Calculate Inventory Segmentation per Location in NetSuite 2026.2: Setup Requirements
Learn how to configure Calculate Inventory Segmentation per Location in NetSuite 2026.2, including feature prerequisites, permissions, thresholds, scheduling, calculation eligibility, and verification steps.
Calculate Inventory Segmentation per Location in NetSuite 2026.2 changes the unit of analysis used for Inventory Optimization segmentation. Configure it with the ABC and 123 thresholds and the segmentation schedule, after confirming that Inventory Optimization and Advanced Item Location Configuration are in use.
TL;DR: Enable Inventory Optimization at Setup > Company > Setup Tasks > Enable Features, confirm the account uses Advanced Item Location Configuration, then go to Setup > Accounting > Inventory Management Preferences > Optimization Preferences. Set Calculate Inventory Segmentation per Location in General, review the ABC and 123 thresholds and scheduling choice, and save. Permissions and eligibility differ between setup, segmentation, and planning-value calculations.
Key takeaways
- Calculate Inventory Segmentation per Location changes the unit of analysis for inventory segmentation to item-location.
- Inventory Optimization requires Advanced Inventory Management. Item-location segmentation also requires Advanced Item Location Configuration.
- Set the preference in the General section of Optimization Preferences.
- The same preferences page contains ABC thresholds, 123 thresholds, and the segmentation scheduling setting.
- A role needs both Items and Inventory Optimization permissions to run Calculate Inventory Levels for Inventory Optimization.
What does Calculate Inventory Segmentation per Location do?
Inventory Optimization segments eligible inventory using annual consumption value and demand variability. It combines an ABC category with a 123 category, producing segments such as A1, A2, and C3.
The Calculate Inventory Segmentation per Location preference changes the unit of analysis used for that segmentation. In the 2026.2 change, this allows segmentation by item-location rather than only by item. It is a segmentation setting: it does not replace the separate eligibility rules documented for planning-value calculations.
The preference is located in the General section of the Optimization Preferences subtab. For an account to segment inventory by item-location, it must use Advanced Item Location Configuration in addition to the Inventory Optimization prerequisites.
Prerequisites: Advanced Inventory Management and Advanced Item Location Configuration
Two requirements are separate:
- Inventory Optimization is an Advanced Inventory Management feature.
- Item-location segmentation requires Advanced Item Location Configuration.
To enable Inventory Optimization:
- Go to Setup > Company > Setup Tasks > Enable Features.
- Click the Items & Inventory subtab.
- In the Inventory section, check Inventory Optimization.
- Click Save.
Enabling Inventory Optimization does not immediately change item planning values. After it is enabled, the account can include eligible Reorder Point items, set segmentation preferences, review default segments, and run the related calculations.
If your team is also reviewing related inventory configuration, see Inventory Optimization supports reorder-point planning.
Where do you configure the preference?
Go to Setup > Accounting > Inventory Management Preferences, then click the Optimization Preferences subtab. This page groups the segmentation preference with category thresholds and scheduling.
| Section | Configuration action |
|---|---|
| General | Set Calculate Inventory Segmentation per Location. |
| ABC Categories | Review or enter ABC threshold values. |
| 123 Categories | Review or enter 123 threshold values. |
| Schedule Inventory Segmentation | Set whether segmentation should run on a schedule. |
Access to Inventory Management Preferences and the Optimization Preferences subtab is controlled by the Accounting Preferences permission.
How to set Calculate Inventory Segmentation per Location
After confirming the prerequisites, use the documented sequence:
- Go to Setup > Accounting > Inventory Management Preferences.
- Click the Optimization Preferences subtab.
- Set Calculate Inventory Segmentation per Location in General.
- Review or enter the ABC threshold values.
- Review or enter the 123 threshold values.
- Set whether segmentation should run on a schedule.
- Click Save.
Saving the preference records the configuration. It should not be treated as confirmation that calculation results have already been generated. Review segmentation tasks, event logs, and result pages using a role with the applicable Inventory Optimization access.
Thresholds and scheduling on the same page
Use ABC Categories to review or enter ABC threshold values. Use 123 Categories to review or enter 123 threshold values. Use Schedule Inventory Segmentation to choose whether segmentation runs on a schedule.
Inventory Optimization uses annual consumption value for ABC ranking and demand variability for the 123 category. The classifications are combined into segments such as A1, A2, and C3. The supplied configuration guidance does not specify universal threshold values, so use the values appropriate to the account’s approved inventory process rather than adding arbitrary percentages.
For a related article, see Inventory Optimization Results Dataset setup guide.
