Fix Wrong Depreciation Run in NetSuite FAM

You ran depreciation in production when you meant to test in sandbox. The journal entries posted, the FAM records updated, and now your Q2 trial balance shows depreciation expense that shouldn't be there. There's no single "undo" button, but here's the exact process to reverse it and get your books clean.

What Happens When You Run Depreciation by Mistake

Running depreciation in NetSuite FAM does two things simultaneously:

1. Posts journal entries to the general ledger (debiting depreciation expense, crediting accumulated depreciation)
2. Updates the asset records, net book value, last depreciation amount, last depreciation date, and last depreciation period

Deleting just the journal entry isn't enough. If you remove the JE without cleaning up the FAM backend records, the next run calculates from the wrong starting point.

Step 1: Verify the Posting Period Is Still Open

Check your accounting period status first. You can only delete or reverse the depreciation journal entries if the posting period is open.

Go to Setup > Accounting > Manage G/L > Manage Accounting Periods. Find the period where the depreciation posted. If it shows Closed or Locked, you'll need to reopen it first with the Make Corrections permission or administrator access.

If the period is locked, you have two options:

• Reopen the period temporarily (risky if other users are posting)
• Reverse the JE in the current open period with a manual reversing entry

Reversing in the current period is cleaner from an audit perspective. Reopening a closed period can trigger inventory cost recalculation, so leave the period open until that completes before closing it again.

Step 2: Delete the Depreciation Journal Entry

Here's the path:

1. Open the affected fixed asset record
2. Go to the Depreciation History tab
3. Click View next to the depreciation entry you want to remove
4. In the Depreciation Histories subtab, find the latest journal entry in the Posting Reference column
5. Click the journal entry link to open it
6. Select Delete from the Actions menu

One critical detail: a single depreciation journal entry can include multiple asset types. If your mistaken run posted a JE that covers assets you actually wanted to depreciate, you have a decision:

• Delete the entire JE and re-run depreciation only for the correct assets
• Keep the JE and create a manual reversing entry for just the wrong portion

The second option is messier but avoids deleting a JE that contains valid depreciation. Document your choice for the audit trail.

Step 3: Clean Up the FAM Backend Records

This is the step most people miss. Deleting the JE fixes your general ledger, but FAM still thinks the depreciation run occurred.

Correct these fields on each affected asset record:

Navigate to the asset record, go to the Accounting tab, and update these fields manually. If this was your first depreciation run, reset them to zero or blank. The SuiteScript Records Guide documents the underlying record structure if you need to verify how these fields interact.

Step 4: Delete the Depreciation History Records

The depreciation history records (DHR) are the "footprint" that tells FAM a run occurred. Even after you delete the JE and fix the asset fields, these records can cause issues on the next run.

On the asset record, go to Depreciation History and delete the incorrect history records. This makes FAM behave as if the run never happened. The system automatically adds the Depreciation History subtab when you save a new asset record, and it lists history records for both accounting and tax methods linked to the asset.

Step 5: Re-Run Depreciation Correctly

With the GL clean and FAM records reset, run depreciation properly:

1. Go to Transactions > Fixed Assets > Run Depreciation
2. Select the correct period (Q2)
3. Verify the date range and posting period before clicking Submit
4. Review the generated journal entries before posting

Double-check the Company field this time. If you use Multi-Book Accounting, depreciation runs happen per book, so verify you're processing the correct accounting book as well. The Multi-Book Accounting Guide explains how journal entries are created for each book.

What If the Journal Entry Is Already Posted and Locked?

If the period is closed and you can't reopen it, reverse the JE manually:

1. Create a Journal Entry that reverses the depreciation (debit accumulated depreciation, credit depreciation expense)
2. Reference the original JE number in the memo for audit purposes
3. Post it in the current open period

This won't clean up the FAM records, so you'll still need to follow Steps 3 and 4 to reset the asset data. The financial statements will be correct, but the fixed asset register will show the depreciation in the wrong period unless you manually adjust it. For accounts with Multi-Book Accounting enabled, you may need to create book-specific journal entries rather than standard ones, as described in the Multi-Book Accounting documentation.

Test First, Then Execute

Test in Sandbox first. Replicate the entire process there before touching production. Teams lose hours not because the fix is complicated, but because they're figuring it out on live data.

Consider setting up a Depreciation Approval Workflow that requires a second person to confirm the period and company before posting. That single control would have prevented this entire situation.

If you're manually fixing depreciation errors more than once a quarter, evaluate whether your current approval workflow has the right safeguards. Verify the period, confirm the company, and review the generated journal entries before they post. That discipline keeps your fixed asset register clean and your trial balance accurate.