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Technology Hints, Tips & Tricks

There is a regular theme at some of our clients when it comes to expense allocations management. The allocation of expenses through manual journals can be time consuming, especially if you are managing a number of subsidiaries and having to cost allocate across each.

The robust NetSuite Allocation Schedule feature is one of the advanced features of NetSuite which can solve your problems. There is no need for assigning expenses to different departments, classes, and locations of the firm as the system can relate these expenses to various departments using a weighted formula.

Allocation schedules are used to generate journal entries that distribute expenses to the appropriate accounts, departments, classes, and locations. You can choose the date and frequency with which expenses are allocated on an ongoing basis. You can be reminded when allocations are due in the Reminders portlet on your dashboard. To set a reminder for allocation schedules that are due, go to the Home tab and click Customise this Page.  Allocation Schedules can either be based on a Fixed Percentage of the amount being allocated or Dynamic in nature, where the schedules can calculate the weight based on rules.

OneKloudX Netsuite User Group Technology Tips, Hints & Tricks for Expense Management

When we create the allocation schedule we can set the frequency and next date for the allocation to automatically run, and the allocation mode is set to Fixed Allocation. There are two important subtabs that control the process. The source subtab is where we set the account (s) to allocate from. The destination subtab is where we set the accounts to allocate to. Then we manually selected the departments, location and classes (or additional segments you have) and their percentages weights to allocate to each department, location and class (Mobile Expense for consulting department in Melbourne for the Accounting Firms has an allocation of  20%, etc, etc, where the total must add up to 100%).

When we select an allocation mode of Dynamic Allocation, we can set the weight source to be a statistical account. We still have the same two important subtabs pertaining to Source and Destination that control the process. NetSuite provides two methods for updating the balance in statistical accounts. Manual statistical journals can be used to update balances, or statistical schedules can be created to leverage saved searches to automatically update balances.

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