NetAsset - Go-Live Overview

Go-Live Summary 

Our go live process is simple. (1) Load assets through CSV import tool or input asset data via user interface and generate the depreciation schedules. (2) Kick off a system generated journal entry to establish the proper balances. (3) Reverse out your existing balance. 

Pre-Requisites

Prior to go-live we need to have the following steps complete.

  1. NetAsset global settings complete
  2. Asset types and account mappings finalized
  3. Assets loaded and reviewed

Transition Method

Recalculate historical deprecation

NetAsset will generate depreciation schedules from the beginning of each asset's useful life.


Pros:
Retain reporting flexibility and a full history of the depreciation schedule of each asset


Cons:
Possible transition adjustment if historical depreciation amounts don't line up perfectly


Under this method the following rules apply to the asset upload:

In-service date = Original placed in-service date for each asset

Useful life at in-service = Full useful life

Gross asset value = Gross value at in-service

Accumulated depreciation at in-service =  0 (usually)

Take over existing depreciation values

NetAsset will consume existing accumulated depreciation and depreciate the remaining net book value over the remaining useful life. 

Pros:
No transition adjustment

Cons:
No view of historical depreciation amounts in NetAsset subledger


Under this method the following rules apply to the asset upload:

In-service date = first day of the current fiscal year

Useful life at in-service = Remaining useful life for each asset as of the first day of the current fiscal year (not the entire original useful life)

Gross asset value = Gross value as of the first day of the current fiscal year

Accumulated depreciation at in-service =  life to date accumulated depreciation as of the first day of the current fiscal year

Transition Journal Entries

NetAsset will book the following entries for each asset:

Debit: Gross Asset Value

Credit: Accumulated Depreciation at go-live date

Debit/Credit: Go-live clearing account (This amount is a plug to get the entry to balance)

Customer should book the following entry for each asset*:

Credit: Gross Asset Value

Debit: Accumulated Depreciation at go-live date

Credit/Debit: Go-live clearing account (This amount is a plug to get the entry to balance)


*IMPORTANT:

  • the entry booked by the customer should be a native NetSuite journal entry, and not a NetAsset-specific transaction
  • do not tag asset records to the manual reversing entry
  • the amounts in the manual reversing entry may not be an exact mirror of the NetAsset Go-Live journal entry. Only the Go-Live Clearing Account will always be the same amount in both the Go-Live journal entry and manual reversing entry (see below for handling adjustments)
  • while a separate Go-Live journal entry will be created by NetAsset for each lease, the manual reversing entry can be one combined journal entry

Together these entries net to zero (or small transition adjustment amount). If the recalculate historical depreciation method is used, the small transition adjustment should be written off as of the go live date. 

See our Run Go-Live Journals article for more guidance.

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