Most users handle expenses and revenue manually in NetSuite, but Amortization Schedules can automatically spread costs or income over time—reducing errors and saving time during monthly close.
What Are Amortization Schedules?
Amortization Schedules in NetSuite allow you to distribute an expense or revenue amount across multiple accounting periods. It’s ideal for handling things like:
- Prepaid insurance or rent
- Annual software subscriptions
- Deferred revenue recognition
How It Works
- Enable the feature : Setup > Company > Enable Features > Accounting > Amortization
- Create Amortization Templates : Define duration, start offset, and recognition method (straight-line, etc.)
- Link templates to item records or individual transactions (like vendor bills)
NetSuite will then automatically generate journal entries to spread the amount across periods, reducing manual work for the finance team.
Key Features
- Supports straight-line or custom schedules
- Reversals handled automatically if the transaction is voided
- Works with both expense and revenue items
Things to Watch
- Ensure proper GL impact configuration to avoid mismatches
- Review amortization journal entries regularly for accuracy
- Not suitable for complex revenue recognition scenarios