How Does NetSuite’s Last Depreciation Period Field Impact FAM Calculations?

The Last Depreciation Period field is utilized by NetSuite's Fixed Asset Management (FAM) module in conjunction with the accounting method, asset type depreciation rules and period, asset life, and amounts for cuml depr, NBV, etc. to calculate depreciation. If the system determines that an asset has been under-depreciated based on imported historical values for a mid-life asset, it will generate a catch-up entry during the next depreciation run. Conversely, if the system identifies that an asset has been over-depreciated, it will not run a depreciation entry. To ensure accuracy and prevent unexpected depreciation outcomes:

1. Validate depreciation figures outside of NetSuite, for example, using a spreadsheet, to confirm that the data aligns with the accounting method, asset type depreciation rules, asset life, and historical cumulative depreciation and NBV.

2. Alternatively, run an Asset Depreciation Schedule report and NOT save the results. This allows for verification of the expected depreciation amount for the upcoming period against the system's calculation.A common issue arises when the asset type depr rule used for data import (e.g., acquisition) does not match the rule configured in NetSuite (e.g., disposal), leading to discrepancies in depreciation calculations. For instance, if an asset was expected to depreciate based on an acquisition rule but was configured with a disposal rule, and historical data was loaded as if using acquisition, the system might not run depreciation in subsequent periods until the data and method align.