NetSuite Expense Allocation Schedule – Steltix | We Connect

The Expense Allocation feature on NetSuite enables you to account for fixed expenses ... Step 3: Create the allocation journal entry. Skiptocontent NetSuiteExpenseAllocationSchedule Featurerichfunctionality,designedtomakeyourworkdaylesscomplicated. TheExpenseAllocationfeatureonNetSuiteenablesyoutoaccountforfixedexpenseswithouthavingtosplitthemamongindividualdepartmentsorlocationsinadvanceofincurringtheexpenses.Later,youcantransferexpensesintodifferentaccountsandassigntheexpensestospecificdepartments,classes,orlocationsandcustomsegments,savingyouthetimerequiredtoentercomplexjournalentries. Expenseallocationismanagedbyallocationschedules.Yousetupallocationschedulestoallocate,ortransfer,balancesfromexpenseaccountsintooneormoreotheraccounts.Youcanchoosethedateandfrequencywithwhichexpensesareallocatedonanongoingbasis. WithNetSuiteExpenseAllocation,youcanallocate: Fromoneaccountorfrommultipleaccounts Tospecificdepartments,classes,orlocationswithinexpenseaccounts Fromoneaccounttomultipleaccounts Inthisexamplewe’regoingtoseehowwecanallocateourrentexpensestothedifferentdepartmentsthatwehavewithinourorganization. NetSuitehastwomethodsofallocatingexpenses: 1.Fixed-RateRevenueandCostAllocationCapability 2.DynamicAllocationusingStatisticalAccounts Inthisblogpost,we’llseehowtousetheFixed-RateExpenseAllocationmethodandwe’llhaveafollow-uppostonhowtouseStatisticalAccountsforDynamicAllocation. IntheFixed-RateExpenseAllocationmethod,wedefinetheweightageofeachallocationmanually. Forexample,let’ssaywehaveavendorbillforourrentexpensesforthemonthofSeptember.Onthevendorbilllinelevel,wehaveassignedonedepartment,theHeadOffice,totheexpenseitem. Insteadofhavingmultipleexpenselineswithdifferentdepartmentsforthesamerentexpenses,wecanusethefixedexpenseallocationfeatureofNetSuitetodistributeor“allocate”theseexpensestodifferentdepartments. InFixed-RateExpenseAllocation,youneedtodefinetheweightageofdistributionmanually.Forexample,youcaneitherevenlydistributeallexpensesacrossallyourdepartmentsoryoucanaddspecificnumbers. Fig1:Allocateexpensesequallyacrossalldepartments,Source:OwnRepresentation Fig2:Allocateexpensesbyspecificweightageacrossalldepartments,Source:OwnRepresentation Let’sseehowtoaccomplishthatonNetSuite. Step1:Createavendorbill. We’regoingtocreateasimplevendorbillforourrentexpensesandchoosethe“HeadOffice”asthedepartmentonthelinelevel. Fig3:VendorBillLineItem,Source:OwnRepresentation Whenwelookatourincomestatementbrokendownintodifferentdepartments,alltherentexpensesareinourHeadOfficedepartment,asshownbelow: Fig4:IncomeStatementbeforeAllocation,Source:OwnRepresentation Step2:Createtheallocationschedule NextstepwouldbetocreatetheallocationschedulebygoingtoTransactions>Financial>CreateAllocationSchedules. Intheheadersection,enteraname,chooseasubsidiary(ifOneWorld),addthefrequencyoftheallocation,andchose“FixedAllocation”astheallocationmode. Fig5:CreatingAllocationSchedule–Header,Source:OwnRepresentation Inthe“Source”subtab,selecttheaccountfromwhichyou’dliketoallocatetheexpenses.Youcanfilteritbyaspecificentityname(employee,customer,orvendor),and/oryoucanevenfilterbythedifferentfinancialsegmentsyouhave(class,department,andlocations)andevencustomsegments. Inourexample,wewanttoallocateourrentexpensesfromtheheadofficedepartment: Fig6:CreatingAllocationSchedule–SourceSubtab,Source:OwnRepresentation Inthe“Destination”subtab,selectthetargetaccount(s). Inourexample,wewanttokeepthesameaccount,butonlytore-allocatetheexpensesacrossdifferentdepartments. Wecanuseanevendistributionbyclickingonthe“EvenSpread”button, Fig7:CreatingAllocationSchedule–DestinationSubtab(evendistribution),Source:OwnRepresentation or,wecanspecifytheweightagemanually: Fig8:CreatingAllocationSchedule–DestinationSubtab(differentweightage),Source:OwnRepresentation Oncedone,clickontheSavebutton. Step3:Createtheallocationjournalentry. Onceyoucreateyourallocationschedule,youcangenerateyourallocationjournalentry.FromthesameAllocationSchedule,youcanclickonthe“CreateJournalEntry”buttonoryoucanalsoleveragetheremindersonyourdashboard. Fig9:CreateJournalEntryfromAllocationSchedulePage,Source:OwnRepresentation Fig10:CreateJournalEntryfromtheReminderPortletontheDashboard,Source:OwnRepresentation Onceyouclickonthe“CreateJournalEntry”button,NetSuiteisgoingtocreateajournalentrytoallocatetheexpensesfromtheHeadOfficedepartmenttothedifferentdepartmentsthatwehaveselectedandaccordiontotheweightagethatweset. Fig11:AllocationJournalEntry,Source:OwnRepresentation Note:Youcanviewallthejournalsassociatedwithyourallocationschedulesbygoingbacktotheallocationschedule(Transactions>Financial>CreateAllocationSchedules>List>OpenyourschedulebyclickingontheViewlink)andthenclickingonthe“History”subtab. Andifwenowviewourincomestatements,ourrentexpenseshavebeendistributedacrossthedifferentdepartmentsaccordingtotheweightagewespecifiedinourallocationschedule: Fig12:IncomeStatement,AfterAllocation,Source:OwnRepresentation ThatwasanoverviewofthefixedallocationfeatureonNetSuite.Withdynamicallocation,youcancreatestatisticalaccounts,forexample,headcounts,andautomaticallyallocateyourexpensesaccordingtothenumberofpeopleyouhaveineachdepartment. Ifyou’dliketolearnmoreabouthowtousefixedordynamicexpenseallocationonNetSuite,feelfreetoreachouttoourSteltixTeam!ConnectwithUs!×Connectwithus! ChristopherBotheSteltix,NetSuiteBusinessDevelopment BySonjaRoettcher|2022-03-31T10:36:50+02:00October14th,2021|OracleNetsuite|0Comments Searchfor: RecentPosts SteltixreturnstoLasVegasfortheBLUEPRINT4DEvent,formerlyknownasCollaborate. 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