In NetSuite, Journal Entries are used to adjust account balances, record transactions that don’t originate from standard processes, and correct financial discrepancies. These manual entries allow users to debit and credit accounts while maintaining accurate financial records.
When to Use Journal Entries
- Adjusting Account Balances (e.g., correcting errors in posted transactions).
- Recording Non-Cash Transactions (e.g., depreciation, accruals, and deferrals).
- Allocating Expenses across multiple departments or subsidiaries.
- Transferring Balances between accounts.
Steps to Create a Journal Entry in NetSuite
Step 1: Navigate to the Journal Entry Form
- Go to Transactions > Financial > Make Journal Entries.
- Click New to create a new journal entry.
Step 2: Enter General Information
- Subsidiary: If using OneWorld, select the appropriate subsidiary.
- Date: Choose the posting date for the entry.
- Currency: NetSuite will default to the subsidiary’s currency but can be changed if necessary.
- Memo: Add a brief description for reference.
Step 3: Add Debit and Credit Line Items
- Select the Accounts to adjust (e.g., Expense, Revenue, Assets, Liabilities).
- Enter Debit and Credit Amounts:
- Debits and credits must be equal for the entry to be saved.
- Assign Departments, Classes, or Locations (if applicable).
- Enter a Memo for each line item to clarify the adjustment.
Step 4: Save or Approve the Journal Entry
- Click Save to submit the journal entry.
- If approval is required, it will move to Pending Approval status.
Reviewing and Posting Journal Entries
- Navigate to Transactions > Financial > List Journal Entries to review saved entries.
- Click on an entry to make modifications if necessary.
- Once verified, post the journal entry to update account balances.
Best Practices for Journal Entries in NetSuite
✔ Use descriptive memos to clarify the purpose of adjustments.
✔ Ensure debits and credits are balanced before saving the entry.
✔ Verify period closures to avoid posting to incorrect accounting periods.
✔ Review audit trails to track changes and approvals.
By properly using journal entries, businesses can maintain accurate financial records, correct discrepancies, and ensure compliance with accounting standards.