Shared Transactions Item Receipts

When does this apply?

This only applies when all three of these are true:

1. Item Receipts are enabled in the Shared Transactions System Setup Deployed To Transactions field
2. The transaction involves a non-inventory item (Non-Inventory Part, Service, or Other Charge)
3. That item has Generate Accruals enabled on its item record

What does the user need to do?

Nothing different from your normal workflow, you can allocate with Shared Transactions using all the normal methods on Item Receipts. When you open the Shared Transactions worksheet on an Item Receipt, the system automatically determines which lines are eligible for allocation. Eligible lines (non-inventory items with Generate Accruals enabled) can be selected and allocated as usual. If you allocate using the Shared Transaction Body or Transaction Line fields, any non-eligible transaction lines will be skipped for allocation. 

Why allocate from the Item Receipt instead of the Bill?

When Generate Accruals is turned on for an item, NetSuite splits the accounting across two transactions:

• The Item Receipt records the actual expense (e.g., Dr. Professional Fees / Cr. Accrued Purchases)
• The Vendor Bill only records a clearing entry (Dr. Accrued Purchases / Cr. Accounts Payable) — there is no expense on the Bill

Shared Transactions allocates based on the GL impact of a transaction. Since the Bill has no expense to allocate — only a balance sheet clearing entry — allocating from the Bill would not allocate the underlying expense impact of the transaction. 

By allocating from the Item Receipt, the system picks up the actual expense account and distributes the correct cost to each subsidiary, keeping the accounting accurate.