- 3
- April
From EP.1 where we learned what fixed assets are, their 10 categories and types, and EP.2 covering depreciation and set-based asset cases, EP.3 takes you through the complete fixed asset lifecycle in 5 stages — from procurement all the way to disposal and removal from the ledger. This is the big picture that procurement officers, accountants, and agency executives in Thai government must all understand consistently.
Quick Summary — 5 Complete Lifecycle Steps:
- Procurement — Purchase under the Government Procurement Act B.E. 2560 (2017)
- Inspection & Registration — Verify against TOR, assign 13-digit code, attach label
- Usage & Maintenance — Maintain, transfer, repair or dispose
- Annual Inspection — Physical count at least once per year
- Disposal — Auction, exchange, transfer, or destroy
Fixed Asset Lifecycle — Overview of 5 Steps
Every fixed asset in a Thai government agency follows a clear lifecycle from the first day of procurement to the day it is removed from the books:
| Step | Responsible Party | Key Documents | Legal Basis |
|---|---|---|---|
| 1. Procurement | Procurement officer / Procurement committee | TOR, Purchase order, Contract | Government Procurement Act B.E. 2560 |
| 2. Inspection / Registration | Inspection committee / Procurement officer | Inspection report, Asset registry | Ministry of Finance Regulation B.E. 2560 |
| 3. Usage / Maintenance | Custodian / Procurement officer | Transfer form, Repair request | Ministry of Finance Regulation B.E. 2560 |
| 4. Annual Inspection | Inspection committee (min. 3 members) | Annual inspection report | Comptroller General's Department circular |
| 5. Disposal | Disposal committee / Agency head | Disposal approval memo, Disposal certificate | Ministry of Finance Regulation B.E. 2560 |
Step 1 — Procurement
Fixed asset procurement in Thai government must follow the Government Procurement and Supplies Management Act B.E. 2560 (2017). There are 3 main methods:
| Method | Budget Threshold | Key Steps | Estimated Duration |
|---|---|---|---|
| Specific Method (Direct Purchase) | ≤ 500,000 THB | Invite single vendor → Compare price → Issue purchase order | 3-7 days |
| e-Bidding | > 500,000 THB | Post on e-GP → Online bid submission → Evaluate → Contract | 30-60 days |
| Selection Method | Special conditions | Invite 3+ vendors → Compare → Select | 15-30 days |
Key Point: The TOR must specify details for each individual asset, including shipping, installation, and wiring costs — to obtain the correct ready-to-use cost for registration and depreciation calculation (see details in EP.2 set-based asset cases).
Read more about ERP procurement systems that integrate seamlessly with asset management.
Step 2 — Inspection & Registration
Goods Inspection
The Inspection Committee (appointed by the agency head) verifies received assets against the TOR, signs the inspection report, and hands over to the procurement officer for registration. Read more about goods receipt systems in ERP.
Asset Registration
After inspection, the procurement officer must complete 3 steps: assign a 13-digit asset number, record all data in the asset registry, and attach a label with the asset number to the physical item.
| Data to Record | Example |
|---|---|
| Asset Number | 7440-001-0012 |
| Asset Name | Desktop Computer |
| Asset Category | Computer Equipment |
| Ready-to-Use Cost | 26,800 THB |
| Date Acquired | 15 March 2026 |
| Funding Source | Government budget / Revenue / Donation |
| Location | Administrative Office, 2nd Floor, Building A |
| Responsible Person | Mr. Somchai Jaidee (Administrative Division) |
Step 3 — Usage & Maintenance
Custodian Responsibilities
- Maintain the asset in working condition
- Use only for intended purpose (personal use is prohibited)
- Report when damaged, lost, or no longer needed
Transfers
Moving an asset to another location or changing the responsible person requires documentation every time — issue a transfer form, update the registry, and notify the procurement officer. Unauthorized transfers cause discrepancies during annual inspections.
Repair vs. Disposal Decision
When an asset is damaged, the decision is whether to repair or dispose. The general rule: if repair costs exceed 60% of the remaining book value, disposal is recommended over repair.
| Comparison | Repair | Dispose |
|---|---|---|
| Condition | Repair cost < 60% of remaining book value | Repair cost ≥ 60% of remaining book value |
| Example | AC unit book value 20,000 THB, repair 8,000 (40%) → Repair | AC unit book value 5,000 THB, repair 4,000 (80%) → Dispose |
| Action | In-house repair or outsource | Submit for disposal per Step 5 |
| Registry Impact | No change (record repair history) | Remove from registry |
Read more about warehouse and inventory management that integrates with the fixed asset module.
