NetSuite. Year-End Close Manual 2017

Transcription

1 NetSuite Year-End Clse Manual 2017

2 Cntact FMT Cnsultants FMT Cnsultants, LLC 2310 Camin Vida Rble Carlsbad, CA (760) Sales (760) Marketing/Events Emily Matkin (760) NetSuite Divisin Martin Jahn Practice Manager (760)

3 Table f Cntents Cntact FMT Cnsultants... 2 Year-End Clsing Guide ) Accunts Receivables Year-end Clsing ) Pst all transactins fr the clsing perid ) Reprting ) Custmer Recrd Management ) Aging Management ) Perid end clse checklist fr Accunts Receivable activity ) Accunts Payables Year-End Clsing ) Pst all transactins fr clsing perid ) Reprting ) Vendr Recrd Management ) Frm 1099 Management ) Recncile Frm 1099 Amunts ) 1099 Crrectins ) Perid end clse checklist fr Accunts Payable activity ) Fixed Asset Year-End Clsing ) Pst all transactins fr clsing perid ) Prcess Perid-end Fixed Asset Reprt ) Lck All Perid Clse Task ) Reslve Transactin Date/Perid Mismatches ) Inventry Year-End Clsing ) Pst All Transactins fr the Perid ) Recnciling Inventry ) Inventry Cunts and Adjustments ) Inventry Reprts ) Inventry Recrd Management ) Perid end clse checklist fr inventry activity ) Review Negative Inventry ) Review Inventry Cst Accunting Review Inventry Activity ) General Ledger Year-End Clsing

4 7.1) Perid end clse checklist fr G/L activity ) Revalue Open Freign Currency Balances ) Calculate Cnslidated Exchange Rates ) Eliminate Intercmpany Transactins ) G/L Audit Numbering ) Clse ) Accunting Perid Management ) New Perid Setup ) Repening clse perids ) Quick Clse Functinality: ) Perid end clse checklist ) FAQ Year-End Clsing Guide The purpse f this dcument is t prvide additinal infrmatin fr bth the perid clse functinality in NetSuite and the accunting best practices related t year-end clse tasks. 1) Accunts Receivables Year-end Clsing This sectin includes tasks related t clsing the Accunts Receivable mdule fr a particular perid. These tasks include psting all transactins fr the clsing perid, prcessing Accunts Receivable related reprts, custmer recrd management, custmer aging management and lcking the Accunts Receivable mdule fr the perid. 1.1) Pst all transactins fr the clsing perid Prir t lcking and clsing the perid, all transactins ccurring within the perid shuld be psted t the applicable perid. It is imprtant t cnsider the cncept f perid cutff t ensure that the transactins are psted t the crrect perid. Review and pst all Revenue Recgnitin jurnal entries that are applicable t this perid. Yu cannt pst revenue recgnitin jurnal entries in clsed perids r in perids that are lcked fr A/R. Transactin Date vs. Psting Perid - Fr each Accunts Receivable transactin, a transactin date field and a psting perid field are available. The transactin will pst t the GL in the Psting Perid. As such, it is imprtant t crrectly select the transactin date and the psting perid as these fields will impact reprting results in NetSuite. NetSuite can be cnfigured t limit the extent t which transactins can be psted in pen and future perids. T access the settings cntrlling this functinality, navigate t Setup Accunting 4

5 Accunting Preferences. After yu check the Enable Accunting Perid Windw yu will be able t determine hw NetSuite will handle psting f transactins utside f the current pen perid. T generate and send statements t custmers at the end f an accunting perid, the user will need t navigate t the Generate Statements page. This is accessed by navigating t Transactins Custmer Generate Statements. Lastly, the user is able t select varius preferences fr creating the statements and select the methd f transmittal (print, fax, r ). This task can be scheduled t ccur autmatically at perid ends. 1.2) Reprting T access the Accunts Receivable reprts frm the Administratr rle: Navigate t reprts Custmers/Receivables t access the fllwing reprts: Accunts Receivable Aging (Summary and Detail) AR Register 1.3) Custmer Recrd Management An imprtant cmpnent f the year-end clse prcess is custmer recrd management, which entails updating the infrmatin assciated with each custmer recrd. In rder t perfrm edits t the custmer recrd, a user s rle will require specific permissins (custmer list edit r higher permissin). Further, at perid end, the custmer recrds shuld be reviewed fr recent activity. If the custmer has nt had any activity fr the perid, the custmer recrd can be made inactive if desired. This is perfrmed by editing the custmer recrd, navigating t the system infrmatin subtab, checking the inactive checkbx, and saving the recrd. This is usually dne fr custmers that have nt been active with a full fiscal year r mre s n audit reprts are affected. Saved searches and reprts may need t be flagged t include inactive custmers. 1.4) Aging Management Cnsider perfrming maintenance n the accunts receivable recrds that may be uncllectible as f the clse prcess. This perfrmed as a tw-part prcess that includes creating f a jurnal entry t recrd the write ff and then applying that jurnal entry t the accunts receivable transactin. 1.5) Perid end clse checklist fr Accunts Receivable activity After cmpleting the Accunts Receivable tasks discussed abve, the next step is t update the perid clse checklist fr Accunts Receivable related items. T perfrm the update t the perid clse checklist, navigate as Administratr t Setup Accunting Manage Accunting Perids. 5

