This is a feature in Multi-Book Accounting.
Adjustment-only books allow you to post book-specific adjustments to a secondary, adjustment-only book at closing. They serve as a light version of multi-book accounting, but you do not need the Full Multi-Book Accounting feature to use them. Adjustment-only books differ from standard secondary books in that they do not duplicate the data in the primary book. Instead, users post day-to-day transactions to a base book, and adjustments to data in the base book are made in the adjustment-only book. Adjustment-only book results are calculated at the report level by including data from both the base book and the adjustment-only book. You can display financial reports on the data combined from both the base book and adjustment-only book in reports and searches.
Adjustment-only books can be used to comply with different accounting standards across multiple jurisdictions. They are also useful when the only requirement is to post adjustments by book-specific journal entries at the end of the accounting period. You can create multiple adjustment-only books for a single base book, and adjustment-only books do not count against the accounting book limit.
Adjustment-only books have two advantages over a traditional multi-book setup:
- Adjustment-only books are easier to implement for existing customers.
- Adjustment-only secondary books require less financial data maintenance.
Adjustment-Only Book Definitions
Base book — The book to which you will post most day-to-day transactions. A base book can be either a primary book or a standard secondary book, but not an adjustment-only book.
Adjustment-only book — The book to which you post book-specific journal entries at the end of the accounting period. These journal entries are combined with those in the associated base book to produce a report as a complete secondary book. Adjustment-only books do not duplicate the data in their base book. They inherit their base book’s possible subsidiaries and consolidated exchange rates.
Adjustment-Only Book Workflow
The workflow for adjustment-only books is:
- For day-to day operations, post transactions only to the base book.
- At the end of the accounting period, enter book-specific journal entries to the adjustment-only book.
- Generate reports for the adjustment-only book. When these reports are generated, they include data from both the base book and the adjustment-only book.
Adjustment-Only Book Requirements and Limitations
- You must use NetSuite OneWorld. All NetSuite OneWorld accounts have Adjustment-Only Books available by default. The Adjustment Only Books option is visible to administrators in Setup > Company > Enable Features > Accounting > Multi-Book Accounting.
- Base books can be either the primary book or a standard secondary book, but not an adjustment-only book.
- The adjustment-only book must use the same currency as its base book.
- The adjustment-only book cannot have subsidiaries which do not exist in the base book. If a base book’s Include Children flag is inactive, it will also be inactive in the adjustment-only book.
- The effective period for the adjustment-only book is the same as the base book’s effective period.
- Adjustment-only books do not support foreign currency management.
- The chart of accounts are unnecessary when setting up an adjustment-only book.