Asset Inventory Management with Straight Line Depreciation Method at Cisalak Village Office, Cibeber District

Abstract

Effective inventory management will help the village avoid financial losses due to the loss or damage of assets, maintain asset value, and improve services to the community. Each asset used cannot be utilized indefinitely as it will experience depreciation, which leads to a reduction in both its useful life and utility value over time. Therefore, it is necessary to consider appropriate policies regarding depreciation. The Cisalak Village Office would be better suited to implement the straight-line depreciation method, where the depreciation of an asset is allocated evenly over its established useful life, making it easier to determine the depreciation value. The inventory management currently practiced at the Cisalak Village Head Office is still conducted manually or using a non-computerized system. This often leads to various issues, such as inaccuracies in depreciation calculations, difficulties in inventory monitoring, and less effective decision-making regarding asset maintenance and replacement. The straight-line calculation method can be employed to predict the depreciation of village asset inventory, based on the straight-line method where the value and function of the asset will continuously decline in line with its utilization, meaning that the depreciation expense for each period remains constant. The village inventory includes various types of assets, such as buildings, equipment, vehicles, and other items used for administrative activities and community services in the village.