6 The Manage Accunting Perids screen will appear (belw). This prvides a listing f clse tasks t be cmpleted in the rder listed. Frm this screen yu can see if a perid is pen r clsed and what accunting areas are lcked fr each perid. Click n the icn t prgress frward. Frm the image abve, yu can see that fr the perid f January 2017, we are currently able t lck A/R, A/P, and All as signified by the green arrws under the g t task. Additinally, please take nte f the Status clumn belw n the right-hand side fr which there are multiple statuses including nt started, partially cmplete, and cmpleted. Lck A/R (single subsidiary): Click n the green arrw next t Lck A/R. Click n the Lck buttn. After yu click the lck buttn the status clumn will have a green check mark. 6

7 Lck A/R (OneWrld): In a NetSuite OneWrld envirnment, we are able t perfrm the Lck AR task fr each subsidiary as seen in the image belw. 2) Accunts Payables Year-End Clsing Tasks t clse the Accunts Payable mdule fr a particular perid include psting all transactins fr the clsing perid, prcessing the Accunts Payable related reprts, vendr recrd management, and lcking the Accunts Payable mdule fr the perid. 2.1) Pst all transactins fr clsing perid. Prir t lcking and clsing the perid, all transactins ccurring within the perid shuld be psted t the applicable perid. It is imprtant t cnsider the cncept f perid cutff t ensure that the transactins are psted t the crrect perid. Transactin Date vs. Psting Perid - Fr each Accunts Payable transactin, a transactin date field and a psting perid field are available. The transactin will pst t the GL in the Psting Perid. As such, it is imprtant t crrectly select the transactin date and the psting perid as these fields will impact reprting results in NetSuite. Run all applicable amrtizatin schedules fr the perid. These must be run and the jurnal entries psted prir t clsing the AP mdule fr the perid. NetSuite can be cnfigured t limit the extent in which transactins can be psted in pen, including future, perids. T access the settings cntrlling this functinality, navigate t Setup Accunting Accunting Preferences. After yu check the Enable Accunting Perid Windw, yu will be able t cnfigure hw NetSuite shuld handle psting f transactins utside f the current pen perid. 7

8 While psting the transactins relevant t the perid being clsed, it is imprtant fr the Accunting Department t cnsider the accruals that have been created r shuld be created. There are tw methds t generate accruals in NetSuite: Autmatin in NetSuite NetSuite can be cnfigured t perfrm and pst accruals upn generatin f item receipts. The reversal/variance transactin can be perfrmed upn the psting f the vendr bill by using the native NetSuite functinality (sme cnfiguratin will be required). T review this functinality and cnfiguratin requirements in mre detail, please review the Match Bill t Receipt functinality in NetSuite Help. Manual Creatin This methd requires n cnfiguratin in NetSuite. The user can enter a jurnal entry t manually capture the substance f the accrual. Further, the accrual reversal/variance wuld be manually calculated and perfrmed. 2.2) Reprting T access the Accunts Payable reprts frm the Administratr rle: Navigate t reprts and then select: Vendr/Payables t access the fllwing reprts: Accunts Payable Aging (Summary and Detail) AP Register Sales Tax US t access the fllwing reprts: Sales Tax Liability by Tax Agency Sales Tax Liability by Tax Item (i.e. lcality) Sales Tax n Sales Sales Tax Analysis VAT/GST (if applicable) t view the applicable reprts. Purchases t access the fllwing reprts: Purchases by Vendr this reprt culd be used at year end t negtiate vlume discunts with suppliers/vendrs fr the upcming perids. 2.3) Vendr Recrd Management An imprtant cmpnent f the year-end clse is vendr recrd management, which entails updating the infrmatin assciated with each vendr recrd. In rder t perfrm edits t the vendr recrd, the user s rle will require specific permissin (vendr list edit r higher permissin). 8

