How to Segment Financial Statements Using Departments, Classes and Locations

How to Segment Financial Statements Using Departments, Classes and Locations

Using departments, classes and locations to segment financial statements provides financial users with robust reporting capabilities and decreases efforts required in managing numerous GL accounts. These classifications can be used to gain valuable insight into department expenses, sales channel margins and location profits.

While customizing your financial reports you can segment by 1; “Columns” 2; “Head and Summary Rows” and “Financial Sections” or 3; a combination of both. In this example we will create a classified income statement with departments and classes segmented by “Head and Summary Rows” and “Financial Sections”, and locations segmented by “Columns”.

Prerequisites:

  1. Classifications must be enabled in your NetSuite account Tip Image 1Click image to enlarge
  2. Transactions must be classified on every “Line”Tip Image 1

    Click image to enlarge

Setup: