Resources · Glossary
Asset Management Glossary
Clear, practical definitions of the terms you meet when tracking, tagging, auditing, maintaining and depreciating physical assets — with worked examples where the numbers matter.
81 terms
81 terms7 categoriesPlain English · worked examples
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Accumulated depreciationFinanceAccumulated depreciation is the total depreciation charged on an asset since it went into service. It is a contra-asset account deducted from cost.API · Application Programming InterfaceSecurity & AccessAn API (application programming interface) is a defined way for software to request data or actions from another system, such as syncing assets with an ERP.AssetAsset ManagementAn asset is a resource an organization controls that is expected to bring future economic benefit. In asset management it usually means a physical item.Asset auditInventory & AuditsAn asset audit verifies that assets in the register physically exist, are where records say, and are correctly recorded — then resolves the differences.Asset classAsset ManagementAn asset class groups similar assets, such as IT equipment, vehicles or furniture, that share fields, depreciation settings and policies.Asset custodianAsset ManagementAn asset custodian is the person or team physically responsible for an asset day to day — who has it, uses it and must account for it.Asset hierarchyAsset ManagementAn asset hierarchy organizes assets into parent-child levels, such as site, system, equipment and component, so data rolls up and work targets the right level.Asset lifecycleAsset ManagementThe asset lifecycle is the sequence of stages an asset goes through — plan, acquire, deploy, operate and maintain, then dispose.Asset locationAsset ManagementAsset location is where an asset is recorded as being, usually a place in a location hierarchy such as site › building › floor › room.Asset managementAsset ManagementAsset management is the coordinated work of getting value from assets across their lifecycle: planning, buying, tracking, maintaining and disposing of them.Asset movementTrackingAn asset movement is any recorded change in an asset’s location, custodian or site, with who made it, when, from where to where and why.Asset ownerAsset ManagementAn asset owner is the person or department accountable for an asset’s value, use and lifecycle decisions, as distinct from whoever physically holds it.Asset registerAsset ManagementAn asset register is the master list of every asset an organization owns, with its ID, location, custodian, value, status and history.Asset tagTags & IdentificationAn asset tag is a durable label or device fixed to an asset that carries its unique ID as a barcode, QR code, NFC chip or RFID tag.Asset trackingTrackingAsset tracking is recording where each physical asset is, who has it and what state it is in — using tags, scans and readers to keep that record current.Asset valuationFinanceAsset valuation is working out what assets are worth for a purpose: book value for the accounts, fair value for a sale, replacement cost for insurance.Asset verificationInventory & AuditsAsset verification is physically confirming that a recorded asset exists, is identifiable and is in the recorded location and condition.Audit trailSecurity & AccessAn audit trail is a chronological record of who did what, when and to which record, including old and new values, kept so it cannot be quietly changed.
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BarcodeTags & IdentificationA barcode encodes an ID as a machine-readable pattern of bars or modules, read optically by a scanner or phone camera — one label at a time.Book vs tax depreciationFinanceBook depreciation follows accounting standards; tax depreciation follows tax law. Many firms keep both, and the timing gap creates deferred tax.
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CalibrationMaintenanceCalibration compares an instrument’s readings with a reference standard of known accuracy, records the error and adjusts it so its measurements can be trusted.CapEx · Capital ExpenditureFinanceCapEx (capital expenditure) is money spent to buy or significantly improve long-term assets. It is capitalized and depreciated, not expensed at once.Capital allowancesFinanceCapital allowances are tax deductions for spending on qualifying assets such as plant and machinery, claimed in the UK instead of accounting depreciation.Capital assetAsset ManagementA capital asset is a long-term asset whose cost is capitalized on the balance sheet and depreciated, rather than expensed when it is bought.Capitalization thresholdFinanceA capitalization threshold is the minimum cost at which a purchase is recorded as a fixed asset and depreciated. Cheaper items are expensed at once.Check-inTrackingAsset check-in is booking a checked-out asset back in: closing the loan, recording who returned it, when and in what condition, so it is ready to issue again.Check-outTrackingAsset check-out is issuing an asset to a person, team or job for a period and recording who has it, when it left, its condition and when it is due back.CMMS · Computerized Maintenance Management SystemMaintenanceA CMMS (computerized maintenance management system) organizes maintenance around assets: work orders, PM schedules, parts, history and reporting.Corrective maintenance · CMMaintenanceCorrective maintenance restores an asset to working order after a fault or failure has been found. It is repair, as opposed to prevention.Cycle countInventory & AuditsA cycle count checks a subset of assets or locations on a rolling schedule, so everything is verified over a period without one big shutdown count.
