Creating projects to turn into assets with NetSuite.

Hello, 

I just got into a company that is using Netsuite, I am trying to set up  a way to track my companies projects with how much each project is costing and be able to add costs that do not depreciate until I make into an asset. I have attempted to go into set up and turn on projects but nothing changed. I also tried to set up WIP but I do not see assembly item as a check box. 

Basically need to put all the costs of building this project into the account and then make that account into an asset.  

Rookie Asked on July 13, 2022 in Accounting.
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1 Answer(s)

Hello,

Is your company using the NetSuite Fixed Asset Module (FAM)? For a scenario like this I would propose the following solution (requires no custom development).

  1. Allocate project costs to a “WIP” GL account that generates non-depreciating fixed assets (based upon asset type configuration).
  2. Once all costs have been collected in “WIP”, combine these costs by building a “Compound Asset” (standard FAM feature).
  3. Migrate the newly generated compound asset from “WIP” to a depreciating asset type. by performance an “Asset Transfer” (standard FAM feature).
  4. Your collective costs will then depreciate in accordance with the depreciation rules configured on the depreciating asset type.

I hope this helps!

Sonny

Beginner Answered on July 19, 2022.

Can you go more in depth on step 1 please? 

on July 19, 2022.

Certainly. Again, assuming that your company is using FAM, you can assign project costs to a specific GL account that is associated with a fixed asset type e.g. “Project WIP”. When generating vendor bills, journal entries, etc (however you are capturing project costs today), they will be coded to this specific GL account (or via an item associated with this GL account in the case of vendor bills) and available as assets for proposal. You can then run the proposal process to generate fixed asset records in NetSuite that capture these costs and then move on to step #2 when the project is complete.

I would recommend taking a look at a NetSuite FAM tutorial. Here is a preview created by NetSuite: https://www.youtube.com/watch?v=DpDZOf5X0z8&ab_channel=NetSuite

Here is a link to the official NetSuite FAM documentation: https://docs.oracle.com/en/cloud/saas/netsuite/ns-online-help/chapter_N2126441.html

I hope this helps!

Sonny

on July 19, 2022.
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