Key Takeaways
NetSuite 2026.2 delivers substantial enhancements across the platform, with notable improvements for your organization in:
- Authentication and security, with passkey support and clear deprecation timelines you should plan for now
- Banking and reconciliation, with enhanced audit trails, match suggestions, and workflow streamlining that will save your finance team time
- Inventory management, with new optimization features and improved supply planning for your supply chain operations
- Manufacturing, with rough-cut capacity planning and cost update capabilities for your production teams
- Analytics and reporting, with expanded data source support and export format updates for your analysis needs
- SuiteApp customization, with advanced record customization and AI description fields for your administrators
- NetSuite CPQ, with AI assistant capabilities and improved migration paths for your sales operations
- Field Service Management, with AI-powered note enhancement and mobile user experience improvements for your field technicians
NetSuite 2026.2 release is here. With over 140 new updates and enhancements across the platform, it spans authentication, banking, inventory management, analytics, and more.
From enhanced security measures to intelligent automation in financial processes, the 2026.2 update offers substantial improvements designed to increase operational efficiency, strengthen controls, and provide deeper insights for decision-making.
Without a doubt, it’s one of the most significant upgrades this year. But what makes this release special has less to do with the sheer volume of changes. In fact, it’s more about the fundamental shift in how the #1 cloud ERP platform works.
For the first time, NetSuite is moving beyond being a system that records what happened to one that helps you figure out what to do next. The following overview covers the most significant enhancements that will impact your day-to-day operations and long-term strategic planning:
- Authentication and Security
- Banking and Reconciliation
- Inventory Management
- Order Management
- Analytics and Reporting
- Employee Management
- Field Service Management
- SuiteTax and Localization
- NetSuite CPQ
Authentication and Security
Security remains a top priority in this release. NetSuite has introduced modern authentication methods while establishing clear timelines for deprecating legacy approaches. These changes reflect the platform’s commitment to industry best practices and help organizations enhance their security posture.
The shift towards passwordless authentication and mandatory use of Proof Key for Code Exchange (PKCE) for OAuth flows represents a significant step forward in protecting sensitive business data.
You should review your current authentication configurations and start planning migrations to ensure uninterrupted access to NetSuite accounts.
Passwordless Authentication with Passkeys
All NetSuite users will now be able to configure passwordless authentication using passkeys. Once set up, you can log in using biometric authentication or device-based security keys instead of passwords. This feature currently applies only to account login.
Passkeys that comply with FIDO2 specifications can also serve as a second authentication factor for your users. NetSuite will continue to prompt your users for authenticator app codes every three months to ensure continuity in cases where passkey usage is unavailable.
Important Deprecation Timeline
Several authentication methods are approaching end of support, and you should take action now:
- NLAuth for RESTlets and unique use cases will stop functioning as of the 2027.1 release. If you are currently using this method, you should transition to OAuth 2.0. This deprecation does not affect your existing integrations using the IssueToken endpoint.
- Token-based Authentication (TBA) will no longer support new integrations starting in 2027.1. This applies to both the IssueToken endpoint and the three-step authorization flow. Your existing integrations will continue functioning until the planned end of support in 2028.1, but you should start planning your migration now.
- PKCE parameters will become mandatory for all new OAuth 2.0 authorization code grant integrations starting in 2027.1. Your existing integrations without PKCE will remain functional, but new ones will require PKCE.
Banking and Reconciliation
Your banking and reconciliation processes receive substantial enhancements in the 2026.2 release. These updates give you greater visibility into reconciliation activities, automate previously manual workflows, and strengthen your audit capabilities.
Your finance team will benefit from improved match suggestions, clearer visibility into who performed reconciliation actions, and streamlined submission processes.
Enhanced Audit Capabilities
System notes now track key matching and reconciliation events on related GL transactions. This enables your finance team to review when reconciliation lifecycle events occurred and who performed them. The Reconciliation Status and Date Reconciled fields are now available in your transaction searches and accounting reports.
This enhancement supports your auditing by providing visibility into when transactions were cleared, submitted, reconciled, or unreconciled.
Match and Submission Visibility
Your bank reconciliation pages now display who matched transactions and who submitted matches for reconciliation. On the Match Bank Data and Reconcile Account Statement pages, the Matched By and Submitted By columns indicate whether actions were performed by a user or the system.