9 Further, at perid end, the vendr recrds shuld be reviewed fr recent activity. If the vendr has nt had any activity fr the perid, the vendr recrd can be made inactive if desired. This is perfrmed by editing the vendr recrd, navigating t the system infrmatin subtab, checking the inactive checkbx, and saving the recrd. This is usually dne fr vendrs that have nt been active with a full fiscal year r mre s n audit reprts are affected. Saved searches and reprts may need t be flagged t include inactive vendrs. 2.4) Frm 1099 Management 2.4.1) Recncile Frm 1099 Amunts The 1099 creatin and recnciliatin prcess shuld be perfrmed after all the applicable accunts payable transactins and cash receipts have been psted in the crrect perid. This will ensure accuracy f the infrmatin reprted t the applicable vendrs and the Internal Revenue Service. The 1099 reprting prcess shuld be perfrmed prir t the IRS deadline. By using activities and tasks functinality in NetSuite, users can set a reminder t prmpt the end user t recncile and submit the 1099 s. T create these tasks, the user will navigate t Activities Scheduling Task New. After the task has been created, they will need t setup as a reminder. T setup this task fr a reminder, the user will navigate t the hme screen, lcate the reminders prtlet, hver ver the reminders prtlet menu are and select Set Up (image belw). Then click n r drag ver the Current Selectins List t add the fllwing reminders: Tasks due tday Tasks that are verdue Tasks t cmplete NetSuite requires sme initial cnfiguratin in rder t utilize the 1099 functinality. The vendr recrd must have the 1099 Eligible field marked and the EIN tax ID must be ppulated. Additinally, the 1099 cnfigured chart f accunts must be setup and used in the apprpriate transactins, as the dllar amunts will flw thrugh n checks, but will nt flw thrugh fr jurnal entries. T access the 1099 reprting and recnciliatin screen in NetSuite, the user must navigate t Reprts Sales Tax US Frm 1099 Misc. Here the user is able t review a list f the fllwing: Vendr Name Vendr Tax ID 1099-Misc applicable payments 1099-Misc Payments belw threshld Excluded Payments 9

10 Fr each vendr listed in the Frm Misc. reprt, the user can preview the 1099 t verify that the prper amunts are psted t the crrect 1099-Misc bx. T d this, click the preview buttn n the applicable rw and a new screen will appear shwing the frm 1099-Misc. Fllwing review f the 1099 s, the final step f the prcess is t print the 1099-Misc frms and the related 1096 frms. T print the 1099 frms, the user will navigate t Reprts Sales Tax US Frm 1099-Misc. The user will then be able t select applicable rws and click print. Alternatively, the user culd print all the 1099 s in a single batch. T print frm 1096, the user will navigate t Reprts Sales Tax US Frm 1096 and select all the vendrs fr which 1099 s were prvided ) 1099 Crrectins If the user has edited any 1099-Misc data fr a vendr, the 1099 des nt reflect the changes, even if yu change the payment fr the vendr. The user must click the preview link nted abve t verwrite ld data and display the changes. 2.5) Perid end clse checklist fr Accunts Payable activity. After cmpletin f the Accunts Payable tasks discussed abve, the next step is t update the perid clse checklist fr Accunts Payable related items. T perfrm the update t the perid clse checklist, navigate as Administratr t Setup Accunting Manage Accunting Perids. The Manage Accunting Perids screen will appear (belw). This prvides a listing f clse tasks t be cmpleted in the rder listed. Frm this screen yu can see if the perid is pen r clsed and what accunting areas are lcked fr each perid. Click n the icn t prgress frward. Lck A/P (Single Subsidiary): Click n the green arrw next t Lck A/P. 10

11 Click n the Lck buttn. After yu click the lck buttn, the status clumn will have a green check mark. Lck A/P (OneWrld): In a NetSuite OneWrld envirnment, we are able t perfrm the Lck AP task fr each subsidiary as seen in the image belw. 3) Fixed Asset Year-End Clsing If applicable, the Fixed Asset mdule maintenance tasks shuld be incrprated int yur cmpany s perid clse prcesses. This includes psting all the transactins in the applicable perid, prcessing depreciatin, and prcessing the fixed asset reprts. 3.1) Pst all transactins fr clsing perid. The fllwing transactins shuld be psted t the crrect perid: Additins Depreciatin Bth GAAP basis depreciatin and tax basis depreciatin (if applicable) shuld be perfrmed at year end. Transfers Dispsals (Write ff and sale type) Revaluatin 11

