An employee leaves the company, and no one knows exactly where their laptop is. This scenario is surprisingly common in businesses that do not keep custody records.
The problem usually stems from a lack of records rather than bad intentions. Devices pass from hand to hand, it gets forgotten who is using them, and one day they disappear.
In this article, we explained how to set up custody tracking, the handover workflow, the return process, and inventory verification.
Table of Contents
What is custody tracking and why is it necessary?
Custody is the formal recording of an asset being delivered to a specific person. The record itself determines who bears the responsibility.
Without this record, an asset belongs to no one, and therefore no one can be held responsible. An ownerless asset is the most vulnerable to being lost.
Custody also enables planning. When it is known which employee uses which equipment, renewal and maintenance needs can be anticipated.
There are also benefits on the accounting side. Finding the physical counterpart of the records on the fixed asset list makes year-end procedures easier.
Records are kept in the inventory module and associated with employee profiles.
What should be included in the asset card?
The asset card must contain information that uniquely identifies the device. Brand and model alone are not sufficient.
The serial number or internal tag number is the primary field that ensures uniqueness. If there are ten of the same model, only this number distinguishes them.
Purchase date and amount are required for depreciation and renewal planning. The warranty expiration date is of equal importance.
Current status information must also be maintained: in use, in storage, in service, or scrapped.
We detailed the tagging method in the asset tagging article.
Asset assignment workflow
Asset assignment requires a simple yet disciplined workflow. Skipping steps undermines the reliability of the records.
First, the current status of the asset is checked. An asset that is not in storage cannot be assigned.
Next, the person to whom it is delivered and the date are recorded. The physical condition of the asset should also be noted during delivery.
The employee must confirm receipt. Without this confirmation, there is no basis for resolving subsequent disputes.
Accessories and add-ons should also be listed separately. Bags, charging adapters, and external monitors are frequently forgotten items.
Handover and transfer
Assets change hands over time. Making these transitions off the record is the fastest way to disrupt the assignment system.
The correct method is to first close the existing assignment and then open a new one. Direct transfers leave the intermediate state unrecorded.
During a transfer, the condition of the asset must be reassessed. This is the only way to determine when any damage occurred.
Assignments should also be reviewed during department changes. Equipment no longer needed for the new role should be returned to the pool.
A separate record type can be defined for temporary uses. A device given for a week should not appear as a permanent assignment.
Return and offboarding process
Employee offboarding is the most critical moment for assignment tracking. Any asset not collected at this point will likely never return.
Therefore, an assignment check must be added to the offboarding process. The list of assets held by the employee must be obtained before offboarding procedures begin.
The condition of returned assets must be checked and recorded. Damaged returns should not be put back into use immediately.
After the return, the asset goes back to the pool and becomes ready to be reassigned. This transition must also generate a record.
Assets in an unusable condition should be closed with a scrap record. Records that remain on the list but do not exist in reality render the inventory worthless.
Inventory verification
Assignment records must be regularly compared against physical reality. Records and reality inevitably drift apart over time.
Verification does not have to cover the entire inventory. Department-by-department rotating checks are a much more sustainable method.
High-value assets should be checked more frequently. The frequency of checks must be proportional to the risk.
Missing assets should not be counted as lost immediately; they must be investigated first. Most missing items are devices that changed hands without being recorded.
We explained the counting method in the asset counting article.
Which assets should be assigned?
Assigning every single item makes the system unusable in a short time. The scope needs to be defined.
The general criteria are value and portability. High-value and easily movable assets should be prioritized for assignment.
Computers, phones, measuring devices, and hand tools fit this description. Fixed furniture, on the other hand, can be tracked by location.
Software licenses can also be included in the assignment scope. Unused licenses generate unnecessary costs.
We discussed the management of IT assets in the IT inventory article.
Reporting
Assignment data generates management value with a few simple reports. The most basic report is the assignment list by person.
Distribution by department is also useful. Knowing how much equipment is in which unit feeds budget planning.
The age distribution report shows the need for renewal in advance. Devices purchased in the same period will need replacement in the same period.
The list of idle assets is also valuable. Buying new equipment while usable equipment is waiting in the warehouse is an unnecessary cost.
The failure history report reveals problematic models and guides future purchasing decisions.
Points to consider
A cumbersome assignment process is the most common reason for failure. Long forms lead to records not being kept at all.
Therefore, the workflow should be kept as short as possible and must be operable from a mobile device.
Clearly defining responsibility is also important. What will happen in case of a lost or damaged asset must be known from the beginning.
Sharing these rules with employees prevents later disputes.
Finally, the initial inventory data must be set up correctly; a faulty initial list makes the entire process unreliable from the start.
Frequently asked questions
Does the custody form require a wet signature?
It depends on your application and internal policy; digital approval logs provide a practical solution in most scenarios.
How many assets can be assigned to the same person?
There is no limit on the number; all assigned assets can be viewed in a single list from the person card.
Does it match the accounting fixed asset list?
Matching can be established; we determine the scope of synchronization with your existing accounting system during the setup phase.
How is a faulty device tracked?
It is tracked through a service record; fault tracking you can check out the article.
Asset custody tracking does not require a complex system; what it requires is discipline. Recording every handoff prevents the vast majority of losses right from the start.
Define the scope correctly during setup. Trying to assign every single item causes the system to be abandoned in a short time.
Be sure to include the asset custody check in the offboarding process; most uncollected assets are lost at this point.
Do not neglect periodic verification either; the gap between the records and reality grows silently when left unchecked.
By consulting with the EQLEM team you can plan your inventory and asset assignment setup.