Appendix M: Fixed Assets Management Deep Dive | NetSuite Implementation Guide

Section M.1

Overview & Setup

FAM module configuration and foundational setup.

What is FAM?

NetSuite Fixed Assets Management (FAM) provides comprehensive lifecycle management for capital assets. It automates depreciation calculations, maintains asset records, supports multiple depreciation books (GAAP, Tax, IFRS), and integrates with the general ledger.

Enable FAM

Setup › Company › Enable Features › Accounting subtab

Check Fixed Assets Management to enable:

Asset records and asset types
Depreciation processing
Multiple depreciation books
FAM-specific reports
Fixed Asset item type

FAM Preferences

Setup › Accounting › Fixed Assets › Preferences

Preference	Options	Recommendation
Asset Numbering	Auto-generated, Manual	Auto-generated with prefix by type
Depreciation Proposal Approval	None, Manager, Custom	Manager for control
Create Assets from Bills	Yes/No	Yes for automation
Disposal Approval	None, Manager, Custom	Manager for audit trail
Default Depreciation Method	Straight-line, etc.	Straight-line for most

GL Account Structure

FAM GL ACCOUNT STRUCTURE
═══════════════════════════════════════════════════════════════

ASSET ACCOUNTS (Balance Sheet):
───────────────────────────────────────────────────────────────
1500    Fixed Assets
  1510    Land
  1520    Buildings
  1530    Building Improvements
  1540    Machinery & Equipment
  1550    Furniture & Fixtures
  1560    Vehicles
  1570    Computer Equipment
  1580    Leasehold Improvements
  1590    Construction in Progress (CIP)

CONTRA ACCOUNTS (Balance Sheet):
───────────────────────────────────────────────────────────────
1600    Accumulated Depreciation
  1620    Accum Depr - Buildings
  1630    Accum Depr - Building Improvements
  1640    Accum Depr - Machinery & Equipment
  1650    Accum Depr - Furniture & Fixtures
  1660    Accum Depr - Vehicles
  1670    Accum Depr - Computer Equipment
  1680    Accum Depr - Leasehold Improvements

EXPENSE ACCOUNTS (Income Statement):
───────────────────────────────────────────────────────────────
6700    Depreciation Expense
6750    Amortization Expense
6800    Gain/Loss on Asset Disposal

TIP: Create parallel account structures for each asset
category to enable detailed reporting and reconciliation.

Section M.2

Asset Types

Configure asset categories with default depreciation settings.

Creating Asset Types

Setup › Accounting › Fixed Assets › Asset Types › New

Asset Types define default settings applied when creating new assets:

Field	Purpose	Example
Name	Descriptive category name	Computer Equipment
Asset Account	GL account for asset cost	1570 - Computer Equipment
Accumulated Depreciation	Contra account	1670 - Accum Depr - Computers
Depreciation Expense	P&L account	6700 - Depreciation Expense
Depreciation Method	Default calculation method	Straight-Line
Useful Life	Default depreciation period	60 months (5 years)
Salvage Value %	Residual value percentage	0% or 10%

Common Asset Type Configurations

ASSET TYPE CONFIGURATIONS
═══════════════════════════════════════════════════════════════

BUILDINGS
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line
Useful Life:           39 years (468 months) - Commercial
                       27.5 years (330 months) - Residential
Salvage Value:         0%
MACRS Class:           39-year / 27.5-year

BUILDING IMPROVEMENTS
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line
Useful Life:           15 years (180 months)
Salvage Value:         0%
MACRS Class:           15-year

MACHINERY & EQUIPMENT
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line or MACRS
Useful Life:           7 years (84 months)
Salvage Value:         0-10%
MACRS Class:           7-year

FURNITURE & FIXTURES
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line
Useful Life:           7 years (84 months)
Salvage Value:         0%
MACRS Class:           7-year

VEHICLES
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line or MACRS
Useful Life:           5 years (60 months)
Salvage Value:         10-20%
MACRS Class:           5-year

COMPUTER EQUIPMENT
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line
Useful Life:           3-5 years (36-60 months)
Salvage Value:         0%
MACRS Class:           5-year

LEASEHOLD IMPROVEMENTS
───────────────────────────────────────────────────────────────
Depreciation Method:   Straight-Line
Useful Life:           Shorter of lease term or 15 years
Salvage Value:         0%
MACRS Class:           15-year (qualified improvement property)

💡 Asset Type Naming Convention

Use consistent naming that includes the category and useful life, e.g., "Computer Equipment - 5 Year" and "Computer Equipment - 3 Year". This makes reporting cleaner and helps users select the right type.

