An intercompany expense allocation schedule is designed to distribute expenses from one specific source subsidiary to one or more destination subsidiaries. The schedule is defined within the context of a single source subsidiary where the original expenses were incurred. On the destination side, the configuration allows for multiple lines, with each line specifying a different target subsidiary and the corresponding allocation weight (either by percentage or a fixed amount). This structure facilitates a one-to-many distribution model for intercompany costs.

A. The source may be multiple subsidiaries.

This is incorrect. An allocation schedule is created for a single source subsidiary; it cannot aggregate expenses from multiple source subsidiaries in one schedule.

D. The target can only be one subsidiary.

This is incorrect. The destination subtab on the allocation schedule explicitly allows for adding multiple lines, each of which can be assigned to a different target subsidiary.

1. Oracle NetSuite Help Center. (2023). Creating Intercompany Allocation Schedules. SuiteAnswers

Doc ID: 32108.

Reference Point: In the "Source" subtab section

the documentation specifies selecting a single "Source Subsidiary" for the schedule. In contrast

the "Destination" subtab section details how to "add multiple lines to the subtab to set up the allocation

" where each line can specify a different "To Subsidiary."

2. Oracle NetSuite Help Center. (2023). Intercompany Allocation Schedules. SuiteAnswers

Doc ID: 32107.

Reference Point: The overview describes the process as allocating "a balance from a single source account... to multiple destination accounts." When applied to an intercompany context

this principle means allocating from a single source subsidiary to potentially multiple destination subsidiaries.