The client
The client is a textile manufacturing chain with multiple production facilities.
Each facility uses many types of assets across different production stages. Categorizing them for capitalization, tracking their values and staying in line with financial reporting standards had all been done by hand.
The challenge
Manual capitalization across complex production facilities led to errors and inconsistencies, and financial reports were harder to trust.
- Assets were categorized for capitalization by hand, with errors.
- Asset values were hard to track across facilities.
- Different facilities and production stages needed different criteria.
- Compliance with financial reporting standards took heavy effort.
What they set up in Asset Infinity
The manufacturer moved capitalization into Asset Infinity, with rules by facility and asset type, and depreciation run from the same register.
Rules for capitalization
Asset categories and capitalization criteria are set by facility and asset type, so every new asset is classified the same way. (Finance)
Depreciation and values
Depreciation runs show each asset’s book value over time, with book and tax figures side by side. (Finance)
Approval steps
Required fields and approval steps check that each asset is correctly categorized before it is capitalized. (Platform)
Reports for finance
Reports on asset values, additions and depreciation by facility support financial reporting and decisions. (Insight)
How it works day to day
Here is how a new asset now goes from purchase to the books.
- Facility team: records the new asset. A new machine or piece of equipment is added to the register with its facility, production stage and cost.
- System: applies the category. Required fields and the facility’s criteria guide the asset into the right category for capitalization.
- Finance reviewer: approves. An approval step lets finance check the categorization before the asset is capitalized.
- Finance team: runs depreciation. Each period, a depreciation run updates book values for every asset, with tax figures alongside.
- Finance team: exports to accounts. Depreciation and additions are exported as journals to the accounting system.
- Management: reviews values. Reports show asset values and depreciation by facility, supporting reporting and investment decisions.
Before and after
| Before | With Asset Infinity | |
|---|---|---|
| Categorization | Manual, error-prone | Rules by facility and asset type |
| Asset values | Hard to track | Depreciation runs and book values |
| Facility differences | Handled case by case | Criteria for each facility and stage |
| Compliance | Heavy manual checking | Approval steps before capitalization |
| Reporting | Inconsistent | 15% more accurate |
How it rolled out
- Needs assessed. The client and the Asset Infinity team reviewed capitalization challenges and reporting needs across facilities.
- Criteria configured. Categories and criteria were set up for each facility and asset type used in production.
- Checks in place. Approval steps were added so categorization is checked against financial standards.
The results
- 40% improvement in asset categorization accuracy
- 15% increase in financial reporting accuracy
- 10% increase in operational efficiency
- 10% improvement in categorization aligned with production stages
- 5% improvement in informed decision-making
- Fewer errors and more consistent financial reporting.
- Less administrative effort in capitalization.
Why it worked
Rules, not judgment calls
Criteria set once by facility and asset type mean every new asset is treated the same way.
Finance checks first
Approval steps catch a wrong category before it reaches the accounts.
One register for all
Values, depreciation and asset details live together, so reports match the assets on site.
Looking ahead
By setting capitalization rules by facility and asset type, the manufacturer improved categorization accuracy by 40% and financial reporting accuracy by 15%.
Finance and operations now work from one fixed asset register, so the values that reach the accounts match the assets on the factory floor.