NetSuite Tutorial: Amortization in NetSuite | Advanced Cost Amortization - ARM006.7

About this Video

• Video Title: NetSuite Tutorial: Amortization in NetSuite | Advanced Cost Amortization - ARM006.7
• Channel: Integrisuite
• Speakers: (Speaker name not available in transcript)
• Duration: 00:06:55

Introduction

This video provides a tutorial on advanced cost amortization within NetSuite. It demonstrates how to enable the feature, outlines eligible cost types (direct contract acquisition, item-specific resale expenses, and implementation labor expenses), and walks through an example of setting up and viewing the amortization process.

Key Takeaways

• Enabling Advanced Cost Amortization: Activating this feature in NetSuite's accounting preferences allows for the accrual and amortization of eligible sales costs.
• Eligible Sales Costs: Three types of costs are amortizable: direct contract acquisition costs, item-specific resale expenses (for non-inventory items), and implementation labor expenses. Each requires specific account designations within NetSuite.
• Amortization Tracking: The amortization of these costs is tracked on the revenue recognition plan's "Cost Amortization" sub-tab. A deferred expense roll-forward report provides further detail.
• Cost Recording: Costs are recorded in designated fields on the revenue arrangement and revenue element headers.
• Example Demonstration: The video includes a practical example showing how to input cost amounts for each eligible type and subsequently viewing the automatically generated journal entries reflecting the amortization.