Departments, Classes, and Locations are classifications that users with the Administrator role can use to identify and categorize records in their NetSuite accounts. You can also define classifications for your organization’s needs by creating custom segments. Classifications enable you to better organize data and preserve accuracy.
To use each classification, you must enable the feature and then set up records. After you have set up classification records, you can use them to identify other records in your NetSuite account. For example, you can enable the Departments feature and then set up a record for each department. You can select a department on each employee record or select a location on each sales order. You can identify employees by department and then run financial reports by location.
To create additional custom classification fields similar to class, department, and location, you use the Custom Segments feature. You can create an unlimited number of custom segments and add them to specific record types. For more information, see Custom Segments.
See the topics below to get started using classifications:
If you use NetSuite OneWorld, subsidiaries are the primary classification used to organize your NetSuite records. Departments, classes, locations, and custom segments can be used in addition to subsidiaries. If you use these classifications, you must associate them with a subsidiary. This association enables you to select the department, class, location, or custom segment on the record or transaction related to that subsidiary. For more information about using subsidiaries, see Subsidiaries in OneWorld and Subsidiary Setup.
In addition, if you plan to enable the Intercompany Time and Expense feature for NetSuite OneWorld, you must determine a strategy for handling classifications on intercompany time and expenses. You can either make classifications non-mandatory for journal entries, or set up global classifications that are available to all subsidiaries. Without a defined strategy, errors may occur for automated intercompany adjustments. For information about using this feature, see Enabling Intercompany Time and Expenses.