This distinction helps your finance team differentiate system-generated matches from manual matches and trace ownership of reconciliation activities.
Suggested Transaction Matches
A new Match Suggestions subtab on the Match Bank Data page consolidates likely transaction matches before you reconcile. Suggested actions include:
- Match Transaction: Accept system-suggested matches
- Review Match Options: Explore multiple possible matches
- Apply Payment: Create and apply payments for eligible invoices or payables
- Review Payment Options: Review multiple payment alternatives
- Create Transaction: Generate transactions based on auto-create rules
Automated Payment Application Suggestions
The matching and reconciliation workflow now includes suggestions to apply payments for open invoices and open payables. Previously available only for accounts receivable through the Automated Cash Application page, this functionality now extends to both your AR and AP processes.
Payment application suggestions follow the same review flow as other match suggestions and support one-to-one matches for full outstanding amounts.
Automated Submission Workflow
Your manual matches and cleared transactions now automatically submit for reconciliation from the Match Bank Data page. This eliminates a separate submission step.
Inventory Management
NetSuite’s inventory management capabilities are significantly expanded in the 2026.2 release, particularly if you need sophisticated supply planning and optimization tools.
The introduction of the Inventory Optimization feature enables you to make data-driven decisions for reorder point planning, while enhancements to supply planning workbooks and bin transfers provide you with greater operational control.
These updates help your supply planners balance inventory investment against service level requirements, identify potential stock-out situations earlier, and optimize consigned inventory management.
If you have complex multi-location inventory operations, you will find particular value in these enhancements.
Initial Average Cost for Items
The Multi-Location Inventory feature now allows you to set the initial average cost for inventory or assembly items at each location on new item records. This value cannot be edited after the record is saved, so choose carefully.
Pegging Analysis Workbooks
Supply Planning now includes two new workbooks for you. The following workbooks give you enhanced visibility across pegging levels. This enables more effective supply planning and prioritization.
- Pegging Analysis (Demand View): Lists linked supply and demand records within a peg chain associated with current or future demand
- Pegging Analysis (Supply View): Lists linked supply and demand records within a peg chain associated with planned or incoming supply
Bin Transfers for Vendor Consigned Inventory
The Bin Transfer form now supports your ability to transfer vendor consigned items between bins within the same location. Your consigned items can retain their current status or be assigned a different consigned inventory status. Non-consigned items cannot be assigned consigned inventory statuses to ensure proper ownership tracking.
Inventory Optimization Feature
The new Inventory Optimization feature helps your supply planners set reorder point planning parameters based on demand patterns, lead-time variability, and service-level targets. Key capabilities you can use include:
- Setting optimization preferences
- Reviewing nine predefined Inventory Optimization Segment records
- Including eligible items in Inventory Optimization
- Running or scheduling inventory segmentation at the item or item-location level
Exception Management Enhancements
Exception Management for Inventory Optimization now includes inventory exception detection for projected stock-out, shortage, and overstock exceptions. These exceptions appear on the Inventory Imbalance tab of the Exception Management page to help you proactively address potential issues.
Rough-Cut Capacity Planning
The new Rough-Cut Capacity Planning feature provides you with visibility into required and available capacity by work center over selected date ranges. The report uses planned time from your work orders and planned work orders to identify potential overloads and underloads.
Filtering options include subsidiary, location, work center, date range, assembly item, and supply plan definition. Your results display in daily, weekly, or monthly time buckets and include total and required machine and labor capacity, as well as utilization metrics.
Manufacturing Charge Cost Updates
You can now perform bulk cost updates for manufacturing charge items on your production transactions. You can update costs using either the current purchase price defined on the item record or a specified custom unit cost.
This applies to Service, Non-Inventory, and Other Charge items with Purchase or Resale subtypes. A new preference, Allow Bulk Update Costs for Production Charges, must be enabled for you to use this feature.
Item Record and Pricing Management
Your pricing and item management capabilities receive significant enhancements in the 2026.2 release, with improvements in how pricing rules evaluate collections, how pricing information is presented on your transactions, and how you can manage pricing records at scale.
