Balancing Location Costing Group Accounts
Use the following procedure to balance location costing group accounts.
To balance location costing group accounts:
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Go to Lists > Accounting > Balance Location Costing Group Accounts.
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Select a Location Costing Group.
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For NetSuite OneWorld, you can choose to filter by Subsidiary.
Select one subsidiary or press and hold the Ctrl key to select multiple subsidiaries.
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If you track Departments or Classes, optionally select them.
The class and department shown on the header of the resulting inventory adjustment are sourced from the header of this page. However, the department and class on individual line items on an inventory adjustment are sourced from the item record.
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Select an As Of Date to define the end of the adjustment period. NetSuite processes transactions beginning from the last valid Balance Location Costing Group Accounts date through the As Of date.
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In the Adjustment Account field, select an adjustment account to define which account a cost adjustment posts to. This is the account used by the Balance Location Costing Group Accounts page.
You should select a single account for each location costing group for adjustments to post to. By using a single adjustment account per location costing group, it is simpler for you to know if location accounts are in sync.
Accounts available to be selected include only the following:
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Expense accounts with locations specified for the Location Costing Group
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Expense accounts available to all subsidiaries (for NetSuite OneWorld)
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Expense accounts that you have permission to see based on restrictions for class, department, and location
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You can run the adjustment for all items or select specific items.
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To run the adjustment for all items check the All Items box.
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To run the adjustment for specific items, clear the All Items box. Then, check the box in the Select column next to items you want to create an adjustment for.
Note:Only items assigned the Group Average costing method can be selected.
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Click Submit.
When you submit the Balance Location Costing Group Accounts page, NetSuite calculates the adjustments and generates a bulk process list. After the inventory adjustment calculations complete, the appropriate transactions are processed for the adjustment. You can then view a list of previous Balance Location Costing Group Accounts processes that have been run. For more information, see Viewing the Balance Location Costing Group Accounts Status Page.
After a Balance Location Costing Group Accounts processes adjustments for a particular subsidiary, you can run another adjustment that includes all subsidiaries.
Journal Amount Rounding
The calculated journal adjustment can result in an amount smaller than the currency unit can account for. For example:
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2.02414 = Calculated adjustment amount
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2.02 = Smallest amount that can be transacted
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0.00414 = Remaining value in the asset or in-transit account that is not transacted
In such cases, journal adjustment transactions can result in a fractional leftover amount remaining in an account. This amount should never be more than one currency decimal unit. When this occurs, the next Balance Location Costing Group Accounts process takes into account the fractional variance amount. This can resolve the variance or change the variance amount. Note that these fractional amounts might cause a value to show for an item when the quantity at the location is zero. This is due to rounding variances that are not yet resolved.