NetAsset - Usage Based Depreciation
Overview
Depreciation varies from period to period based on the actual usage incurred by the asset. This article describes how to configure and generate usage-based depreciation schedules in NetAsset.
Prerequisites
- The usage bundle has been installed by an administrator.
- The Usage Based Depreciation setting has been enabled in NetAsset > NetAsset Setup > System Setup.
Key assumptions
The Useful Life value entered on the primary information tab of the asset record is not relevant for usage-based depreciation. Whatever value is entered will automatically be updated once usage is processed. The depreciation schedule is driven entirely by usage data rather than a fixed useful life period.
Step-by-step process
- Navigate to a NetAsset record where depreciation should be based on usage.
- On the Usage subtab, confirm that an Estimated Lifetime Usage At In-Service value is present. Optionally, enter a Usage Unit of Measure.
- Click the New NG Asset Usage button to create a new usage record with the usage amount and the date it was incurred. If the volume of NetAsset Usage records to enter is high, this can be done via CSV Import as well. See Importing usage records via CSV below.
- After all NetUsage records have been entered into the system, navigate to NetAsset > Update or Modify Assets > Generate Usage Depreciation Schedules to generate schedules.
- A filter screen will appear. Select the desired filters to narrow the subset of assets for which depreciation schedules should be generated.
- When satisfied with the filters selected, click Generate Schedules to initiate the schedule entry creation process.
- Refresh the page periodically to update the status of the processing and reveal the usage that has been processed.
- Click the link in the Asset column to view the asset's depreciation schedule, which will be updated with an entry for the depreciation to be recorded.
- Usage depreciation is calculated using the following formula: (Period Usage / Remaining Usage) * (Rolling Net Book Value - Residual Value)
- Once satisfied with the schedule entries created, monthly journals can be run as normal.
- Once the status is Complete, click the Export button to save the processed results as a .csv file.
Importing usage records via CSV
Usage records can be imported in bulk using the NetSuite CSV Import tool or by utilizing the NetAsset - Data Import Wizard. Each row in the file creates one NetAsset Usage record.
Prepare the file
The CSV file requires three columns. Any custom fields added to the NetAsset Usage record can be included as additional, optional columns.
| Column | Required | Description | Example |
|---|---|---|---|
| Asset | Yes | The asset's ID followed by a space and its name, exactly as it appears on the NetAsset record | FA0095 Chopper: 114 |
| Date | Yes | The date the usage was incurred | 8/1/2024 |
| Usage Amount | Yes | The usage incurred, in the asset's usage unit of measure | 105 |
- The file can include multiple usage records for the same asset and accounting period.
- The file can include usage for multiple months, with one row per usage record.
Import the file
- Navigate to Setup > Import/Export > Import CSV Records.
- Set Import Type to Custom Records and Record Type to NetAsset Usage, attach the file, and click Next.
- Set the import mode to Add and click Next.
- Map the file columns to the Asset, Date, and Usage Amount fields, plus any optional custom fields, and click Next.
- Optionally, enter a name to save the mapping as a Saved CSV Import for reuse, then click Run.
To reuse a saved import later, navigate to Setup > Import/Export > Saved CSV Imports, select the import, attach the new file, and run it with the same settings.
Review the imported records
Imported usage records can be viewed in two places:
- On the asset record, under the Usage subtab.
- On the NetAsset Usage list, where the view can be changed to show any custom fields.
After importing, follow steps 4-10 above to generate usage depreciation schedules and run monthly journals.
Considerations
- The Useful Life field on the asset's primary information tab does not drive depreciation calculations when usage-based depreciation is in use. This field will be automatically updated by the system once usage is processed.
- An asset must be Capitalized or In Service for usage depreciation schedules to be generated.
- Each run of Generate Usage Depreciation Schedules creates one depreciation schedule line per asset, in the asset's next available period. If usage covering more than one month is imported, generate schedules and run monthly journals one period at a time. For example, with January and February usage imported in one file: generate January usage depreciation, run January journals, then generate February usage depreciation and run February journals.
- Multiple usage records can be imported against the same asset and period.
- When accumulated depreciation reaches the residual value estimate, the asset status changes to Fully Depreciated, even if more usage records are attached.
