost.
- IT Asset Lifecycle The IT asset lifecycle is the sequence of stages an asset moves through: planning, procurement, deployment, use, maintenance, and disposal.
Labels & identification
- 1D vs 2D Barcode 1D barcodes encode data in vertical lines read horizontally, while 2D barcodes such as QR codes store far more data in a two-dimensional grid.
- Barcode Scanner A barcode scanner is a device or app that optically reads barcodes and converts them into data a computer or inventory system can use.
- Barcode A barcode is a machine-readable pattern of lines or shapes that encodes an identifier, letting a scanner look up the item it is attached to.
- Foil Asset Tag A foil asset tag is a metal-faced label, usually anodised aluminium, that withstands heat, chemicals, and abrasion better than plastic labels.
- Label Printer A label printer is a printer designed to produce adhesive labels, typically using direct thermal or thermal transfer printing on label rolls.
- MAC Address A MAC address is a unique hardware identifier assigned to a device's network interface, written as six pairs of hexadecimal digits.
- QR Code A QR code is a two-dimensional barcode that stores data in a grid of black and white squares, readable by a smartphone camera or scanner.
- Serial Number A serial number is a unique identifier a manufacturer assigns to an individual unit, distinguishing it from every other item of the same model.
- SKU (Stock Keeping Unit) A SKU (stock keeping unit) is a retailer-defined code that identifies a distinct product type and its attributes for inventory tracking.
- Tamper-Evident Label A tamper-evident label is an asset label designed to show clear visible damage, such as a VOID pattern, if anyone tries to remove or alter it.
- UID (Unique Identifier) A UID (unique identifier) is a string of characters guaranteed to identify a single entity, such as an asset, record, or device, without duplicates.
- VIN (Vehicle Identification Number) A VIN (vehicle identification number) is the unique 17-character code assigned to every road vehicle, identifying its manufacturer, features, and unit.
- Asset ID An asset ID is the unique code an organisation assigns to each asset in its register so the item can be identified, labelled, and tracked.
- Asset Label An asset label is a durable sticker or plate fixed to equipment that carries an asset ID, barcode, or QR code linking the item to an asset register.
- Asset Tag An asset tag is a physical label with a unique identifier attached to a piece of equipment so it can be identified, tracked, and matched to its record in an asset register.
- Equipment Nameplate An equipment nameplate is a manufacturer-fitted plate on a machine showing its model, serial number, ratings, and other identifying specifications.
- IMEI (International Mobile Equipment Identity) An IMEI (international mobile equipment identity) is a unique 15-digit number that identifies an individual mobile phone or cellular device.
- Asset Marking Asset marking is the practice of applying permanent identifiers, such as labels, engraving, or etching, to equipment so it can be identified and traced.
- GPS Asset Tracking GPS asset tracking uses satellite-positioned trackers attached to equipment or vehicles to report their real-time location to tracking software.
- NFC (Near-Field Communication) NFC (near-field communication) is a short-range wireless technology that lets devices like smartphones read tags or exchange data within a few centimetres.
- RFID (Radio-Frequency Identification) RFID (radio-frequency identification) is a technology that uses radio waves to read data from tags attached to objects, without line of sight.
Checkout & custody
- Condition Report A condition report is a documented assessment of an asset's physical state, usually captured at checkout and return to record damage or wear.
- Custody Log A custody log is a chronological record of who has held an asset, with dates and signatures or scans captured at each handover.
- Hand Receipt A hand receipt is a signed document acknowledging that a person has received specific property and accepts responsibility for it.
- Loan Period A loan period is the agreed length of time a borrower may keep a checked-out asset before it must be returned or renewed.
- Tool Crib A tool crib is a controlled storage area where tools and equipment are issued, returned, and tracked, often run by an attendant or checkout system.
- Asset Return An asset return is the check-in step where a borrowed item comes back, its condition is verified, and custody passes back to the organisation.
- Asset Transfer An asset transfer is the recorded move of an asset from one person, department, or location to another, updating custody and responsibility.
- Equipment Checkout System An equipment checkout system is a tool or process that records who borrows equipment, when it is due back, and what condition it returns in.
- Equipment Loan Agreement An equipment loan agreement is a document setting the terms under which a person borrows equipment, covering duration, care, and liability.
