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Inventory Vs Assets

In informal conversation, the word inventory is often used synonymously with the word assets. However, for those who understand inventory the two have very distinct meanings.

Web searches define the difference as follows:

    Inventory refers to the goods and materials that a business holds, whereas the storage of physical assets refers to the process of keeping and organizing those assets in a safe and organized manner.

The definition is a bit vague.

Another was to define the two is based on how they are identified. Inventory are items you count. Assets refers to individual items. Assets use serial numbers (asset IDs), tags and labels to identify them. They are also called "serialized goods." Inventory items use single SKUs (Stock Keeping Units) to identify like items.

With inventory, each item does not need its own number. That would be optional, whereas assets require individual IDs. Note that an asset can be identified by both an inventory ID (The SKU) and an asset ID (or Serial Number).

Inventory Software vs Asset Software

The management of physical assets and inventory are different. The management of physical assets involves overseeing the acquisition, maintenance, valuation, and disposal of a company's physical assets. These may include equipment, machinery, computers, and serialized goods such as drugs with lot numbers, chemicals that age, and substances that need to be individually tracked.

The management of inventory, on the other hand, involves tracking and controlling the flow of "quantities of like goods and materials," from the point of it enters storage to the point it exits.

It's why Asset Management Software and Inventory Control Software are distinctively different categories of software.

Aestiva offers Inventory Control Software, Asset Management Systems, and hybrid systems that manage inventory but also store the serialized goods information for tracking purposes.

Aestiva's software and modules are provided free with Aestiva's Software Unlimited Plan.

See Also

Inventory Control Software, What Is Inventory, Inventory Control Software Processes