Permissions for setup, calculation, and review
NetSuite separates preference maintenance, Inventory Optimization access, and item calculation access.
| Permission | Access controlled |
|---|---|
| Accounting Preferences | Inventory Management Preferences and the Optimization Preferences subtab |
| Inventory Optimization | Segment records, segmentation tasks, event logs, and result pages |
| Items | Item records and the Calculate Inventory Levels page |
A role must have both Items and Inventory Optimization permissions to run Calculate Inventory Levels for Inventory Optimization. The Inventory Optimization permission controls access to segment records, segmentation tasks, event logs, and result pages, while Accounting Preferences controls access to the preference page.
This separation matters when one user maintains account preferences and another runs calculations or reviews results. Test each role against the task it is expected to perform.
For related permission coverage, see Inventory Optimization and Exception Management permissions overview.
Segmentation versus planning calculations
Segmentation and planning-value calculations are related but distinct activities.
Segmentation uses annual consumption value and demand variability to assign categories and segments. Each segment has a default service level. That service level can be used as the default or overridden on a segment, item, or item-location.
Planning calculations use service level, demand history, lead-time history, and variability to calculate:
- Safety Stock Level
- Reorder Point
- Preferred Stock Level
NetSuite calculates those planning values at the item-location level for active, included Reorder Point items at locations where Make Inventory Available is checked. The segmentation-per-location preference changes the segmentation unit of analysis; planning values have their own documented item-location criteria.
Eligibility also differs by calculation or assignment:
| Calculation or assignment | Documented eligibility |
|---|---|
| ABC ranking | Active Inventory and Assembly items using Reorder Point, Master Production Scheduling, Material Requirements Planning, or Time Phased replenishment |
| Segment and 123-category assignment | Included Reorder Point items only |
| Planning-value calculation | Active, included Reorder Point items at locations where Make Inventory Available is checked |
An item can therefore participate in ABC ranking without receiving a segment, a 123 category, or planning values. Validate each output against the eligibility rule that applies to that output.
Operational checks before calculation
Before initiating a calculation or allowing a scheduled segmentation run, verify the following:
- Feature and configuration: Inventory Optimization is enabled, and Advanced Item Location Configuration is in use for item-location segmentation.
- Preference: Calculate Inventory Segmentation per Location is set in General on the Optimization Preferences subtab.
- Thresholds and schedule: ABC thresholds, 123 thresholds, and the segmentation scheduling choice have been reviewed.
- Role access: Setup users have Accounting Preferences; users running Calculate Inventory Levels have both Items and Inventory Optimization.
- Eligibility: Segment and 123-category assignment applies to included Reorder Point items. Planning calculations additionally require active, included Reorder Point items at locations where Make Inventory Available is checked.
For other release material referenced in the source guidance, see NetSuite 2026.2 Work Order Completion changes and QTable popup-list row filtering enhancements.
How to confirm the configuration
Start by returning to Setup > Accounting > Inventory Management Preferences > Optimization Preferences and confirming that Calculate Inventory Segmentation per Location is set in General. Recheck the ABC thresholds, 123 thresholds, and segmentation scheduling choice.
Next, use a role with Inventory Optimization access to review segment records, segmentation tasks, event logs, and result pages. If that role runs Calculate Inventory Levels, verify it also has the Items permission.
Finally, compare results with the documented populations. Segment and 123-category assignment applies to included Reorder Point items. For planning output, verify that the tested record is an active, included Reorder Point item and that Make Inventory Available is checked at the location. A missing output can reflect eligibility criteria rather than a failed preference setting.
FAQ
Do I need to enable features to segment inventory by item-location?
Yes. Inventory Optimization is an Advanced Inventory Management feature. Enable it at Setup > Company > Setup Tasks > Enable Features, on the Items & Inventory subtab, by checking Inventory Optimization in the Inventory section. Item-location segmentation also requires Advanced Item Location Configuration.
Where do I configure Calculate Inventory Segmentation per Location?
Go to Setup > Accounting > Inventory Management Preferences, click Optimization Preferences, and set Calculate Inventory Segmentation per Location in General. Review ABC thresholds, 123 thresholds, and scheduling before clicking Save.
Which permissions control Inventory Optimization access?
Accounting Preferences controls Inventory Management Preferences and the Optimization Preferences subtab. Inventory Optimization controls segment records, segmentation tasks, event logs, and result pages. Items controls item records and the Calculate Inventory Levels page. Running Calculate Inventory Levels for Inventory Optimization requires both Items and Inventory Optimization.
Does segmentation per location change planning calculations?
It changes the unit of analysis for segmentation. Planning values—Safety Stock Level, Reorder Point, and Preferred Stock Level—are calculated at item-location level for active, included Reorder Point items at locations where Make Inventory Available is checked.
Which items can receive segments and 123-category assignments?
Segment and 123-category assignment applies only to included Reorder Point items. This is narrower than the ABC-ranking population, which includes active Inventory and Assembly items using Reorder Point, Master Production Scheduling, Material Requirements Planning, or Time Phased replenishment.