Asset Types

Asset types in NetSuite FAM define how assets are categorized, depreciated, and tracked in the general ledger.

Overview

ASSET TYPE CONFIGURATION
═══════════════════════════════════════════════════════════════════

Asset Type defines:
├── Default depreciation method
├── Default useful life
├── Default residual percentage
├── Account mappings
│   ├── Fixed Asset Account
│   ├── Accumulated Depreciation Account
│   ├── Depreciation Expense Account
│   └── Gain/Loss on Disposal Account
└── Alternate (Tax) depreciation settings

Common Asset Categories

Standard Asset Types

Asset Type	Typical Life	Depreciation Method	Examples
Buildings	20-40 years	Straight Line	Office buildings, warehouses
Land	N/A	None (non-depreciating)	Land parcels
Leasehold Improvements	Lease term	Straight Line	Build-outs, renovations
Machinery & Equipment	5-10 years	Declining Balance	Manufacturing equipment
Vehicles	3-7 years	Declining Balance	Cars, trucks, forklifts
Furniture & Fixtures	5-10 years	Straight Line	Desks, chairs, shelving
Computer Equipment	3-5 years	Straight Line	Servers, laptops, monitors
Software	3-5 years	Straight Line	Licensed software
Intangibles	Varies	Straight Line	Patents, trademarks

Asset Type Setup

Required Fields

Field	Description
Name	Descriptive name (e.g., "Computer Equipment")
Asset Account	GL account for asset cost
Accumulated Depreciation Account	Contra-asset account
Depreciation Expense Account	P&L expense account
Depreciation Method	Default method for new assets
Asset Life (Years/Months)	Default useful life
Residual Percentage	Expected salvage as % of cost

Optional Fields

Field	Description
Disposal Gain Account	GL account for gains on sale
Disposal Loss Account	GL account for losses on sale
Alternate Method	Tax depreciation method
Alternate Life	Tax useful life

Account Mapping

Account Structure

ASSET TYPE ACCOUNT MAPPING
───────────────────────────────────────────────────────────

                    BALANCE SHEET
                    ─────────────
Fixed Asset Account          XXX,XXX  Dr  (1510 - Equipment)
Less: Accumulated Depr      (XX,XXX) Cr  (1515 - Accum Depr)
                            ────────
Net Book Value               XX,XXX


                    INCOME STATEMENT
                    ────────────────
Depreciation Expense         X,XXX   Dr  (6100 - Depr Expense)


                    ON DISPOSAL
                    ──────────
Gain on Disposal                     Cr  (7100 - Other Income)
  OR
Loss on Disposal             X,XXX   Dr  (7200 - Other Expense)

Sample Account Numbers

Account	Type	Number	Description
Buildings	Asset	1500	Building cost
Accum Depr - Buildings	Contra Asset	1505	Building depreciation
Equipment	Asset	1510	Equipment cost
Accum Depr - Equipment	Contra Asset	1515	Equipment depreciation
Vehicles	Asset	1520	Vehicle cost
Accum Depr - Vehicles	Contra Asset	1525	Vehicle depreciation
Furniture	Asset	1530	Furniture cost
Accum Depr - Furniture	Contra Asset	1535	Furniture depreciation
Computer Equipment	Asset	1540	IT equipment cost
Accum Depr - Computers	Contra Asset	1545	IT depreciation
Depreciation Expense	Expense	6100	Depreciation expense
Gain on Disposal	Income	7100	Gain on asset sale
Loss on Disposal	Expense	7200	Loss on asset sale

Setting Up an Asset Type

Step-by-Step

ASSET TYPE CREATION
───────────────────────────────────────────────────────────

1. Navigate to:
   Setup > Accounting > Fixed Asset Management > Asset Types > New

2. Enter Header Information:
   ┌────────────────────────────────────────────┐
   │ Name:        Computer Equipment            │
   │ Description: IT hardware and devices       │
   └────────────────────────────────────────────┘

