New to NetSuite | Allow Per-line Classification for Netting Settlement Preference

Beyond basic intercompany setup, refining how your system handles classifications such as Department, Class, and Location, ensures that your automated intercompany transactions remain accurate for segment reporting.

To manage these classifications effectively, NetSuite utilizes two primary settings:

• Allow Per-line Classification for Netting Settlement preference; and
• Default Cross Charge Classification Preference per Subsidiary

When you enable Allow Per-line Classification for Netting Settlement, NetSuite carries segments like Department, Class, Location, and Custom Segments from the original invoices and bills to the Netting Settlement journal.

Instead of a single summary line, the system groups entries by their specific classifications and GL accounts. If any classification or account differs, NetSuite generates a separate line; if they match, they are grouped together. This automation ensures your Balance Sheet remains accurate at the granular level while providing a detailed view of all intercompany activity.