Oracle NetSuite Expense Allocation Schedule - Why Companies Must Use It?

The Oracle NetSuite Expense Allocation Schedule in NetSuite application is a feature for streamlining the accounting procedure, particularly around month-end close. The administrator can account for fixed costs using this function without dividing them up among several departments or locations. This can be done in advance of incurring the costs. After accounting is complete, staff can shift expenses into other accounts and designate them to departments, classes, or places.

Worldwide, corporations and midsize organizations are using the NetSuite applications suite to transform their resource planning at scale. With a feature like the NetSuite expense allocation schedule, businesses can further streamline their expense management and accounting.

Benefits of NetSuite Expense Allocation Schedules

• Whole-month accounting - NetSuite Expense Allocation Schedules streamline the accurate allocation of expenses across the company each month.
• Cross-department allocation - They not only move dollars between accounts but also allocate them across departments, classes, locations, and even custom segments.
• No manual tracking - Putting this flexible feature into use cuts down the cost and efforts that go into manually tracking and allocating expenses.
• Cross-companies allocation - NetSuite even allows for intercompany allocations if corporate headquarter has expenses to push down to one or more subsidiaries.

Types of NetSuite Allocation Schedules

NetSuite Allocation Schedules are of two types – Fixed and Dynamic. A fixed expense schedule allocates expenses across departments based on a fixed percentage. It can take a bill or journal that meets the source criteria from the expense allocation schedule and spread that across the financial segments and subsidiaries.

The NetSuite’s dynamic expense allocation schedules use statistical account entries as a weighted source for accurate division of expenses to hit each department’s Profit & Loss (P&L).

How do NetSuite Expense Allocation Schedules work?

NetSuite Fixed Schedules

Fixed Schedules will allocate expenses across accounts or segments based on a defined, or fixed, breakout each month. An example of this is rent. This recurring expense is typically spread across the various departments of a company. The weighted amount to be allocated to each department can be defined directly on the Expense Allocation Schedule and manually updated as needed.

Fixed Schedules are the easiest to configure, but Dynamic Schedules increase flexibility and accuracy when allocating based on changing data like headcount.

NetSuite Dynamic Schedules

Dynamic Schedules will allocate expenses across accounts or segments based on amounts defined in a statistical account. A common use case for Dynamic Schedules is allocating employee costs like benefits across departments and allocating insurance costs by headcount by the department.

Conclusion

NetSuite Expense Allocation Schedules helps save time by automating and simplifying company accounting processes. It is an excellent way to easily and accurately allocate expenses based on different datasets, like department headcount. Businesses looking forward to leveraging Oracle NetSuite and features like expense allocation schedules can partner with Jade for implementations, optimization, and managed services.

Jade is a certified Oracle NetSuite ERP (Enterprise Resource Planning) Implementation Partner with in-depth NetSuite knowledge and broad domain expertise that provide the best value for businesses during implementation and beyond.

If you are interested in our NetSuite ERP Services and want a demo of how NetSuite can help your business, please visit: NetSuite ERP Implementation or connect with our experts here