For years, NetSuite users have relied on the three standard classification segments—Department, Class, and Location—to slice and dice their financial data. While powerful, these three segments are often not enough to meet the complex reporting needs of modern businesses. To address this, NetSuite introduced Custom Segments, a transformative feature that allows you to create your own custom classification fields that behave just like the standard segments.

This guide provides a fact-checked and comprehensive overview of what custom segments are, when to use them, and how they unlock true multi-dimensional financial reporting.

What is a Custom Segment?

A custom segment is a custom classification field that you create, which can be applied to transactions and records throughout NetSuite. Unlike a simple custom field, a custom segment is deeply integrated into the General Ledger. When you enable GL impact for a custom segment, it becomes a first-class citizen in financial reporting, allowing you to create financial statements that are segmented by your unique business dimensions.

Think of a custom segment as a "custom column" on your financial reports. If you have ever found yourself exporting a report to Excel to add more pivot table dimensions, a custom segment is likely the solution you need.

When to Use a Custom Segment

The decision to use a custom segment versus a custom field or custom list is a critical one. The primary driver should always be your financial reporting requirements.

**Key Distinction:** Use a custom segment when you need a new *financial* dimension. Use a custom field or list when you need a new *operational* or *informational* dimension.

Real-World Use Cases

• Retail: A retail company could create a "Sales Channel" custom segment with values like "Retail Store," "Web Store," and "Amazon." This would allow them to generate a P&L for each sales channel, providing clear insight into the profitability of each.

• Software: A SaaS company could use a "Product Line" custom segment to track revenues and expenses for each of its software products, enabling true product-level profitability analysis.

• Non-Profit: A non-profit organization could create a "Funding Source" custom segment to track the use of funds from different grants and donations, ensuring compliance and providing clear reports to donors.

  
  

The Dynamic Power of Custom Segments

Custom segments are not just simple lists; they have a rich set of features that make them highly flexible and powerful.

Hierarchical Structure

Like the standard segments, custom segments can have a hierarchical structure with parent-child relationships. For example, your "Sales Channel" segment could have a parent value of "Online" with child values of "Web Store" and "Amazon."

Sourcing and Filtering

You can configure custom segments to be filtered by other segments, reducing data entry errors. For example, you could configure your "Product Line" segment to only show the products relevant to the selected Department.

GL Impact

The GL Impact checkbox is the most important feature of a custom segment. When this box is checked, the segment becomes available as a column, filter, and grouping option on your financial reports, including the P&L and Balance Sheet.

How to Create a Custom Segment

1. Enable the Feature: Ensure "Custom Segments" is enabled at Setup > Company > Enable Features > SuiteCloud.

2. Navigate to Custom Segments: Go to Customization > Lists, Records, & Fields > Custom Segments > New.

3. Define Primary Information: Give your segment a clear Label and ID.

4. Enable GL Impact: Check the GL Impact box to make the segment available for financial reporting.

5. Define Values: On the Values subtab, create the list of possible values for your segment.

6. Apply to Records: On the Application & Sourcing subtab, select which record types and transaction types this segment should apply to.

By moving beyond the limitations of the three standard segments, custom segments provide the tools to build a reporting framework that truly reflects the unique dimensions of your business, enabling deeper insights and more informed decision-making.