Fixed asset management allows businesses to track and manage fixed assets throughout their lifecycle. In NetSuite, features include asset tracking, depreciation calculations, maintenance scheduling, and financial reporting. It provides automation of key processes like acquisition, depreciation, revaluation, disposal, and maintenance scheduling. Fixed asset management is used for efficient asset tracking, accurate depreciation calculation, streamlined maintenance, and financial reporting. In NetSuite, users can register asset acquisitions, automate depreciation expenses, schedule maintenance tasks, and manage asset disposals and replacements. It supports various workflows and can generate related reports. A manufacturing company uses fixed asset management to record new machinery purchases, calculate depreciation expenses

1. FAM

2. What is Fixed Asset Management?
• Definition: allows businesses to control, and manage their
fixed assets throughout its (asset’s) lifecycle.
• In NetSuite, various features includes asset tracking,
depreciation calculations, maintenance scheduling, and
financial reporting.
• Provides Automation of
• Fixed Asset Acquisition Depreciation
• Revaluation Disposal
• Maintenance Schedules Insurance

3. Why and How is it used?
• Purpose:
1.Efficient Asset Tracking
2.Accurate Depreciation
Calculation
3.Streamlined Maintenance
4.Financial Reporting
• Usage:
1.Asset Registration/Acquisition: Record
and register all fixed assets in the system
through Asset Records.
2.Depreciation Management: Automate the
calculation of depreciation expenses based
on predefined methods (e.g., straight-line,
Fixed Declining balance, Sum of Years Digit,
Asset Usage).
3.Maintenance Scheduling: Plan and
execute preventive and corrective
maintenance tasks to ensure optimal asset
performance.
4.Disposal and Replacement: Manage the
disposal of assets at the end of their lifecycle
and replace them as necessary.

4. Supported Workflows
• Asset Creation
• Depreciation Schedules and Depreciation expense recognition
• Asset Disposal through Sale Write-off
• Asset Transfer
• Asset Revaluation
• Asset Split
• Depreciation reports and Lease reports

5. Pre-Requisites (Feature required)
• Custom Record
• Custom Transactions
• Client and Server Script

6. What NetSuite Offers and How to Use
It?
• How to Use:
1.Configuration: FAM Set-up includes, configuring
depreciation methods, maintenance schedules, and other
relevant parameters.
2.Data Input: Input accurate and detailed information about
fixed assets during the acquisition process.
3.Integration: Ensure integration with other NetSuite
modules for a unified view of financial data.

7. Transaction Types
• Transaction Types:
1.Acquisition Transactions: Asset Record purchases,
capitalizations, and additions of fixed assets.
2.Depreciation Transactions: Systematically calculate and
record depreciation expenses over the asset's useful life.
3.Maintenance Transactions: Log and track maintenance
activities, including costs and schedules.
4.Disposal Transactions: Record the sale, retirement, or
disposal of fixed assets.

8. Business Use Case:
Considering a manufacturing company that invests in new machinery to
increase production capacity.
1.Asset Acquisition:
1. recording the purchase of the new machinery by entering details such as its cost,
acquisition date, and expected useful life.
2.Depreciation Management:
1. Configuring depreciation methods for depreciation calculation
2. NetSuite will automatically calculate and record depreciation expenses, providing
accurate financial information for reporting purposes.
3.Maintenance Scheduling:
1. Implement a maintenance schedule within NetSuite to ensure regular check-ups and
repairs of the machinery, preventing unexpected breakdowns.
4.Disposal and Replacement:
1. When the machinery reaches the end of its useful life, NetSuite helps manage the
disposal process, recording any gains or losses.
2. Replace the old machinery with new assets, updating the system to reflect the
changes.

10. Qns.
• Sanjiv sir was asking what principles in GAAP, ASC06, IFRS15 etc.
whether we need to read them too?
• What should be the learning extent [upto what point need to learn
about a topic]?