The NetSuite Sales Channel Allocation feature allows you to create and use designated sales channels. You can use these channels in your order-to-cash transactions. They are helpful for things like tracking customer usage of sales channels and allocating certain inventory to specific channels. Let’s take a look at how to set up and use this feature.
Setting Up Sales Channel Allocation
First, enable the Sales Channel Allocation feature. You can find this feature on the Items and Inventory tab of Enable Features.
Next, you’ll want to create records for each of your sales channels. A sales channel is another name for a distribution channel and could be anything from an online retailer to a department store. You can also niche down in your classification of sales channels. For example, a company selling online through both its website and Amazon can assign separate sales channels to track performance more clearly. To create a sales channel record, navigate to Setup > Order Management > Sales Channels > New.
On this page, create an identifying name for your sales channel, include an optional description, and set an optional order priority. The order priority lets you distinguish between the priorities of your various sales channels. The checkbox “Can Only Use Dedicated Order Reservations as Supply” allows you to limit supplies reserved for this channel to designated sales orders.
Using Sales Channel Allocation
Assigning Sales Channels to Transactions
To use the Sales Channel Allocation feature, you will assign specific transactions to specific sales channels. Eligible transactions include things like Opportunities, Estimates, Sales Orders, and Cash Sales. On the transaction record, locate the Sales Channel dropdown on the mainline and select the appropriate channel for this order.
Reporting on Sales Channels
You can view reports on order-to-cash transactions by sales channels. This gives you full visibility into things like sales, back orders, and item profitability by sales channel. NetSuite’s saved search functionality also allows you to make fine-tuned searches to uncover specific sales channel data and profitability.
Conclusion
NetSuite’s Sales Channel Allocation feature is a simple way to allocate inventory to specific sales channels and track its movement through those channels. At SuiteRep, we focus on all things NetSuite so you can focus on better business results. If you’re interested in setting up your account to accommodate sales channels and other order-to-cash processes, contact us today to start the conversation!