NetAsset - Configure Asset Types & Mappings

NetAsset enables users to set up multiple asset types. Each asset type allows for separate accounting settings and mapping of transactions to your chart of accounts.

Asset types may include both tangible and intangible assets, including the following:

  • Land
  • Buildings
  • Furniture and Fixtures
  • Leasehold Improvements
  • Machinery & Equipment
  • Vehicles
  • Goodwill
  • Intangibles (e.g., trademarks, customer lists, etc.)

Upon setup, each asset type is assigned a default the Useful Life and the Depreciation Method on newly created assets. These defaults can be overridden at the asset level on the asset form, unless the field(s) are locked in implementation.

Prerequisite: All required accounts should already be set up and configured in the chart of accounts section.

STEP BY STEP PROCESS

  • Navigate to the asset type setup page by accessing NetAsset -> NetAsset Setup -> Manage Asset Types & Mappings
  • Select New to bring up the asset type setup page

  • Input the following Primary Information into the form:
    1. Name for the asset type, such as land, equipment, real estate, vehicles, or leasehold improvements
    2. The default useful life for assets of the type (e.g. 36, 84, 360)
    3. The default depreciation method for assets of the type (e.g. Straight Line, Non-Depreciating, Usage Based)
    4. The default residual value estimate as a percentage of the capitalized asset value
    5. The depreciation convention
      • Full Period: A full period of depreciation is applied against the asset in the period in which the asset is placed in service and all subsequent periods (recommended).
      • Mid Period: A half period of depreciation is applied against the asset in the period in which the asset is placed in service and final period.
      • Mid Month Cutoff: If the In-Service Date is on or before the 15th of the month, depreciation is calculated for the full in-service month. If the In-Service Date is after the 15th of the month, depreciation is delayed until the month after the asset is placed in service. All other months record full depreciation.
      • Next Period: Depreciation is delayed until the period after the asset is placed in service. All other periods record full depreciation.
      • Half Year: Half of the full-year depreciation is allowed in the first year, while the remaining balance is deducted in the final year of the depreciation schedule. All other periods record full depreciation.

NOTE: Assets with accumulated depreciation defined upon initial schedule generation are considered mid-flight and as such incur full depreciation during the in-service period regardless of the depreciation convention.

  • Complete the Account Information section by mapping each account to the corresponding or appropriate account in your chart of accounts.

Refer to the Pre-Installation/Configuration Accounting Decisions section above for additional details related to each account type.

Was this article helpful?