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Fixed Asset Management

Oracle NetSuite

This document is being prepared with the intent to handle assets in Oracle NetSuite.
In this document, we will demonstrate how to create and record depreciated assets from the previous
months that still need to be depreciated according to their asset life.

Table of Contents
Scenario ......................................................................................................................................................... 2
NetSuite Configuration ................................................................................................................................................................................ 2
Setup & Configuration .................................................................................................................................................................................. 2
Asset Creation................................................................................................................................................................................................. 3
Asset Configuration ...................................................................................................................................................................................... 4
Asset Depreciation ....................................................................................................................................................................................... 5
Conclusion .................................................................................................................................................... 6
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Scenario:

(Fig 1.0)

As illustrated above, on 07/10/2018, the highlighted asset was purchased with a 5-year life.
This asset has been depreciating since purchase and will be fully depreciated by October 2023, using the
monthly-straight-line method.
This asset was depreciated by 50% for 4 months in 2020 due to COVID-19, resulting in a closing NBV of
118,451.48 QAR as of December 2022.
The NetSuite Asset Management module needs to be configured to record information and maintain the same
amount of depreciation until the asset reaches the end of its life.

NetSuite Configuration (Fixed Asset Management):

By following these configuration steps in NetSuite, you'll be able to cater to the scenario mentioned above with ease.

Setup & Configuration:

NetSuite - FAM – setup – system setup.

To update previous values, check the highlighted option. We will edit this asset's NBV and closing balance.
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Asset Creation:

NetSuite - FAM – List – Asset – New

(Fig 2.0)

Input information as in the above screenshot. Details of input are as follows:

- Name <# of an asset>
- Asset Description <Name of an asset>
- Asset Type <type of an asset> Please note that the asset type must be created prior to the creation of
any related assets. From the asset type, the system will retrieve all associated account codes and general
information. Asset type creation is not discussed in this document as it is a straightforward process.
- Asset Original Cost <purchase price of an asset>
- Depreciation Method <Straight line as per asset type>
- Asset lifetime <asset lifetime in months> In this example, the asset life is 5 years i-e 60 months.
- Current Net Book Value <NBV>. Here, we will put the calculated NBV from the sheet that is left after the
total past month's depreciation.
- Asset Status: <Status of an asset> Here, we have selected "depreciating" to describe the decline in value
of this asset from the date of purchase until it reaches its end-of-life.
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Asset Configuration:
NetSuite - FAM – List – Asset – General tab

(Fig 3.0)

- Purchase date <Acquisition date of an asset>

- Depreciation Start Date <Start date of depreciation>
- Depreciation End Date <End of life date> This date will be calculated automatically based on the asset's
lifetime period.
- Last Depreciation Period <Enter last depreciated period> It is an important field to calculate the last
depreciated period so that the remaining period can be calculated as per the end of life of an asset.
- Last Depreciation Date <Enter last depreciated date>
- Last Depreciation Amount <Enter last depreciated amount>

All the necessary information must be entered correctly to calculate accurate depreciation for the remaining
periods.
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Depreciation:
NetSuite - FAM – List – Asset

(Fig 4.0)

After saving the asset, the system correctly calculates the Cumulative Depreciation amount. You can verify the
amount on an Excel sheet screenshot attached above.

NetSuite - FAM – setup – system setup.

(Fig 5.0)

The above process will create the depreciation schedule of assets.

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NetSuite - FAM – List – Asset – Depreciation History

(Fig 6.0)

As shown in the screenshot above, the system has correctly recorded the opening and remaining depreciated
amounts for the depreciated schedule.

Conclusion:
To import assets into NetSuite that are in the depreciating stage and have been irregularly depreciated in
previous months, we can follow the steps outlined above.
This process helps us to accurately schedule the remaining depreciation and import the opening balance for
the assets.