NetAsset - Configure Asset Types & Mappings

Overview

NetAsset enables users to configure multiple asset types, allowing for distinct accounting settings and the mapping of transactions to the appropriate chart of accounts. This flexibility supports both tangible and intangible assets, including but not limited to:

• Land

• Buildings

• Furniture and Fixtures

• Leasehold Improvements

• Machinery & Equipment

• Vehicles

• Goodwill

• Intangibles (e.g., trademarks, customer lists)

Each asset type can be assigned a default useful life and depreciation method, which will automatically apply to newly created assets unless overridden at the asset level. These defaults can be locked during implementation, preventing future edits.

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Key Assumptions

• Each asset type will have separate accounting configurations.

• Users may override default values unless fields are locked during setup.

• A well-defined chart of accounts is available for mapping purposes.

Prerequisites

• Ensure that all required accounts are properly set up and configured in the chart of accounts before proceeding.

Step-by-Step Process

1. Navigate to the Setup Page
   Go to:
   NetAsset > NetAsset Setup > Manage Asset Types & Mappings

2. Create a New Asset Type
   Click New to open the asset type setup form.

3. Complete the Primary Information Section
   Fill in the following fields:

   • Name: Assign a descriptive name (e.g., Land, Equipment, Vehicles).

   • Default Useful Life: Enter in months (e.g., 36, 84, 360).

   • Default Depreciation Method: Straight Line, Double Declining Balance, Usage Based, Non-Depreciation, etc.

   • Default Residual Value Percentage: Input as a percentage of the asset's capitalized value.

   • Default Depreciation Convention: Select one of the following:

     • Full Period: Applies full depreciation in the initial and all subsequent periods.

     • Mid Period: Applies half depreciation in the first and last periods.

     • Mid Month Cutoff: Depreciates the full in-service month if placed in service on or before the 15th. Delays depreciation to the next month if placed in service after the 15th.

     • Next Period: Starts depreciation the period after the in-service date.

     • Prorated Period: Depreciation based on exact days in first and final periods. Full depreciation between.

     • Half Year: Takes half of the first year’s depreciation in year one and the remainder in the final year.

• Default Disposal Convention: Select the convention to determine how assets of this asset type will have depreciation calculated by default during the period of disposal. This can be overridden at the Depreciation Method level and at the point of disposal if the Override Disposal Convention global setting is enabled. 

  • Full Depreciation: Depreciation is calculated for the full period when the asset is disposed.

  • Half Depreciation: Depreciation is calculated for half the period when the asset is disposed.  

  • Zero Depreciation: No depreciation is recorded in the period prior to the disposal.

  • Prorated Depreciation: The amount of depreciation in the period of disposal is pro-rated based on the number of days the asset is active during the interval.

• Default Custom Calendar: The default unique custom calendar defining the length of the posting intervals for the asset type.  Only applicable if using non-standard periods and using the custom calendars feature.

• Default Build Up Account: The default account to filter for when selecting transactions to build up assets of this type.

• Disposal Item: Optionally add the item that should be included on the invoice if the assets of this type is sold. 

• Asset ID Prefix: Populate this field with the prefix to use for the Asset ID when creating new NetAsset Asset records.
  The global Auto-Numbering Preference must be set to "Asset Type Prefix" as a prerequisite for this to run on the creation of new assets. 

• Clearing: Indicates this asset type is a temporary clearing asset type and should not be considered for capitalization until another type is chosen.
  This Asset Type will pre-populate on the asset creation pages as the default Asset Type when creating new assets unless otherwise specified. 

4. Map Account Information
In the Account Information section, map each field to the appropriate account from your chart of accounts.

Refer to your pre-installation or configuration accounting decisions for details on which account types to use.

Limitations/Things to Be Aware Of

• Depreciation behavior for mid-flight assets overrides standard conventions.

• Depreciation methods and conventions must align with your organization's accounting policies.

Troubleshooting

• Field Overrides Not Working: Check if the field was locked during implementation.

• Depreciation Timing Issues: Review the Depreciation Convention settings to ensure they match your expected timing.

• Account Mapping Errors: Confirm that all necessary accounts exist and are not marked inactive, and are correctly configured in the chart of accounts.