Financial management

Financial Segmentation
Chart of Accounts
Journal Entries
Bank Reconciliations
Budget Management
Period Close and Currency
Financial Reporting

Financial Management Challenges

Business visibility

Dashboard metrics
Global search
SuiteAnalytics

Disparate systems

Integration
consolidated reporting
NetSuite platform

Currency and closing

Checklist
Automation
revaluation
consolidation

Financial reporting

Audit tracking
automation
alerts
scheduling

Multi – Subsidiary structure

Setup currencies > define subsidiary structure > Chart of accounts > define financial segmentation > Transaction > real-time consolidated reporting > Intercompany transactions > set up inercomapny accounts > Automated exchange rate integration

Financial first standard: User requirements

Separation of duties

Controller

Approves Executive
Enter J/E

NetSuite Process Areas

Basic Journal Approvals

Single Level
Accounting Preferences

Results & Output

Manual J/E
Recurring J/E
Reversing J/E
Intercompany J/E

Financials First Standard – Bank Reconciliations

User Requirements
Controller Import, Review &
Reconcile Bank & Credit
Card Statements

NetSuite Process Areas
Account Reconciliation
Summary Portlet
Supported Bank Import
formats
Transaction Matching
Custom Matching Rules

Results & Output
A/R Summary Reconciliation Portlet
Intelligent Matching Rules
Custom Rules

Financials First Standard – Budget Management

User Requirement
Controller Prepares Budget
Executive Approves Budget

NetSuite Process Areas

Account Reconciliation
Summary Portlet
Supported Bank Import
formats
Transaction Matching
Custom Matching Rules

Reporting & Output

Budget versus Actual
Budget Income Statement

Financials First Standard – Period Close & Currency

User Requirements

Controller manages Period
Close process
Lock A/P, A/R…
adjustments,
Consolidations, Currency

NetSuite Process Area
Financial Period Definition
Period Creation
Period Close Checklist
Locking Prior Periods
Results & Output
currency Adjustments
Intercompany Transactions
Consolidation
Closed Prior Accounting
Periods
Formal Financial Statements

Multi-company and multi-currency

Built in multi-subsidiary and multi- company structure allows for repeatable processes and consolidated reporting. Period close processes through the system should streamline consolidation activities

Currencies

Define Subsidiary
Structure

Intercompany
Transactions &
Entities

Intercompany
Period Close
Activities

SETUP

INTERCOMPANY
PROCESSES

Nexuses

Intercompany
Accounts

Associate Subs to
Entities & Items

Intercompany
Journal Entries

Advanced financials

Value-add Financial Management processes including Expense
Amortization templates & schedules, and Expense Allocation (dynamic or
fixed) templates & schedules
Automation of memorized & auto-reversing Journal Entries
Real-time Budget v. Actual performance tracking

Schedule and monitor

Amortization > Allocations /Dynamic Allocations > Statistical Accounts > Billing Schedules > Memorized Transactions / Reversing Journals

Budgeting & Planning

Multiple Budgets > Budget vs. Actual

Vendor Bills – A/P

Vendor Bills can be created from:

Single PO
Multiple PO’s
Stand Alone Bills

Once created, NetSuite’s automated 3-Way Match considers tolerance
rules and preferences to trigger approval workflows when discrepancies are present. Record actual landed costs as bills/invoices are received.

Receive Items > Vendor Bill > Standalone Bills > 3-Way Match> Approvals > Purchase Order > Multiple Purchase> Orders > Record Bill > Payments > GL Posting > Landed Cost?> Apply Landed Cost

3-Way Match – A/P

3-Way Match rules engine runs when a Vendor Bill is created, referencing the Bill against the Item Receipt and Purchase Order. Variance tolerance limits can be defined at the Subsidiary level, for specific vendors or groups of vendors, or at the item level. Vendor Bills within tolerance ranges
will be automatically approved. Vendor Bills not within tolerance will require additional approval and should be investigated; create cases to track exceptions made.

