ANS-0586 · ACCOUNTING & FINANCIAL CONFIGURATION
How to Handle Amortization Journal Entries and Expense Reclassification in NetSuite
NetSuite automates amortization journal entries, but specific reclassifications or customer-related expense allocations may require additional consideration.
Short answer
NetSuite automates amortization journal entries, but manual or scripted reclassifications are often necessary for specific adjustments or corrections. While tying amortization expenses to customers might be desired, standard NetSuite expense recognition typically allocates to internal entities like projects or departments, not directly to customers during amortization release.
Scenario
Users often inquire about the process for managing amortization journal entries and the allocation of associated expenses within NetSuite. Specifically, questions arise regarding the necessity of reclassifying amortization entries and the feasibility of directly linking amortization expenses to customer records during the release process.
Solution
NetSuite's standard functionality automates the generation of amortization journal entries based on predefined schedules and templates. However, for specific reclassifications or corrections to existing amortization entries, a manual journal entry or a script-driven re-class process may be required.
While it may seem logical to associate amortization expenses directly with a customer, standard NetSuite functionality for amortization expense recognition typically focuses on internal allocations. Expenses are commonly tied to entities such as items, projects, departments, or locations, rather than directly to a customer record during the amortization release.
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