12 The abve transactins are separate frm any accunts receivable and accunts payable transactins previusly addressed, as these transactins shuld all take place in the fixed asset mdule. T perfrm this, navigate t Fixed Assets Transactins and select the varius transactins. 3.2) Prcess Perid-end Fixed Asset Reprt T access the fixed asset reprts, navigate t Fixed Assets Reprts and view the varius reprts. Reprts will need t be generated T access the fixed asset saved searches navigate t Fixed Assets Saved Searches t view the varius saved searches. A recmmended saved search is the Fixed Asset Register Saved Search as a rll frward reprt. As this is a saved search, the criteria can be adjusted as deemed fit fr rll frward reprting. 4) Lck All Perid Clse Task After the A/R and the A/P tasks have been cmpleted, NetSuite requires cmpletin f the Lck All task t prceed frward with clsing the perid. This is essentially anther layer f lcking dwn the A/R, A/P, and Payrll mdules (nt discussed in dcument). Click n the green arrw next t Lck All. Click n the Lck buttn. After yu click the lck buttn, the status clumn will have a green check mark. Lck All (OneWrld): In a NetSuite OneWrld envirnment, we are able t perfrm the Lck All task fr each subsidiary as seen in the image belw. 12

13 5) Reslve Transactin Date/Perid Mismatches After the AR, AP, and ALL tasks have been lcked, yu will be able t prgress frward t the subsequent clse tasks, the first ne being Reslve Date/Perid Mismatch. This step identifies transactins where the date n the transactin des nt align with the psting perid assciated with the transactin. Fr example - the date f a cash sale is 5/1/2017, but the psting perid is March 2017 (Mar 2017). With this mismatch, users may encunter differences in reprting amunts based n if the reprts are based n date r psting perid. T prevent this frm ccurring in the future, set the Allw Transactin Date Outside f Psting Perid field in accunting preferences t disallw r warn. With this, when transactins is entered with a date and perid mismatch, the user will either receive a warning message r be prevented frm saving the transactin. Click n the green arrw next t Reslve Date/Perid Mismatches. Click n the Reslve Date/Perid Mismatches buttn. If applicable, this will prvide a list f transactins where the date f the transactin des nt align with the psting perid f the transactin. The user will be able t review and crrect these transactins, if necessary. After cmpleting the review f the transactins with any ptential date/perid mismatches, click the the task. buttn. Next, click the buttn t cmplete 13

14 6) Inventry Year-End Clsing Tasks t clse inventry fr a particular perid include psting all transactins fr the perid, recnciling inventry, perfrming inventry cunts and psting necessary adjustments, prcessing inventry reprts, inventry recrd management, and perfrming the perid end clse checklist fr inventry activity. 6.1) Pst All Transactins fr the Perid Prir t lcking and clsing the perid, all transactins ccurring within the perid shuld be psted t the applicable perid. It is imprtant t cnsider the cncept f perid cutff t ensure that transactins are psted t the crrect perid. These transactins include sale rders, item fulfillments, invices, purchase rders, item receipts, and vendr bills. Transactin Date vs. Psting Perid - Fr each inventry related transactin, a transactin date field and a psting perid field are available. The transactin will pst t the GL in the Psting Perid. As such, it is imprtant t crrectly select the transactin date and the psting perid as these fields will impact reprting results in NetSuite. NetSuite can be cnfigured t limit the extent t which transactins can be psted in pen, including future, perids. T access the settings cntrlling this functinality, navigate t Setup Accunting Accunting preferences. After yu check the Enable Accunting Perid Windw yu will be able t cnfigure hw NetSuite shuld handle psting f transactins utside f the current pen perid. 6.2) Recnciling Inventry Fllwing the cmpletin f the preliminary clse tasks discussed abve, the next steps invlve inventry review and recnciliatins. This recnciliatin prcess will invlve perfrming a physical inventry cunt and cmparing thse figures t the inventry quantities in NetSuite. 6.3) Inventry Cunts and Adjustments T perfrm a physical inventry cunt, navigate t Transactins Inventry Enter Inventry Cunt. The inventry cunt team will have the ability t perfrm inventry variance pstings directly in the cunt. If necessary, the inventry cunts can als be edited fllwing entry. 6.4) Inventry Reprts T access reprts related t inventry, navigate t Reprts Inventry/Items. The fllwing reprts are particularly imprtant fr perid end clse: Inventry Valuatin 14

