In this video, we cover the Classifications of NetSuite which include Classes, Departments, Locations and Subsidiaries. These four key classifications are used to categorize all records in NetSuite, giving users dynamic reporting ability.
Welcome back. In this video, we're going to be taking a look at classifications in Netsuite. Now, classifications are basically segments or categories. In Netsuite for the various key aspects of a company. So there's basically four major classifications. And they break down as follows.
We have classes, departments, locations, and subsidiaries. Now you can make additional custom classifications. But those four are the key classifications that come native to Netsuite.
So let's break them down one by one.
First off, we have classes. Classes can be thought of as the revenue streams for a company. So, for example, in the fictional example we gave with Dunder Mifflin, the paper selling company classes for it could be for their product. Let's say one class might be paper sales. A second one might be paper supplies like tape, scissors, etc. So that's its own class of product. And then thirdly, maybe they have a shredding service that they provide. So that's its own class. So we would have these three classes. And that gives you a way to then categorize and go, okay, well, these paper products all fall in the paper class. These scissors and tape that falls in the supplies class.
Then you have departments. Now, departments are more from an internal company kind of division standpoint. So that's like your H.R. department. Marketing department operations. And an example of where departments can come into play is when assigning expenses. So if you have certain expenses that have been incurred, you need to attribute them to a certain department. Did that get expended by marketing? Was it operations that made those expenses? And you can separate those things in that way.
Thirdly, we have locations. So that's like your office locations, your warehouse locations, especially for companies that deal in goods and are shipping goods out or storing or warehousing goods. Having a number of warehouse locations in Netsuite is going to be vital. But even those companies that aren't dealing with actual goods, maybe they're just delivering services. You might still have a number of offices. Let's say you provide consulting services and you have ten offices across the U.S. Each of those will be its own location and can be recorded as such in Netsuite.
Lastly, we have subsidiaries. So those are simply the legal entities for any organization. So you can kind of think of it like a family tree. At the top you have the parent company or the holding company. And then under it, you have any child subsidiaries that branch off of that holding company. So you may have a parent company that's located in Boston. And then you might have a North American subsidiary and then maybe a Europe subsidiary. So all of those companies within that family tree are referred to as in the classification of subsidiaries.
So those, again, are the four key classifications. You can make custom classifications. For example, if you find that just having classes is not enough to really customize and segment your products. You can create a custom segment for your products. But those are the four you're going to come across the most. And it's good to really understand what those mean because you're going to be working with them.
So in the next videos, we're going to be going more in-depth on each of the different classifications. So I'll see you in the next video.