NetSuite Allocation Schedule

Use NetSuite Allocation Schedule for expense management

NetSuite Allocation Schedule

In the present tech-market, NetSuite is regarded as one of the most-powerful cloud-based software. This feature-rich software assists various firms in simplifying their prime business processes. These processes can belong to different departments of the firm including the finance department. Further, it provides an efficient platform for integrating many modern business approaches. For this, E-commerce, CRM, ERP, and several other software are the best examples.

NetSuite offers many advanced features and functions for your assistance. The robust NetSuite Allocation Schedule feature is one among them. It facilitates easy and proper allocation of financial expenses within the firm. With the help of this feature, the expenses can be entered into the firm’s internal system without any difficulty. Above all, there is no need for assigning these expenses to different departments, classes, and locations of the firm. Later on, the system can relate these expenses to various departments using a weighted formula.

This Allocation Schedule can be arranged for a specific period once or many times. Also, this feature offers a dashboard reminder. It notifies the user whenever an active allocation schedule required to be processed. It also assists in creating journal entries for all the schedules with a single click.

The NetSuite Allocation Schedule offers many flexible options as well as allocation strategies. The best Allocation Schedule Examples for this are:

  • The allocation of rent expense by the admin department. Here, the overall rent can be computed by using statistical accounts. In this case, the square footage or headcount can be taken into the account.

  • The allocation of various expenses to the different subsidiaries from a parent firm.

There are mainly 2 types of allocations available in the NetSuite Allocation Schedule. Let’s try to understand how to set up and process these allocations:

NetSuite Allocation Schedule

Fixed Allocation:

NetSuite Allocation Schedule

The allocation of rent expense is an ideal example of this. The firm needs to set the frequency and the next date for the allocation processing immediately after creating the schedule. Further, the allocation mode is required to be marked as the “Fixed Allocation”.

The entire allocation procedure will be controlled by two key subtabs:

  1. Source subtab:

It refers to various accounts from which all the expenses are being allocated.

  1. Destination subtab:

destination subtab

It refers to the credit accounts to which all the expenses are allocated. These accounts can be represented using any name, class, department, or location.

All the departments need to be selected manually to allocate expenses with the help of weights or percentages. (For this, the weights are required to be assigned to different departments depending on their role in the firm. For instance, 40% to manufacturing, 20% to admin, 10% to sale and marketing, etc. The total percentage must add up to 100%).

Further, the History Tab is also available to display all the transactions related to a specific allocation. The “Save” option should be marked to run any allocation manually. Else, the allocation schedule will process automatically on the next date.

Dynamic Allocation:

Dynamic Allocation

The expense related to healthcare insurance is a good example to explain this. In this, the expense is usually assigned to every department on the basis of its headcount. While setting the “Dynamic Allocation”, the headcount related to each department needs to be mentioned.

Likewise the fixed allocation, here also source and destination subtabs control the entire process. Both work in a similar manner as they work in case of a Fixed Allocation process. However, sample or default weights can be easily updated before actual processing. The actual headcounts present in each department should be known before updating.

NetSuite Allocation Schedule offers 2 methods for updating many statistical accounts.

  1. Manual statistical journals:

Each detail requires to be updated manually

  1. Automatic statistical schedules:

By creating these, each detail can be automatically updated by making use of saved search results

Allocation Batches

Allocation-Batch Netsuite

It refers to the central control that decides the sequence of the entire allocation schedules’ processing. It is a useful function for specifying a proper processing order on the basis of each schedule’s importance.

For example, 5 allocation schedules related to admin expenses need to be assigned. With the help of the Allocation Batches function, the firm can easily control the order in which each of these schedules must run.

The “Execute” option must be selected in the allocation batch record to process any allocation schedules. But, before the posting date required to be updated as well.

If you want more information on this topic or NetSuite, please reach out to professionals NetSuite Consultant at [email protected] or call +61 480.016.233

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