NetAsset - Grouped Depreciation: Asset Creation
Grouped Depreciation Asset Records are created in the standard ways: CSV or Manual entry on implementation and through the CIP/Clearing Process, CSV, or Manual Entry as purchases are made.
Asset Fields
Because grouped assets depreciate at the group level rather than individually, several standard fields behave differently:
| Field | Description for Grouped Assets |
| Depreciation Method | Read-only. Inherited from the Asset Type and cannot be changed at the asset level. |
| Useful Life at In-Service | Not used in calculations. Still required though, so populate with a plug number (like 1). |
| End of Life Date | Not used. The asset depreciates until the group's Accumulated Depreciation equals its Fixed Asset Value. |
| Remaining Useful Life | Not used (same reason as End of Life Date). |
| Residual Value Estimate & Percentage | Not used (same reason as End of Life Date). |
Depreciation Rate
Grouped depreciation expense is calculated by taking the total asset value in the group and multiplying it by an annual percentage, divided by 12 (for each month's depreciation). The percentage used is the Annual Grouped Basis Rate (%) field on the Asset Type record.
This percentage is not visible on the asset record out of the box, but if required, you can either put the percentage in the Asset Type name, or you can create a custom field on the asset record for the Depreciation Rate:
- To create the custom field: Create the field as normal. Set the Type to Percent.
- To have the percent pull directly from the type record: Go to the Sourcing & Filtering subtab. Put Type in the Source List field and Annual Grouped Basis Rate (%) in the Source From field. Click save and verify the field pulls in when the Asset Type is assigned to the asset.
Go-Live Setup for Grouped Assets
NetAsset supports two transition methods at go-live: Cutover and Historical. Both are covered in detail in NetAsset – Transition Methods and Go-Live Overview.
Best practice for grouped assets is the Cutover method. Set the asset's Acquisition Date to its true in-service date and the Placed in Service Date to the go-live date. Enter the asset value as the current asset gross value amount at in service. Depreciation will then begin calculating as of go-live, with prior periods treated as already-recorded history outside of NetAsset.
What's different for grouped assets:
Unlike non-grouped assets, grouped assets do not carry per-asset accumulated depreciation. Accumulated depreciation is tracked at the group level ultimately, so:
Option 1: Individual Asset's Accumulated Depreciation is Unknown
- Leave the Accumulated Depreciation At In-Service field blank on each grouped asset record.
- Accumulated depreciation will not be included for grouped assets in the initial Capitalization Journal entry.
- Do not include Accumulated Depreciation in the manual cutover journal for the clearing account.
The opening accumulated depreciation balance for each group lives in the GL only and is reconciled at the group level going forward. Since NetAsset compares the total GL impacts of the Asset Account and the Accumulated Depreciation account, you are not required to have the prior accumulated depreciation on each asset record.
Option 2: Individual Asset's Accumulated Depreciation is Known
- Determine the accumulated depreciation associated with each asset and populate the Accumulated Depreciation At In-Service field with that amount.
- On the initial Capitalization Journal, Accumulated Depreciation will post and will be netted against the clearing account.
- Ensure the original Accumulated Depreciation on the books is reversed with the manual cutover journal.
This is the normal treatment for accumulated depreciation in the Cutover Method.
