Making the switch from manual reconciliation to NetSuite ERP has certainly lightened the load for accounting professionals, slashing the time spent on tedious data entry. Yet, despite the convenience of credit card reconciliation NetSuite Processing, reconciling all transactions manually before the end of the month can still be a bit of a grind.
Fear not, though! NetSuite, a powerhouse in the accounting tool realm, has equipped accounting professionals with the means to trim down their reconciliation workload. The Intelligent Transaction Match feature significantly reduces the time spent scrutinizing each bank line. Leveraging NetSuite and user-created rules can expedite the initial reconciliation and payment process.
Nonetheless, there are instances where a manual review of transactions or report generation is necessary. While this may eat into your time, a sluggish and manual reconciliation process risks errors and hampers the AR team’s ability to focus on more strategic tasks.
So, how can you expedite the reconciliation process without resorting to hiring additional accountants or outsourcing? If you’re on the NetSuite bandwagon, fret not, because it’s simpler than you might think.
In this guide, we’ll delve into the various account reconciliation features that NetSuite offers, enabling you to rev up your workflow and swiftly get to the more engaging aspects of your work.
NetSuite Credit Card Reconciliation
NetSuite, being a robust ERP, empowers accounting teams to reconcile bank accounts and payment data. However, it’s crucial to note that it’s not a fully automated process. There are three fundamental steps to follow when reconciling accounts:
1. Importing bank data
2. Matching the bank data
3. Reconciling the statement
Data can be added through templates or linked to your financial institution, with CSV being the most common and user-friendly option.
While manually matching account transactions with bank data is possible, the real magic lies in NetSuite’s Intelligent Transaction Matching feature. Credit card reconciliation in NetSuite feature comes with two types of default rules: Systemic Rules, which are unalterable, and User Rules, which are flexible and customizable. These rules work in tandem to automatically detect and match bank lines that meet specific criteria.
To witness the magic in action, navigate to Transactions > Bank > Match Bank Data, where you can see all the automatically matched data.
Decoding NetSuite’s Automated Reconciliation Rules
NetSuite’s Intelligent Transaction Matching operates with some non-negotiable rules that prioritize matching based on:
1. Transaction number
2. Amount
3. Date
It intelligently identifies transactions from bank data that share the same transaction number, amount, and date, categorizing them as charges or payments created in the system. Additionally, it can match transactions with minor discrepancies, like leading zeros or prefixes, as long as the date, amount, and IDs are generally similar. It’s worth noting that this automation only extends to transactions with dates 90 days or less from import.
Crafting Your Own Reconciliation Rules
Enter the hero of the story: User Rules. With these, you can create your criteria for matching and reconciling invoices. Here’s a step-by-step guide to crafting your own rules:
1. Navigate to Transactions > Bank > Reconciliation Rules.
2. Select “New Rule.”
3. Add a Rule Name, filter the Account, and specify Conditions.
4. Conditions may include Transaction Type, Primary Field, Operator, Value Input, Second Transaction Type, and Compare Field.
5. You can add or remove additional conditions.
6. Click “Save” when you’re done.
For those with multiple rules, you can easily arrange them by dragging and dropping, determining the order of priority.
However, if you’re using NetSuite without additional SuiteApps, manual reconciliation work might still be on the horizon. Let’s kick things off by exploring how to set up accounts for reconciliation and the reconciliation process for bank and credit card statements.
4 Steps to Setting Up Account Reconciliation
Before you can dive into the world of bank account reconciliation, you need to ensure your bank accounts are set up in NetSuite. This step is critical for creating, editing, and completing reconciliations down the line. Here’s a quick guide:
1. Go to the navigation bar and click Lists > Accounting > Accounts.
2. Click the “Edit” link next to the account you want to modify. If the account isn’t added yet, do so.
3. Check the “Use Match Bank Data and Reconcile Account Statement Pages” box if it’s not already checked.
4. Click “Save.”
In case you find yourself mid-reconciliation only to realize matching isn’t enabled on the account, a prompt will appear. It will ask if you want to delete all incomplete statements or proceed with reconciling the statement.
Demystifying NetSuite Bank Reconciliation
When it comes to bank reconciliation, accounts receivable professionals engage in the not-so-thrilling task of matching bank statements with business accounts. It’s a bit of a snooze-fest, flipping between a bank statement and NetSuite journal entries for hours on end. Not only is it time-consuming, but human error can also sneak in, leading to costly mistakes, potential fraud, and confusion around cash flow.
This is where the NetSuite bank reconciliation features come to the rescue.
Once your account reconciliation is all set up, you can jump into reconciling bank statements, covering deposits, credits, checks, and other payments. Should an error occur, reconciliations can be deleted, and reports can be generated for audits.
How to Enter Bank Reconciliation in NetSuite
1. Go to Transactions > Bank > Reconcile Bank Statement.
2. Select the transactions you want to reconcile on the Deposits and Credits or Checks and Payments sub-tabs.
3. Click the “New Charges” sub-tab.
4. Fill in the information and click “Add.”
5. Click the “New Deposits” sub-tab.
6. Fill in the information for the new deposit transaction and click “Add.”
7. Choose to “Save & Print,” “Save,” or “Complete Later.”
Note: You can only keep one reconciliation for later at any given period. Changing the account of the reconciliation will erase the work on that file. Remember, transactions must be saved for them to be reconciled.
Deleting a Bank Account Reconciliation
Deleting a bank account reconciliation is a straightforward process. Head to Transactions > Bank > Reconcile Bank Statement, enter the statement date, click the “Actions” menu, and select “Delete.” Confirm the deletion when prompted by clicking “Yes.”
For credit card statements, the process remains the same, but you must go to Transactions > Bank > Reconcile Credit Card Statement.
To confirm the successful removal of the statement, check Reports > Banking/Budgeting > Reconciliation and search for the reconciliation date. If nothing appears, congratulations—it’s been successfully deleted.
Understanding Bank Reconciliation Reports
NetSuite doesn’t just stop at handling data; it provides three specific reconciliation reports:
1. Summary Report: Ideal for reconciliation highlights, this report includes transaction balances, totals cleared and outstanding, previous bank balances, ending and current balances, and the difference between reconciled balances and unreconciled totals. Access it through Reports > Banking/Budgeting > Reconciliation.
2. Detailed Report: Offering in-depth information, this report provides insight into all reconciled transactions, category totals, previous and current reconciled statement balances, closing balance, the difference between current and reconciled statement balances, and an itemized list of unreconciled transactions. Navigate to Reports
Wrapping it Up
In conclusion, navigating the world of account reconciliation within NetSuite doesn’t have to be a cumbersome ordeal. By harnessing the power of Intelligent Transaction Matching, creating user-defined rules, and leveraging NetSuite’s robust features, accounting professionals can significantly expedite their workflow and spend less time on manual tasks.
Setting up accounts for reconciliation, understanding the nuances of bank reconciliation, and utilizing the array of reports at your disposal can make the process smoother and more efficient.
While manual reconciliation may still play a role, especially without additional SuiteApps, the tools provided by NetSuite empower users to streamline their financial processes. The goal is to move beyond the mundane and delve into the more exciting and strategic aspects of the accounting profession.
By optimizing your use of NetSuite’s reconciliation features, you not only save time but also reduce the risk of errors, allowing your Accounts Receivable team to focus on more impactful tasks. So, embrace the efficiency that NetSuite offers, and let the reconciliation process become a seamless part of your financial management journey.