15 Physical Inventry Wrksheet Trial Balance r Balance Sheet 6.5) Inventry Recrd Management An imprtant cmpnent f the year-end clse is item recrd management, which entails updating infrmatin cntained in the item recrds. In rder t perfrm edits t the item recrd, a user s rle will require specific permissins. At perid end, item recrds shuld be reviewed fr recent activity. If an item has nt had any activity fr the perid, the item recrd can be made inactive if desired. This is perfrmed by editing the item recrd, navigating t the system infrmatin subtab, checking the inactive checkbx, and saving the recrd. A final nte n inventry management Prir t making any items inactive, the user shuld cnsider whether the items are a cmpnent f a kit, grup, r assembly. 6.6) Perid end clse checklist fr inventry activity Nw that inventry has been reviewed, the next step is t update the perid clse checklist fr inventry related items ) Review Negative Inventry Prir t perfrming the review f negative inventry checklist task, the rganizatin shuld perfrm an inventry cunt at the end f the perid being clsed. Once the cunt is cmpleted, the user will be able t review negative inventry values and if necessary, adjust accrdingly t align with the inventry cunt. T perfrm this checklist task, click the green arrw next t the review negative inventry task. Next, click n the Review Negative Inventry buttn. If applicable, this will prvide a listing f inventry items with a negative inventry value fr the perid. The user will review and crrect where necessary. The inventry cunt steps perfrmed prir t this stage shuld limit the adjustments required in this task. The results can be filtered fr a specific lcatin within the envirnment. After reviewing these items, click n the Back t Perid Clse buttn t mark the task cmplete (bth f these steps mirrr reslve date/perid mismatch prcess abve) ) Review Inventry Cst Accunting After the Review Negative Inventry task has been lcked, yu will be able t prgress frward t the subsequent clse task - Review Inventry Cst Accunting. This task is necessary t ensure maintenance f crrect inventry cst accunting when transactins (purchasing, sales, r adjustments) have been inserted r remved frm an existing series f transactins. 15

16 Click the green arrw next t the Review Inventry Cst Accunting task. Next, click the Review Inventry Cst Accunting buttn. On this screen, the user can review the transactins in the perid and ensure that there are n csting items t be crrected and that the autmated system inventry csting calculatins have been fully prcessed. T run inventry csting calculatins, there must be n items n the Review Inventry Cst Accunting page in the list f utstanding items t be crrected. If any items shw n the list, yu must wait until they are reslved Review Inventry Activity This task is nly applicable t OneWrld accunts. It is used t review inventry values fr each subsidiary. Navigate t the checklist task and click Review Inventry Activities. Next, yu will see the inventry activity detail reprt. Review fr each subsidiary using the filter at the bttm f the page and custmize as desired with the custmize buttn at the bttm f the page. Next, click the back buttn n yur brwser and mark the task cmplete. 7) General Ledger Year-End Clsing 7.1) Perid end clse checklist fr G/L activity. Revalue Open Freign Currency Balances Calculate Cnslidated Exchange Rates Eliminate Intercmpany Transactins GL Audit Numbering Clse Perid 16

17 7.1.1) Revalue Open Freign Currency Balances This task allws users t revalue any pen transactins in freign currencies t the base/functinal currency f the cmpany as f perid end. This will drive psting f unrealized gain/lss fr freign currency revaluatin. The unrealized gain r lss will impact accunts receivable, accunts payable, and any bank accunts in a freign currency ther than that f the entities functinal currency. Freign Currency revaluatin is an imprtant cncept t ensure that financial statements are prvide an accurate depictin f the cmpany s financial psitin. This task must be perfrmed at perid end, but can additinally be perfrmed at any pint in time by navigating t Transactins Financial Revalue Open Currency Balances. This task requires access t a rle with the Currency permissin and the Override Perid Restrictins permissin. Click the green arrw next t the Revalue Open Freign Currency Balances task. Next, click the Currency Revaluatin buttn at the tp f the page t begin revaluing the transactins with pen balances as f perid end. The Mnth End Currency Revaluatin screen will appear (belw). At the tp f the mnth end currency revaluatin screen, the user will be able t select the freign currency requiring revaluatin t the base currency. On the left-hand side f the Mnth End Currency Revaluatin screen, the user will be able t select specific accunts t be revalued. Once the fields have been ppulated as desired, click save t generate the revaluatins. The user can view varius reprts fr details n the unrealized gain r lss n exchange by navigating t Reprts -> Financial -> Unrealized exchange rate gain/lss. Lastly, mark the task cmplete using the mark task cmplete buttn. 17

