NetAsset - Go-Live Overview

Go-Live Summary

The go-live process consists of the following steps: 

1. Load assets using the CSV import tool or enter asset data via the user interface, then generate depreciation schedules.
2. Queue the assets for capitalization.
3. Initiate the system-generated journal entry to establish the proper go-live balances.
4. Manually reverse existing (pre-NetAsset) balances as part of the transition process.

Prerequisites

The following steps must be completed prior to go-live:

• NetAsset global settings configured – see NetAsset - Global Settings for guidance
• Asset types and account mappings finalized – see NetAsset - Configure Asset Types & Mappings for guidance
• All assets loaded and reviewed – see NetAsset - Data Upload & NetAsset - Data Validation for guidance

Transition Method Options

NetAsset supports two methods for transitioning existing assets into the system. Each method has specific use cases and implications based on reporting needs and historical data availability.

Option 1: Recalculate Historical Depreciation 

NetAsset generates a complete depreciation schedule starting from the asset’s original in-service date. 

Pros: 

• Enables full reporting flexibility over the entire asset lifecycle
• Provides complete visibility into historical depreciation details

Cons:

• May result in a transition adjustment if prior depreciation differs from NetAsset’s calculated values
• Historical changes (e.g., revaluations, impairments, or other adjustments) made outside of NetAsset are not captured, as the system cannot account for historical changes made outside of NetAsset

Asset Upload Requirements:

• In-Service Date: Original placed-in-service date
• Useful Life at In-Service: Full useful life
• Capitalized Asset Value at In-Service: Gross value as of original in-service date
• Accumulated Depreciation at In-Service: Typically 0—as depreciation will get recalculated from inception

Option 2: Take Over Existing Depreciation

NetAsset will use existing accumulated depreciation balances as of the go-live date, and will begin depreciating the net book value over the remaining useful life.

Pros:

• Avoids transition adjustments by aligning with current book balances

Cons:

• No visibility into historical depreciation within the NetAsset subledger

Asset Upload Requirements:

• In-Service Date: Typically the first day of the current fiscal year or other defined cutover date (e.g., go-live date)
• Useful Life at In-Service: Remaining useful life as of the cutover date
• Capitalized Asset Value at In-Service: Gross value as of the cutover date
• Accumulated Depreciation at In-Service: Life-to-date depreciation as of the cutover date

Go-Live Journal Entries

System-Generated Go-Live Entries (Per Asset)

NetAsset will book a journal entry like the following for each asset:

• Debit: Gross Asset Value
• Credit: Accumulated Depreciation (as of go-live date)
• Credit: Go-Live Clearing Account (plug to balance the entry)

Manual Reversing Entries

As part of the go-live process, clients must reverse their pre-NetAsset balances as of the go-live date. This is necessary because—as highlighted above—NetAsset will generate entries to establish asset balances at go-live, and failing to reverse the existing balances would result in double counting on the balance sheet.

An example of a typical manual entry that clients might book is provided below:

• Credit: Gross Asset Value
• Debit: Accumulated Depreciation (as of go-live date)
• Debit: Go-Live Clearing Account (must match the amount in the NetAsset system-generated entries)

Important Notes

• The manual entry must be recorded as a native NetSuite journal entry, not a NetAsset-specific custom transaction.
• Do not tag asset records to the manual reversing journal entry.
• Amounts for the manual reversing entry should be based on the asset balances on the balance sheet as of the day before the go-live date.
• While NetAsset creates a separate go-live journal entry for each asset, the manual reversing entry may be posted as a single combined journal entry.
• Amounts in the manual reversing entry may not exactly match the NetAsset go-live entries. If they don't match exactly, the difference will be left in the go-live clearing account. This amount will then need to be reclassed to adjust either depreciation expense or retained earnings, depending on your accounting preference and how long the assets have been in-service. 
• While the system-generated and manual reversing entries are intended to net to zero (or close to zero), a small difference may remain. This variance is typically the result of a transition adjustment related to recalculated depreciation and should be written off as of the go-live date.
• The manual reversing entry should be posted with a transaction date that matches the go-live date.
• Asset data should be thoroughly validated prior to go-live to ensure accuracy of the system-generated journal entries. Early validation helps identify and resolve discrepancies before go-live entries are posted.

For additional guidance, refer to the Run Go-Live Journals article.