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For large organizations, simple traditional approaches cannot provide a robust fixed management process because, with scale, the amount of spend increases, implying substantial exposure to risk. For most organizations, this is a strategic and complex process that involves the participation of interdisciplinary teams (including demand team, sales, engineering, manufacturing, marketing, service information technology, supply chain, buy-to-pay team, accounting team and various tax departments, etc.) and carries a high degree of inherent uncertainty.

Below are some of the challenges inherent in a fixed asset management process:

1. Several organizational structures for fixed assets
2. Services shared in various locations, centralized within the company and autonomous on the sites
3. Many IT platforms used for fixed assets register ranging from advanced ERPs to local systems including Excel
4. Lack of relevant standard data attributes/definitions to capture fixed assets across the organization spanning multiple departments and teams
5. Complexity of having multiple representations for the same set of fixed assets for other purposes such as STAT, Tax, etc.
6. Complexity due to country-specific (US and non-US), statutory, and VAT/GST tax requirements
7. Multiple systems can cause mining/interface issues
8. Need for expertise and discipline across all business units to accommodate both US GAAP and local GAAP requirements
9. Limited central or regional consultation of SMEs, Limited communication between tax and statistics experts with FA accounting
10. Best practices are not used in all companies
11. Limited/inconsistent policies, standard operating procedures, process documentation and training
12. Asset data is duplicated across multiple systems
13. Data held on one system is not made available to other systems
14. Reports are drawn from various sources and are inconsistent
15. No systematic verification exercise has taken place for a long time