Section M.3

Depreciation Methods

Understand and configure depreciation calculation methods.

Straight-Line Depreciation

Most common method; equal expense each period:

STRAIGHT-LINE DEPRECIATION
═══════════════════════════════════════════════════════════════

FORMULA:
Annual Depreciation = (Cost - Salvage Value) / Useful Life

EXAMPLE:
───────────────────────────────────────────────────────────────
Asset:           Production Equipment
Cost:            $100,000
Salvage Value:   $10,000
Useful Life:     5 years

Annual Depreciation = ($100,000 - $10,000) / 5 = $18,000
Monthly Depreciation = $18,000 / 12 = $1,500

SCHEDULE:
───────────────────────────────────────────────────────────────
Year │ Depreciation │ Accumulated │ Net Book Value
─────┼──────────────┼─────────────┼───────────────
  0  │      —       │      —      │   $100,000
  1  │   $18,000    │   $18,000   │    $82,000
  2  │   $18,000    │   $36,000   │    $64,000
  3  │   $18,000    │   $54,000   │    $46,000
  4  │   $18,000    │   $72,000   │    $28,000
  5  │   $18,000    │   $90,000   │    $10,000

Declining Balance

Accelerated method; higher expense in early years:

DECLINING BALANCE DEPRECIATION
═══════════════════════════════════════════════════════════════

FORMULA:
Depreciation = Book Value × Depreciation Rate

Rate = 1 / Useful Life (for single declining)
Rate = 2 / Useful Life (for double declining - DDB)

EXAMPLE (Double Declining Balance):
───────────────────────────────────────────────────────────────
Asset:           Vehicle
Cost:            $50,000
Salvage Value:   $5,000
Useful Life:     5 years
Rate:            2 / 5 = 40%

SCHEDULE:
───────────────────────────────────────────────────────────────
Year │ Beginning BV │ Depreciation │ Ending BV
─────┼──────────────┼──────────────┼──────────
  1  │   $50,000    │   $20,000    │  $30,000
  2  │   $30,000    │   $12,000    │  $18,000
  3  │   $18,000    │    $7,200    │  $10,800
  4  │   $10,800    │    $4,320    │   $6,480
  5  │    $6,480    │    $1,480*   │   $5,000

*Year 5 limited to bring NBV to salvage value

Sum-of-Years-Digits (SYD)

Another accelerated method:

SUM-OF-YEARS-DIGITS DEPRECIATION
═══════════════════════════════════════════════════════════════

FORMULA:
SYD = n(n+1)/2 where n = useful life
Depreciation = (Cost - Salvage) × (Remaining Life / SYD)

EXAMPLE:
───────────────────────────────────────────────────────────────
Asset:           Equipment
Cost:            $60,000
Salvage Value:   $0
Useful Life:     5 years
SYD:             5(5+1)/2 = 15

SCHEDULE:
───────────────────────────────────────────────────────────────
Year │ Remaining │ Fraction │ Depreciation │ Accumulated
─────┼───────────┼──────────┼──────────────┼────────────
  1  │     5     │   5/15   │   $20,000    │   $20,000
  2  │     4     │   4/15   │   $16,000    │   $36,000
  3  │     3     │   3/15   │   $12,000    │   $48,000
  4  │     2     │   2/15   │    $8,000    │   $56,000
  5  │     1     │   1/15   │    $4,000    │   $60,000

Units of Production

Depreciation based on usage, not time:

UNITS OF PRODUCTION DEPRECIATION
═══════════════════════════════════════════════════════════════

FORMULA:
Depreciation per Unit = (Cost - Salvage) / Total Expected Units
Period Depreciation = Depreciation per Unit × Units This Period

