If you don’t have NetSuite but are thinking of making the leap to a Cloud ERP, moving your fixed assets from your current ERP to NetSuite is a breeze with the Fixed Asset Management application.
The Fixed Asset Management application not only supports your asset acquisitions, depreciations, revaluations, leasings, disposals, retirements, sales, write-offs, write-downs but it also takes care of maintenance schedules, asset insurances, and much more.
With the NetSuite Fixed Asset Management application, you’re able to track the asset depreciation and import midlife assets, including their depreciation history. This means that if you don’t have NetSuite right now, moving your fixed assets from your current ERP to NetSuite won’t be as painful as you might think.
Since NetSuite is an integrated system, the financial impacts of buying new fixed assets will automatically be reflected in your general ledger. The same goes for your fixed asset depreciations, write-downs and write-offs, fixed asset sales, and all other operations. The application will also suggest that you create specific assets when some transactions are created. For example, if an employee at a transport company posts a purchase bill for a truck, NetSuite can detect that this truck is probably a fixed asset. Instead of creating the asset manually, NetSuite will propose the creation of a truck fixed asset. You will then be able to track the usage of that truck, follow your truck’s maintenance schedule, and log required repairs.
With NetSuite, your fixed assets don’t need to depreciate in order to track them.
The system enables you to manage non-depreciating fixed assets like land, software, or even the company’s mobile phones. Not to mention that it’s also useful for tracking insurance, maintenance schedules, and even employee ownership of the items.
The Fixed Asset Management NetSuite application is easily adapted to your business, no matter your industry, no matter what your fixed assets are. The application comes with predefined depreciation methods such as: straight line, 150DB, zero depreciation, asset usage, 25% reducing balance, and more. If the standard methods don’t reflect your assets’ depreciation, you can create your own depreciation formulas. You have access to a large set of predefined variables and constants such as: Net Book Value, Residual Value, Asset Lifetime, Current Usage, and your Asset Original Cost.
NetSuite allows you to assign more than one depreciation method per fixed asset.
Some assets will depreciate differently over the course of a lifetime, and NetSuite allows you to use any combination of your depreciation methods. You can also set what NetSuite calls an Alternate Depreciation Method on your fixed assets.
An alternate method is another term for a tax depreciation method. For some fixed assets, governments may force you to depreciate using a specific method, which means your tax reports will need to comply and show the depreciation amounts calculated with the imposed method. As a company, you want to have the most accurate depreciation numbers, and NetSuite allows you to use both an internal depreciation method – for your own books – and a different method for tax reporting purposes. Your internal reports will show the numbers you want to see, and the reports that NetSuite generates for your government will use the tax method.
The Fixed Asset Management application also supports multinational companies. You can specify what assets belong to which subsidiary.
- During the depreciation operation, you can decide to depreciate fixed assets in subsidiaries, with the option of depreciating assets in children subsidiaries.
- All of your reports can be sorted or filtered by subsidiary, making it easy to only show the relevant information to each manager or director.
- The application lets you transfer assets between your classes, departments, and locations.
- For NetSuite OneWorld accounts, the application also supports asset transfers between subsidiaries.
NetSuite simplifies your life when it comes to the creation or the update of your fixed asset data. Most asset operations like asset creation, depreciation, and transfers can be performed with CSV imports, or by batch processing.
There’s no need to manually modify all of your records one by one.
Complex scenarios are also handled by NetSuite.
NetSuite will handle many complex scenarios including:
- Managing a large quantity of the same fixed assets with NetSuite means you can:
- Group these assets, or split them as you wish
- Transfer a subset of a group to another location
- Re-evaluate assets individually or as a group
- If your fixed assets are comprised of multiple smaller assets NetSuite allows you to have a group of children assets that falls under a parent fixed asset. For example, a transport company could want to track a truck’s tires and engine separately from the parent truck fixed asset.
- If one of your buildings is under construction. You will want to track the construction as a project inside NetSuite. Your building represents a fixed asset, and NetSuite allows you to tie the fixed asset in construction with the project record. As you enter your bills and expenses against the project, you can update your asset’s value, cost, and any other pertinent information.
If you’re still using Excel to manage your fixed assets, it might be time to change the way you do things. NetSuite’s Fixed Asset Management provides you with the power to eliminate spreadsheets and manual efforts from your company’s asset management process. It allows you to have an easy-to-manage single version of your assets from Acquisition to Depreciation to Retirement, and it provides you with a flexible fixed asset calculation engine, complete asset reporting, and seamless integration with NetSuite’s core accounting functionality. The benefits from the Fixed Asset Management application will save you more than just time and money, it will save your business from falling behind.
If you have any questions about NetSuite and if it’s right for your business please feel free to contact us