NetAsset - Inventory Reclass Setup

Overview

The item records in NetSuite track important information for accounting and inventory management. There may be times when inventory items should be moved to fixed assets. To do this, NetAsset facilitates the movement from an inventory item to the fixed asset clearing account by using a NetAsset Inventory Reclass. Instructions on how to set up this process are included below:

Updating the Asset Type

Navigate to NetAsset > NetAsset Setup > Manage Asset Types & Mappings and do the following:

Select Edit next to the asset types that will have inventory-to-fixed-asset items.
Under the Inventory Clearing subtab, map the correct clearing accounts for the Inventory to Fixed Asset Proposals Clearing Account and/or the Inventory to Construction in Progress Account.
Select Save.

Note:

These accounts need to be original accounts that are not repeated elsewhere on the asset record (i.e., 1691 cannot also be the Fixed Asset Clearing Account).
Each inventory clearing account should correspond to one fixed asset clearing account—otherwise, the system will select the first clearing account entered.

Update Items

Navigate to Lists > Accounting > Items.

Select Edit next to an item. When the item record pulls up, update the Accounting tab to reference the applicable inventory to fixed asset clearing account.

Note:

The type of transaction that will be utilizing the reclass will dictate which account (COGS or Asset) on the Accounting tab that will need to be updated. For an Item Receipt, replace the Asset account with the Inventory Clearing account. For an Item Fulfillment, replace the COGS account with the Inventory Clearing Account. For an Inventory Adjustment, there is no need to replace the Asset or COGS account as long as the Inventory Clearing account is set as the "Adjustment Account" on the Inventory Adjustment record.

See Item Receipt example below:

NetAsset Automation Rules

NetAsset has the ability to allow additional customization to the inventory reclass with a NetAsset Automation Rule .

Navigate to the NetAsset Automation Rule list by searching for it in the Global Search.

An Inventory Reclass Automation Rule should automatically be included if the NetAsset bundle is up-to-date.

To configure the rule, click Edit. There is the option to add a Saved Search to be used for the rule, and/or customize which transactions the rule should deploy to.

Once the Asset Types and Items have been updated, the system is now able to begin reclassing inventory to fixed assets. For more information on this process, reference the NetAsset Inventory Reclass Overview article. If there is a need to custom source from the originating transaction to the Inventory Reclass Entry, this can be set up by following the instructions in the Manage Custom Sourcing article.

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