February 2, 2021

Utilizing NetSuite to Optimize the Asset Life Cycle

By Jacqueline LaVergne

An effective and efficient Fixed Assets Management system becomes increasingly important as companies adapt to our new remote world. 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.

Today we’ll cover five of our favorite features that will help you optimize your asset life cycle in NetSuite.

  1. Asset Proposal and Creation
  2. Asset Repairs and Maintenance
  3. Asset Depreciation
  4. Asset Transfer
  5. Asset Disposal

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. Users can even combine multiple transactions to create one asset by using the Parent Proposal feature.

In addition to creating assets using the Asset Proposal transaction, users can also import mid-life assets as well as their depreciation histories.

The asset record within the FAM SuiteApp natively holds an exceptional level of detail outside of the standard asset tracking data points, including asset location, quantity, classification, usage, maintenance, insurance, warranty, and more. This provides companies with improved accuracy and control, trickling down to every aspect of their asset management.

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. NetSuite allows users to associate expenses to asset records for repairs and maintenance and also features a Revaluation transaction that can revalue assets upwards or downwards depending on their condition and remaining lifetime. 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.

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.

NetSuite can run depreciation for a single asset type, single subsidiary, or for all assets in all subsidiaries at once (or any combination of those mentioned above). 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.

NetSuite also allows for visibility into an asset’s depreciation history, complete with links for easy reference into specific journal entries.

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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.

The Asset Transfer transaction allows users to move an asset to a different department, class, location, subsidiary, or asset type. It even provides for bulk transfers to be imported at once. The user also has control over whether a journal entry will be posted at the time of the asset transfer.

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.

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. Users can also dispose of assets in bulk with a simple import. As with all other posting asset transactions, the journal entries are automatically posted to the core accounting ledger with references linked to the asset’s depreciation history.

Summary

Assets are a valuable part of any organization, and their management requires careful and precise maintenance. 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.

  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. Users can even combine multiple transactions to create one asset by using the Parent Proposal feature.

    In addition to creating assets using the Asset Proposal transaction, users can also import mid-life assets as well as their depreciation histories.

    The asset record within the FAM SuiteApp natively holds an exceptional level of detail outside of the standard asset tracking data points, including asset location, quantity, classification, usage, maintenance, insurance, warranty, and more. This provides companies with improved accuracy and control, trickling down to every aspect of their asset management.

  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. NetSuite allows users to associate expenses to asset records for repairs and maintenance and also features a Revaluation transaction that can revalue assets upwards or downwards depending on their condition and remaining lifetime. 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.

  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.

    NetSuite can run depreciation for a single asset type, single subsidiary, or for all assets in all subsidiaries at once (or any combination of those mentioned above). 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.

    NetSuite also allows for visibility into an asset’s depreciation history, complete with links for easy reference into specific journal entries.

    Is Your ERP failing your Business? Learn the 5 Tell-tale Signs

    Get the free e-book –>

  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.

    The Asset Transfer transaction allows users to move an asset to a different department, class, location, subsidiary, or asset type. It even provides for bulk transfers to be imported at once. The user also has control over whether a journal entry will be posted at the time of the asset transfer.

    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.

  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. Users can also dispose of assets in bulk with a simple import. As with all other posting asset transactions, the journal entries are automatically posted to the core accounting ledger with references linked to the asset’s depreciation history.

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About Jacqueline LaVergne

Jacqueline LaVergne is a consultant in Bridgepoint’s NetSuite Consulting practice with three years of NetSuite experience. She has worked with clients to optimize process flows such as Lead to Cash, Procure to Pay, Record to Report, and Fixed Assets Management. Her experience in NetSuite crosses a diverse mix of industry verticals including food and beverage, healthcare, manufacturing, and software. Jacqueline enjoys collaborating with her BPC teammates and clients to create efficient and scalable processes across client organizations. Jacqueline received her BBA from Mays Business School at Texas A&M University.

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