NetSuite FAM: Life Cycle Optimization, Features & Tips
An effective and efficient Fixed Assets Management system becomes increasingly important as companies continue to make the shift to a remote world.
What is a Fixed Assets Management (FAM) system?
A Fixed Assets Management System can be defined as a system that tracks and maintains an organization’s physical assets and equipment, including vehicles, computers, furniture and machinery.
Fortunately, NetSuite’s Fixed Asset Management (FAM) SuiteApp provides an integrated solution that can facilitate comprehensive and precise asset management processes for all stages of the asset life cycle.
NetSuite’s Fixed Assets Management SuiteApp enables companies of any scale and in virtually any industry to effectively track and manage all aspects of their fixed assets – from creation to disposal and each step in between.
This allows these organizations to optimize their operations, minimize equipment loss and failure, and utilize customizable real-time reporting, all in a one-stop module.
5 Key NetSuite Features for Optimizing Your Asset Life Cycle
1. Asset proposal and creation
NetSuite’s FAM SuiteApp gives users the ability to propose assets from various transaction types to simplify and automate the procurement process.
If a valid transaction hits an Asset Type account, the transaction will show up in a queue to generate an asset. At this point, the Fixed Asset Manager has visibility into all potential asset creations and can approve or reject accordingly.
This provides companies with improved accuracy and control, trickling down to every aspect of their asset management.
Additional asset proposal and creation features:
- Combine multiple transactions to create one asset via the Parent Proposal feature
- Import mid-life assets and depreciation histories
- View detailed information regarding standard asset tracking data points, including asset location, quantity, classification, usage, maintenance, insurance, warranty, and more
2. Asset repairs and maintenance
Keeping assets running smoothly and up to date on maintenance can be huge for companies interested in minimizing loss and downtime.
Having visibility into these types of expenses on a per-asset-basis gives companies greater insight into the condition of their assets and their operations as a whole.
Additional asset repairs and maintenance features:
- Associate expenses to asset records for repairs and maintenance
- Revaluation transaction feature allows for revaluing of assets upwards or downwards, depending on their condition and remaining lifetime
3. Asset depreciation
Accurately tracking the depreciation of assets is imperative in satisfactory asset management.
NetSuite’s FAM SuiteApp provides the ability to create and utilize custom depreciation methods in addition to a variety of standardized methods and allows for the use of multiple depreciation methods on one asset for reporting purposes.
While typically depreciation journal entries are posted automatically to the organization’s core accounting ledger within NetSuite, customized approval workflows are also an option, allowing for an even greater level of control for companies that desire it.
Additional asset depreciation features:
- Run depreciation for a single asset type, single subsidiary or for all assets in all subsidiaries at once (or any combination)
- Receive visibility into an asset’s depreciation history, complete with links for easy reference into specific journal entries.
Whatever asset depreciation looks like for you, it’s time ask yourself: Is my current ERP failing my business? Learn the 5 tell-tale signs below.
4. Asset transfer
An asset may frequently move to a new location, department, or even a completely different subsidiary throughout its life. NetSuite provides a simple solution to this business need with its Asset Transfer transaction.
This functionality allows companies to seamlessly record all activities of an asset throughout its lifetime to whatever degree of detail fits the company’s current needs.
Additional asset transfer features:
- Move assets to different department, class, location, subsidiary or asset type
- Import bulk transfers in just a few clicks
- User retains control over whether a journal entry will be posted at the time of the asset transfer
5. Asset disposal
Towards the end of an asset’s lifetime (or before that for a myriad of reasons), it may be best for a company to dispose of the asset.
NetSuite’s FAM SuiteApp allows for the disposal of an asset via Write-Off or via sale.
In the instance that the user needs to sell an asset, the FAM SuiteApp will automatically generate an invoice for the sale (complete with an applicable customer and tax details) in addition to the correct journal entries for the transaction.
This further demonstrates the value of utilizing a fully integrated Fixed Assets Management module.
Additional asset disposal features:
- Dispose of assets in bulk with a simple import
- Automatically post journal entries to the core accounting ledger with references linked to the asset’s depreciation history
Bringing it All Together
Assets are a valuable part of any organization, and their management requires careful and precise maintenance alongside putting the right technology systems in place.
Companies across virtually all industries face the significant challenge of accurately tracking and managing their fixed assets throughout the asset life cycle.
Ultimately, the benefits of having a fully integrated Fixed Assets Management system that can effectively serve at every stage of an asset’s life are superabundant.
NetSuite’s Fixed Assets Management SuiteApp is a user-friendly solution that empowers companies to excel, using data-driven information to facilitate decisions that can directly impact and enhance the future of the organization.
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