Accounting Features

Users with the Administrator role can enable the following features on the Accounting subtab of the Enable Features page. Many of these features create system-generated accounts when enabled. These accounts are included in the descriptions. For a complete listing of system-generated accounts, see Feature-Specific, System-Generated Accounts.

Feature	Description
Basic Features
Accounting	Use NetSuite for your business's accounting. Note: Enabling this feature creates the system-generated Undeposited Funds and Refunds Payable accounts. If you are using NetSuite Canadian Edition, you will also have Payable and Expenses accounts. If you are using NetSuite (U.S.), you will have the additional Sales Tax Payable account.
A/R (Accounts Receivable)	Maintain accounts receivables records and track invoices, receipts, cash sales, payments, and customer records. Note: Enabling this feature creates the system-generated Accounts Receivable account.
A/P (Accounts Payable)	Maintain accounts payable records and track purchases, bills, vendors, and payee records. Note: Enabling this feature creates the system-generated Accounts Payable account.
Accounting Periods	Group transactions as they occur during periods of time, and to allow management of financials by these defined time periods.
GL Audit Numbering	Apply gapless numbering sequences to all general ledger posting transactions. Gapless numbering sequences enables companies to meet international auditing requirements. When this feature is enabled, GL Audit Numbering is listed as a required task when you close the last month in an accounting period. You can set up and run numbering sequences as part of the required task. You can also perform a variety of GL Audit Numbering tasks on demand at Transactions > Management > GL Audit Numbering Sequences. The Accounting Periods feature is a requirement for using the GL Audit Numbering feature. GL Audit Numbering is independent of other transaction numbering you have set up at Setup > Company > Auto-Generated Numbers.
Advanced Features
Expense Allocation	Account for fixed expenses without splitting them among individual departments, classes or locations in advance of incurring the expenses.
Dynamic Allocation	Dynamically calculate the weight of any statistical allocation, based on the balance of the statistical account through statistical journals, at the time the allocation journal is generated. This feature also enables you to run multiple dynamic allocation schedules in a specific sequence, or batch. This is an enhancement to the current fixed rate allocation where you must specify the fixed allocation weight for the entire life cycle of the allocation schedule. This feature cannot be disabled after it has been used.
Advanced Revenue Management (Essentials)	This feature supports the use of revenue arrangements and plans to automate revenue deferral, recognition, reclassification, forecasting, and auditing. It is compliant with the ASC 606 revenue standard. When you enable this feature, it cannot be disabled. The Accounting Periods feature must be enabled as a prerequisite for ARM (Essentials). The Advanced Revenue Management in Configuration Mode feature is automatically enabled when you enable this feature. Enabling this feature creates the system-generated Deferred Revenue, Unbilled Receivables, and Revenue Arrangement (non-posting) accounts. When ARM (Essentials) is enabled and ARM in Configuration Mode is disabled, you cannot disable ARM (Essentials). If you currently use the classic Revenue Recognition features, contact your sales or account representative to find out how to get Advanced Revenue Management (Essentials). The assistance of NetSuite Professional Services or a qualified NetSuite partner is required to move from classic Revenue Recognition to Advanced Revenue Management (Essentials).
Advanced Revenue Management (Revenue Allocation)	This feature is an add-on to Advanced Revenue Management (Essentials). This feature supports the use of fair value pricing, range checking, and fair value formulas to allocate revenue across several performance obligations. This feature can only be enabled if the Advanced Revenue Management (Essentials) feature is enabled. When you enable this feature, it cannot be disabled. When ARM (Revenue Allocation) is enabled and ARM in Configuration Mode is disabled, you cannot disable ARM (Revenue Allocation).
Advanced Revenue Management in Configuration Mode	This feature lets you configure ARM (Essentials) and ARM (Revenue Allocation) without affecting your current revenue recognition process. When ARM in Configuration Mode is enabled, you cannot use ARM features to recognize revenue. Your revenue recognition process remains the same as it was before enabling ARM (Essentials). ARM in Configuration Mode is automatically enabled when you enable the ARM (Essentials) feature. After setting up ARM features, you can disable ARM in Configuration Mode.
Rule-Based Recognition Treatment	This feature adds flexibility to Advanced Revenue Management (Essentials) by enabling you to define recognition attributes for revenue elements based on specified criteria. Consequently, the same item can have different attribute values in different revenue elements. You cannot enable this feature unless you also enable Advanced Revenue Management (Essentials). You cannot disable this feature when your account has recognition treatment rules or recognition treatment records and the ARM in Configuration Mode feature is disabled.
Multiple Budgets	Create multiple budgets for the same combination of customer, item, class, location or department criteria.
Intercompany Time and Expense	Allow intercompany time entries and expense transactions, and the transfer of time or expense or both charges from one subsidiary to another in a OneWorld account. Warning: If this feature is disabled, users cannot enter intercompany time or expenses, meaning records that have different subsidiaries for employee and customer. When this feature is enabled, by default users can enter intercompany time and expenses. You can change related preferences to disallow either intercompany time or expenses, or to enable the creation of automated intercompany adjustments for expenses. These preferences are available at Setup > Accounting > Accounting Preferences, on the General subtab. Note: If you enabled this feature after April 2014, when you created a qualifying journal entry the system created a single Intercompany Clearing Account of the Type: Other Current Asset. The account was set to the Root Subsidiary and included all child subsidiaries. Adjustment journal entries correctly posted to this new account, and no other currency-locked Intercompany Clearing Accounts were created. If you enabled this feature prior to April 2014, when you created a new adjustment journal entry the system created a new Intercompany Clearing Account (no currency), which became the parent of all other existing clearing accounts. New adjustment journal entries use this parent account, and the existing currency-locked Intercompany Clearing Account remained intact. If you edit a transaction that originally posted to the existing currency-locked Intercompany Clearing Account, the GL Impact of that transaction affects that account.
Automated Intercompany Management	Create intercompany sales orders from intercompany purchase orders, reconcile intercompany transactions, and generate intercompany elimination journal entries automatically using the Period Close Checklist. Note: Enabling this feature creates the system-generated CTA Elimination account after a qualifying transaction. For example, a user must first run the Elimination process so that an Elimination Journal Entry is created that uses this account.
Automated Intercompany Drop Ship	Enable the cross-subsidiary order and fulfillment process for external orders.
Intercompany Framework	Enable this feature to define criteria for intercompany business workflows. For more information, see Intercompany Framework.
Consolidated Payments	Enable this feature to apply payments, credits, and deposits either through the top-level customer or through individual subcustomers and to print consolidated customer statements. For more information, see Consolidated Payments.
In-Transit Payments	Use the In-Transit Payments feature to match and clear in-transit vendor payments. Match and submit transactions for reconciliation on the Match Bank Data page. When you submit the matched in-transit transactions for reconciliation, NetSuite automatically generates the final-stage (confirmed) payments for the match and clears them. Reconcile the payments on the Reconcile Account Statement page. For more information, see Matching Bank Data, Submitting Matched or User-Cleared Transactions, and Reconciling Transactions.
Vendor Prepayments	Enable this feature to record and track deposit amounts paid to vendors before they accept a purchase order for a good or service. You can apply these prepayment amounts against open bills for the vendor. You can record and track multiple prepayments and prepayment applications for your vendors. For more information, see Vendor Prepayments.
Multiple Calendars	Use the Multiple Calendars feature to create different accounting period and tax period rollups for your subsidiaries. Create fiscal calendars to define accounting and tax period rollups.
Statistical Accounts	Track non-monetary data and then use this information in reports and on income statements to view its relationship with the financial activity of your organization. If you check the Dynamic Allocation box, located under Advanced Features, you can run any allocation schedule weighted by the balance of a statistical account. Multiple Units of Measure must be enabled to use this feature. This feature cannot be disabled after it has been used.
Foreign Currency Variance Mapping	Enable this feature to define posting rules that specify the accounts to which foreign currency variances post. For more information, see Foreign Currency Variance Mapping.
Balancing Segments	Enable this feature to balance transactions by segment through a process that creates balancing journals. For more information, see Balancing Segments and Journals.
Installments	Enable this feature to create installments for customers who pay for items over time using installment-based payments. For more information, see Creating Installments.
Period End Journal Entries	Enable this feature to process and post subsidiary consolidation and income statement closing using a transaction type called Period End Journal. Period end journals are generated automatically when you complete the Create Period End Journals task on the Period Close Checklist. When you enable this feature, you must also enable it for specific subsidiaries. For more information, see Period End Journal Entries
Revenue Accounting
Revenue Recognition	Amortize revenue from your sales.
Revenue Commitments	Enable recognition of revenue prior to billing customers. Revenue commitments appear and behave like invoices; both cause revenue recognition, based on sales orders and returns. However, an invoice creates a customer liability, whereas a revenue commitment does not trigger an invoice and customer liability. Enabling this feature creates the system-generated Unbilled Receivables account.
VSOE	Defer revenue on products with multiple elements using Vendor Specific Objective Evidence (VSOE) capabilities. VSOE revenue recognition includes support for the residual method, SOP 98-9, as well as SOP 97-2.
Sales Order Revenue Forecasting	Forecast revenue based on sales order amounts and return authorization amounts. A revenue forecast gives a more complete picture using sales orders because it includes all orders whether they are billed, unbilled, or use multiple invoices.
Amortization	Allocate an expense across a range of time and then recognize the expense in increments, only as goods or services are used. For example, defer a prepaid expense such as insurance and amortize the proper amount over the period the insurance is in effect. Enabling this feature creates the system-generated Deferred Expense and Accumulated Depreciation accounts.