EXAMPLE:
───────────────────────────────────────────────────────────────
Asset:                  Manufacturing Machine
Cost:                   $200,000
Salvage Value:          $20,000
Expected Total Units:   1,000,000 units

Depreciation per Unit = ($200,000 - $20,000) / 1,000,000
                      = $0.18 per unit

YEAR 1: Produced 150,000 units
Depreciation = $0.18 × 150,000 = $27,000

YEAR 2: Produced 200,000 units
Depreciation = $0.18 × 200,000 = $36,000

ℹ️ Method Selection

Choose depreciation method based on how the asset's economic benefits are consumed:

Straight-line: Benefits consumed evenly over time (most assets)
Accelerated: More value in early years (technology, vehicles)
Units of production: Wear correlates to usage (manufacturing equipment)

Section M.4

MACRS Tax Depreciation

US federal tax depreciation using IRS tables.

MACRS Overview

Modified Accelerated Cost Recovery System (MACRS) is the primary US tax depreciation method. It uses IRS-specified recovery periods and depreciation rates.

Property Classes

Class	Recovery Period	Assets Included
3-year	3 years	Tractors, some manufacturing tools
5-year	5 years	Vehicles, computers, office equipment
7-year	7 years	Furniture, fixtures, most machinery
15-year	15 years	Land improvements, qualified improvement property
27.5-year	27.5 years	Residential rental property
39-year	39 years	Nonresidential real property

MACRS Tables (Half-Year Convention)

MACRS DEPRECIATION RATES (200% DECLINING BALANCE)
═══════════════════════════════════════════════════════════════

       │   3-Year  │   5-Year  │   7-Year  │  15-Year  │
───────┼───────────┼───────────┼───────────┼───────────┤
Year 1 │   33.33%  │   20.00%  │   14.29%  │    5.00%  │
Year 2 │   44.45%  │   32.00%  │   24.49%  │    9.50%  │
Year 3 │   14.81%  │   19.20%  │   17.49%  │    8.55%  │
Year 4 │    7.41%  │   11.52%  │   12.49%  │    7.70%  │
Year 5 │     —     │   11.52%  │    8.93%  │    6.93%  │
Year 6 │     —     │    5.76%  │    8.92%  │    6.23%  │
Year 7 │     —     │     —     │    8.93%  │    5.90%  │
Year 8 │     —     │     —     │    4.46%  │    5.90%  │
Year 9-15│   —     │     —     │     —     │   varies  │
Year 16│     —     │     —     │     —     │    2.95%  │
───────┴───────────┴───────────┴───────────┴───────────┘

EXAMPLE: 5-Year Property, $100,000 Cost
───────────────────────────────────────────────────────────────
Year 1:  $100,000 × 20.00% = $20,000
Year 2:  $100,000 × 32.00% = $32,000
Year 3:  $100,000 × 19.20% = $19,200
Year 4:  $100,000 × 11.52% = $11,520
Year 5:  $100,000 × 11.52% = $11,520
Year 6:  $100,000 × 5.76%  =  $5,760
         ─────────────────────────────
Total:                       $100,000

Section 179 Expensing

Immediate expensing election for qualifying property:

Limit (2024)	Amount
Maximum deduction	$1,160,000
Phase-out threshold	$2,890,000
Qualifying property	Tangible personal property, off-the-shelf software, qualified improvement property

Bonus Depreciation

Additional first-year depreciation (phasing down):

Year Placed in Service	Bonus %
2023	80%
2024	60%
2025	40%
2026	20%
2027+	0%

⚠️ Tax Law Changes

Section 179 limits and bonus depreciation rates change frequently. Verify current limits with your tax advisor and update NetSuite configuration annually.

Section M.5

Asset Acquisition

Create asset records and capture acquisition costs.

