NetSuite handles fixed assets through Oracle's Fixed Assets Management (FAM) SuiteApp. You run depreciation from Fixed Assets > Transactions > Asset Depreciation, which posts journal entries and depreciation history. Partial months in the acquisition and disposal periods follow each asset's depreciation rule, such as pro-rata or mid-month. Disposals, by sale or write-off, run from Fixed Assets > Transactions > Asset Disposal.
Key takeaways
- Fixed assets in NetSuite are managed in the Fixed Assets Management SuiteApp, Oracle's own add-on for the asset lifecycle and depreciation.
- Running depreciation is a period-end process that posts journal entries by asset type and period.
- Partial-month depreciation is set by the asset's depreciation rule: Acquisition, Disposal, Pro-rata or Mid-month.
- FAM has no one-click reverse for posted depreciation. Plan corrections before you post, and use revaluation for changes going forward.
- For property companies, owned properties, improvements and major equipment are fixed assets, depreciated in FAM alongside the rest of the ledger.
What is NetSuite Fixed Assets Management?
NetSuite Fixed Assets Management is a SuiteApp from Oracle that tracks each asset from acquisition to retirement and calculates depreciation. It covers:
- asset records, asset types and depreciation methods
- asset proposals that turn purchases into assets
- depreciation runs that post to the general ledger
- transfers, revaluations and disposals
- alternate depreciation for tax, and multi-book accounting
- lease accounting for lessees under ASC 842 and IFRS 16
- asset reports such as the Asset Register, Asset Summary and Depreciation Schedule
FAM assets are custom records installed by the SuiteApp (the FAM Asset record, along with FAM Asset Type, FAM Depreciation Method, FAM Depreciation History and others), not a standard NetSuite transaction or record type.
How to set up Fixed Assets Management
Oracle's documentation lists these steps:
- Enable the required features: Custom Records, Custom Transactions, Client SuiteScript, Server SuiteScript and Online Forms.
- Install the Fixed Assets Management SuiteApp.
- Complete system setup at Fixed Assets > Setup > System Setup.
- Create general ledger accounts for the asset, depreciation (accumulated), depreciation charge, write-off, write-down and disposal cost.
- Create asset types at Fixed Assets > Setup > Asset Types > New, with default accounts, depreciation method, useful life and depreciation rule for each type.
For property portfolios, typical asset types are properties and property improvements, plant and equipment, furniture and fittings, and IT equipment, each with its own useful life.
How assets are created: asset proposals
FAM can create assets from purchases. When certain transactions post to a fixed asset account (vendor bills, journals, checks, credit card charges, expense reports, item receipts, inventory adjustments, inventory transfers and assembly builds), FAM can propose them as new assets.
- Go to Fixed Assets > Transactions > Asset Proposal and click Propose New Assets.
- Review the proposals in Manage Asset Proposal.
- Click Generate Assets to create the asset records.
Assets can also be created manually or imported, which is how most companies bring in an existing asset register at go-live.
NetSuite depreciation methods
FAM comes with these depreciation methods preconfigured:
| Method | How it works |
|---|---|
| Straight Line | Equal depreciation each period over the useful life |
| Straight Line Remaining | Spreads the remaining net book value evenly over the remaining life |
| 150DB, 200DB, 250DB | Declining balance at 150%, 200% (double declining) or 250% of the straight-line rate |
| Fixed Declining | A fixed rate applied to the declining net book value |
| 25% Reducing Balance | 25% of the net book value each year |
| Sum of Years Digits | Accelerated depreciation weighted to the early years |
| Sum of Years/Straight Line | Sum of years digits, switching to straight line |
| Asset Usage | Depreciation based on usage, such as hours or units produced |
| 4-4-5 Calendar Depreciation | For companies on a 4-4-5 accounting calendar |
| Capital Allowance Year 1 and Year N | Capital allowance calculations for the first and later years |
| Zero Depreciation | For assets that are not depreciated, such as land |
If none fits, you can define your own method at Fixed Assets > Setup > Depreciation Methods > New, using a formula built from values such as original cost, current cost, net book value, residual value, asset lifetime and current period.
Worked example: straight line
A property improvement costs $360,000, has no residual value and a 10-year (120-month) useful life.
- Monthly depreciation: $360,000 ÷ 120 = $3,000
- After 3 years: accumulated depreciation $108,000, net book value $252,000
How to run depreciation in NetSuite
- Go to Fixed Assets > Transactions > Asset Depreciation.
- Select the asset types and subsidiaries to include (with Include Children if needed).
