Fixed assets master data: Which field most appropriately serves as the file key (primary identifier) in a fixed assets file?

Introduction / Context:
Fixed asset accounting tracks long-lived property (plant, equipment, vehicles) from acquisition through depreciation and disposal. A reliable master file requires a unique identifier for each physical or capital asset to ensure accurate life-cycle control and auditability.

Given Data / Assumptions:

• Each asset must be uniquely identifiable in the master file.
• Other fields (accounts, dates) may repeat across many assets.
• The key should remain stable over the asset’s life.

Concept / Approach:
An asset identification number (asset ID or tag) uniquely identifies each item, linking records to physical tags and documentation. Account numbers (fixed asset or depreciation) classify postings in the general ledger but are not unique per asset. Acquisition date is shared by many assets acquired on the same day and cannot serve as a unique key.

Step-by-Step Solution:

Verification / Alternative check:
ERP systems and fixed-asset subledgers use asset IDs or tags as primary keys, with cross-references to GL accounts and dates, confirming best practice.

Why Other Options Are Wrong:

• Fixed asset account number: categorizes assets; not unique per item.
• Acquisition date: many assets can share the same date.
• Depreciation account number: a GL mapping, not an identifier.

Common Pitfalls:
Using composite keys with business-meaningful fields that change over time; stable surrogate IDs are more reliable for lifecycle tracking.

Final Answer:
asset identification number