Multi-Book Accounting Features

Important:

Multi-Book Accounting is available only in NetSuite OneWorld accounts. Please contact your sales or account representative to find out how to get Multi-Book Accounting. The assistance of NetSuite Professional Services is required to implement this feature

Multi-Book Accounting

Adjustment Only Books

Check this box to enable adjustment-only accounting books. Adjustment-only books allow you to post book-specific adjustments to a secondary, adjustment-only book at closing. They serve as a light version of multi-book accounting, but you do not need the Full Multi-Book Accounting feature to use them.

Full Multi-Book Accounting

Check this box to use multiple accounting books to manage your business.

For more information, see Multi-Book Accounting Overview.

Chart of Accounts Mapping

Check this box to allow different account values to be used across accounting books. Multi-Book Accounting must also be checked.

For more information, see Chart of Accounts Mapping.

Foreign Currency Management

Check this box to manage foreign currency transactions automatically across accounting books. Multi-Book Accounting must also be checked. The feature must be enabled on the Company tab.

For more information, see Foreign Currency Management.

Revenue and Expense Management

Check this box to recognize revenue and amortize expenses per accounting book. Multi-Book Accounting must also be checked.

For more information, see Revenue and Expense Management.

Extended Accounting Period Close Process

Check this box to use independent closure of accounting periods by accounting book. Multi-Book Accounting must also be checked.

For more information, see Accounting Book Period Close Management.

Multi-Book Accounting Features

Related Topics