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Declining balance depreciationFinanceDeclining (reducing) balance depreciation charges a fixed percentage of an asset’s remaining book value each year, so charges start high and fall.DepreciationFinanceDepreciation spreads the cost of a fixed asset over its useful life, recording part of the cost as an expense each period as the asset is used up.DisposalFinanceAsset disposal removes an asset from use and from the books, by sale, scrapping, donation or trade-in, recording a gain or loss against its NBV.Double-declining balance · DDBFinanceDouble-declining balance (DDB) is declining balance at twice the straight-line rate — e.g. 40% a year for a 5-year asset — heavily front-loading depreciation.DowntimeMaintenanceDowntime is time an asset or facility cannot do its job, either planned (maintenance) or unplanned (breakdowns). It is a core maintenance measure.
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GeofencingTrackingGeofencing sets a virtual boundary around a place and triggers an action, such as an alert, when a tracked item enters or leaves it.Ghost assetInventory & AuditsA ghost asset is recorded in the register (and often still on the books) but no longer physically exists or cannot be found.GPS trackingTrackingGPS tracking uses a receiver on a device to work out its position from satellite signals, then records or sends that position so you can see where it is.
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MACRS · Modified Accelerated Cost Recovery SystemFinanceMACRS is the US federal tax depreciation system: assets fall into IRS property classes with set recovery periods, methods and conventions.Maintenance scheduleMaintenanceA maintenance schedule lists which maintenance tasks are done on which assets, how often, and when each is next due, so planned work happens on time.Movement alertTrackingA movement alert is an automatic notification raised when an asset moves in a way a rule does not allow, such as leaving a zone or site without a check-out.MTBF · Mean Time Between FailuresMaintenanceMTBF (mean time between failures) is the average operating time between failures of a repairable asset: total operating time ÷ number of failures.MTTR · Mean Time To RepairMaintenanceMTTR (mean time to repair) is the average time to get an asset working again after a failure: total repair time ÷ number of repairs.
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NBV · Net Book ValueFinanceNet book value (NBV) is an asset’s cost minus its accumulated depreciation (and any impairment) — the value it is carried at on the balance sheet.NFC · Near Field CommunicationTags & IdentificationNFC (near field communication) is short-range 13.56 MHz RFID that most smartphones can read — tap a phone on a tag to identify an asset.
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On-metal RFID tagTags & IdentificationAn on-metal RFID tag is designed to read reliably when attached to metal, which detunes and blocks ordinary RFID labels.OpEx · Operating ExpenditureFinanceOpEx (operating expenditure) is the ongoing cost of running a business, such as wages, rent, fuel and repairs. It is expensed when incurred, not capitalized.
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Physical inventoryInventory & AuditsA physical inventory is a count of everything on hand at a point in time, used to verify and correct the records. It is the US term for a full stock-take.Predictive maintenance · PdMMaintenancePredictive maintenance (PdM) uses condition data such as vibration, temperature and oil analysis to service equipment when wear appears, not on a fixed date.Preventive maintenance · PMMaintenancePreventive maintenance (PM) is planned service done at set time or usage intervals to reduce the chance of failure, rather than waiting for a breakdown.
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RBAC · Role-Based Access ControlSecurity & AccessRBAC (role-based access control) gives permissions to roles, not individuals, and assigns people to roles, so each user can do only what their job needs.Real-time asset trackingTrackingReal-time asset tracking updates an asset’s location automatically as it moves, from readers or devices — not only when someone remembers to scan it.RFID · Radio-Frequency IdentificationTags & IdentificationRFID (radio-frequency identification) uses radio waves to read a unique ID from a tag without line of sight — often many tags at once, at a distance.RFID portalTags & IdentificationAn RFID portal is a fixed reader and antennas installed at a doorway, gate or dock door to detect tagged assets passing through automatically.RFID readerTags & IdentificationAn RFID reader powers and interrogates RFID tags through its antennas and reports each tag ID it detects — handheld for audits, fixed for automation.RFID tagTags & IdentificationAn RFID tag is a small chip and antenna that sends back a unique ID when an RFID reader’s radio signal reaches it. Passive tags need no battery.
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Salvage valueFinanceSalvage (residual) value is what you expect to get for an asset at the end of its useful life, after disposal costs. Cost minus salvage is depreciated.SSO · Single Sign-OnSecurity & AccessSSO (single sign-on) lets people sign in once with one work account and then use many apps without separate passwords, managed by an identity provider.Stock-takeInventory & AuditsA stock-take is a physical count of assets (or stock) compared against the register, to find what is present, missing or unrecorded.Straight-line depreciationFinanceStraight-line depreciation charges the same amount each period: (cost − salvage value) ÷ useful life. It is the simplest and most common book method.Sum-of-years' digits · SYDFinanceSum-of-years’ digits (SYD) is an accelerated method that multiplies the depreciable base by a shrinking fraction: remaining life ÷ sum of the years.