These updates help your sales and pricing teams configure and maintain pricing structures more efficiently while providing clearer visibility into pricing decisions during order entry. The bulk import capabilities for pricing records particularly benefit your organization if you need to migrate or update large pricing catalogs.
Order Management
NetSuite’s order management enhancements in this release focus on automating financial adjustments, expanding subscription billing capabilities, and improving metrics reporting. If you have complex subscription models, you will particularly benefit from the externally rated usage billing options and enhanced subscription metrics.
Automating Payment Adjustments
The Payment Adjustments feature automates the posting of fees and other adjustments. You can now apply adjustments such as bank fees, convenience fees, or underpayments directly from customer payment or customer deposit transactions without any manual entry.
Externally Rated Usage Billing for SuiteBilling
Usage subscription line service types now support a Use Usage Amount Only option. This allows your usage records to include externally calculated charge amounts from third-party mediation or rating platforms.
This supports bringing your final usage quantities and billable amounts into NetSuite for downstream billing, balance consumption, and contract-driven invoicing. Usage-driven dollar amounts also update Advanced Revenue Management to maintain alignment between your invoicing, revenue allocation, and revenue recognition.
Subscription Metric Enhancements
Your Subscription Metrics now support:
- Sales order renewals created through the Sales Order Renewal SuiteApp as source transactions
- Memorized transactions as source transactions (historical changes prior to feature processing are not tracked)
- Prepay subscription lines, providing you with more accurate recurring revenue views for upfront and prepaid billing models
Payment Token Type Field
The new Payment Token Type field provides you with customer-extensible classification for both general tokens and payment card tokens. This enables you to differentiate between payment token types such as Google Pay and Apple Pay.
Projects
NetSuite’s project management capabilities are strengthened with new health indicators that provide you with earlier visibility into potential project issues. These indicators help your project managers proactively address challenges before they escalate to support better project outcomes and client satisfaction.
By monitoring factors such as time overruns, overdue tasks, resource coverage, margin performance, and unbilled charges, you can maintain tighter control over project execution and financial performance.
New Project Health Indicators
You now have access to five new indicators to review project health and operational risk:
- Overdue Tasks: Identifies tasks remaining incomplete after their end date
- Project Resource Coverage for Remaining Work: Indicates whether assigned resources have sufficient available hours to complete remaining planned work
- Project Margin Indicator: Compares total recognized project revenue to total project costs
- Unbilled Approved Charges: Identifies approved charges that remain unbilled
Analytics and Reporting
NetSuite’s analytics and reporting capabilities are enhanced with improved export functionality, expanded data source integration, and the ability to transfer saved searches to NetSuite Analytics Warehouse.
These updates support your organization if you need to combine NetSuite data with other business data sources for comprehensive analysis. The enhanced export format and search transfer capabilities optimize your reporting workflows and reduce the effort required to recreate data definitions across different tools.
Export Format Update
Your exports of lists, saved searches, and reports now default to .xlsx format instead of .xls.
Transfer Saved Searches to NetSuite Analytics Warehouse
You can now transfer your saved searches to NetSuite Analytics Warehouse from the Data Transfer Setup page. This feature enables you to analyze business-specific search data alongside standard Analytics Warehouse data and allows you to reuse existing saved search logic. A one-time Oracle NetSuite Analytics connector setup in Oracle Analytics Cloud is required.
Salesforce Data Source Support
NetSuite Analytics Warehouse now supports both NetSuite and Salesforce as distinct data sources for your analysis. Functional areas such as Customers, Invoices, and Orders are now treated separately based on their data source, even when they share the same name.
Employee Management
NetSuite’s employee management features receive enhancements that improve your time tracking capabilities and provide executive-level labor cost insights.
Start Time and End Time Fields
You now have expanded availability of Start Time and End Time fields on weekly timesheets and time tracking forms. These fields are now available in your saved searches, search results of CSV exports, and SuiteScript through the Records Browser.
Changes to Start Time, End Time, and Duration fields now generate system notes, including the person who made the change, the date and time, and the updated values.
CFO Insights Reports
Two new reports are introduced for Chief Financial Officers:
- Labor Costs Report
- Labor Costs and Revenue Insights Report
These reports provide you with analysis of labor costs by period, subsidiary, department, location, or other segments, with AI-generated data summaries. You can configure which payroll components will be included, and you can integrate these reports into your CFO dashboards.
