The NetSuite integrated business management solution has so many features and capabilities, that it can be easy to overlook the benefits of the ERP’s basic functionality. If you are a current NetSuite user, this series of articles is designed to highlight some native features of the ERP solution. If your organization’s technology system does not offer these capabilities, we encourage you to contact the GYF ERP Solutions Team to learn more about NetSuite.
Allocating costs across different departments and service lines is a key part of accurate financial reporting and analysis. NetSuite offers functionality to perform these allocations automatically on a periodic basis, using the financial data already stored in your system.
Static Allocations
Allocation schedules can be set up to allocate costs across departments, classes, locations or other custom segments based on static weights and account balances. For example, if there is an overhead allocation that is performed for utility bills that is evenly spread across each department, it can be scheduled to repeat every month and allocate the balance in certain expense accounts across departments. This weight can be set up by amount or percentage, and will always pull the updated balance in the accounts identified.
Dynamic Allocations
Many companies need to allocate certain expenses based on changing factors. Allocations can be set up to use the balance in statistical accounts as the weight source for the allocation, and the statistical account can be updated on an as-needed basis. For example, if an expense is allocated based on employee headcount in each department, a statistical account can be maintained with the number of employees in those departments. That account balance can be used as the weight source for an allocation, and it will be updated simultaneously with the statistical account balance, allowing for dynamic allocations without heavy manual intervention.
NetSuite’s OneWorld solution streamlines financial management and reduces IT costs, allowing you to manage a multitude of entities with a unified platform, and perform critical month-end processes with ease. Each NetSuite component is modular, enabling it to be deployed and integrated with existing investments as required to easily scale and future-proof your business with an agile platform that evolves as your needs change. Contact a GYF ERP Consultant at 412-338-9311 to maximize the return on your technology investment.
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