Netsuite's Allocation Schedule

Hi All,

Allocaion Schedules are used to transfer expenses from one expense Account to many other account.

Internal Id : "allocationschedule"
Preference: Accounting Periods and Expense Allocation features should be enabled.
To Enable: go to Setup > Company > Setup Tasks > Enable Features > Accounting subtab.

There are 2 type of allocation features:
1. Dynamic Allocation
2. Statistical Accounting

** User have to enable both feature before using them.

1. Dynamic allocation: If dynamic allocation feature is enabled, weight calculated dynamically when allocation journal is created. For dynamic Allocation, currency field is not scriptable.
2. Statistical Accounting: If this feature is enabled, user can assign absolute value for weight. 

Example: 

Statistical Accounting: 
If a company have 3 subsidiaries A, B and C. There are fixed expenses on each subsidiary lets say for Internet Bill. A has internet bill of 300USD , B has 150 USD and C has 175 USD. Subsidiary A paid all expenses but in this case allocation Schedule should be A-300, B-150, C-175 . For A it should be JE of 300 USd and for B and C it should be intercompany JE of 150 and 175 usd. 

Dynamic Allocation:
Rent Bill received and paid by Subsidiary A:
 Lets say bill is received and paid by A but B and C are also responsible for sharing space and amenities. 
In this case if Rent for B and C are 2500 USD and for A rent is 5000 USD. Here Allocation Schedule can be defined dynamically for 50% and 25% for other 2. 
Same way one JE will be there for 5000USD for subsidiary A and Intercompany Journal for B and C of 2500 USD. 



Journal 1: Regular Journal, only one subsidiary
Rent Expense	Subsidiary A	$5000
Rent Expense	Subsidiary A		$5000





Advanced Intercompany Journal 1: Allocates to Subsidiary B
Intercompany Clearing Account	Subsidiary A	$2500
Rent Expense	Subsidiary A		$2500
Rent Expense	Subsidiary B	$2500
Intercompany Clearing Account	Subsidiary B		$2500





Advanced Intercompany Journal 2: Allocates to Subsidiary C
Intercompany Clearing Account	Subsidiary A	$2500
Rent Expense	Subsidiary A		$2500
Rent Expense	Subsidiary C	$2500
Intercompany Clearing Account	Subsidiary C		$2500



User can create Allocation Batch, they can run fixed Allocation Schedules in sequence.

Comment below if you have any question, you can use our Netsuite Guru Group/Page also.

Thanks
Netsuite