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Tenant isolationSecurity & AccessTenant isolation keeps each customer’s data separate in a shared (multi-tenant) SaaS platform, so no organization can see another’s data.TID · Tag IdentifierTags & IdentificationThe TID (tag identifier) is the factory-set, read-only identity of an RFID chip — used to tell genuine tags from cloned ones.
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UHF RFID · Ultra-High-Frequency RFIDTags & IdentificationUHF RFID is passive RFID in the 860–960 MHz band, read at several meters and in bulk — the standard choice for fast audits and doorway detection.UID · Unique IdentifierTags & IdentificationA UID (unique identifier) is a code that identifies one specific item, such as the factory serial number of an NFC chip or a UID mark on a part.Units of production depreciationFinanceUnits of production depreciation charges cost per unit of actual use, such as hours, miles or units made, so depreciation follows how hard the asset works.Unregistered assetInventory & AuditsAn unregistered asset is physically present and in use but missing from the asset register, and is usually found during an audit or stock-take.Useful lifeFinanceUseful life is the period, or amount of output, over which a business expects to use an asset. It is the span the asset’s cost is depreciated over.
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WarrantyMaintenanceA warranty is a supplier’s promise to repair or replace an asset that fails within a set period. Tracking it means claims are made before cover expires.WebhookSecurity & AccessA webhook is an HTTP request a system sends automatically to a URL you choose when an event happens, so your other systems can react without polling.Work order · WOMaintenanceA work order is a record that authorizes a maintenance job and tracks it: what to do, on which asset, who does it, by when, and what it cost.Write-offFinanceA write-off removes an asset from the books when it is lost, stolen, destroyed or worthless, and charges its remaining NBV to profit as a loss.
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ZoneTrackingIn asset tracking, a zone is a named area, such as a store, ward, floor or yard, used to record where an asset is and where it is allowed to be.Zone-exit alertTrackingA zone-exit alert is a real-time notification triggered when a tagged asset is detected leaving a zone it is supposed to stay in.
Popular terms
Where most people start
The terms asset, operations and finance teams look up most — each with an in-depth explanation and examples.
RFIDRFID (radio-frequency identification) uses radio waves to read a unique ID from a tag without line of sight — often many tags at once, at a distance.
Asset registerAn asset register is the master list of every asset an organization owns, with its ID, location, custodian, value, status and history.
DepreciationDepreciation spreads the cost of a fixed asset over its useful life, recording part of the cost as an expense each period as the asset is used up.
QR codeA QR code is a square 2D barcode that any phone camera can scan — the cheapest, simplest way to label an asset and open its record.
Stock-takeA stock-take is a physical count of assets (or stock) compared against the register, to find what is present, missing or unrecorded.
NBVNet book value (NBV) is an asset’s cost minus its accumulated depreciation (and any impairment) — the value it is carried at on the balance sheet.
Preventive maintenancePreventive maintenance (PM) is planned service done at set time or usage intervals to reduce the chance of failure, rather than waiting for a breakdown.
CMMSA CMMS (computerized maintenance management system) organizes maintenance around assets: work orders, PM schedules, parts, history and reporting.
UHF RFIDUHF RFID is passive RFID in the 860–960 MHz band, read at several meters and in bulk — the standard choice for fast audits and doorway detection.
Zone-exit alertA zone-exit alert is a real-time notification triggered when a tagged asset is detected leaving a zone it is supposed to stay in.
Straight-line depreciationStraight-line depreciation charges the same amount each period: (cost − salvage value) ÷ useful life. It is the simplest and most common book method.
Asset trackingAsset tracking is recording where each physical asset is, who has it and what state it is in — using tags, scans and readers to keep that record current.Seven areas, one vocabulary
From tag to balance sheet
Asset management sits where operations and finance meet. The same laptop has an EPC, a custodian, a zone, a service history and a net book value — this glossary covers all of them.
- Asset Management11 terms
- Tracking11 terms
- Tags & Identification14 terms
- Inventory & Audits9 terms
- Maintenance11 terms
- Finance19 terms
- Security & Access6 terms
Learn more
Go beyond definitions
Step-by-step guides, articles and free tools that put these terms to work.
GuideRFID vs NFC vs QR codes: which tag should you use?Read method, range, bulk reading and cost compared — so you match each asset to the right tag.Read →GuideThe complete guide to RFID asset trackingHow to plan tags, readers, portals and zones for an RFID rollout that actually reads reliably.Read →BlogAsset management articlesPractical articles on tracking, audits, maintenance and asset finance.Visit the blog →Free toolDepreciation calculatorBuild a depreciation schedule for any asset in seconds.Open the calculator →Free toolRFID vs barcode calculatorCompare audit time and cost for barcode and RFID with your own numbers.Open the calculator →TemplatesAsset management templatesRegisters, audit sheets and schedules to download and adapt.Browse templates →
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