Acquisition Methods

From Vendor Bill (Recommended)

Create vendor bill for asset purchase
Use Fixed Asset item type on line
FAM automatically creates asset record
Link maintained for audit trail

Manual Entry

Lists › Accounting › Fixed Assets › New

Use for:

Historical assets (data conversion)
Donated assets
Assets acquired through non-standard means

Capitalizable Costs

Include all costs necessary to bring asset to working condition:

Capitalize	Expense
Purchase price	Annual maintenance contracts
Sales tax (if not recoverable)	Repairs (restore, not improve)
Freight and delivery	Insurance (ongoing)
Installation costs	Training costs
Site preparation	Property taxes (ongoing)
Professional fees (legal, architectural)	Operating costs
Testing/trial runs	Interest (unless qualifying asset)

Construction in Progress (CIP)

For assets under construction, accumulate costs in CIP until ready for use:

CIP WORKFLOW
═══════════════════════════════════════════════════════════════

1. CREATE CIP ASSET
   Asset Type: Construction in Progress
   Status: Not Depreciating (CIP doesn't depreciate)

2. ACCUMULATE COSTS
   Each vendor bill adds to CIP balance:
   Dr: CIP - Building Project         $50,000
   Cr: Accounts Payable                       $50,000

3. TRANSFER TO FIXED ASSET
   When construction complete:
   Dr: Buildings                      $500,000
   Cr: CIP - Building Project                 $500,000

4. BEGIN DEPRECIATION
   Change asset status to "Depreciating"
   Set in-service date
   Depreciation starts

Section M.6

Asset Changes

Handle transfers, improvements, and other mid-life changes.

Asset Transfers

Move assets between locations, subsidiaries, or departments:

Transfer Type	GL Impact	Depreciation Impact
Location change	None (same accounts)	None
Department change	If expense accounts differ	Future expense to new dept
Subsidiary transfer	Intercompany entries	May restart or continue

Capital Improvements

Additions that extend life or add capability:

CAPITAL IMPROVEMENT TREATMENT
═══════════════════════════════════════════════════════════════

CRITERIA FOR CAPITALIZATION:
───────────────────────────────────────────────────────────────
- Extends useful life beyond original estimate
- Increases capacity or efficiency
- Adds new capability
- Materially improves condition (not just restore)

ACCOUNTING TREATMENT:
───────────────────────────────────────────────────────────────

Option 1: Add to Existing Asset
  • Increase cost basis
  • Recalculate depreciation over remaining life
  • Simpler tracking

Option 2: Create Separate Asset
  • New asset record for improvement
  • Own depreciation schedule
  • Better for significant additions

EXAMPLE: HVAC Replacement ($30,000)
───────────────────────────────────────────────────────────────
Original Building: $500,000, 39-year life
Current Age: 10 years
Net Book Value: $371,795
Remaining Life: 29 years

Option 1 (Add to Asset):
  New Basis: $371,795 + $30,000 = $401,795
  Annual Depreciation: $401,795 / 29 = $13,855

Option 2 (Separate Asset):
  Building continues at $12,821/year
  HVAC: $30,000 / 15 years = $2,000/year

Changes in Estimates

When useful life or salvage value estimates change:

Change is prospective (don't restate prior periods)
Recalculate depreciation over remaining life
Document reason for change

ℹ️ Change in Estimate vs. Error Correction

A change in estimate (prospective treatment) is different from correcting an error (retrospective). If original estimate was reasonable based on available information, it's a change in estimate. If original was clearly wrong, it may be an error requiring prior period adjustment.

Section M.7

Disposal Processing

Retire, sell, or write off assets properly.

Disposal Types

Type	Proceeds	Common Scenarios
Sale	Yes	Sold to third party
Retirement	No	Scrapped, discarded
Trade-in	Partial	Applied to new purchase
Casualty Loss	Insurance	Theft, fire, damage
Donation	No	Donated to charity

Disposal Journal Entry

DISPOSAL JOURNAL ENTRY PATTERN
═══════════════════════════════════════════════════════════════

SALE WITH GAIN:
───────────────────────────────────────────────────────────────
Asset Cost:              $50,000
Accumulated Depreciation: $40,000
Net Book Value:          $10,000
Sale Proceeds:           $15,000
Gain:                    $5,000

   Dr: Cash/Receivables           $15,000
   Dr: Accumulated Depreciation   $40,000
   Cr: Fixed Asset                        $50,000
   Cr: Gain on Sale of Asset               $5,000


SALE WITH LOSS:
───────────────────────────────────────────────────────────────
Asset Cost:              $50,000
Accumulated Depreciation: $30,000
Net Book Value:          $20,000
Sale Proceeds:           $12,000
Loss:                    $8,000

