NetAsset - CIP at Go-Live

Purpose 

This article walks through the two options for a balance in the Construction In Progress (CIP) account when a client goes live in NetSuite or goes live in NetAsset and a CIP account has not been used prior. The two options are: 1. Import the source transactions that make up the CIP balance, or 2. Create a CIP asset type.

Option 1: Import Transactions

NetAsset has the ability to create assets for capitalization from existing transactions within the CIP account. If no transactions have been added to the CIP account, this feature will not be available until the transactions have been added. To add a transaction to the CIP account, a journal entry, bill, etc. needs to include the CIP account in the transaction.  View full size

Transactions can be created/updated individually and added to the CIP account or can be imported in mass via the CSV import function within NetSuite. To import or update transactions in mass, navigate to Setup > Import/Export > Import CSV Records. 

Once the transactions have been created/added within the CIP account, follow the instructions in the Creating Assets from Proposals (Construction in Progress) article to create asset records. 

Option 2: CIP Asset Type

This option is generally utilized by users who are new to NetSuite and don't want to upload all transactions. A CIP asset type can be created to store CIP transactions until the asset is placed in-service.  When placed in-service, users will transfer the asset from the CIP type to the correct asset type and begin depreciation. 

Step-by-Step Process:

1. Create a new asset type specifically for CIP assets by navigating to NetAsset > NetAsset Setup > Manage Asset Types & Mappings > New View full size
2. Select a Default Depreciation Method of "Non-Depreciating", fill out the required information on the form, and save the CIP asset type.  View full size
3. Create an asset for the CIP item and select the CIP asset type on the asset record.  View full size
4. Follow the regular asset process to Generate Depreciation Schedules, Queue Additions for Capitalization, and Run Monthly Asset Journals.
5. When the asset has been placed in service and is ready to begin depreciation, use the transfer feature to select the effective date of the transaction and transfer the asset from the CIP asset type to the correct asset type.  View full size View full size
6. Refresh the asset record until the transfer has been fully processed.  View full size
7. Once completed, the asset type will reflect the change from CIP to the new type and NetAsset will book the transfer entry as of the effective date specified. Two lines will appear in the depreciation schedule to reflect the transfer entry—both lines are needed for reporting purposes, but only one journal entry is created. The depreciation method will now need to be updated to reflect the appropriate method.  View full size
8. To update the depreciation method, utilize the Prospective (No GL Impact) Revaluation feature in NetAsset by selecting the Revalue button on the asset record.  View full size
9. On the Asset Revaluation record, select "Prospective (No GL Impact)" in the Revaluation Type field, ensure the Effective Revaluation Date field is correct, update the Depreciation Method field, and select the "Revalue Asset" button to apply the changes.  View full size
10. Refresh the asset record as needed until the revaluation has been fully processed. At this point, you will see the asset type and depreciation method have now been changed and the depreciation schedule has been populated to reflect the changes on a go-forward basis.  View full size