NetAsset - Pre-installation & Configuration Accounting Decisions

Prior to the installation and configuration of NetSuite, there are several key accounting and configuration decisions management should make with the assistance of the technical accounting team, including the following:

Fixed Asset Landscape and Key Accounting Decisions
1. NetAsset Go-Live Date
2. Depreciation Conventions
3. Revaluation Accounting Method
4. Asset types to segregate your asset portfolio into
5. Depreciation methods and intervals to use
Chart of Accounts Decisions
1. Note that NetAsset will be set up to map each separate asset type to a set of accounts in your chart of accounts.
2. The listing below should be reviewed to identify which accounts will be needed under the accounting standard.
NOTE: Netgain recommends that the primary asset accounts listed below are set up as single-purpose accounts (i.e., for NetAsset system-generated asset transactions only). This allows for complete segregation of activities between asset and non-asset accounting transactions to improve reporting and reconciliations between NetAsset (as the subledger) and the general ledger.

NetAsset utilizes the following accounts for Asset transactions:

Account	Account Type	Description	Example Account #
Fixed Asset Account	Fixed Asset	The Primary general ledger account where the capitalized gross asset balance resides.	1610
Fixed Asset Clearing Account	Fixed Asset	Account where new asset proposal transactions are recorded (via journal entry or vendor bill coding). Asset in-service journal entries will debit the fixed asset account and credit this proposal/clearing account.	1690
Construction In Progress Account	Fixed Asset	Account where Construction In Progress amounts will be accumulated and aggregated during a construction project. These transactions are recorded via journal entry or vendor bill coding. Asset in-service journal entries will debit the fixed asset account and credit this proposal/clearing account.	1691
Go-Live Clearing Account	Fixed Asset	Account where net book balances will be recorded when go-live entries are created to establish mid-life balances in gross and accumulated depreciation. The prior period balances (not within NetAsset) are also cleared against this account.	1690
Depreciation Expense Account	Expense	Expense account where depreciation expense is recorded monthly.	6800
Accumulated Depreciation Account	Fixed Asset	Asset account where accumulated depreciation is recorded against as depreciation is recorded through the passage of time.	1700
Sale of Assets Receivable/Payable Clearing Account	Other Receivables	Clearing account to recognize amounts receivable or payable relating to a fixed asset disposal.	1130
Gain/Loss on Sale of Assets Account	Other Income	Gain/Loss account to settle balances for asset disposals.	7500
Impairment Expense Account	Other Expense	Account where income/expense impacts from revaluation adjustments are recorded.	8900
Accumulated Impairment Account	Fixed Assets	Asset account where accumulated impairment is recorded against when an impairment (write-down) is recorded and the global setting is selected	1750
Intercompany Receivable Account	Accounts Receivable	Indicates the intercompany receivable account to be recorded against when assets are transferred between Subsidiaries. Note that the intercompany amounts are offset against the same account and are therefore auto-eliminating.	1900
Intercompany Payable Account	Accounts Payable	Indicates the intercompany payable account to be recorded against when assets are transferred between Subsidiaries. Note that the intercompany amounts are offset against the same account and are therefore auto-eliminating. In the absence of an accounts payable account, the Intercompany Receivable Account will be used.	2200
Basis Reduction Expense Account	Other Expense	For companies that apply a basis reduction to primary books, this account represents the expense account to which the basis reduction at asset capitalization/in-service is made	6890

Updates to your native chart of accounts to reflect the accounts above will be made via
Setup -> Accounting -> Chart of Accounts

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