Income Statement Includes Prior Period Adjustments in Current Period

Current period’s Income Statement unexpectedly includes transactions from prior periods.

Root Cause:

Backdated journal entries or adjustments were created and posted to a closed period, which NetSuite rolls forward into the next open period unless historical period adjustments are blocked.

Resolution Steps:

1. Identify and isolate backdated entries using GL Detail report.
2. Configure Accounting Preferences to prevent posting to closed periods.
3. Implement a review process or approval workflow for prior-period adjustments.
4. Use Report by Posting Period rather than Transaction Date to avoid spillover.