‍What is a NetSuite Allocation Schedule ?

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NetSuite Allocation Schedule  is a feature within the Advanced Financials module that automates the distribution of amounts—such as expenses or revenues—across various dimensions like accounts, departments, classes, or locations.

It is particularly useful for organizations that need to allocate shared costs (e.g., rent, utilities, or overheads) or income across multiple cost centers. By doing so, it enhances the accuracy of financial reporting and ensures that each segment reflects its fair share of the costs or revenues.

Instead of creating repetitive manual journal entries at the end of each period, Allocation Schedules allow users to define rules and percentages once, and then automatically apply them during the close process. This significantly improves efficiency, consistency, and auditability in financial operations.

Types of NetSuite Allocation Schedules
 
NetSuite offers two primary types of Allocation Schedules: Fixed and Dynamic.

• Fixed Allocation Schedules distribute expenses based on predefined percentages. These schedules take up a source transaction—such as a bill or journal entry—that matches specific criteria and allocates the amount across designated financial segments and subsidiaries.
  

• Dynamic Allocation Schedules, on the other hand, rely on statistical account entries to serve as weighted sources. This approach enables a more precise and data-driven allocation of expenses, ensuring that each department’s Profit & Loss (P&L) statement reflects an accurate share of the costs.

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Creating an Allocation Schedule

To set up an Allocation Schedule in NetSuite, navigate to:
Transactions > Financial > Create Allocation Schedules.

In the header section of the form:

• Enter a name for the allocation schedule.

• Select the appropriate subsidiary (if using NetSuite One World).

• Specify the frequency for how often the allocation should run.

• Choose "Dynamic Allocation" as the allocation method.

In the "Source" subtab, select the account for which expenses will be allocated. You can narrow down the allocation further by applying filters such as:

• Entity name (e.g., employee, customer, or vendor)

• Financial segments including class, department, and location

• Custom segments, if applicable

These filters help ensure that only the relevant transactions are included in the allocation process.

To know more about the NetSuite Allocation Schedule and how it can helps your business, talk to us today.