Managing fixed assets is a crucial function for organizations that seek to maintain accurate accounting records, comply with regulatory requirements, and enhance operational efficiency.
Fixed assets include tangible, long-term resources such as machinery, vehicles, buildings, and IT equipment used in the production of goods and services.
Keeping track of these assets through their lifecycle, from acquisition and depreciation to retirement and disposal, can be challenging without the right tools. NetSuite Fixed Asset Management (FAM) provides a comprehensive solution that streamlines and automates the asset management process.
Integrated directly into the NetSuite ERP system, this module ensures seamless synchronization with accounting, procurement, and reporting functions.
In this blog, we’ll provide a comprehensive overview of NetSuite Fixed Asset Management, its features, benefits, and a detailed, step-by-step guide on how to set it up for your organization.
NetSuite's Fixed Asset Management module is designed to address the common pain points businesses face in asset tracking and compliance.
Here's why it stands out:
And when paired with a property management platform like RIOO, businesses can further eliminate data silos and ensure synchronicity between asset management and property operations
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The NetSuite FAM module is packed with features designed to automate and streamline the management of fixed assets.
Here are the core functionalities that make it effective:
Assets can be created manually or automatically from purchase orders and vendor bills. You can assign them to categories such as vehicles, buildings, or equipment and link them to departments, subsidiaries, or projects. Categorization ensures consistent reporting and easier tracking.
NetSuite allows you to apply various depreciation methods, including straight-line, double-declining balance, and sum-of-the-years' digits.
You can also define custom schedules based on specific business needs. Monthly depreciation runs can be automated, ensuring consistent and timely updates to your financials.
Business conditions may necessitate adjusting asset values. NetSuite supports revaluations due to market shifts, changes in usage patterns, or regulatory updates.
It also supports recording impairments when asset values decrease due to unforeseen circumstances, helping maintain financial accuracy.
Assets often need to be reassigned across locations, departments, or subsidiaries. NetSuite enables internal transfers with automated journal entries, ensuring your financial records remain accurate and compliant with internal control policies.
Whether due to obsolescence, sale, or damage, retiring assets is a common need. NetSuite offers workflows to dispose of assets, automatically calculating the gain or loss, and adjusting the financial records accordingly.
Track asset depreciation using different methods across multiple books. For example, use one book for tax depreciation and another for internal reporting. This feature ensures compliance with both internal policies and external regulations, such as GAAP or IFRS.
For critical or high-value assets, NetSuite allows you to log maintenance schedules and warranty details. This helps prolong asset life, avoid unexpected breakdowns, and ensure that warranties are utilized before expiration.
Also Read: How Property Management Companies Can Streamline Maintenance with SmartTools.
Implementing NetSuite Fixed Asset Management (FAM) involves configuring system preferences, defining asset rules, and setting up workflows that automate asset lifecycle processes.
A methodical implementation not only ensures accurate asset tracking but also enhances reporting, compliance, and depreciation accuracy.
Follow these expanded steps to deploy NetSuite FAM successfully:
Before using the FAM module, you need to activate it within your NetSuite instance.
Enabling this feature integrates FAM with other core modules such as General Ledger, Accounts Payable, and Procurement, allowing seamless asset handling across the platform.
Once the feature is enabled, define global accounting rules that control how assets will be depreciated and posted to the financial books.
These preferences ensure consistency and reduce manual configuration for each asset record.
NetSuite provides several built-in depreciation options, but you can also create custom schedules tailored to your organization’s accounting policies.
Custom methods are ideal if your assets depreciate at different rates based on tax regulations or internal requirements.
Asset types classify and group similar items, simplifying reporting and lifecycle tracking.
Creating detailed asset types helps ensure consistent accounting treatment and easier auditing across categories.
You can either manually create fixed asset records or automatically generate them from procurement transactions, such as vendor bills and purchase orders.
Manual Entry:
Automated Entry:
Automating asset creation ensures data accuracy and reduces redundant data entry.
