The ERP system serves as a common database for all operational and financial data. It is the central database that holds an organization’s operational and financial data. This database pulls such information from various modules designed to help each department perform its particular task, be it manufacturing, human resources, or accounting.
Each and every employee, with an ERP system in use, will be armed with information to answer critical questions in respect of the current state of things regarding his or her departmental operations, future goals, and areas of development.
Explaining NetSuite Modules
By adding functionalities to the NetSuite ERP platform, NetSuite modules enable organizations to quickly customize the system to match their specific requirements. As a cohesive set of programs, new features are easily added to expand on already-available functionalities. As your company’s demands change, NetSuite’s capability may be readily added.
In addition to a wide range of additional features intended to automate important business processes, such as inventory management, order management, project management, supply chain management (SCM), materials requirements planning (MRP), procurement, and more, NetSuite ERP software comprises core financial and accounting functionality.
The main business functions that NetSuite modules focus on are:
NetSuite commerce module
NetSuite inventory and order management module
NetSuite supply chain module
NetSuite professional services automation module
NetSuite finance module
The NetSuite Finance Module
The NetSuite finance module provides a complete financial management suite for companies of any size. It has a lot of functionality in this area, including bank reconciliation, general ledger, budgeting and forecasting, financial reporting, and accounts payable and receivables administration.
NetSuite finance module automates numerous financial procedures, hence decreasing probable human errors and increasing productivity for the users. In addition, this module presents real-time access to a company’s financial performance by providing the ability to customize dashboards and reports. This module is integrated with other modules, such as inventory and order management in NetSuite systems.
Top Features of the NetSuite Finance Module
Simplifying intricate financial operations is the primary objective of NetSuite finance module. Many tasks that you would typically have to pay people to complete are automated by it, and it guarantees that you are only working with correct financial data.
General Ledger and Financial Reporting
NetSuite Finance Module and GL help to track and report all transactions from incomes and expenses to assets, liabilities, and equity. The financial statements, including income and balance sheets, can be built and modified to understand the status better of the organization’s performance.
Additionally, it permits the construction of various chart of accounts, which are ways to combine related financial activities for reporting and budgetary needs.
Multi-currency Support
With the help of the Netsuite finance module, users can carry out financial transactions in several currencies, with the transactions immediately being converted to the base currency.
Additionally, it makes it possible to generate financial reports in several currencies, which improves comprehension of the company’s overall financial performance.
With the help of this feature, the user can also establish the currency exchange rate, which can be changed manually or automatically, as well as a different rate for a different day.
Budgeting and Forecasting
Users can generate budgets and forecasts for different departments, projects, or products using the NetSuite finance module’s budgeting and forecasting feature, then compare the findings to the real financial figures.
This makes it easier to spot deviations and make the necessary corrections to enhance financial performance. Different levels of budget creation are possible, including departmental, business unit, and locational budgets.
Additionally, this function enables the creation of many scenarios, the comparison of various budget situations, and the selection of the optimal one.
Financial Consolidation
The NetSuite finance module consolidates the financial data from across various departments, projects, or subsidiaries in the business and provides a centralized view of the company’s financial performance.
It thus implies that the feature allows users to integrate financial data from various entities at several levels, including at departmental, business unit, and geographic levels.
Accounts Payable and Receivable
Besides vendor bills, it can also maintain and record customer billing and payments. It has the facility of bill generation, reporting on payments, and generating accounts payables and receivables reports.
Supports different payment terms like Net 30, Net 60, etc., and helps set up different types of invoices like recurring, credit memos, debit memos, etc.
Cash Management
Netsuite Cash Management allows a user to trace and manage cash flow by managing bank accounts, balancing bank statements, and generating cash flow reports.
The feature supports the opening of multiple bank accounts and their reconciliation to bank statements through various methods like transaction, check, and deposit.
Moreover, it facilitates the construction of cash flow reports that provide detailed information on the entrance and outflow of cash.
Financial Period Close Management
Netsuite’s period-close functionality automates processes for journal entries, account reconciliations, and the production of financial statements to help speed up the process of closing a financial period.
Using this feature, you will be able to establish close periods specific to different entities and close a period at multiple levels, such as department, business unit, or location.
Tax Management
With the use of NetSuite’s tax management tool, users can keep track of and manage sales and purchase taxes, as well as calculate, collect, and pay the appropriate taxes and generate tax reports.
This feature enables various tax codes to be set up and applied to various transactions, including purchase orders, sales orders, and invoices.
Additionally, it enables the establishment of various tax schedules and the computation of taxes using a variety of techniques, including geography, product, and customer criteria.
Audit Trail
A feature of the NetSuite finance module keeps track of all financial transactions and modifications, making it simple to audit and comply with financial requirements.
It also has features like user permissions that guarantee that only individuals with permission can view and alter financial data. Additionally, it enables the configuration of several access levels for various users, including view-only, edit-only, and approve.
This functionality also enables the establishment of various audit trails according to departments, locations, or transaction types.
Financial Statement Customization
In the Finance module of NetSuite, a user can create and edit financial statements, such as statements of income and balance sheets, to present an appropriate view of the organization’s finance performance.
Using this functionality, you can construct financial statements that include cash flow, income, and balance sheets. You will also have the ability to add columns of your choice for further customization—for example, department, location, or project.
Moreover, it provides ease in preparing various accounting reports for different periods like quarterly, yearly, and monthly.
The Final Word
In conclusion, the NetSuite finance module empowers organizations to execute their financial activities efficiently, accurately, and controlled by consolidating financial data, automating processes, and providing real-time insight.
Thanks to its modular approach, NetSuite financial modules allow organizations to tailor their systems to individual business needs—from core accounting to advanced financial management.
Whether enhancing financial close processes, managing sophisticated accounting requirements, or seeking better insights into financial performance, NetSuite has the tools and capabilities to help you excel in the right way.
