NetSuite’s accounting period management feature allows you to Create, Manage, and Close Accounting Periods.
Accounting periods allow you to select past or future dates for every transaction and to recognize financial impact in a timely manner.
NetSuite provides the following functionalities in Period Management. They are 1.Set up Accounting Periods.
2.Closing Accounting Period.
3.Reopening an Accounting Period.
4.Utilize the Quick Close Feature.
5.Year End Closure
- Set up Accounting Period Use the Setup feature to create accounting periods.
- You can create all accounting periods for a full year with one click of a button or create periods individually. A recommended practice is to use Set Up Full Year to generate all periods and the rollup hierarchy for a full year.
Steps to Set Up Accounting Periods for a Full Year
1) Navigate to Setup > Accounting > Manage Accounting Periods. 2) Click [Set Up Full Year].
Note: Setting up accounting periods individually can create incomplete or incorrect period rollups if you are not careful.
3) Select the First Fiscal Month.
4) Enter the Fiscal Year End.
5) Select the Period Format (Default= Calendar Months). 6) Select the Year in Period Name to set whether the starting or ending year is used in the period name.
7) Ensure the One-Day Year-End Adj. Period checkbox is cleared.
Note: Select this checkbox to include a one-day, year-end adjustment period for this fiscal year. However, this is not a
leading practice.
8) Click [Save].
2.Closing an Accounting Period
Close an accounting period using NetSuite’s Period Close checklist to help you complete required tasks in sequence. The Period Close checklist helps to ensure that critical processes are performed and signed off on prior to closing. The tasks within the checklist depend on the enabled features in your NetSuite account.
3.Reopening an Accounting Period
NetSuite allows you to reopen closed periods for adjustment. NetSuite audits who closes and reopens periods and when. Only roles with permission can reopen the period after it’s been closed. Avoid reopening an accounting period unless it is absolutely necessary to avoid potential misstatements of balance on general ledger accounts. When an accounting period is reopened, all periods forward of it must also be reopened. Once the adjustment is made all periods must be reclosed in order from most previous to most current.
To reopen an accounting period, follow the steps: Navigate to Setup> Accounting>Manage Accounting Periods.
Click the checklist icon of the period you want to reopen.
Click on the green arrow next to the Close task. Enter the required justification.
Click Reopen Period.
4. Quick Close Feature
If you have enabled the Quick Close feature, you can use this option to bypass the closing checklist on reopened periods that do not require checklists tasks to be rerun. The Quick Close option will automatically mark all tasks as done. Keep in mind that NetSuite does not run period closing tasks nor does it validate if tasks are completed. This functionality should only be used when closing tasks do not have to be rerun.
Steps For Quick Closure
1) Navigate to Setup > Accounting > Manage Accounting Periods.
2) Click [Close Multiple Periods]. A pop-up dialog box appears.
3) Select the most current period to close.
4) Click [Submit]. A warning message appears to remind you that NetSuite does not run period closing tasks nor does it validate if tasks are completed.
5) Click [OK].
5. Year End Closing
NetSuite automatically closes year end after you close all periods in that year.
You are not required to perform a formal year end closing. When you permit NetSuite to automatically close year end, financial statement figures display as if the accounts have been closed based on the periods you set for the report.