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How to Simplify Your Financial Processes with NetSuite Allocations

Within the complex domain of financial management, it is crucial to utilize effective tools to ensure accuracy and efficiency. NetSuite’s allocation schedules are a powerful solution for finance professionals, providing a robust mechanism for accurately distributing expenses across multiple accounts or dimensions. This not only automates transactions but also simplifies complex financial processes, transforming how costs such as rent, utilities, or shared services are allocated. 

Let’s understand more about NetSuite Allocations in this detailed blog. 

Why Is Allocation Important In NetSuite?

Allocation is an essential function in NetSuite that helps businesses distribute resources and costs accurately. This leads to precise financial reporting and enables effective control of inventory and order fulfillment for customers. 

The allocation also supports supervising and tracking project expenditures, ensuring that projects stay on budget. Finally, allocation within NetSuite is crucial for dispersing revenue and costs across different departments or subsidiaries, which provides a comprehensive view of the organization’s financial status.

Simplify Financial Processes with NetSuite Allocations

Financial professionals find NetSuite allocations more important for managing finances. Here are some ways in which NetSuite allocations can help.

Simplifying Complex Financial Distributions

NetSuite’s allocation schedules are more than just a tool for automating transactions. They revolutionize the way costs are distributed across different accounts or dimensions. This tool simplifies complex calculations, ensuring accurate and consistent allocations. 

Whether dealing with shared services or dividing utility costs, NetSuite’s allocation schedules provide a reliable method for precise financial reporting and analysis.

Key to Accurate Financial Planning

Accurate NetSuite intercompany allocations are crucial in providing an accurate representation of your financial well-being. Creating allocation schedules based on percentages, fixed amounts, or specific metrics builds a strong base for financial planning and budgeting. 

This precision is essential in comprehending departmental costs, enabling more informed strategic decisions. NetSuite’s allocation schedules empower finance professionals to develop a financial roadmap that aligns with the organization’s objectives.

Adaptability to Evolving Business Needs

NetSuite’s allocation schedules are highly flexible and one of its greatest strengths. Businesses are constantly evolving, and so are their financial needs. Regular reviews and updates of allocation schedules are necessary to keep them aligned with current operational realities, ensuring accuracy and relevance. 

With NetSuite’s adaptable allocation schedules, finance teams can evolve with the business, ensuring cost distributions stay in tune with changing circumstances.

Enhancing Financial Reporting

Integrating allocation schedules with your financial reports provides a complete and detailed view of your organization’s financial performance. This integration is fundamental for gaining deeper insights into cost distribution across departments. 

It improves transparency and aids in strategic financial health assessments. NetSuite’s allocation schedules connect raw data and actionable insights, making it easier to understand economic dynamics and make informed decisions.

Real-Time Visibility

The ever-changing nature of businesses demands real-time access to financial data. NetSuite’s allocation schedules provide timely and precise information on cost distribution, allowing finance professionals to respond promptly to financial changes and make necessary adjustments to align with organizational goals. Having access to up-to-date information is a crucial aspect of effective financial management.

Precision in Cost Distribution

NetSuite’s allocation schedules are an essential tool for accurate financial planning. They provide a high level of precision in cost distribution, whether it’s distributing fixed amounts, percentages, or based on specific metrics. 

This tool ensures that costs are allocated to reflect the organization’s true financial picture. The precision provided by this tool is invaluable for understanding departmental costs, enabling informed decisions to optimize budgeting and resource allocation.

How To Assign Allocation Schedules In NetSuite?

NetSuite allocation schedules can help distribute expenses and revenues across different accounts or departments. To effectively use this feature, we will discuss the step-by-step process of assigning allocation schedules in NetSuite:

  1. We will cover how to create an allocation schedule.
  2. We will explore how to define allocation rules to determine how expenses and revenues are distributed.
  3. We will learn how to assign the allocation schedule to specific transactions.

By the end of this, you will clearly understand how to effectively use allocation schedules in NetSuite to streamline your financial management processes.