   Dr: Cash/Receivables           $12,000
   Dr: Accumulated Depreciation   $30,000
   Dr: Loss on Sale of Asset       $8,000
   Cr: Fixed Asset                        $50,000


RETIREMENT (NO PROCEEDS):
───────────────────────────────────────────────────────────────
Asset Cost:              $25,000
Accumulated Depreciation: $25,000
Net Book Value:          $0

   Dr: Accumulated Depreciation   $25,000
   Cr: Fixed Asset                        $25,000

Disposal Workflow

Fixed Assets › Dispose Asset

Ensure depreciation is current through disposal date
Enter disposal date and type
Enter proceeds (if any)
Submit for approval (if workflow enabled)
FAM generates disposal journal
Review and post journal

⚠️ Depreciation Before Disposal

Run depreciation through the disposal date BEFORE processing the disposal. The disposal journal needs the correct accumulated depreciation balance. If depreciation is behind, the gain/loss calculation will be wrong.

Section M.8

Impairment Testing

Identify and record asset impairments under ASC 360.

When to Test for Impairment

Test when events or changes indicate carrying amount may not be recoverable:

Significant decrease in market value
Significant adverse change in use or condition
Significant adverse change in legal or business climate
Accumulation of costs significantly exceeding expectations
Current-period operating/cash flow loss combined with history or forecast of losses
Expectation that asset will be sold or disposed significantly before end of useful life

Impairment Test (Two-Step)

ASC 360 IMPAIRMENT TEST
═══════════════════════════════════════════════════════════════

STEP 1: RECOVERABILITY TEST
───────────────────────────────────────────────────────────────
Compare: Carrying Amount vs. Undiscounted Future Cash Flows

If Carrying Amount > Undiscounted Cash Flows:
   → Asset is impaired, proceed to Step 2

If Carrying Amount ≤ Undiscounted Cash Flows:
   → No impairment, stop here


STEP 2: MEASURE IMPAIRMENT LOSS
───────────────────────────────────────────────────────────────
Impairment Loss = Carrying Amount - Fair Value

Fair Value determined by:
- Market price (if available)
- Present value of expected cash flows
- Appraisal


EXAMPLE:
───────────────────────────────────────────────────────────────
Manufacturing Equipment:
Carrying Amount (NBV):           $500,000
Undiscounted Future Cash Flows:  $400,000  (fails Step 1)
Fair Value (appraisal):          $350,000

Impairment Loss = $500,000 - $350,000 = $150,000

Journal Entry:
   Dr: Impairment Loss            $150,000
   Cr: Accumulated Depreciation            $150,000
       (or directly reduce asset)

New Carrying Amount: $350,000
New depreciable base going forward

🚨 Impairment is Permanent

Under US GAAP (ASC 360), impairment losses on long-lived assets held for use cannot be reversed, even if fair value subsequently increases. The reduced carrying amount becomes the new cost basis. IFRS rules differ--they allow reversal up to original carrying amount.

Recording Impairment in FAM

Document impairment analysis and support
Process as asset value adjustment in FAM
Reduce cost basis or increase accumulated depreciation
Update depreciation schedule for remaining life
Create journal entry for impairment loss

Section M.9

Multi-Book Depreciation

Maintain parallel depreciation for different reporting purposes.

Common Book Combinations

Book	Purpose	Method Example
Primary (GAAP)	Financial statements	Straight-line, management's estimate of useful life
Federal Tax	US tax return	MACRS with bonus depreciation
State Tax	State tax returns	May differ from federal (no bonus in some states)
AMT	Alternative Minimum Tax	150% declining balance
IFRS	International reporting	Component depreciation, revaluation model
ACE	Adjusted Current Earnings	ADS MACRS (straight-line)

Book-Tax Differences

BOOK-TAX DEPRECIATION DIFFERENCE EXAMPLE
═══════════════════════════════════════════════════════════════

ASSET: Equipment, $100,000, placed in service Year 1

BOOK (Straight-Line, 7 years):
───────────────────────────────────────────────────────────────
Year 1:  $14,286
Year 2:  $14,286
Year 3:  $14,286
Year 4:  $14,286
Year 5:  $14,286
Year 6:  $14,286
Year 7:  $14,284
         ────────
Total:  $100,000