- Equipment Pool An equipment pool is a shared set of assets available for any approved user to check out, rather than being assigned to one person.
- Equipment Reservation An equipment reservation is a booking that holds an asset for a person for a future date, preventing double-booking of shared items.
- Equipment Sign-Out Sheet An equipment sign-out sheet is a form, paper or digital, where borrowers record their name, the item taken, the date out, and the date returned.
- Overdue Asset An overdue asset is a checked-out item that has passed its return due date without being checked back in or renewed.
- Asset Assignment Asset assignment is the act of allocating an asset to a specific person, team, or location so accountability for the item is clear.
- Check-In/Check-Out Check-in/check-out is the process of recording when an asset is issued to a person and when it is returned, so custody of the item is always known.
- Kitting Kitting is the practice of grouping related items into a single kit that is stored, checked out, and returned as one unit.
- Self-Service Checkout Self-service checkout lets borrowers scan a label and check out an asset themselves, without a staff member processing the loan.
- Lending Library Model The lending library model manages shared equipment like library books: items are catalogued, borrowed for set periods, and returned for reuse.
Maintenance & lifecycle
- Planned vs Unplanned Maintenance Planned maintenance is work scheduled in advance; unplanned maintenance is reactive work after unexpected failure, and the ratio signals asset health.
- CMMS (Computerized Maintenance Management System) A CMMS (computerized maintenance management system) is software that schedules, tracks, and records maintenance work and asset service history.
- Maintenance Backlog A maintenance backlog is the queue of identified maintenance work that has been approved but not yet completed, often measured in labour hours or weeks.
- Service Level Agreement (SLA) A service level agreement (SLA) is a documented commitment defining the service standard a provider must meet, such as response and resolution times.
- Service Ticket A service ticket is a logged record of a user-reported issue or request, tracked from creation to resolution by a support or maintenance team.
- Work Order A work order is a documented request that authorises and tracks a specific maintenance or repair task, including who does it, on what asset, and by when.
- Inspection Schedule An inspection schedule is a planned calendar of recurring checks on assets, defining what gets inspected, how often, by whom, and against which criteria.
- Asset Decommissioning Asset decommissioning is the controlled retirement of an asset from service, covering data wiping, record updates, and final disposal or resale.
- Asset Uptime Asset uptime is the percentage of scheduled time an asset is available and working, calculated as operating time divided by planned operating time.
- Calibration Calibration is checking and adjusting an instrument against a known standard so its measurements stay accurate within a stated tolerance.
- Corrective Maintenance Corrective maintenance is repair work carried out after a fault is found, restoring an asset to working condition.
- Downtime Downtime is any period when an asset or system is unavailable for use, whether due to failure, maintenance, or external causes.
- End of Life (EOL) End of life (EOL) is the point at which a product is no longer sold, updated, or supported by its manufacturer and should be replaced or retired.
- Equipment Servicing Equipment servicing is the routine care of machinery and devices, such as cleaning, lubrication, part checks, and adjustments, to keep them running safely.
- MTBF (Mean Time Between Failures) MTBF (mean time between failures) is the average operating time between breakdowns of a repairable asset, used as a core reliability metric.
- MTTR (Mean Time to Repair) MTTR (mean time to repair) is the average time taken to fix a failed asset and return it to service, from fault report to restored operation.
- Predictive Maintenance Predictive maintenance uses condition data, such as sensor readings or usage, to forecast failures and service assets just before they break.
- Preventive Maintenance Preventive maintenance is routine, scheduled upkeep performed on assets to reduce the chance of failure before it happens.
- Refurbishment Refurbishment is restoring a used asset to good working condition through repair, replacement of worn parts, testing, and cleaning before reuse or resale.
- Spare Parts Management Spare parts management is the control of repair parts inventory, deciding which parts to stock, in what quantity, and reordering before stock runs out.
- Useful Life Useful life is how long an asset stays worth keeping in service - the working window that servicing, refurbishment and replacement decisions are planned around.
- Warranty Tracking Warranty tracking is recording each asset's warranty terms and expiry dates so repairs can be claimed from the vendor instead of paid out of pocket.
