NetAsset - Proposing Assets

Use Case: For asset records to be properly created and capitalized onto the general ledger, they must first be coded to one of the defined accounts for proposals/clearing or construction in progress (see Configure Asset Types & Mappings for setup details). The responsibility for initial coding of transactions typically resides outside of the fixed asset accounting team. Each company should determine which transaction types are allowed.

Proposal/Clearing Account: The fixed asset proposal/clearing account is intended to be used for transactions that are expected to be purchased and placed into service in the same accounting period. By placing in service in the same period, balances will be cleared out by the end of month

CIP Account: The CIP account is for projects or expenditures where there is a gap between the time that the expenditure is incurred and when the asset is available for use, allowing for capitalization and depreciation. Balances can continue month over month as projects are built out over time

Utilizing Expenses Versus Items: NetAsset supports coding of transactions through both items and expense types, depending on the needs and preferences of users

Expense Lines: Allows a user to manually select the exact account from the chart of accounts when coding a transaction. This is the easiest way to code directly to the proposal or CIP account

Items: Allows a user to pre-define the mappings for specific items and take advantage of native NetSuite inventory management. NetAsset segregates item types into two categories:

  1. Non-Inventory Items: On initial item setup, the proposal clearing account or CIP account can be mapped, which allows the AP or input team to more easily initiate and code a transaction. These can be directly added to the queue, as noted below
  2. Inventory Items: Native inventory items can ONLY be added to the fixed asset proposal or CIP queue through an inventory adjustment transaction

STEP BY STEP PROCESS – EXPENSE LINE MAPPING

  • Create a new transaction and populate header fields according to established company processes and procedures
  • For line level detail, select expenses within the Expenses and Items (or equivalent) tab
  • In the account column, map the transaction line to your established proposal or CIP account, as set up in the asset mapping
  • Complete all other line level fields per established company processes
  • Note that the Asset column should remain unmapped. It will by mapped systematically when the asset record is created and saved 
  • Upon save and approval, the transaction will be available in the queue for capitalization 

STEP BY STEP PROCESS – NON-INVENTORY ITEMS

  • Prerequisite: The item setup should be previously created with the “Expense Account” mapped to the established asset proposals or CIP account, as set up in the asset mapping
  • Create a new transaction and populate header fields according to established company processes and procedures
  • For line level detail, select items within the Expenses and Items (or equivalent) tab
  • In the item drop-down, select the pre-established item for proposals or CIP
  • Complete all other line level fields per established company processes
  • Note that the Asset column should remain unmapped. It will by mapped systematically when the asset record is created and saved 
  • Upon save and approval, the transaction will be available in the queue for capitalization 

STEP BY STEP PROCESS – INVENTORY ITEMS (INVENTORY ADJUSTMENT ONLY)

  • Note: The natural asset balance for Inventory Items should always be established as an inventory account (not fixed asset). The inventory item accounting mappings should not be directed to any NetAsset accounts.
  • Create an Inventory Adjustment transaction and map the header adjustment account to the fixed asset clearing (or CIP) account. Multiple inventory items can be adjusted out of inventory with additional lines, but they must all be capitalized into a single asset. If additional assets are desired, you can immediately split the newly-create asset
  • Upon save and approval, the inventory adjustment transaction will be available in the queue for capitalization

NOTE: In order to be capitalized properly, the originating transaction must either be in an open period, or in a closed period with Allow Non-G/L Changes enabled. In order to enable this, have your administrator navigate to Setup > Accounting > Manage Accounting periods, edit the desired accounting period and check the Allow Non-G/L Changes checkbox.

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