Managing fixed assets across various entities, currencies, and compliance standards is among the most labor-intensive responsibilities for finance teams. NetSuite Fixed Asset Management (FAM) addresses this challenge by automating the entire asset lifecycle, from acquisition to disposal, directly within your ERP system. This module consolidates all fixed-asset information, automates depreciation processes, oversees asset transfers and disposals, and guarantees compliance-all within a single system, thereby eliminating the need for spreadsheets or independent databases. In this guide, you'll learn how NetSuite FAM functions, its primary features, advantages, and future developments in 2026.
Importance of Fixed Asset Management
Before exploring the module capabilities, it’s essential to understand the basics of fixed asset management and its significance to contemporary finance.
Fixed Asset Lifecycle
A structured lifecycle for all fixed assets encompasses the following stages:
1. Acquisition or Capitalization
Documenting the total expense of an asset, covering installation and delivery costs.
2. Depreciation or Amortization
Distribution of asset costs across their useful life.
3. Maintenance and Upgrades
Accumulating restoration and enhancements that impact asset value.
4. Transfers and Reallocations
Accounting for changes in location, department, or ownership.
5. Revaluation
Adjusting entries for changes in fair market value.
6. Retirement or Disposal
Excluding assets from service, along with accounting for gains or losses.
Efficient lifecycle management of fixed assets ensures that your financial records reflect the assets' true value, reduces errors like "ghost assets," and facilitates enhanced planning for asset replacements.
Key Advantages of NetSuite Fixed Asset Management
Minimizes manual errors and guarantees fair treatment of assets.
Provides real-time visibility into asset status and value.
Prevents redundant purchases and controls costs.
Aids in forecasting replacement and maintenance cycles for assets.
Streamlines audit and compliance preparation.
Scalable growth for subsidiaries or locations.
These benefits position NetSuite FAM as a core asset component for organizations managing complex or extensive asset frameworks.
Read More: Fixed Asset Management Tips and Tricks
Essential Features of NetSuite Fixed Asset Management Module
Automatic asset creation from vendor invoices, purchase orders, or journal entries.
Effortless posting of disposal and depreciation entries to the general ledger.
Compatibility with multi-book and various accounting standards.
Support for multiple subsidiaries and currencies.
Read More: NetSuite Fixed Assets Management Modules
Significant Functional Capabilities
Asset Classes and Types: Provide templates with default parameters such as depreciation methods, useful life, and accounts.
Depreciation Engines: Enable automatic depreciation using various techniques, including straight-line or declining balance.
Transfers and Revaluations: Facilitate the revaluation or transfer of assets as needed through accounting processes.
Disposal and Retirement: Document end-of-life transactions and report gains or losses.
Audit Trails and Reporting: Generate comprehensive audit and financial analysis reports.
All these elements together streamline and automate asset management efficiently and transparently.
Steps to Implement and Execute NetSuite Fixed Asset Management
1. Define Asset Management Policies
Begin by establishing your asset capitalization threshold, depreciation policy, and disposal policy. Clarify classification and treatment rules for subsidiaries or departments.
2. Install and Activate the SuiteApp
Add the NetSuite Fixed Asset Management SuiteApp from the NetSuite bundle repository. Enable automatic updates so future improvements can be applied without manual intervention.
3. Configure Asset Types and Defaults
Set up asset classifications with default parameters, including depreciation methods, useful life, and GL accounts. If desired, configure alternate depreciation methods to accommodate multiple reporting books.
4. Set Up Role Permissions and Train Users
Assign the Fixed Assets Management role or establish custom roles with needed permissions. Educate finance and operations teams on asset creation, approval, depreciation, and disposal workflows.
5. Import and Establish Asset Records
For historical assets, upload data to NetSuite FAM using CSV or mass import methods. Link each asset to its initial transaction for traceability.
6. Schedule Depreciation Rounds
Conduct monthly or periodic depreciation runs. Automatically post depreciation journal entries to the ledger following approval.
7. Manage Transfers and Revaluations
Automatically account for asset transfers between departments or subsidiaries via built-in workflows. Revalue assets based on market adjustments or impairment.
8. Dispose of or Retire Assets
Document the disposal, sale, or retirement of an asset while accounting for profit or loss in financial records.
9. Monitor and Report
Utilize predefined reports and dashboards to oversee asset values, depreciation trends, and end-of-life dates. Generate reports segmented by asset type, department, or subsidiary.
10. Update and Enhance
Regularly refresh your asset data, conduct physical inventories, and adjust useful life or depreciation estimates as business conditions evolve.
Accounting Processes in NetSuite Asset Management
Acquisition and Capitalization
Upon acquiring a property, NetSuite tracks the association with the asset and captures the expenses in the fixed asset account.
Depreciation Posting
NetSuite automatically posts depreciation journal entries at scheduled intervals, crediting accumulated depreciation and expensing the depreciation.
Revaluation and Impairment
When a revaluation occurs or the market value decreases, the system accepts revaluation entries to maintain current asset values and relevant accounts, complete with an audit trail.
Disposal and Gain or Loss Posting
When disposing of or selling an asset, NetSuite automatically retires it from accounts, recording the transaction and recognizing any gains or losses.
Best Practices for NetSuite Fixed Asset Management
Conduct a comprehensive physical count before data migration.
Utilize default standards while allowing asset-specific flexibility.
Set up ongoing maintenance or disposal schedules.
Monitor idle assets to enhance utilization.
Routinely reconcile your asset register.
Annually review useful lives and salvage values.
Maintain precise documentation of your capitalization and disposal policies.
Provide training for cross-functional teams to ensure consistency in procedures.
These strategies ensure accuracy, adherence to standards, and better asset utilization across the organization.
Future Developments for NetSuite FAM in 2026
AI-driven predictive maintenance and depreciation forecasting.
IoT capabilities for real-time asset health monitoring.
Mobile-enabled features for field audits and transfers.
Upgraded automated lease accounting functionalities.
Streamlined configuration interfaces and reporting user experiences.
These innovations will continue to advance asset management, making it more intelligent and data-driven, enabling companies to make well-informed investment decisions.
Master NetSuite FAM In 2026
With its automation capabilities, scalability, and extensive accounting integration, NetSuite Fixed Asset Management is transforming how contemporary businesses oversee their assets.