Step 1: Create Allocation Schedule

  • Log in to NetSuite and go to Allocation Schedules.
  • Click on “New” to start a new allocation schedule.
  • Name and describe the schedule.
  • Choose an allocation method: even, fixed, or weighted.
  • Set allocation percentages / amounts for each category.
  • Apply filters to select specific transactions for allocation.
  • Save the allocation schedule.

Step 2: Define Allocation Rules

  • Create a new allocation schedule.
  • Specify criteria like accounts or departments.
  • Define allocation method (even, fixed, or weighted).
  • Set percentage or amounts for each category.
  • Assign the schedule to relevant transactions.

Step 3: Assign Allocation Schedule To Transactions

  • Create an allocation schedule with rules and methods.
  • Confirm the schedule is set up correctly.
  • Open the transaction in NetSuite.
  • Find the allocation field and choose the schedule from the dropdown.
  • Save the transaction to apply the allocation.

The Types Of Allocation Methods In NetSuite

Even Allocation in NetSuite

Even Allocation is a method in NetSuite designed to evenly distribute costs or revenue across various accounts or departments. To implement this method, start by creating an allocation schedule. Define allocation rules specifying source and target accounts using the even allocation method. 

Ensure the cost or revenue is evenly distributed by assigning the schedule to transactions. To streamline the process, consider creating a consistent naming convention, regularly reviewing and updating schedules, and utilizing automation tools.

Fixed Allocation in NetSuite

Fixed Allocation is a vital feature in NetSuite enabling the distribution of costs or revenues based on predetermined fixed percentages. To perform fixed allocation, create an allocation schedule, define rules with fixed percentages, and assign the schedule to transactions for accurate distribution. 

This method is particularly useful for evenly distributing expenses like overhead costs across departments or projects, ensuring precise financial reporting and cost management.

Weighted Allocation in NetSuite

Weighted Allocation in NetSuite involves distributing costs based on specific percentages assigned to different categories. Create an allocation schedule, define rules with percentage allocations for each category, and assign the schedule to transactions for accurate cost distribution. 

To optimize the use of weighted allocation, maintain a consistent naming convention for schedules, regularly review and update them, and leverage automation tools to enhance efficiency in the allocation process.

Best Practices for Assigning Allocation Schedules in NetSuite

Efficiently managing allocation schedules is essential for accurate financial reporting in NetSuite. Here are some best practices to ensure seamless and precise allocation of expenses and revenues:

1. Create a Naming Convention:

  • Identify a Format: Decide on a format, such as abbreviations or codes.
  • Include Relevant Information: Incorporate elements like department, location, or date for context.
  • Be Consistent: Ensure all schedules follow the same naming convention.
  • Document the Convention: Clearly document the naming convention for reference.
  • Train Users: Educate your team on the naming convention for uniformity.

2. Regularly Review and Update Allocation Schedules:

  • Identify Review Frequency: Determine how often to review based on business needs.
  • Review Allocation Rules: Evaluate rules for alignment with current processes and objectives.
  • Check Data Accuracy: Verify accuracy of data like cost centers and project codes.
  • Analyze Allocation Results: Assess the effectiveness and identify areas for improvement.
  • Make Necessary Updates: Modify rules or schedules based on changes in operations or reporting requirements.
  • Communicate Changes: Inform stakeholders about updates for transparency and alignment.

3. Utilize Automation Tools:

  • Create a Naming Convention: Establish a consistent naming convention for easy identification.
  • Regularly Review and Update Schedules: Periodically update schedules to reflect changes in business rules.
  • Leverage Automation Tools: Use NetSuite’s automation features, like workflows and scripts, to automate the allocation process and reduce manual efforts.

By incorporating these best practices, you can effectively manage allocation schedules and maintain the integrity of your financial data in NetSuite.


NetSuite allocation is a valuable tool for financial processes as it is efficient and accurate and saves a lot of time for businesses. It provides unparalleled control and flexibility when it comes to managing financial processes. 

With its advanced features and functionalities, companies can easily streamline their budgeting, planning, forecasting, and reporting processes. 

You are missing out on many benefits if you haven’t used NetSuite allocations yet. Therefore, give it a try to experience its advantages.

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