Asset Creation

This guide covers creating fixed assets manually, splitting assets into multiple records, and tracking component assets.

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Overview

ASSET CREATION METHODS
═══════════════════════════════════════════════════════════════════

┌─────────────────────────────────────────────────────────────────┐
│                      ASSET CREATION                             │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  ┌─────────────┐  ┌─────────────┐  ┌─────────────┐             │
│  │   FROM      │  │   MANUAL    │  │   FROM      │             │
│  │  PROPOSAL   │  │   ENTRY     │  │  IMPORT     │             │
│  │             │  │             │  │             │             │
│  │ Auto from   │  │ Direct      │  │ CSV/Excel   │             │
│  │ PO/Bill     │  │ creation    │  │ upload      │             │
│  └─────────────┘  └─────────────┘  └─────────────┘             │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

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Manual Asset Creation

When to Create Manually

Scenario	Example
Historical assets	Assets acquired before NetSuite
Constructed assets	Self-built equipment
Donated assets	Received without purchase
Transferred assets	From another entity
Capital leases	Right-of-use assets

Creating a New Asset

MANUAL ASSET CREATION
───────────────────────────────────────────────────────────

Navigate to:
Fixed Assets > Fixed Assets > New

STEP 1: Header Information
┌────────────────────────────────────────────────────────┐
│ Asset Name:     CNC Milling Machine                    │
│ Asset Type:     Machinery & Equipment                  │
│ Status:         New (will change to Active)            │
│ Subsidiary:     Main Company                           │
└────────────────────────────────────────────────────────┘

STEP 2: Acquisition Details
┌────────────────────────────────────────────────────────┐
│ Acquisition Date:    01/15/2026                        │
│ Acquisition Cost:    $85,000                           │
│ Residual Value:      $5,000                            │
│ In-Service Date:     02/01/2026                        │
│ Vendor:              Precision Tools Inc.              │
└────────────────────────────────────────────────────────┘

STEP 3: Depreciation Settings
┌────────────────────────────────────────────────────────┐
│ Depreciation Method: Straight Line                     │
│ Useful Life:         10 Years                          │
│ Convention:          Mid-Month                         │
└────────────────────────────────────────────────────────┘

STEP 4: Classification
┌────────────────────────────────────────────────────────┐
│ Location:      Manufacturing Plant                     │
│ Department:    Production                              │
│ Class:         Heavy Equipment                         │
└────────────────────────────────────────────────────────┘

STEP 5: Save

Required vs. Optional Fields

Field	Required	Notes
Asset Name	✓	Unique, descriptive identifier
Asset Type	✓	Determines accounts and defaults
Acquisition Cost	✓	Original cost basis
Acquisition Date	✓	Date of purchase/receipt
In-Service Date	✓	Date depreciation begins
Useful Life	✓	Depreciation period
Residual Value	✗	Defaults from asset type
Location	✗	Recommended for tracking
Department	✗	Recommended for allocation
Serial Number	✗	For physical tracking

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Asset Splits

Overview

Asset splits allow you to divide a single asset record into multiple separate assets.

ASSET SPLIT SCENARIOS
───────────────────────────────────────────────────────────

Before Split:                      After Split:
┌──────────────────────┐          ┌─────────────┐
│ Asset: Fleet Trucks  │          │ Truck-001   │
│ Quantity: 5          │          │ Cost: $8,000│
│ Cost: $40,000        │          └─────────────┘
│                      │          ┌─────────────┐
│                      │  ────▶   │ Truck-002   │
│                      │          │ Cost: $8,000│
│                      │          └─────────────┘
│                      │               ...
│                      │          ┌─────────────┐
└──────────────────────┘          │ Truck-005   │
                                  │ Cost: $8,000│
                                  └─────────────┘

Split Process

SPLITTING AN ASSET
───────────────────────────────────────────────────────────

1. Open the asset record to split

2. Click "Split Asset" action

3. Configure split:
   ┌────────────────────────────────────────────────────┐
   │ Original Asset: Fleet Trucks                       │
   │ Original Cost:  $40,000                            │
   │                                                    │
   │ Number of Splits: 5                                │
   │                                                    │
   │ Distribution Method:                               │
   │   ○ Equal distribution ($8,000 each)              │
   │   ○ Custom amounts                                 │
   └────────────────────────────────────────────────────┘

4. (If custom) Enter individual asset details:
   ┌────────────────────────────────────────────────────┐
   │ Asset 1: Truck-001  │ Cost: $8,000  │ VIN: ABC123 │
   │ Asset 2: Truck-002  │ Cost: $8,000  │ VIN: DEF456 │
   │ Asset 3: Truck-003  │ Cost: $8,000  │ VIN: GHI789 │
   │ Asset 4: Truck-004  │ Cost: $8,000  │ VIN: JKL012 │
   │ Asset 5: Truck-005  │ Cost: $8,000  │ VIN: MNO345 │
   └────────────────────────────────────────────────────┘

5. Click "Split"

Split Considerations

Consideration	Details
Maximum splits	Up to 120 assets per split
Depreciation	Each asset gets own schedule
Historical splits	Accumulated depreciation prorated
GL impact	No journal entry (reclassification only)
Original asset	Closed/replaced by split assets

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Component Assets

What Are Component Assets?

Component assets track individual parts of a larger asset with their own depreciation schedules.