TAX (MACRS 7-year with 60% Bonus):
───────────────────────────────────────────────────────────────
Year 1:  $60,000 (bonus) + $5,714 (MACRS on $40K) = $65,714
Year 2:  $9,796
Year 3:  $6,996
Year 4:  $4,996
Year 5:  $3,572
Year 6:  $3,568
Year 7:  $3,572
Year 8:  $1,786
         ────────
Total:  $100,000

TEMPORARY DIFFERENCE BY YEAR:
───────────────────────────────────────────────────────────────
Year │   Book    │    Tax    │ Difference │ Cumulative
─────┼───────────┼───────────┼────────────┼───────────
  1  │  $14,286  │  $65,714  │  ($51,428) │  ($51,428)
  2  │  $14,286  │   $9,796  │    $4,490  │  ($46,938)
  3  │  $14,286  │   $6,996  │    $7,290  │  ($39,648)
  ...│    ...    │    ...    │     ...    │     ...
  8  │    $0     │   $1,786  │   ($1,786) │      $0

These differences create deferred tax liability.

Configure Multiple Books in FAM

Setup › Accounting › Fixed Assets › Depreciation Books

Create depreciation book (e.g., "Federal Tax")
Set book-specific depreciation method
Link to GL accounts (if posting to secondary book)
On asset records, configure each book's settings
Run depreciation separately for each book

💡 Tax Provision Support

Use FAM's book comparison reports to support deferred tax calculations. The difference between book and tax depreciation each year creates deferred tax assets or liabilities. Export this data for your tax provision workpapers.

Section M.10

Lease Accounting (ASC 842)

Right-of-use assets and lease liability accounting.

ASC 842 Overview

ASC 842 requires lessees to recognize most leases on the balance sheet as right-of-use (ROU) assets and lease liabilities.

Lease Classification

Criteria	Finance Lease	Operating Lease
Ownership transfer	Yes	No
Purchase option reasonably certain	Yes	No
Lease term ≥ 75% of asset life	Yes	No
PV of payments ≥ 90% of fair value	Yes	No
Specialized asset	Yes	No

ROU Asset Accounting

OPERATING LEASE EXAMPLE
═══════════════════════════════════════════════════════════════

LEASE TERMS:
───────────────────────────────────────────────────────────────
Monthly payment:         $10,000
Lease term:              5 years (60 months)
Incremental borrowing rate: 6%
PV of lease payments:    $517,256

INITIAL RECOGNITION:
───────────────────────────────────────────────────────────────
   Dr: ROU Asset - Operating Lease    $517,256
   Cr: Lease Liability - Operating             $517,256

MONTHLY ENTRY (Operating Lease):
───────────────────────────────────────────────────────────────
   Dr: Lease Expense                  $10,000
   Cr: Lease Liability                         $7,414
   Cr: ROU Asset                               $2,586

(Straight-line expense; liability reduced by payment less
 interest; ROU reduced to keep expense straight-line)


FINANCE LEASE MONTHLY ENTRY:
───────────────────────────────────────────────────────────────
   Dr: Interest Expense               $2,586
   Dr: Amortization Expense           $8,621
   Cr: Lease Liability                         $7,414
   Cr: ROU Asset (Accum Amort)                 $8,621
   Dr: Cash
   Cr: Cash                                   $10,000

(Separate interest and amortization; front-loaded expense)

FAM and Leases

NetSuite FAM can track ROU assets, but many companies use specialized lease accounting software that integrates with NetSuite. Options include:

Native FAM: Manual ROU asset setup, limited automation
SuiteApps: CoStar, LeaseQuery, Visual Lease integrations
Standalone + Integration: External lease system posting to NetSuite

ℹ️ Lease Accounting Complexity

ASC 842 lease accounting involves complex calculations (PV, effective interest, reassessments) that go beyond basic fixed asset tracking. For companies with significant lease portfolios, consider specialized lease software that handles the complexity and exports summary entries to NetSuite.