Field Service Management
NetSuite’s Field Service Management received multiple updates in the 2026.2 release.
Enhanced Technician Notes
The FSM Mobile app now includes a Clean Up button that improves spelling, grammar, punctuation, and clarity of notes entered in supported text areas and long text fields. The feature supports 27 languages through Prompt Studio and is disabled by default. You must set up an Oracle OCI account and configure OCI credentials for AI to use this feature.
Barcode Scanning
You can now use barcode scanning in the task list search field of the FSM Mobile app to automatically populate scanned values and apply existing search and filter behavior.
Sync and Error Indicator Improvements
The FSM Mobile app includes enhanced loading, syncing, and error indicators across:
- Task list and individual tasks
- Map displays
- Remote select and multiselect fields
- Image previews
- Refresh and logout actions with unsynced data warnings
SuiteTax and Localization
Your taxation and localization capabilities are expanded in the 2026.2 release, with particular emphasis on automating tax adjustments for purchase transaction term discounts and supporting country-specific requirements.
Tax on Term Discounts for Purchase Transactions
NetSuite 2026.2 automates tax adjustments when you apply term discounts on purchase transactions. When you pay vendor bills early and qualify for a term discount, the system automatically generates bill credits for both the discount and associated tax amount.
Depending on your setup, adjustment transactions can include only the discount amount or both the discount and tax amount. Requirements include:
- Enable the Create Adjustment Transactions for Term Discounts accounting preference
- Enable the Include Tax When Calculating Term Discount preference at the nexus level
- Grant edit-level permission for the Tax Details tab and bill credit creation permissions
Vendors, Purchasing, and Receiving
Your accounts payable and purchasing workflows are enhanced with new Payment Runs functionality and improved Bill Capture preferences.
Payment Runs
Payment Runs provide you with an Accounts Payable workflow for preparing, reviewing, approving, and processing multiple payables from a single transaction. The workflow includes:
- Creating a payment run with selected payment account for subsidiary and currency context
- Adding eligible vendor bills, vendor credits, journal entries, expense reports, and bill payments
- Submitting payment runs for processing using the Bulk Processing Framework
- Reduction of duplicate payment selection
- Support for permissions, approvals, custom fields, custom segments, numbering, searches, REST, SuiteScript, and CSV exposure
Bill Capture Enhancements
Bill Capture preferences now provide you with clearer setup and prevent overlapping configurations. Changes include:
- Explicit options for Save Tax As and Save Shipping Cost As (blank selections removed)
- New options for Expense Line Total and Item Line Total to distinguish net and gross amounts
- Blocking of incompatible gross-net combinations
SuiteCloud and Development Tools
Development tools are critical to your NetSuite ecosystem, and you should note that several SuiteCloud tools are not yet available for the 2026.2 release. This includes the SuiteCloud Extension for Visual Studio Code, SuiteCloud CLI for Node.js, SuiteCloud IDE Plug-in for WebStorm, and SuiteCloud CLI for Java.
If you rely on these tools for development and deployment activities, you should plan accordingly and monitor for availability announcements.
NetSuite CPQ
Your NetSuite CPQ receives significant enhancements in the 2026.2 release, including the introduction of an AI-powered configuration assistant that simplifies product and service configuration for your sales team.
CPQ AI Assistant
The CPQ AI Assistant is a generative AI tool that guides your users through product and service configuration using natural language prompts.
Improved Migration Process
A migration bundle supports your migration from the NetSuite CPQ Configurator bundle to the corresponding SuiteApp to preserve your configuration records and transaction field data.
Attachments to Transactions
Your users can now add files to configurations through attachment questions. The Attach to transaction checkbox on the attachment question record enables files to be attached to the transaction.
Before You Go …
You should review these updates in the context of your current implementations and begin planning for the authentication changes scheduled for the 2027.1 and 2028.1 releases. The enhancements in this release support your continued digital transformation and operational excellence across finance, supply chain, sales, and service operations.
Get in touch with our NetSuite experts to implement the ERP with end-to-end configuration to optimize your business operations