18 7.1.2) Calculate Cnslidated Exchange Rates It is imprtant t nte that cnslidated exchange rates differ frm transactin exchange rates. Cnslidated exchange rates are used fr cnslidated reprting fr subsidiaries with different functinal/base currencies, where the child subsidiaries will be reprting in cnslidatin with the parent subsidiary. This invlves translatin f child subsidiary financial statements (using the cnslidated exchange rates) int the reprting parent s functinal/base currency: Current = Asset (except fixed assets) and Liability Accunts Histrical = Equity accunt and Fixed Assets Average = Incme Statement Accunts This checklist task is used t cnfirm the perid clse cnslidated exchange rates used in the cnslidatin prcess. Click the green arrw next t the Calculate Cnslidated Exchange Rates task and click the calculate exchange rates buttn. The cnslidated exchange rates table will appear allwing users t use the aut calculate feature (buttn) r manually enter varius exchange rates (if the inline edit feature is enabled). Click Back t Perid Clse and mark task cmplete t cmplete the task ) Eliminate Intercmpany Transactins This feature can be perfrmed in OneWrld multi-subsidiary envirnments. This feature will autmatically generate the necessary eliminatin jurnal entries in the eliminatin subsidiary this is a great feature as ther ERP systems may require these entries t be perfrmed manually. A cmmn scenari where this is perfrmed is in the intercmpany sales rder and purchase rder prcess, where the related revenue, cst f gds sld, accunts receivable, and accunts payable balances will need t be eliminated. 18

19 In rder t perfrm the eliminatin, the desired accunts must be marked t perfrm the Eliminate Intercmpany Transactins n the GL accunt recrd setup screen. T begin the eliminatin prcess, click the green arrw next t Eliminate Intercmpany Transactins. Next, click the Run Intercmpany Eliminatins buttn. Next, the user can perfrm the intercmpany eliminatins based n varius segment cmbinatins (Class, Department, Lcatin). Click save. Next, review the eliminatin jurnal entries perfrmed in the listing f the task screen. Lastly, after all jurnal entries created have been reviewed, click the Mark Task Cmplete buttn ) G/L Audit Numbering The GL audit numbering functin applies a gapless numbering sequence t all G/L psting transactins. T use this feature, it must be enabled under Setup -> Cmpany -> Enable Features -> Accunting. Next, under Accunting Preferences, the rganizatin will need t determine the frequency in which the GL audit numbering is applied. This is determined in the GL audit numbering methd field and the ptins are base perid, quarterly, r annually. 19

20 T perfrm this prcess, click n the green arrw next t the GL Audit Numbering task. Next, click the GL Audit Numbering buttn. Next, the user can enter the fllwing details related t the GL numbering sequence Name - enter a name fr the sequence. If yu use NetSuite OneWrld, select the subsidiaries whse transactins yu want t include in the sequence. Prefix and suffix enter the prefix and suffix yu want t apply t the transactin numbers fr this sequence. Minimum Digits - the minimum number f digits permitted fr each number. Initial Number - enter the first number t assign in this sequence. Order By - chse hw yu want t rder the transactins fr numbering. Optins are transactin date r transactin creatin date. Click save and then mark the task cmplete ) Clse After all the preceding clse tasks have been cmpleted, the user will be able t clse the perid. Click n the green arrw next t the clse task. Click n the Clse Perid buttn. 20

21 8) Accunting Perid Management 8.1) New Perid Setup Additinal perids can be set up at Setup Accunting Manage Accunting Perids. Click the and yu will be directed t the Accunting Perids fr Full Year page. Enter the fields t align with yur business requirements. The One-Day Year-End Adj. Perid checkbx is a particularly imprtant field. By marking this field, there will be a standalne adjustment perid fr the last day f the fiscal year where all adjustments fr year-end can be perfrmed. 8.2) Repening clsed perids Accunting perids can be repened as needed. Please nte that NetSuite functinality can be cnfigured t allw creatin f nn-g/l changes in a clsed perid withut repening the perid. This requires the fllwing: 1) The Rle has the permissin (Setup Sublist) fr Allw Nn G/L Changes. 2) The accunting perid must be cnfigured t allw nn G/L changes. a. On the Manage Accunting Perids page, click the Perid Name text in the perid name clumn. b. In the ppup windw that appears, check the Allw Nn G/L Changes checkbx. If a perid that has been clsed requires G/L changes at a later date, the perid must be repened befre these changes can be cmpleted. The ability t repen clsed perids requires Override Perid Restrictins permissins. The navigatin path t repen an accunting perid is Setup -> Accunting -> Manage Accunting Perids. Click the Checklist icn ( ) fr the perid. On the Perid Clse Checklist page, click the green arrw icn fr the Clse task rw. On the Clse Accunting Perid page, click Repen Perid. Enter text in the Justificatin field t explain why yu are repening the perid, click Repen Perid again, and review the warning text t make sure yu understand that if yu repen the perid, yu may need t red checklist tasks t clse the perid. Nte - any subsequent clsed perids are autmatically repened and yu may need t red checklist tasks fr thse perids as well befre yu can clse them. 21