Section M.11

Reports & Reconciliation

FAM reports and GL reconciliation procedures.

Key FAM Reports

Report	Purpose	Frequency
Asset Register	Complete listing of all assets	Monthly / Audit
Depreciation Schedule	Current and projected depreciation	Monthly
Asset Additions	New assets placed in service	Monthly
Asset Disposals	Retired/sold assets with gain/loss	Monthly
Net Book Value Summary	NBV by asset type/location	Monthly / Quarterly
Book vs. Tax Comparison	Depreciation differences by book	Quarterly / Annual
Fully Depreciated Assets	Assets with $0 NBV still in use	Annual

GL Reconciliation

Monthly reconciliation between FAM subledger and GL:

FAM TO GL RECONCILIATION
═══════════════════════════════════════════════════════════════

FIXED ASSETS (Cost):
───────────────────────────────────────────────────────────────
FAM Asset Register - Total Cost:     $2,450,000
GL Account 1500 - Fixed Assets:      $2,450,000
Difference:                          $0 ✓

ACCUMULATED DEPRECIATION:
───────────────────────────────────────────────────────────────
FAM Asset Register - Total Accum:    $1,125,000
GL Account 1600 - Accum Depr:        $1,125,000
Difference:                          $0 ✓

NET BOOK VALUE:
───────────────────────────────────────────────────────────────
FAM NBV Total:                       $1,325,000
GL NBV (1500 - 1600):                $1,325,000
Difference:                          $0 ✓

DEPRECIATION EXPENSE (Month):
───────────────────────────────────────────────────────────────
FAM Depreciation Posted:             $18,500
GL Account 6700 - Depr Expense:      $18,500
Difference:                          $0 ✓

Monthly FAM Reconciliation

Run FAM Asset Register as of period end
Pull GL trial balance for FA accounts
Compare totals: Cost, Accum Depr, NBV
Investigate any differences
Document reconciliation with sign-off
File for audit workpapers

Section M.12

Data Conversion

Migrate existing assets to NetSuite FAM.

Conversion Steps

Reconcile legacy register to GL: Ensure source data is accurate
Clean up legacy data: Remove disposed assets, fix errors
Map to NetSuite structure: Asset types, GL accounts
Prepare import file: Use NetSuite CSV template
Import assets: Use CSV Import or SuiteScript
Validate totals: Compare to GL opening balance
Run parallel depreciation: Compare FAM to legacy for 1-2 months

Required Data Fields

Field	Required	Notes
Asset Name/Description	Yes	Unique identifier
Asset Type	Yes	Must exist in NetSuite
Original Cost	Yes	Initial capitalized cost
Acquisition Date	Yes	Date purchased/placed in service
Depreciation Method	Yes	SL, DDB, MACRS, etc.
Useful Life	Yes	In months
Accumulated Depreciation	Yes	As of conversion date
Salvage Value	No	Defaults to 0
Location	No	If tracking by location
Department	No	For expense allocation

Conversion Validation

CONVERSION VALIDATION CHECKLIST
═══════════════════════════════════════════════════════════════

1. RECORD COUNT
   Legacy register: 847 assets
   Imported to FAM: 847 assets ✓

2. COST TOTAL
   Legacy total cost:       $4,235,000
   FAM total cost:          $4,235,000 ✓
   GL Fixed Asset balance:  $4,235,000 ✓

3. ACCUMULATED DEPRECIATION
   Legacy total accum:      $2,180,000
   FAM total accum:         $2,180,000 ✓
   GL Accum Depr balance:   $2,180,000 ✓

4. NET BOOK VALUE
   Legacy NBV:              $2,055,000
   FAM NBV:                 $2,055,000 ✓
   GL NBV (net):            $2,055,000 ✓

5. SAMPLE TESTING
   Select 25 assets randomly
   Verify all fields imported correctly ✓
   Verify depreciation calculation accurate ✓

🚨 Fully Depreciated Assets

Don't forget to convert fully depreciated assets that are still in use. They have $0 NBV but need records in FAM for physical inventory, insurance, and eventual disposal tracking. Missing these is the most common conversion oversight.

Back to Chapter

Return to Chapter 8.10: Fixed Assets Management for implementation overview.