Vendor Bill > 3-Way Match > No Variances or Within Tolerance Limit >Variance NOT Within Tolerance Limit > Pay Bill > Bill Approved >Bill Pending Approval > Allow Exception / Bill Approved

Vendor Bill Payments – A/P

Leverage Accounts Payable Aging reports to easily forecast future payments. Utilize dashboard alerts to notify you when Vendor Bills are due for payment. Create Vendor Payments in bulk with NetSuite’s Bulk Manager Approval or as one-offs from the Vendor Bill. Vendor Credits & Vendor Prepayments may be applied before the payment is processed.

A/P Aging Reminder > Vendor Credit? > Apply Credit to Bill > NO> Check > ACH> Wire > Credit Card> check YES > Generate Bulk Payments > One-Off from Vendor Bill

Customer Payments – A/R

Dashboard Alerts & Saved Searches notify users of invoices that are past due. Automatic emailing of thank you notes when payments are applied to open invoices. Payments made against invoices automatically update the invoice status and aging reports. Credit Card authorizations via a NetSuite partner like Solupay, Cybersource, Merchant e-Solutions, Moneris, and more

Customer Remits Payment > NetSuite Customer Payment Record > Payment Applied to Invoice > Invoice Status = Open > Invoice Status = Paid >Monitor A/R Aging Report & Collections

Expense Reporting

Create expense categories for direct mapping to the general ledger. Leverage both supervisor and accounting level approvals for systematic expense management and audit trails. Create expense reports on-the-go
with NetSuite’s mobile app and save it for later until your trip is completed. Designate expenses as billable to customers and apply expenses against any previous advances.

Fixed Assets

Automate the management of Fixed. Asset acquisition, depreciation,
revaluation, and retirement (*Requires Fixed Asset Management module). Depreciation runs will generate all appropriate journal entries at the month-end. Fixed Assets can be generated from Purchase Orders, Invoices /
Expenses, or Inventory Transfers; or they can be imported via CSV or manually created. Manage asset Categories & Types, maintenance schedules, insurance, and multiple methods of depreciation.

Vendor bill> Asset Proposal > Generate Assets > Accept Proposal? > Asset Listing>Periodic Depreciation> Asset Disposal>Asset Revalue> Asset Transfer

Financial segments flow from transaction and entity records through to General Ledger and Chart-of-Accounts, allowing for reports to be run by a number of dimensions
Exchange Rate integration provides accurate, automated exchange rate updates on a daily basis
Allocation and amortization schedules ensure that expenses are dealt with on time and accurately

Define Subsidiary Structure > Chart of Accounts > Journal Entries>Bank and Credit Card > Reconciliation>Currencies and Exchange Rates> Budgeting> Allocation Schedules> Amortization Schedules> Intercompany Management
>Period Close Management> Financial Reporting> Budget Reporting
Segmentation Strategy.

Bank Reconciliation

NetSuite matches transactions based on the amount, date, and transaction number. Custom matching rules can be made for further automation.

Upload Bank Statement >NetSuite Matches GL Transactions>Check & Manage Exceptions>Create necessary Charges, Deposits, J/E’s to balance>Reports Reflect Reconciled Balances

Financial Structure

Chart of Account String (Coded to the transaction)

Subsidiary > Department* > Class*> Location*> Unlimited> Custom> Segments

Module Table Data (Inherently linked to the transaction)

Item*>Vendor> customer > project > Vendor > Employee> Unlimited
Custom Tables

Subsidiary Management

Global business management the platform for businesses that
manage multiple subsidiaries. Global accounting with real-time consolidated reporting. Multi-currency and nexus setup assists in ensuring correct taxation and exchange rates are calculated for transactions

Intercompany Transactions

Intercompany sales and billing are supported using the intercompany sale and purchase transactions
Intercompany purchase and sale orders are paired for easier tracking and management
Intercompany transactions are automatically flagged for elimination, minimizing hassle during month-end close

INVOICE PAYMENT COLLECTION

The A/R Clerk will monitor the invoice aging after the Customer has been invoiced.
Integrated credit card processing should be used to take advantage of using a single system for storing
credit cards and processing transactions.
If an invoice is not fully paid, the status of the invoice remains Open.
The A/R and Controller roles should be monitoring A/R aging dashboard reports.