Depreciation entries must be posted regularly to ensure that financial records accurately reflect the asset's value.
You can automate this process on a monthly basis using workflows or schedule reminders for manual execution.
Assets often change locations or are taken out of service. NetSuite provides tools to record and reflect these changes accurately.
Transfers:
Retirements:
These workflows ensure traceability and proper financial reporting for any asset changes.
Monitoring your assets and ensuring they align with accounting records is crucial for compliance and decision-making.
Use built-in reports to track and audit asset activities:
These reports help in preparing financial statements, conducting audits, and ensuring accurate asset reconciliation.
Pairing this step with RIOO's property management setup ensures a unified approach to managing both physical and real estate assets.
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Effectively managing fixed assets in NetSuite requires more than just tracking acquisitions and depreciation; it also involves managing the associated costs and expenses.
Adopting a strategic approach that utilizes built-in tools and automation can significantly enhance visibility, compliance, and informed decision-making.
Here are some proven best practices to get the most out of NetSuite Fixed Asset Management (FAM):
Develop a clear and consistent naming structure for all assets, asset types, and classifications. This makes it easier for users across departments to search, identify, and report on assets. For example, use prefixes for asset categories (e.g., "IT-" for laptops and "VEH-" for company vehicles) followed by a unique identifier.
Ensure that every physical asset is labeled with a unique asset tag and recorded in NetSuite along with its serial number. This combination enhances asset traceability, simplifies audits, and supports loss prevention.
Leverage NetSuite’s automation features, such as workflows or SuiteScripts, to automatically generate asset records when purchase orders are fulfilled or vendor bills are approved.
Make it a best practice to run depreciation schedules and post depreciation journal entries at the end of each month. This ensures that your financial reports reflect accurate asset values and expense allocations.
Conduct a comprehensive physical inventory of your assets at least once a year to ensure accurate records. Compare the results with what's recorded in NetSuite to identify missing, obsolete, or underutilized assets.
Also Read: Why Real Estate Agents Are Turning to Property Sales Platforms to Boost Efficiency
Managing fixed assets manually or through disparate systems can lead to costly errors, inefficiencies, and compliance risks. NetSuite Fixed Asset Management (FAM) addresses these pain points with integrated and intelligent tools.
Here’s a breakdown of common challenges and how NetSuite FAM provides solutions:
Also Read: How to Leverage Social Media for Building a Strong Brand as a Property Management Company.
NetSuite Fixed Asset Management offers a robust, end-to-end solution for managing your organization’s long-term assets. With automated depreciation, full lifecycle tracking, and deep integration with core financials, it transforms what was once a labor-intensive process into a strategic advantage.
By following the implementation steps and adopting best practices, businesses can enhance compliance, minimize errors, and gain improved visibility into their fixed asset portfolio. If you're looking for a scalable, compliant, and user-friendly asset management solution, NetSuite FAM is the perfect choice.
Already managing large residential or commercial property portfolios?
Pair NetSuite FAM with RIOO, your all-in-one property management platform, to gain complete control over leasing, facilities, tenant communication, and financial performance. Property managers managing hundreds of leases have cut administrative time by 30% using RIOO’s platform.
Get in touch today to see how RIOO and NetSuite can work together to future-proof your operations.
NetSuite FAM is used to automate and manage the full lifecycle of fixed assets, such as vehicles, machinery, and buildings, from acquisition and depreciation to retirement and disposal.
Yes. It supports multiple built-in methods, including straight-line, declining balance, and sum-of-the-years' digits, as well as custom depreciation schedules tailored to tax or internal policies.
Unlike standalone systems, NetSuite FAM is fully integrated into the NetSuite ERP suite, enabling seamless synchronization with financials, procurement, and accounting.
Absolutely. Especially when paired with RIOO, property managers can track physical assets, automate maintenance, and integrate lease and financial data into a single, unified system.
Integrating RIOO brings end-to-end efficiency to property managers, centralizing lease operations, tenant communications, facilities, and financial insights, while NetSuite manages long-term asset value and depreciation.