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Reporting: Allocate a GL Account to multiple Report Categories based on Department

Background

We were recently tasked with building a report based not only on the GL account but also on the department of the transactions booked on it. More precisely our client wanted to be able to generate an Income Statement using three main categories. Some GL accounts were mapped with a category in a one-to-one relationship, but others were mapped to a different category depending on the department, meaning that one GL account should be split into different reporting categories based on the department filled out at transaction level. Here is how we managed that within NetSuite.

Functionalities

NetSuite includes a quite powerful and flexible reporting tool that offers many interesting features. In the case detailed above, we were able to meet our customer’s expectations using a simple but helpful standard functionality.

Most reports are usually built based on GL accounts, and the filters used in the account section are Account Name, Account Number or Account Type. However, other filters are available and can prove to be really useful: Customer, Department, Item, Subsidiary.

By mixing account and department filters, we managed to generate an Income Statement that fitted our customer’s needs. 

Depending on the department, one transaction could hit either of the categories constituting the P&L. This provides two main advantages that were required by our client:

  1. Clear visibility on each segment’s costs (here the departments grouped in overhead categories).
  2. In accordance with the report structure and the department on the transactions , the costs of one account will be included in different metrics (Gross Profit, EBITDA, EBIT…).

Outcome

Once the accounts are correctly mapped in the report customization tool, the result is really straightforward and the costs are correctly allocated to the corresponding section. Furthermore, NetSuite ensures that it is impossible to count the same transaction twice, which means that if there is a Section A with a GL Account + Department rule and a Section B with only a GL Account rule, Section B will not include the transactions counted before in Section A.

Conclusion

When it comes to reporting, NetSuite provides a wide range of features and filters allowing the users to build highly customizable reports and offering them a clear view on the segments, metrics and periods they want to monitor. More often than not, these standard features are more than enough to meet the customers’ specific reporting requirements.

In short

  • Standard and easy-to-use feature
  • Clear visibility on the costs booked by segment
  • Customizable metrics
  • Duplicate-proof, each transaction can be included only once

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