Finance & depreciation
- Capitalisation Threshold A capitalisation threshold is the minimum purchase cost at which a business records an item as a fixed asset instead of expensing it immediately.
- Depreciation Schedule A depreciation schedule is a table showing each asset's cost, method, annual depreciation expense and remaining book value over its life.
- Fixed Asset Register A fixed asset register is a record of everything a business owns, listing each asset's cost, location, condition, depreciation and disposal details.
- Amortisation Amortisation spreads the cost of an intangible asset, such as software or a patent, over its useful life; it is depreciation's counterpart for intangibles.
- Asset Write-Off An asset write-off removes an asset from the books by expensing its remaining value, typically after loss, damage or obsolescence.
- Asset Capitalization Asset capitalization records a purchase as a fixed asset on the balance sheet, then depreciates it, instead of expensing the full cost at once.
- Asset Disposal Asset disposal is removing an asset from use and from the books by selling, scrapping, donating or recycling it, and recording any gain or loss.
- Asset Impairment Asset impairment is a permanent drop in an asset's recoverable value below its book value, requiring a write-down in the accounts.
- Asset Valuation Asset valuation is the process of determining what an asset is worth, using methods such as cost, market comparison or income approaches.
- Book Value Book value is an asset's original cost minus accumulated depreciation, the value it carries on the balance sheet.
- CapEx (Capital Expenditure) CapEx (capital expenditure) is money spent to buy or upgrade long-term assets such as equipment, vehicles or buildings, capitalised rather than expensed.
- Declining Balance Depreciation Declining balance depreciation applies a fixed percentage to an asset's remaining book value each year, front-loading expense into the early years.
- Depreciation Depreciation is the accounting process of spreading a fixed asset's cost over its useful life to reflect wear, age and declining value.
- Fair Market Value (FMV) Fair market value is the price an asset would sell for between a willing buyer and seller, both informed and under no pressure to trade.
- Fixed Asset Accounting Fixed asset accounting tracks long-term assets from purchase to disposal, recording cost, depreciation, impairment and gains or losses on sale.
- Net Book Value (NBV) Net book value is an asset's cost minus accumulated depreciation and impairment, giving its current carrying value in the accounts.
- OpEx (Operating Expenditure) OpEx (operating expenditure) is the day-to-day cost of running a business, such as rent, maintenance and subscriptions, expensed in the period it occurs.
- Residual Value Residual value is the amount an asset is expected to be worth at the end of its useful life or lease term, before any disposal costs.
- Salvage Value Salvage value is the estimated amount an asset will be worth at the end of its useful life, after depreciation has run its course.
- Straight-Line Depreciation Straight-line depreciation expenses an equal share of an asset's cost each year over its useful life: (cost minus salvage value) divided by years.
- Total Cost of Ownership (TCO) Total cost of ownership is the full lifetime cost of an asset: purchase price plus running, maintenance, support and disposal costs.
- Useful Economic Life Useful economic life is the period over which an asset is expected to generate value for a business, used to set its depreciation term.
Compliance & audit
- Internal Controls Internal controls are the policies, procedures, and checks an organisation uses to safeguard assets, prevent errors, and keep records reliable.
- Certificate of Destruction A certificate of destruction is a document from a disposal vendor confirming that specific assets or data were destroyed, when, and by what method.
- Data Retention Policy A data retention policy defines how long an organisation keeps each type of record or data, and when and how it must be securely deleted or destroyed.
- Data-Bearing Device A data-bearing device is any asset that stores data, such as a laptop, phone, drive, or copier, and so needs secure wiping or destruction at disposal.
- Fixed Asset Audit A fixed asset audit is a review that checks fixed assets physically exist, are correctly valued, and match what the asset register and accounts show.
- Physical Inventory Count A physical inventory count is the process of manually counting and checking assets or stock on hand to confirm that records match what actually exists.
- Acceptable Use Policy (AUP) An acceptable use policy (AUP) sets out how employees may use company equipment, networks, and data, and what kinds of use are prohibited.
- Asset Management Policy An asset management policy is a document that sets the rules for how an organisation acquires, tracks, uses, maintains, and disposes of its assets.
- Audit Trail An audit trail is a chronological record of every change made to an asset or record, showing who did what, when, and what the value was before and after.