22 8.3) Quick Clse Functinality: A new feature available fr the mnth-end clse prcess is the Quick Clse functin. This functin allws the user t clse multiple perids with the click f a buttn. Prerequisites include: The user must have the Perid Clsing Management permissin. The Allw Quick Clse f Accunt Perids preference must be enabled in accunting preferences. Quick Clse is perfrmed by navigating t Setup -> Accunting -> Manage Accunting Perids and clicking Clse Multiple Perids Once that buttn is clicked, the fllwing screen appears and the user can clse a single r multiple perids by simply clicking the Submit buttn. 9) Perid end clse checklist This sectin serves t prvide an verview f the steps t clse a perid in NetSuite and des nt prvide any accunting best practices as discussed abve. In rder t clse a perid in NetSuite, the system must first be lcked fr AP, AR, and All. Once thse tasks n the perid clse checklist are lcked, it is a best practice fr thse areas t be recnciled and adjusted, if necessary. T lck thse areas, first navigate t Setup Accunting Manage Accunting Perids. The Manage Accunting Perids screen will appear (belw). This prvides a listing f clse task t be cmpleted in the rder listed. Frm this screen yu can see if the perid is pen r clsed and what accunting areas are lcked fr each perid. Click n the icn t prgress frward. 22

23 Frm the image abve yu can see that fr the perid f January 2017, we are able t lck A/R, A/P, and All as signified by the green arrws under the G T Task. Additinally, please take nte f the Status clumn belw n the right-hand side fr which there are multiple statuses including nt started, Partially cmplete, and cmpleted. Lck A/R: Click n the green arrw next t Lck A/R. Click n the Lck buttn. After yu click the lck buttn the status clumn will have a green check mark. 23

24 Lck A/P: Click n the green arrw next t Lck A/P. Click n the Lck buttn. After yu click the lck buttn the status clumn will have a green check mark. Lck All: Click n the green arrw next t Lck A/P. Click n the Lck buttn. After yu click the lck buttn, the status clumn will have a green check mark. Reslve Transactin Date/Perid Mismatches: After the AR, AP, and ALL tasks have been lcked, yu will be able t prgress frward t the subsequent clse task, the first ne being Reslve Date/Perid Mismatch. Click n the green arrw next t Reslve Date/Perid Mismatch. Click n the Reslve Date/Perid Mismatches buttn. If applicable, this will prvide a list f transactins where the date f the transactin des nt align with the psting perid f the transactin. 24

25 After cmpleting the review f the transactins with any ptential date/perid mismatches, click the buttn. Next click the buttn t cmplete the task. Review Negative Inventry: After the Reslve Date/Perid Mismatch task has been lcked, yu will be able t prgress frward t the subsequent clse tasks, such as the Review Negative Inventry task. Click the green arrw next t the Review Negative inventry task. Next, click n the Review Negative Inventry buttn. If applicable, this will prvide a listing f inventry items with a negative inventry value fr the perid. After the review, click n the Back t Perid Clse buttn t mark the task cmplete (bth f these steps mirrr reslve date/perid mismatch prcess abve). Review Inventry Cst Accunting: After the Review Negative Inventry task has been lcked, yu will be able t prgress frward t the subsequent clse task, the next being the Review Inventry Cst Accunting task. Click the green arrw next t the Review Inventry Cst Accunting task. Next click the Review Inventry Cst Accunting buttn. This will bring yu t the screen where the user can review the transactins in the perid and ensure that there are n csting items t be crrected and that inventry csting calculatins are nt already currently running. T run inventry csting calculatins, there must be n items n the Review Inventry Cst Accunting page in the list f utstanding items t be crrected. If any items shw n the list, yu must wait until they are reslved. Revalue Open Freign Currency Balances: 25

