In NetSuite, Purchase Orders (POs) serve as formal requests to procure goods or services from vendors. While most POs focus on items, NetSuite also provides an Expense Line option, which allows users to allocate non-inventory costs directly to specific accounts without tracking stock levels. This is particularly useful for services, office expenses, and overhead costs that don’t require inventory management.
What is the Expense Line in a Purchase Order?
The Expense Line in a purchase order enables users to allocate purchase costs directly to expense accounts instead of item records. It is commonly used for:
✔ Consulting services (e.g., professional fees, contract labor).
✔ Office and operational expenses (e.g., utilities, rent, travel).
✔ Software subscriptions and licensing fees.
✔ Marketing and advertising costs.
How to Use the Expense Line in a Purchase Order
Step 1: Create a New Purchase Order
- Navigate to Transactions > Purchases/Vendors > Enter Purchase Orders > New.
- Select the Vendor, Subsidiary, and other relevant details.
Step 2: Enter Expense Details
- Scroll down to the Expenses subtab.
- Click Add to create a new expense line.
- Fill in the following fields:
- Account: Choose the appropriate expense account (e.g., “Office Supplies” or “Marketing Expenses”).
- Amount: Enter the expense amount.
- Department, Class, or Location (if applicable): Helps track costs based on specific business segments.
- Memo (optional): Add a brief description for reference.
Step 3: Review and Submit
- Ensure the total amount of the expense lines is correct.
- Click Save to submit the purchase order for approval.
Benefits of Using the Expense Line in NetSuite
✔ Simplifies expense tracking by directly allocating costs to accounts.
✔ Avoids unnecessary inventory management for non-stock purchases.
✔ Enhances financial reporting by categorizing expenses accurately.
✔ Supports budget control by linking expenses to departments or projects.
By leveraging the Expense Line feature in NetSuite, businesses can efficiently manage operational costs while maintaining precise financial records.