RTR® - Real Time Reconciliation Application for Physical Verification Assets

Posted @ 6/11/2018 2:36:50 AM by admin Under(

RTR® - Real Time Reconciliation App

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AAA asset verification has introduced a completely new way to conduct reconciliation phase of the fixed asset verification activity.

We have developed a new application (app) called RTR® to conduct reconciliation in real time. By real time we mean that Reconciliation and Gap reports will be generated and reported simultaneously along while conducting the actual physical verification exercise.

As explained in the earlier article, reconciliation of the Fixed Asset Register (FAR) against actual physical verification results is the utmost important and the most sensitive part of the entire exercise. Complete sanity must me maintained of the entire data, and the variances figured out by comparing the results of physically verified assets against the Fixed asset register of the company must be deliberated by the organization management with priority.

Often the reconciliation (reco) part of the complete fixed asset management cycle takes longest amount of time. Often most overlooked stage of the complete exercise and most human error prone.

While executing so many asset verification services for our clients from across the industries and service sectors, the common thread that we found was in their earlier verification not held by us, the basic problem was that vendor was not able to reconcile the results of Physical verification exercise along with the data shared by the organization in the form of Fixed asset register.

To remove the said complications, we have developed a new app which automatically reconciles the FAR with the scanned items and displaying instant variance reports and reconciliations summaries.

What RTR® of physical verification of assets has enabled is instant generation of asset verification reports in real time without any time delay in preparing reconciliations.

As a result, management gets the true picture of the status of the assets in real time. Often faced problem in fixed asset audits and verification on multiple locations where physical verification of various assets is going on simultaneously by multiple teams, is that often the status and location of assets is changed when the management is studying reconciliation and variance report of physical verification of assets. One of the main reasons for this is fluid movement of assets between various locations of the organization. This problem leaves shorter gap between conducting the operational phase of verification of assets and preparation of final report for management. In fact, entire crux of exercise is lost if there is a long enough gap between PV exercise and reporting.

Even we at AAA asset verification services faced similar problem for a long time. In our endeavour to provide our clients with accurate and time sensitive variance reports, the complexity of overcoming time taken to prepare reconciliation proved to be a stubborn problem.

Then we set our targets to reduce reconciliation time by conducting reconciliation on daily basis. Though this proved to be a good idea on the front of reco, but what proved to be a problem was the pace of physical verification was impacted greatly. The operational output of conducting PV exercise decreased by 25-30%. This led to increased costs and delay in timelines. As a result even, this process of reco had to be scrapped as eventually the time taken was similar to the initial problem. Just that the excess time was shifted from the head of reconciliation phase to the PV phase of the Asset verification cycle phases. The total time of the entire cycle remained same, as well as the problem to be solved initially, being transfer of assets while preparing reco for management review, could also not be met as prolonged PV phase resulted in a large enough window to for transfer of assets to escape accounting for in report.

 

Thus RTR® was developed to come over the above hurdles and provide our clients more ready and actionable information whenever they want. This app can also be used as a single point of data access to field operatives which helps maintain the sanity and security of data shared by the client.

The RTR® app is developed as such so that it could be extended to a fully functioning automated system to conduct entire physical verification exercise. This will be accomplished via live uploading of captured information by the field operatives using the Mobile data. Thus, real time physical verification of entire process, right from capturing details of asset to tagging of the said asset, to reconciliation of data and preparation of final reconciliation report to present to management for their input can be done in a single step without any measurable delay in entire cycle.

We believe RTR® that is our Real Time Reconciliation app will truly become a game changer in the field of Physical verification and will change the way people think of conducting the exercise and presenting the reports. This will lead to win-win situation both for us and our clients.

Eventual reliability and efficacy of data will be achieved and redundancy and human error will be removed.

Contact AAA asset verification for  your physical asset verification requirements and servicing or demo of our RTR® application.

 






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