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.
Properly amortizing expenses for prepaid items is often a manual task that requires accounting teams to create and maintain schedules over extended periods of time. NetSuite offers Amortization Schedules that can be set up to automatically calculate and amortize expenses over varying periods, and to post appropriate expense recognition journal entries.
Amortization Templates
When vendor bills are created in the system, pre-defined amortization templates can be tagged to these bills. The bill is still available to be paid via normal AP processes, and NetSuite will automatically generate the schedule of when the expense should be recognized. Each month, journals can be created from all amortization schedules that record the GL impact appropriately and maintain any segmentation set up on the original schedule.
Project-Based Amortization
Additionally, for companies who use NetSuite’s Projects module, amortization schedules can be set up based on project percent completion. As timesheets are entered and logged against the project and certain milestones are completed, deferred expenses can be recognized appropriately.
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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