Netsuite's Allocation Schedule
Hi All,
Allocaion Schedules are used to transfer expenses from one expense Account to many other account.
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
Comments
Post a Comment
Thanks for you message, please join us on Facebook and Linkedin