NetSuite FAM: Correcting Fixed Asset Lifetime and Recalculating Depreciation

Introduction

Maintaining accurate asset data is essential for financial reporting and compliance. Errors in the originally entered Asset Lifetime (ID: custrecord_assetlifetime) can lead to incorrect depreciation schedules and misrepresented asset values. NetSuite’s Fixed Asset Management (FAM) module offers the tools to update this value and ensure depreciation is correctly recalculated.

Overview

This guide outlines the steps required to update the Asset Lifetime of a fixed asset in NetSuite and reflects the impact of these updates on depreciation schedules.

Step 1: Review Existing Depreciation History

Before making changes, evaluate the current depreciation records:

• Navigate to Fixed Assets > Lists > Assets.

• Open the asset record requiring correction.

• Review the Depreciation History and General tabs to understand posted depreciation and any related journals.

Step 2: Update the Asset Lifetime

To correct the asset’s estimated lifetime:

1. Navigate to Fixed Assets > Lists > Assets and select the relevant asset record.

2. Locate the field labeled Asset Lifetime (ID: custrecord_assetlifetime).

3. Enter the corrected lifetime value, typically expressed in months.

4. Save the record.(A pop-up message should alert the user that this field change will impact related records.)

Note: If depreciation has already been posted, updating this field does not retroactively adjust previous depreciation. Additional steps are required to align depreciation with the new asset lifetime.

Step 3: Trigger Depreciation Schedule Recalculation

To ensure depreciation reflects the updated Asset Lifetime, the schedule must be recalculated.

Option A: Wait for Weekly Recalculation

NetSuite automatically regenerates depreciation schedules once per week, typically on Sundays. This is suitable for changes that do not require immediate financial adjustment.

Option B: Manual Recalculation

To apply changes immediately:

1. Navigate to Fixed Assets > Setup > System Setup.

2. Click the Reset Asset Values button. If the system detects that changes have been made to assets, one or more buttons will populate at the top of the screen. More information can be found at SuiteAnswers: Triggering the Asset Reset Process | ID: 77529

3. Review the asset’s updated schedule to verify the change has been applied correctly.

Ensure that the asset is eligible for depreciation and that the Depreciation Start Date is valid to allow recalculation.

Step 4: Address Historical Depreciation

If depreciation has already been posted based on incorrect asset lifetime data, adjustments require a more manual approach to update journals and depreciation history.

Conclusion

The ability to update the Asset Lifetime (ID: custrecord_assetlifetime) and realign depreciation schedules ensures that NetSuite Fixed Asset Management remains a reliable tool for asset tracking and financial accuracy. Whether recalculated automatically on a weekly schedule or manually triggered, the system provides the flexibility to ensure that financial records reflect accurate asset valuations.

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