Step 4 — Annual Inspection
Regulations require physical asset inspection at least once per year by an Inspection Committee appointed by the agency head (minimum 3 members).
What to Inspect
- The asset physically exists at the recorded location
- Condition matches the registry (working / damaged / pending disposal)
- Asset label is still attached and clearly readable
- All data matches the registry
Common Issues Found During Inspection
| Issue | Cause | Solution |
|---|---|---|
| Asset missing | Moved without notification / Actually lost | Investigate → Report to supervisor → Disciplinary action / Disposal |
| Condition mismatch | Status not updated when damaged | Update registry status immediately |
| No asset label | Label fell off / Never attached | Create and attach new label immediately |
| Unauthorized relocation | User moved asset without paperwork | Retroactive transfer documentation + User training |
Read more about inventory discrepancy issues and systematic solutions.
Step 5 — Disposal
Disposal Conditions
- Damaged beyond repair or repair costs exceed 60% of remaining book value
- No longer needed — not in use, technology is obsolete
- Lost — investigation completed, must be removed from the books
4 Disposal Methods
| Method | Condition | Key Steps | Approver |
|---|---|---|---|
| Public Auction | Asset still has resale value | Appraise → Announce sale → Auction → Transfer | Agency head |
| Exchange | Trade for a more needed asset | Appraise both sides → Agreement → Transfer ownership | Agency head |
| Transfer | Donate to another agency or charity | Approval memo → Coordinate with recipient → Handover & sign | Agency head |
| Destruction | No value, cannot sell or transfer | Appoint destruction committee → Destroy → File report | Agency head |
Accounting Steps After Disposal
- Remove from asset registry — change status to "Disposed"
- Adjust depreciation — calculate depreciation up to the disposal date
- Record sale revenue (if applicable) — auction proceeds are remitted to the treasury
Read more about ERP accounting systems that integrate with asset disposal.
Common Issues — 5 Problems That Cause Audit Failure
| Issue | Cause | Impact | Prevention |
|---|---|---|---|
| 1. Asset does not match registry | Data not updated when changes occur | State Audit Office flags issue, financial statements not certified | Update registry every time a change occurs |
| 2. Missing asset label | Label fell off or faded | Cannot identify asset, inspection fails | Use durable labels (metal/waterproof sticker) or QR Codes |
| 3. Asset used for wrong purpose | Government asset used for personal purposes | Disciplinary action, potential criminal charges | User training + periodic usage audits |
| 4. No transfer documentation | User moved asset without notifying procurement | Asset not found at recorded location during inspection | Clear transfer procedure + ERP tracking system |
| 5. Delayed disposal | Damaged assets left for years without disposal | Wasted space, depreciation still running, value drops to unsaleable | Annual inspection + immediate disposal proposal when repair is not worthwhile |
Important Warnings:
- Government-funded assets must not be used for personal purposes — violations carry disciplinary and criminal penalties
- Disposal always requires approval from the agency head — unauthorized disposal is prohibited
- Inspection documents must be retained for at least 10 years
Saeree ERP + Fixed Asset Management
Saeree ERP provides a complete fixed asset management module: automated registration with 13-digit code assignment, automatic depreciation calculation by category, Barcode/QR Code inspection that verifies against the registry instantly, and disposal alerts for assets reaching end-of-life — no need to wait for the annual count to find out. Consult our team
Thai Government Fixed Assets Series:
- EP.1: What Are Fixed Assets? Categories, Types & Criteria
- EP.2: Fixed Asset Depreciation & Set-Based Asset Cases
- EP.3: Fixed Asset Lifecycle — From Procurement to Disposal (This Article)
Good fixed asset management is not just buying and forgetting — it requires care from the first day to the last, because every asset belongs to the nation.
- Sureeraya Limpaibul, Saeree ERP
References
- Government Procurement and Supplies Management Act B.E. 2560 (2017)
- Ministry of Finance Regulation on Government Procurement and Supplies Management B.E. 2560
- Comptroller General's Department Circulars — Fixed Asset Guidelines
- Thai Government Accounting Standards — Property, Plant & Equipment
If your organization is looking for a complete fixed asset management system covering the entire lifecycle from procurement to disposal, request a demo or contact our consulting team for an organizational readiness assessment.
