Creating Expense Allocation Journal Entries

Allocation schedules are used to generate journal entries that distribute expenses to the appropriate accounts, departments, classes, and locations.

Dynamic allocation schedules calculate the weight of a statistical account through statistical journal entries or as an absolute value at the time the allocation journal is created. This is useful in advanced costing such as Activity Based Costing and Usage Based Costing, and when you are running cost centers and profit centers. For more information, see Working with Allocation Schedules Weighted by the Balance of a Statistical Account

Important:

Your user role must have Edit or Full level of the Create Allocation Schedules permission to use Expense Allocation.

Note:

Journal entries created by allocation schedules cannot trigger User Event scripts.

To create an allocation journal entry from an allocation schedule:

  1. Go to Transactions > Financial > Create Allocation Schedules > List.

  2. Click View next to an allocation that is due.

  3. On the allocation schedule, click Create Journal Entry.

    The Journal Entry record opens in View mode.

    • If the Require Approvals on Journal Entries accounting preference has not been enabled, you can click Edit, then Save, to post the journal entry.

    • If the Require Approvals on Journal Entries accounting preference has been enabled, and you have journal approval permission, you can click Approve to post the journal entry. If you do not have this permission, you can view the journal entry.

    • If you have enabled the Journal Entries accounting preference, the Approval Status and Next Approver lists appear. Custom buttons that perform various commands may also appear enabled or unavailable, depending on your workflow configuration. For information about a custom journal entry approval workflow, see Using SuiteFlow for Journal Entry Approvals.

    • This preference is available at Setup > Accounting > Preferences > Accounting Preferences, on the General subtab, under General Ledger.

    Note:

    If the allocation schedule creates more than 10,000 allocation detail destination lines, the expense allocation process is stopped and an error message appears indicating that the limit was exceeded.

    This situation can occur by selecting the —Auto Populate— option for combinations of the Name, custom segment, Department, Location, or Class fields when creating Expense Allocation Schedules. In particular, for fixed allocations, when —Auto Populate— is selected for more than one field, NetSuite creates destination lines for each possible combination of values in the fields, potentially resulting in a very large number of destination lines.

    When the error message appears, no information is captured and nothing is posted, so there is no need to fix the posting. To run the allocation schedule, revise it and carefully consider using the Auto Populate option on the Destination subtab. For more information, see Creating Expense Allocation Schedules.

If you have enabled the Allocation Schedules Due reminder on your dashboard, you can click the reminder to view a list of allocations that are due.

To enable the Allocation Schedules Due reminder:

  1. On the Home page, click Personalize. The Personalize Dashboard palette opens.

  2. On the Standard Content tab of the Personalize Dashboard palette, click or drag and drop Reminders.

  3. In the Reminders portlet, click the ellipsis icon and select the Set Up link.

  4. In the Select Reminders dialog, click or drag the Allocation Schedules due box.

  5. Click Save.

If you need to alter an individual allocation, click Add Custom Allocation on the History subtab of an Allocation Schedule record.

Related Topics

Expense Allocation Overview
Creating Expense Allocation Schedules
Creating Intercompany Allocation Schedules
Viewing the Details of Allocation Schedules
Expense Allocation Assignment to Projects and Entities
Creating an Allocation Batch

General Notices