How to Group Direct and Indirect Expenses on NetSuite Income Statement

To group direct and indirect expenses on the NetSuite Income Statement, follow these steps:

1. Navigate to Reports > Financial > Income statement.

2. Click Customize.

3. Click on the Expense section within the report layout.

4. From the Add Row/Section dropdown, select Add Financial Section.

5. Click Create new section.

6. Under the Section tab, check the Use expressions checkbox.

7. Under the Filter Set, define the criteria for Direct Expenses:

   • Account number starts with 6
   • Account type Expense

8. Under the Format tab, check the reverse sign checkbox under Account Row format.

9. Review the Account order tab to confirm that the correct accounts are included.

10. Repeat steps 4-9 to create a second financial section for Indirect Expenses, changing the filter to:

    • Account number starts with 7
    • Account type Expense

11. Rename the two new financial sections created (e.g., "Direct Expenses" and "Indirect Expenses"). Accounts starting with 8 and 9 can remain in their default grouping if no specific categorization is required for them.

12. Rename the overall report as desired.

13. Click Save.

    For additional information on customizing financial reports, refer to NetSuite article "Financial Report Builder Edit Layout Page" (answer ID 7623).