- Enter the Depreciation Period, the date to depreciate up to, and a Depreciation Reference.
- Click Depreciate Assets. NetSuite opens a process status page while it generates depreciation values, creates journal entries and updates the asset records.
The run creates GL journal entries per asset type and per period of depreciation, plus a depreciation history record for each asset. Run it once each period as part of the close, before you lock the period. See our NetSuite month-end close guide.
Partial-month depreciation: depreciation rules
Each asset has a depreciation rule that decides what happens in the month it is acquired and the month it is disposed of:
| Depreciation rule | What it does |
|---|---|
| Acquisition | Depreciates in the period the asset is first activated |
| Disposal | Depreciates in the asset's final period instead of the first |
| Pro-rata | Depreciates proportionally for partial months in the acquisition and disposal periods, using a standard 30-day month |
| Mid-month | If the start date is in the first half of the month, depreciation starts that month; otherwise it starts the next month |
Pro-rata example. Using the $3,000-a-month asset above, with a depreciation start date of June 18: the first period has 13 days of a standard 30-day month, so June depreciation is 13 ÷ 30 × $3,000 = $1,300. The remaining 17 days fall in the asset's final period.
Set the rule on the asset type before you create assets, so every asset of that type behaves the same way.
How to dispose of a fixed asset in NetSuite with partial-month depreciation
- Run depreciation up to the period before disposal, so the asset's history is current.
- Go to Fixed Assets > Transactions > Asset Disposal.
- Choose the Disposal Type: Sale or Write-off.
- Enter the Disposal Date, the asset and the Quantity To Dispose. For a sale, also enter the customer, sale item, sales amount, tax code and location.
- Click Add, then Dispose.
Depreciation for the disposal month follows the asset's depreciation rule. With Pro-rata, the asset depreciates for the part of the month before disposal; with Acquisition, Disposal or Mid-month, the rule decides whether that month is depreciated at all.
What NetSuite posts
- Sale: NetSuite creates an invoice for the sale and posts the difference between net book value and the sales proceeds as a gain or loss.
- Write-off: NetSuite posts the net book value and cumulative depreciation to the GL and sets both to zero.
- Partial disposal: disposing of part of an asset's quantity reduces the remaining asset value.
Example. The $360,000 improvement is sold after 3 years with net book value of $252,000 for $280,000. The gain on disposal is $280,000 − $252,000 = $28,000. The asset's cost and accumulated depreciation are removed from the balance sheet.
Oracle notes that disposed assets cannot be retrieved, so check the disposal date, quantity and amount before you click Dispose.
How to reverse or correct depreciation in NetSuite
FAM does not have a one-click reverse for depreciation that has already posted. The asset's cumulative depreciation and last depreciation fields are read-only, and resetting an asset only clears forecast values, not posted history. That makes prevention the main control:
- Check before you post. Review the depreciation schedule and the Depreciation Monthly report for the period before running depreciation.
- Fix future periods with revaluation. To change an asset's value going forward, use Fixed Assets > Transactions > Asset Revaluation, which also handles write-downs.
- Change the method or life going forward on the asset record, rather than editing history.
- For posted errors in open periods, work with your NetSuite administrator or partner on a correction that keeps the asset record and the general ledger in step, and document it for audit.
- Deleting an asset (Fixed Assets > Setup > Delete Assets) requires removing its journal entries first, so it is a clean-up tool for test or duplicate assets, not a way to reverse a period.
Transfers, revaluation and tax depreciation
- Transfers. Move an asset to a different asset type, subsidiary, class, department or location. NetSuite creates the journal entries.
- Revaluation. Adjust an asset's value or record a write-down at Fixed Assets > Transactions > Asset Revaluation.
- Alternate depreciation. Track tax or other alternate methods on the same asset. Alternate methods calculate values but do not post journals.
- Multi-book accounting. With NetSuite Multi-Book Accounting, depreciation can be recorded in more than one accounting book, for example local GAAP and IFRS.
Fixed assets reports
FAM includes reports such as the Asset Register, Asset Summary, Depreciation Schedule and Depreciation Monthly. Because each asset carries its subsidiary, asset type, class, department and location, you can report asset values and depreciation property by property and entity by entity. For entity structures, see multi-property accounting in NetSuite.
Fixed assets for property companies
- Owned property is a fixed asset. Properties and improvements a landlord owns stay on the balance sheet and are depreciated, while rent from tenants is recognised as lease income. See our NetSuite lease accounting guide.
- Land is not depreciated. Record it separately with Zero Depreciation.
