We are discussing the process of setting up and managing amortization in NetSuite.
Step 1: Create an Amortization Template
Navigate to Amortization Templates
Go to Lists > Accounting > Amortization Templates > New.
Define Template Details
Name: Give a descriptive name.
Type: Choose Expense or Revenue as applicable.
Amortization Method: Choose Straight-Line or another method.
Amortization Period: Set the number of periods (e.g., 12 months).
Start Offset: Defines when amortization begins (0 for immediate).
End Offset: Defines when amortization stops.
Save the Template
Click Save to finalize the amortization template.
Step 2: Apply the Amortization Template to a Bill
Create a Vendor Bill
Go to Transactions > Payables > Enter Bills > New.
Enter Bill Details
Select the Vendor and enter the Bill Date, Amount, and Expense Account.
Apply Amortization Template
In the Expense tab:
Select the Amortization Template you created earlier.
Enter the Start Date (when amortization begins).
NetSuite will auto-calculate the End Date based on the template.
Save the Bill
Click Save to apply the amortization schedule.
Step 3: Verify the Automatically Created Amortization Schedule
Navigate to Amortization Schedule
Go to Transactions > Financial > Amortization Schedules.
Locate the Generated Schedule
Find the schedule related to your bill (you can search by bill number).
Verify the amortization posting periods and amounts.
Step 4: Manually Post the Journal Entries
Manually Create a Journal Entry
Go to Transactions > Financial > Make Journal Entries > New.
Debit Amortization Expense Account.
Credit Prepaid Expense (or Deferred Revenue) Account.
Reference the Amortization Schedule.
Review & Approve
Double-check the amounts and periods before saving.
Save and Post the Entry
Click Save to post the manual amortization journal.
In NetSuite, we associate amortization template to bills, following which amortization schedules are automatically created by the system. Based on the schedule, we would manually trigger the amortization to pass Journal entries.
The ability to automatically create amortization Journals is currently logged a NetSuite enhancement in the voting stage [#231550] (28/02/2025).