Once the Amortization feature has been activated, it becomes necessary to define your amortization preferences. This process can be accomplished as follows:
- Navigate to the ‘Setup’ menu and select ‘Accounting’ followed by ‘Accounting Preferences.’
- Proceed to the ‘General’ subtab.
- Customize the following preferences to align with your requirements:In the ‘Revenue Recognition’ section:
- “Use System Percentage of Completion For Schedules”: Mark this checkbox if you wish to automate project completion calculations based on approved time entries logged against the project. To override the automatic calculation, you may input a specific value in the ‘Rev Rec Override Percent Complete’ field, found within the ‘Financial’ subtab of the project record. In the event that this checkbox is left unmarked, manual input of the percentage of project completion for amortization purposes is required, directly within the ‘Rev Rec Override Percent Complete’ field. Notably, this value can differ from the one computed by the system in the ‘Percent Time Complete’ field.
- “Allow Users to Modify Amortization Schedule”: To permit adjustments to the total amount reflected on an amortization schedule subsequent to its initial creation, activate this checkbox. It is important to maintain a constant sum, equating to the purchase amount associated with the corresponding line item. Changes can solely be made to amounts that have not yet undergone recognition. Alternatively, if you prefer to restrict alterations to amortization schedules once they are generated, kindly uncheck this option.
- “Allow Foreign Currency Amortization Schedules” (This feature is exclusively available in NetSuite U.K. editions): By checking this box, you gain the capability to generate amortization schedules using foreign currency amounts as opposed to the base currency figures.
- “Default Amortization Journal Date To”: Establish the default posting date for amortization journal entries on the ‘Create Amortization Journal Entries’ page. You have two options:
- “Last Day of Period”: The date defaults to the final day of the period you designate within the ‘Posting Period’ field.
- “Current Date”: The date defaults to the present day.
- “Default Amortization Journal Entry Form”: Choose the journal entry form to be employed for amortization journal entries. Selections include the ‘Standard Journal Entry’ and any custom journal entry forms that may have been introduced during implementation.
- “Number of Short-Term Expense Periods”: Specify the count of short-term expense periods to incorporate within the ‘Deferred Expense Waterfall’ report. Valid entries range from 0 to 52, inclusive, with the default setting being 12.
- After configuring your preferences as per your specifications, remember to save your changes by clicking the ‘Save’ button