- Tenant improvements need a decision. Improvements the landlord owns are fixed assets; allowances paid to tenants as lease incentives reduce lease income instead. See NetSuite straight-line rent and real estate revenue recognition.
- Track assets by property. Use locations, classes or departments so depreciation lands on the right property's P&L.
Is NetSuite good for fixed asset management?
For companies already running finance on NetSuite, FAM keeps the asset register, depreciation and the general ledger in one system, with multi-subsidiary support and a wide set of depreciation methods. Companies with specialist tax depreciation needs should check whether the preconfigured methods, alternate depreciation and custom formulas cover their rules before they rely on FAM for tax.
Common fixed asset mistakes and how to avoid them
| Mistake | How to avoid it |
|---|---|
| Wrong depreciation rule on the asset type | Decide Acquisition, Disposal, Pro-rata or Mid-month up front and set it on each asset type |
| Running depreciation before all assets are created | Generate assets from proposals first, then run depreciation |
| Disposing before depreciation is up to date | Run depreciation to the period before disposal, then dispose |
| Editing history to fix an error | Use revaluation and forward changes; document any posted correction |
| Depreciating land | Use Zero Depreciation for land |
| Treating tenant incentives as fixed assets | Recognise lease incentives against lease income over the lease term |
Where Rioo fits
Fixed assets are only part of a property company's books. Rent, leases, tenants and maintenance drive most of the transactions, and when they live in a separate property system, the asset register and the operating data never quite line up. This is the gap Rioo closes by running property operations inside NetSuite itself.
Rioo is property management software built natively on Oracle NetSuite. Properties, units, leases and tenant records sit in the same NetSuite database as your fixed assets and general ledger, so there is no integration to sync and no second copy of your property data.
For enterprise portfolios, Rioo handles it, built on NetSuite.
Book a demo to see property operations and accounting working in one NetSuite system.
Conclusion
NetSuite Fixed Assets Management covers the full asset lifecycle: proposals, depreciation runs, partial-month rules, transfers, revaluations and disposals. The key to clean books is setup: the right asset types, depreciation rules and accounts before the first run, and a disciplined period-end process, because posted depreciation is not easily reversed.
Also read: NetSuite for Property Management: Features and Workflows · NetSuite Rental Management Guide · The Hidden Costs of Skipping the Details in Property Setup
Frequently asked questions
Q1. How do I run depreciation in NetSuite?
Go to Fixed Assets > Transactions > Asset Depreciation, choose the asset types and subsidiaries, enter the depreciation period and a reference, and click Depreciate Assets. NetSuite posts journal entries per asset type and period and updates each asset's depreciation history.
Q2. How do I reverse depreciation in NetSuite?
Fixed Assets Management has no one-click reverse for posted depreciation, and the cumulative depreciation fields are read-only. Check schedules before posting, use Asset Revaluation for changes going forward, and work with your NetSuite administrator on any correction to a posted period.
Q3. How does NetSuite calculate depreciation when an asset is disposed of mid-month?
It follows the asset's depreciation rule. With Pro-rata, the asset depreciates for the part of the disposal month before the disposal date, using a standard 30-day month. With Acquisition, Disposal or Mid-month, the rule decides whether the disposal month is depreciated.
Q4. How do I dispose of a fixed asset in NetSuite?
Run depreciation up to date, then go to Fixed Assets > Transactions > Asset Disposal, choose Sale or Write-off, enter the disposal date, asset, quantity and (for a sale) the customer and amount, and click Dispose. NetSuite posts the gain or loss, or writes off the net book value.
Q5. What depreciation methods does NetSuite support?
Fixed Assets Management includes straight line, straight line remaining, 150%, 200% and 250% declining balance, fixed declining, 25% reducing balance, sum of years digits, asset usage, 4-4-5 calendar, capital allowance and zero depreciation. You can also create custom formula-based methods.
Q6. What is an asset proposal in NetSuite?
An asset proposal is a suggested new asset that Fixed Assets Management creates from a transaction posted to a fixed asset account, such as a vendor bill. You review proposals and click Generate Assets to create the asset records.
Q7. Is there a fixed asset record type in NetSuite?
Fixed assets are custom records installed by the Fixed Assets Management SuiteApp, such as the FAM Asset, FAM Asset Type and FAM Depreciation History records, rather than a standard NetSuite record type.
Q8. Can NetSuite track book and tax depreciation separately?
Yes. Alternate depreciation methods track tax or other values on the same asset without posting journals, and Multi-Book Accounting can record depreciation in more than one accounting book.
.svg)
.svg)
.svg)