3. Set Depreciation Defaults:
   ┌────────────────────────────────────────────┐
   │ Method:              Straight Line         │
   │ Asset Life:          5 Years               │
   │ Residual Percentage: 0%                    │
   └────────────────────────────────────────────┘

4. Map GL Accounts:
   ┌────────────────────────────────────────────┐
   │ Asset Account:       1540 Computer Equip   │
   │ Accum Depr Account:  1545 Accum Depr-IT    │
   │ Depr Expense:        6100 Depr Expense     │
   │ Gain Account:        7100 Gain on Disposal │
   │ Loss Account:        7200 Loss on Disposal │
   └────────────────────────────────────────────┘

5. (Optional) Set Alternate/Tax Method:
   ┌────────────────────────────────────────────┐
   │ Alternate Method:    MACRS                 │
   │ Alternate Life:      5 Years               │
   └────────────────────────────────────────────┘

6. Save

Depreciation Method Defaults

Recommendations by Asset Type

Asset Type	Book Method	Tax Method	Book Life	Tax Life
Buildings	Straight Line	MACRS	39 years	39 years
Equipment	Declining Balance	MACRS	7 years	7 years
Vehicles	Declining Balance	MACRS	5 years	5 years
Furniture	Straight Line	MACRS	7 years	7 years
Computers	Straight Line	MACRS	5 years	5 years
Software	Straight Line	Straight Line	3 years	3 years
Leasehold	Straight Line	Straight Line	Lease term	Lease term

Residual Value

Setting Residual Percentage

Residual (salvage) value is the expected value at the end of useful life.

RESIDUAL VALUE EXAMPLE
───────────────────────────────────────────────────────────

Asset:             Delivery Truck
Acquisition Cost:  $50,000
Residual %:        10%
Residual Value:    $5,000
Depreciable Base:  $45,000 ($50,000 - $5,000)
Useful Life:       5 years

Annual Depreciation (Straight Line):
  $45,000 / 5 = $9,000 per year

After 5 years:
  Net Book Value = $5,000 (matches residual)

Common Residual Values

Asset Type	Typical Residual %
Buildings	0-10%
Land	100% (no depreciation)
Vehicles	10-20%
Equipment	0-10%
Furniture	0%
Computers	0%

Multi-Subsidiary Considerations

Subsidiary-Specific Settings

When using OneWorld with multiple subsidiaries:

Consideration	Approach
Shared asset types	Create asset types at parent level
Different GL accounts	Use subsidiary-specific account mappings
Different tax rules	Configure alternate methods per jurisdiction
Currency	Assets tracked in subsidiary base currency

Best Practices

Asset Type Design

Practice	Recommendation
Naming convention	Use clear, descriptive names
Granularity	Create separate types for different depreciation needs
Account segregation	Use distinct accounts per asset type for reporting
Tax alignment	Configure alternate methods for tax compliance
Documentation	Document capitalization policies

Common Mistakes to Avoid

Mistake	Impact	Solution
Too few asset types	Poor reporting detail	Create types per depreciation policy
Wrong account mapping	Incorrect financials	Review before first asset creation
Missing alternate method	Tax reporting issues	Configure both book and tax
Zero residual when applicable	Over-depreciation	Estimate realistic salvage value

Asset Proposals - Create assets from transactions
Depreciation - Depreciation method details
GL Impact - Journal entry examples

Overview​

Common Asset Categories​

Standard Asset Types​

Asset Type Setup​

Required Fields​

Optional Fields​

Account Mapping​

Account Structure​

Sample Account Numbers​

Setting Up an Asset Type​

Step-by-Step​

Depreciation Method Defaults​

Recommendations by Asset Type​

Residual Value​

Setting Residual Percentage​

Common Residual Values​

Multi-Subsidiary Considerations​

Subsidiary-Specific Settings​

Best Practices​

Asset Type Design​

Common Mistakes to Avoid​

Related Topics​