Machine Master
The Machine Master manages the procurement and creation of fixed asset records in JobNext. Machine procurement follows a workflow similar to material procurement but uses Capital Purchase Orders and results in the creation of individual asset records rather than stock entries.
Procurement Process
The machine procurement workflow follows these stages:
- Budget — Allocate capital expenditure budget for the machine
- Material Request — Raise a requisition for the machine
- RFQ — Request for quotation from potential vendors
- Vendor Offers — Evaluate and compare vendor proposals
- Capital Purchase Order — Issue the formal purchase order to the selected vendor
- Capital MRN — Receive the machine through a Capital Material Receipt Note
- Asset Creation — System creates individual asset records
Key Differences from Material Procurement
| Aspect | Material Procurement | Machine Procurement |
|---|---|---|
| Purchase Order | Standard PO | Capital Purchase Order |
| Receipt | Standard MRN (adds to stock) | Capital MRN (creates assets) |
| Result | Stock quantity increases | Individual asset records created |
| Accounting | Debits Inventory | Debits Fixed Asset account |
| Tracking | By quantity in stock | By individual asset with unique ID |
Capitalization Process
Upon delivery and receipt through Capital MRN:
- Receive the machinery through the Capital MRN process
- System creates individual asset records based on the quantity received (e.g., if you receive 3 excavators, 3 separate asset records are created)
- Assets are registered in the financial books as fixed assets
- Depreciation tracking begins from the asset creation date
Individual Asset Records
Unlike materials which are tracked by quantity, each machine is tracked as an individual asset with its own unique identifier. This allows for per-asset depreciation, allocation, utilization tracking, and eventual disposal.
After Capitalization
Once a machine is capitalized, it becomes available for:
- Allocation to Jobs (direct and percentage-based)
- Utilization tracking through log sheets
- Depreciation recording
- Consumable issue tracking
- Eventually, disposal when the asset reaches end-of-life