- Information Asset Register An information asset register is a catalogue of an organisation's data and information assets, recording what they are, where they live, and who owns them.
- Asset Reconciliation Asset reconciliation is the process of comparing physical assets against the asset register and accounting records, then resolving any differences found.
- Asset Verification Asset verification is the process of physically confirming that assets on the register exist, are where records say they are, and are in usable condition.
- Audit Readiness Audit readiness is the state of having records, controls, and evidence organised so an internal or external audit can be passed without last-minute work.
- Data Sanitization Data sanitization is the deliberate, permanent removal of data from a device so it cannot be recovered, via wiping, degaussing, or physical destruction.
- E-Waste E-waste is any discarded electrical or electronic equipment, from laptops and phones to monitors, that needs special handling for disposal or recycling.
- ISO 27001 Asset Management ISO 27001 asset management covers the Annex A controls that require organisations to inventory, assign ownership of, and protect their information assets.
- ITAD (IT Asset Disposition) ITAD (IT asset disposition) is the secure, compliant process of retiring IT equipment through data destruction, resale, recycling, or disposal.
- Segregation of Duties Segregation of duties is an internal control that splits a process between people so no single person can both commit and conceal an error or fraud.
- WEEE Directive The WEEE Directive is EU legislation that governs the collection, recycling, and recovery of waste electrical and electronic equipment.
Inventory & stock
- Consumables Consumables are low-value items that are used up and replaced regularly, such as printer toner, gloves, batteries, and cleaning supplies.
- Backorder A backorder is an order for an item that is temporarily out of stock, accepted now and fulfilled when new inventory arrives.
- Bill of Materials (BOM) A bill of materials (BOM) is a structured list of every part, component, and quantity needed to build, assemble, or repair a product.
- Cycle Count A cycle count is a partial inventory count done on a rotating schedule, checking a subset of items so stock stays accurate without a full shutdown.
- Minimum Order Quantity (MOQ) A minimum order quantity (MOQ) is the smallest amount of a product a supplier is willing to sell in a single order.
- Par Level A par level is the minimum quantity of an item that should always be on hand; when stock falls below par, it triggers a reorder.
- Purchase Order A purchase order (PO) is a document a buyer sends a supplier to confirm an order, listing items, quantities, prices, and delivery terms.
- Reorder Point A reorder point is the stock level at which a new order should be placed so items arrive before inventory runs out, based on demand and lead time.
- Stock Level A stock level is the quantity of an item a business currently holds, often tracked against minimum and maximum thresholds to guide reordering.
- Stockout A stockout occurs when an item is completely out of stock and demand cannot be met, leading to lost sales, delays, or substitutions.
- Stocktake A stocktake is a full physical count of inventory, used to verify recorded quantities, find discrepancies, and support accurate accounts.
- Dead Stock Dead stock is inventory that no longer sells or gets used, sitting in storage and tying up money, space, and management time.
- FIFO (First In, First Out) FIFO (first in, first out) is an inventory method where the oldest stock is used or sold first, common for perishables and cost accounting.
- Goods Receiving Goods receiving is the process of checking incoming deliveries against the purchase order, inspecting condition, and recording items into stock.
- Inventory Accuracy Inventory accuracy measures how closely recorded stock matches what is physically on hand, usually expressed as a percentage from counts.
- Inventory Management Inventory management is the process of ordering, storing, tracking, and using a business's stock, from supplies and parts to finished goods.
- Inventory Shrinkage Inventory shrinkage is the loss of stock between purchase and sale, caused by theft, damage, miscounting, or administrative error.
- Inventory Turnover Inventory turnover is a ratio showing how many times a business sells and replaces its stock in a period, found by dividing COGS by average inventory.
- Just-in-Time (JIT) Inventory Just-in-time (JIT) inventory is a strategy of receiving stock only as it is needed, cutting holding costs but requiring reliable suppliers.
- Lead Time Lead time is the period between placing an order and receiving it, used to time reorders so stock arrives before it runs out.
- LIFO (Last In, First Out) LIFO (last in, first out) is an inventory costing method where the newest stock is treated as sold first; allowed under US GAAP but not IFRS.
- Safety Stock Safety stock is extra inventory held as a buffer against demand spikes or supplier delays, reducing the risk of running out of an item.
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