ANS-0628 · ACCOUNTING & FINANCIAL CONFIGURATION
How to Process a Fixed Asset Trade-In in NetSuite FAM?
Learn the steps to manage the disposal of an old asset and the acquisition of a new one through a trade-in within NetSuite's Fixed Asset Management SuiteApp.
Short answer
To process a fixed asset trade-in, first perform an asset sale for the old asset, generating an invoice and journal entry. Then, manually create a journal entry for the trade-in value. Apply this journal entry to the invoice, and finally, perform an asset proposal for the newly acquired asset.
Scenario
An organization needs to replace an existing fixed asset by trading it in for a new one. This process requires correctly accounting for the disposal of the old asset and the acquisition of the new asset within NetSuite's Fixed Asset Management (FAM) module, including handling the financial implications of the trade-in value.
Solution
To manage a fixed asset trade-in in NetSuite, follow these steps:
Perform an Asset Sale (under Asset Disposal) for the old asset. This action will create an Invoice (reflecting any gain/loss) and its corresponding Journal Entry.
Manually create a journal entry to record the trade-in value. This may involve debiting the appropriate FAM account for the asset being received, crediting Undeposited Funds, then debiting Undeposited Funds, and crediting the Accounts Receivable (AR) account of the invoice created in step 1.
Navigate back to the invoice created in step 1, accept payment, and apply the journal entry created in step 2.
Perform an asset proposal against the new asset type for the asset received. The new asset will then be available in the Asset module.
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