Amortization is an expense recognition feature and an accounting technique that is used to spread the cost of an asset over time. This feature can help in the deferral of purchase expenses. Amortization is similar to depreciation as they are both methods of calculating expense over a given amount of time.
The Amortization Schedule is now a feature in NetSuite. This Amortization feature allocates an expense for the systematic payment over a preferred period of time.
Benefits of Amortization
This feature brings a lot of benefits, some of these include:
Setting up the Amortization Feature
To use this feature, you have to enable the accounting period feature. This will determine the periods for the amortization schedule.
Navigate to the ‘Setup’ drop-down menu, then to the ‘Enable Functions’ option.