Fixed Assets is a six-step process that begins with initiating and authorizing the request to purchase the asset and finishes with the ultimate disposal of the fixed asset after maintaining and depreciating it throughout its useful life. These processes are cyclical in nature, and the most of them take place within any fixed management lifetime. The only exception is Step 6 - Disposal of Fixed Assets - which can be accomplished at any time. The fixed asset process consists of these steps: identify need for asset, decide on type of asset to be acquired, select a seller, negotiate price, pay for asset, receive asset, inspect asset, record initial acquisition cost, record subsequent sale costs, record depreciation, and finally dispose of asset. A business needs assets to run its operations. Without these essential tools, businesses could not manufacture products or provide services to their customers. In addition, businesses use fixed assets for security, entertainment (such as cinema screens), and morale building (such as parks and sports facilities). A fixed asset is any tangible property, including buildings and structural components such as roofs, heating, and air-conditioning systems, that is used by a company in its daily operations. Examples of fixed assets include production lines and other equipment, whether factory-made or custom-built. Personal items such as office furniture and computers are also considered fixed assets. However, people are not charged with depreciation unless they're employed by the company that owns the fixed assets.