26 This task allws users t revalue pen transactins in freign currencies t the base currency as f perid end. This will initiate psting f unrealized gain/lss fr freign currency revaluatin. Freign Currency revaluatin is an imprtant cncept t ensure that financial statements are prvide an accurate depictin f the cmpany s financial psitin. This task must be perfrmed at perid end, but can additinally be perfrmed at any pint in time by navigating t Transactins Financial Revalue Open Currency Balances. This task requires access t a rle with the Currency permissin and the Override Perid Restrictins permissin. After the Review Inventry Cst Accunting task has been lcked yu will be able t prgress frward t the subsequent clse task, the next being the Revalue Open Freign Currency Balances. Click the green arrw next t Revalue Open Freign Currency Balances task. Next click the Currency Revaluatin buttn t begin revaluing the transactins with pen balances as f perid end. The Mnth End Currency Revaluatin screen will appear (belw). At the tp f the mnth end currency revaluatin screen, the user will be able t select the freign currency(s) requiring revaluatin t the base currency. On the left-hand side f the Mnth End Currency Revaluatin screen, the user will be able t select specific accunts t be revalued. When the fields have been ppulated as desired, click Save t generate the revaluatins. Example: A USD base currency cmpany enters a vendr bill in Eurs n the 1st f the mnth. The exchange rate at that pint in time was During the accunting perid clse n the 31st, the pen vendr bill will need t be t be revalued fr the exchange rate n the 31st. In this example, n the 31st the Eur t US dllar exchange rate is Upn bking the freign currency revaluatin, the transactin will have an unrealized lss n revaluatin. 26

27 Lastly mark the task cmplete using the Mark Task Cmplete buttn. Calculate Cnslidated Exchange Rates This checklist task is used t cnfirm the perid clse cnslidated exchange rates used in the cnslidatin prcess. Click the green arrw next t view the calculate cnslidated exchange rates task and click the calculate exchange rates buttn. Next yu will see the cnslidated exchange rates table and be able t use the aut calculate feature (buttn) r manually enter varius exchange rates (if the inline edit feature is enabled). Click Back t Perid clse and Mark Task Cmplete t cmplete the task. Eliminate Intercmpany Transactins T begin the eliminatin prcess, click the green arrw next t Eliminate Intercmpany Transactins. Next, click the Run Intercmpany Eliminatins buttn. Next, the user can perfrm the intercmpany eliminatins based n varius segment cmbinatins (Class, Department, Lcatin). Click save. 27

28 Next, review the eliminatin jurnal entries created in the listing f the task screen. Lastly, after all jurnal entries created have been reviewed, click the Mark Task Cmplete buttn. G/L Audit Numbering T perfrm this prcess, click n the green arrw next t the GL Audit Numbering task. Next, click the GL Audit Numbering buttn. Next the user can enter the fllwing details related t the GL numbering sequence: Name - enter a name fr the sequence. If yu use NetSuite OneWrld, select the subsidiaries whse transactins yu want t include in the sequence. Prefix and suffix enter the prefix and suffix yu want t apply t the transactin numbers fr this sequence. Minimum Digits - the minimum number f digits permitted fr each number. Initial Number - enter the first number t assign in this sequence. Order By - chse hw yu want t rder the transactins fr numbering. Optins are transactin date r transactin creatin date. Click save and then mark the task cmplete. Clse: After all the preceding clse task have been cmpleted the user will be able t clse the perid. Click n the green arrw next t the clse task. Click n the clse perid buttn 28

29 10) FAQ If I need t repen a clsed perid that has multiple clsed perids befre it, d I have t repen each perid? Answer: N, yu can simply unlck the perid yu want t adjust and then clse each perid. Fr example, yu are in January 2016 and need t repen September2015. If yu repen September 2015, then December, Nvember, and Octber will be repened as well. D all transactin edits require the perids t be repened? Answer: N. In NetSuite there is a setting that allws the user t determine if they wuld like t allw nn-g/l impacting changes t be allwed in a clsed perid. This setting is in each specific perid n the perid clse checklist. Can FMT help with NetSuite mnth-end and year-end training fr my accunting team? Answer: Yes. Accrual Creatin and Reversal Questins: Hw des the psting f variances wrk within NetSuite? Answer: This is dependent upn the item type being used in the transactin. Frm the highest level, in rder t pst variances the user will have t navigate t Transactins Payables Pst Supplier Bill Variances. Cntact FMT t discuss additinal cnfiguratin required t ptimize this prcess. 29

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