Automatic close in NetSuite refers to the system automatically closing a financial period at the end of a specific timeframe, such as at the end of a month or year. This process can be set up in advance and does not require manual intervention.
- Saves time and effort: With automatic close, the system can perform routine tasks like closing accounting periods without the need for manual intervention. This can save time for accounting teams and reduce the risk of human error.
- Ensures consistency: Automatic close ensures that standard processes are followed consistently every time the accounting period is closed. This helps maintain data integrity and compliance with accounting standards.
- Increases efficiency: By automating the close process, organizations can streamline their financial close process and optimize resource utilization.
Manual close in NetSuite, on the other hand, refers to the process of manually closing a financial period by a user. This may involve reviewing and reconciling financial transactions, running reports, and performing other tasks before officially closing the period. This process allows for more flexibility and control over the closing process.
- Increased control: Manual close allows users to review and verify data before finalizing the close process. This gives organizations more control over their financial data and ensures accuracy.
- Flexibility: Manual close allows users to make adjustments or corrections to data before closing the accounting period. This flexibility can be valuable in situations where there are complex accounting transactions or discrepancies that need to be resolved before closing.
- Audit trail: By manually closing accounting periods, organizations can maintain a clear audit trail of the close process and any changes made. This can be important for compliance and regulatory purposes.