Bank deposits are when the payment received from the customer is deposited into a bank account. This will increase the bank’s funds and decrease the undeposited fund accounts. Writing checks occurs when businesses issue checks as payment for items they purchase or any type of payables. The GL impact will show a decrease in the amount of… Continue reading PART 3.4 – Bank Transaction GL Impact
Category: NS Financials
NS Financials
PART 3.3 – Customer Transaction GL Impact
Customer payments are the amounts received from customers in exchange for goods or services sold. To record the payments received that are not yet deposited to the bank, GL impact will show an increase in undeposited funds and a decrease in assets (account receivable). Here’s how to record payments that are deposited directly into the bank.… Continue reading PART 3.3 – Customer Transaction GL Impact
PART 3.1 – Common Sales Transaction GL Impact
Sales orders are non-posting transactions that record the items or services a business plans to sell to the customer. Order fulfillment is the process of fulfilling the sales order of a customer. Example: To fulfill the order, the business will have to pull out some items from its inventory, which will result in a decrease in assets… Continue reading PART 3.1 – Common Sales Transaction GL Impact
PART 2.5 – GL Impact Account Setup of each transaction
Transactions Debited Account & Setup Credited Account & Setup Opportunities No GL Impact No GL Impact Estimates/ Quote Estimates – Non PostingDefault Account IncomeItem Record or Accounting Preferences Sales Order Sales Orders -Non PostingDefault Account IncomeItem Record or Accounting Preferences Item Fulfillment Cost of Goods SoldItem Record or Accounting Preferences AssetItem Record or Accounting Preferences… Continue reading PART 2.5 – GL Impact Account Setup of each transaction
PART 2.4 – Managing account balances
Entering Opening Balances The opening balance for each general ledger account is the amount in the account when you first start using it in NetSuite. The date of the opening balance is included on each account record. After an opening balance has been entered for an account, that account can be used in NetSuite transactions. … Continue reading PART 2.4 – Managing account balances
PART 2.3 – Creating/ Editing an account
Go to Setup > Accounting > Manage G/L > Chart of Accounts > New. Enter general account information: If you are using account numbering, enter an account number. Account numbers can be alphanumeric with a maximum of 60 characters. Enter a name for this account. This name appears in the chart of accounts list, on transactions lists,… Continue reading PART 2.3 – Creating/ Editing an account
PART 2.2 – What naming conventions do you want to use for accounts?
When naming accounts in NetSuite, it’s important to follow best practices to ensure that the accounts are easily understood and consistent across the chart of accounts. Here are some naming conventions that you can follow (best practices) for accounts in NetSuite: Use descriptive names: Use standard account type names that clearly describe the account, such… Continue reading PART 2.2 – What naming conventions do you want to use for accounts?
PART 2.1 – How do you want to organize the hierarchy for each account type?
You can define a parent account on each account record. A parent account must have the same type as the subaccount. You cannot change the account type for an account that has associated posting and non-posting transactions such as sales order and revenue commit. The hierarchy for each account type in NetSuite can be organized… Continue reading PART 2.1 – How do you want to organize the hierarchy for each account type?
PART 2 – Chart of Accounts
Current Assets: Current Asset accounts are accounts that represent assets that are expected to be converted to cash within one year or one operating cycle, whichever is longer. These accounts are important for businesses to manage their short-term liquidity and cash flow. Cash and Cash Equivalents: This account represents cash on hand, bank deposits, and… Continue reading PART 2 – Chart of Accounts
Best Practices for NetSuite Charts of Accounts
To view the chart of accounts in NetSuite, go to Setup > Accounting > Manage G/L > Chart of Accounts. Plan and Test the Chart of Accounts Before Implementation NetSuite offers a test environment called the Sandbox, where users can plan, test, and observe each activity at every stage of implementation. Using the test environment… Continue reading Best Practices for NetSuite Charts of Accounts