COMPONENT ASSET EXAMPLE
───────────────────────────────────────────────────────────

Parent Asset: Manufacturing Line
├── Component 1: Conveyor System
│   ├── Cost: $50,000
│   ├── Life: 15 years
│   └── Method: Straight Line
│
├── Component 2: Robotic Arms (×3)
│   ├── Cost: $75,000
│   ├── Life: 7 years
│   └── Method: Declining Balance
│
└── Component 3: Control Systems
    ├── Cost: $25,000
    ├── Life: 5 years
    └── Method: Straight Line
    
Total Asset Value: $150,000
(Each component depreciates independently)

When to Use Components

Use Case	Benefit
Different useful lives	Accurate depreciation per part
Replacement schedules	Track when parts need replacing
Different locations	Parts in different facilities
Regulatory requirements	Separate tracking for compliance

Creating Component Assets

1. Create the parent asset first
2. Create each component as a separate asset
3. Link components to parent using custom field or naming convention

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Non-Depreciating Assets

Overview

Some assets do not depreciate and maintain their value indefinitely.

Asset Type	Why Non-Depreciating
Land	Does not wear out
Art/Collectibles	May appreciate
Construction in Progress	Not in service yet
Intangibles (some)	Indefinite life

Setup for Non-Depreciating

NON-DEPRECIATING ASSET CONFIGURATION
───────────────────────────────────────────────────────────

Asset Type: Land
┌────────────────────────────────────────────────────────┐
│ Depreciation Method: None                              │
│ Useful Life:         N/A                               │
│ Residual Percentage: 100%                              │
└────────────────────────────────────────────────────────┘

Result:
- No depreciation expense recorded
- Asset remains at acquisition cost
- NBV = Acquisition Cost always

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Construction in Progress (CIP)

CIP Workflow

CONSTRUCTION IN PROGRESS
───────────────────────────────────────────────────────────

Phase 1: Accumulate Costs
───────────────────────────
┌─────────────┐
│ CIP Asset   │     Cost accumulation:
│             │     + Materials:    $50,000
│ (No depr)   │     + Labor:        $30,000
│             │     + Equipment:    $20,000
└─────────────┘     ─────────────────────
                    Total CIP: $100,000

Phase 2: Place in Service
───────────────────────────
┌─────────────┐          ┌─────────────┐
│ CIP Asset   │          │ Building    │
│             │ ────────▶│             │
│ $100,000    │ Transfer │ $100,000    │
│ (No depr)   │          │ (Depr starts│
└─────────────┘          └─────────────┘

GL Entry on Transfer:
  Building        $100,000  Dr
  CIP                      $100,000  Cr

CIP Best Practices

Practice	Description
Separate CIP account	Track construction costs separately
Regular capitalization	Move to fixed asset when complete
Interest capitalization	Include borrowing costs if applicable
Progress tracking	Monitor vs. budget

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Bulk Asset Import

Import Process

BULK ASSET IMPORT
───────────────────────────────────────────────────────────

1. Prepare CSV file with required columns:
   ┌────────────────────────────────────────────────────┐
   │ Asset Name | Type | Cost | Acq Date | Life | Loc  │
   │ ─────────────────────────────────────────────────  │
   │ Laptop-001 | IT   | 1500 | 1/1/26   | 5    | HQ   │
   │ Laptop-002 | IT   | 1500 | 1/1/26   | 5    | HQ   │
   │ Desk-001   | Furn | 800  | 1/1/26   | 7    | HQ   │
   └────────────────────────────────────────────────────┘

2. Navigate to:
   Setup > Import/Export > Import CSV Records

3. Select record type: Fixed Asset

4. Map columns to NetSuite fields

5. Run import

6. Review and approve imported assets

Import Template Fields

Column	NetSuite Field	Required
Asset Name	assetName	✓
Asset Type	assetType	✓
Acquisition Cost	originalCost	✓
Acquisition Date	acquisitionDate	✓
In-Service Date	depreciationStartDate	✓
Useful Life	lifetime	✓
Residual Value	residualValue	✗
Location	location	✗
Department	department	✗
Serial Number	serialNumber	✗

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Asset Status

Status Values

Status	Description	Depreciation
New	Just created	Not started
Active	In service	Running
Fully Depreciated	End of life	Stopped
Disposed	Retired/sold	Stopped
Suspended	Temporarily inactive	Paused

Status Transitions

ASSET STATUS FLOW
───────────────────────────────────────────────────────────

  NEW ──────────▶ ACTIVE ──────────▶ FULLY DEPRECIATED
                    │                        │
                    │ Suspend                │
                    ▼                        │
                SUSPENDED                    │
                    │                        │
                    │ Resume                 │
                    ▼                        │
                  ACTIVE ◀───────────────────┘
                    │
                    │ Dispose
                    ▼
                 DISPOSED

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Best Practices

Asset Creation

Practice	Recommendation
Naming convention	Include type, location, or ID number
Complete data	Fill all relevant fields at creation
Verify accounts	Confirm asset type GL mapping
Document source	Link to original transaction

Data Quality

Area	Guidance
Serial numbers	Record for physical audits
Locations	Track for insurance and management
Custodians	Assign responsibility
Photographs	Attach for documentation

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Related Topics

• Asset Proposals - Automatic asset creation
• Depreciation - Depreciation configuration
• Asset Maintenance - Transfers and modifications