Managing fixed assets across multiple entities, currencies, and compliance rules is one of the most time-consuming tasks for finance teams. NetSuite Fixed Asset Management (FAM) solves this by automating the complete asset lifecycle from acquisition to disposal; directly within your ERP system. This module centralizes all fixed-asset data, automates depreciation, manages asset transfers and disposals, and ensures compliance; all within one system, eliminating spreadsheets or stand-alone databases. In this guide, you’ll discover how NetSuite FAM works, its key features, benefits, and what’s coming next in 2026.
Why Fixed Asset Management Matters
It is necessary to address the fundamentals of fixed asset management and why it matters to modern finances prior to discussing the module functions.
Fixed Asset Life Cycle
A documented life cycle for all the fixed assets through the subsequent phases:
1. Acquisition or Capitalization
Recording the ultimate cost of an asset, including installation and freight.
2. Depreciation or Amortization
Cost allocation of assets over their useful life.
3. Maintenance and Upgrades
Accumulating restoration and upgrades that have an effect on value.
4. Transfers and Reallocations
Accounting for changes in location, department, or ownership.
5. Revaluation
Accounting for changes in fair market value.
6. Retirement or Disposal
Assets are removed from service, along with accounting for gain or loss.
Effective fixed asset life cycle management keeps your books current with the assets’ true value, avoids mistakes like “ghost assets,” and allows for improved planning to replace assets.
Key Benefits of NetSuite Fixed Asset Management
Using the NetSuite FAM module has the following benefits:
1. Prevents manual errors and ensures equitable treatment of assets.
2. Offers real-time visibility of asset status and valuation.
3. Prevents duplicate purchases and cost control.
4. Supports replacement and maintenance cycle forecasting of assets
5. Streamlines audit and compliance readiness
6. Business growth by subsidiary or location is scalable.
These advantages offer NetSuite FAM as a central asset component value to organizations with complex or large asset structures.
Read More: Fixed Asset Management Tips and Tricks
Key NetSuite Fixed Asset Management Module Features
NetSuite’s Fixed Asset Management SuiteApp is installed directly into your ERP system. Main areas of integration are:
- Automatic asset creation from vendor bills, purchase orders, or journal entries
- Seamless posting of disposal and depreciation entries to the general ledger
- Multi-book and multiple accounting standards support
- Multi-subsidiary and multi-currency compatibility
Read More: NetSuite Fixed Assets Management Modules
Key Functional Capabilities
The most significant features are-
Asset Classes and Types-
Provide templates with default values such as depreciation method, useful life, and accounts.
Depreciation Engines-
Automatically depreciate using numerous methods, such as straight-line or declining balance.
Transfers and Revaluations-
Revalue or transfer assets when necessary by accounting.
Disposal and Retirement-
Record end-of-life transactions, report gains or losses.
Audit Trails and Reporting-
Create detailed audit and financial analysis reports.
All these together simplify and automate asset management in a transparent and efficient way.
How to Implement and Execute NetSuite Fixed Asset Management
1. Define Asset Management Policies
Start by defining your asset capitalization value, depreciation policy, and disposal policy. Define rules of asset classification and treatment for subsidiaries or departments.
2. Install and Enable the SuiteApp
Install the NetSuite Fixed Asset Management SuiteApp to the NetSuite bundle repository. Configure automatic updates such that future improvements can be auto-applied without any manual action.
3. Set Up Asset Types and Defaults
Configure asset types and classes with default values like depreciation method, useful life, and GL accounts. Configure alternate depreciation methods if you want multiple reporting books.
4. Set Up Role Permissions and Train Users
Assign the Fixed Assets Management role or create custom roles with required permissions. Train finance and operations staff on creating assets, approval, depreciation, and disposal processes.
5. Import and Create Asset Records
For historical assets, import data to NetSuite FAM through CSV or mass import. Associate each asset with its originating transaction for tracing.
6. Schedule Depreciation Runs
Run depreciation monthly or periodically. Automatically journal depreciation journal entries to the ledger after approval.
7. Process Transfers and Revaluations
Automatically account for asset transfer between departments or subsidiaries through in-built workflows. Revalue on market revaluations or impairment.
8. Dispose of or Retire Assets
Account for disposal, sale, or retirement of an asset, and account for profit or loss in accounts.
9. Track and Report
Use pre-defined reports and dashboards to monitor asset value, depreciation trends, and end-of-life dates. Report by asset type, department, or subsidiary.
10. Update and Improve
Periodically update your asset data, conduct physical counts, and adjust useful life or estimate depreciation as business conditions change.
Accounting Flows in NetSuite Asset Management
Acquisition and Capitalization
Upon acquiring a property, NetSuite accounts for the association with the property and acquires and retains the cost in the fixed asset account.
Depreciation Posting
NetSuite does automatically at pre-set times post depreciation journal entries on a regular basis, crediting accumulated depreciation and expensing depreciation.
Revaluation and Impairment
When there’s a revaluation or value decrease in the market, the system accepts revaluation entries, keeping current asset value and affected accounts, with a complete audit trail.
Disposal and Gain or Loss Posting
When an asset is sold or disposed of, NetSuite retires the asset from accounts, recording the transaction automatically and posting the gain or loss.
Best Practices for NetSuite Fixed Asset Management
To drive maximum use of NetSuite FAM, embrace these professional best practices:
- Perform a full physical count prior to data migration.
- Apply default standards but provide asset-level flexibility.
- Establish future maintenance or disposal schedules.
- Monitor idle assets to maximize utilization.
- Reconcile your asset register on a regular basis.
- Review useful lives and salvage values annually.
- Keep accurate records of your capitalization and disposal policy.
- Train cross-functional teams to offer consistent procedures.
These approaches offer precision, conformity, and improved asset utilization throughout the business.
What’s Coming Next for NetSuite FAM in 2026
Next up, NetSuite Fixed Asset Management is introducing:
- AI-driven predictive maintenance and depreciation projection
- IoT connectivity to monitor asset health
- Field audits and transfer mobile-enabled features
- Automated lease accounting upgrade
- Simplified configuration and reporting user interfaces
These advancements will continue to empower asset management to be intelligent and data-driven and enable companies to make their best-informed investment decisions.
Master NetSuite FAM In 2026
With its automation, scalability, and deep accounting integration, NetSuite Fixed Asset Management continues to redefine how modern businesses manage their assets. If this guide has given you insight into installing and implementing the NetSuite Fixed Asset Management module, then subscribe to the YouTube channel of VNMT Solutions for additional tips, tutorials, and step-by-step videos on advanced configurations. And also connect with the VNMT Solutions on LinkedIn .
Also Read: How to Manage Fixed Assets in NetSuite (FAM)
