Defining Subsidiary Settings for the Period End Journal Entries Feature

The Period End Journal Entries feature requires additional setup before you can use it. You can define the additional settings on the Subsidiary Settings for Period End Journal Entries page.

To ensure you have permission to access the Subsidiary Settings Manager page, see Subsidiary Settings Manager Permissions.

To enable Period End Journal Entries for subsidiaries and define additional settings:

Go to Setup > Company > Setup Tasks > Subsidiary Settings Manager.
Click the settings icon in the Period End Journal Entries column header.

If you have permission to edit the Subsidiary Settings for Period End Journal Entries page, you can enable the feature for multiple subsidiaries. You can then define unique settings for each selected subsidiary.
Click Edit.
The state of the accounting preference Use Consolidation With Period End Journal Entries is set on the Accounting Preferences page. If you have the Set Up Accounting permission, you can alter the state of this preference.
1. Go to Setup > Accounting > Accounting Preferences.
2. Click the General subtab.
3. Check the Use Consolidation With Period End Journal Entries box.
4. Click Save.
5. Return to the Subsidiary Settings for Period End Journal page.
  
  When you check the Use Consolidation With Period End Journal Entries box, note the following. NetSuite creates consolidation journals each period for each parent subsidiary that uses the Period End Journal Entries feature. NetSuite consolidates each subsidiary in the enabled parent subsidiary’s hierarchy to the parent. For example, in a grandparent-parent-child hierarchy, NetSuite creates consolidation journals for grandparent-parent and for grandparent-child.
(Optional.) You can filter the subsidiaries that display in the list by those that have Period End Journal Entries enabled. You can also filter by a specific subsidiary, country, currency, and whether the subsidiary is inactive. For information about filtering, see Filters.
(Optional.) You can sort columns to find specific data. For information about column sorting, see Column Sorting.
Complete or view the following information, as needed.
1. In the Enable Period End Journal Entries column, check the boxes next to the subsidiaries for which you want to enable the feature.
  
  When you check a box, the row becomes editable.
  
  For details about the Period End Journal Entries feature, see Period End Journal Entries.
2. If you use Multi-Book Accounting, select one or more accounting books from the Accounting Books column.
  
  Important:
  If you use Multi-Book Accounting, you can enable Period End Journal Entries for each accounting book and subsidiary combination to which you have access. When you enable the Period End Journal Entries feature for a subsidiary, you can edit the accounting books assigned to that subsidiary. However, you may not be able to disable Period End Journal Entries for the subsidiary. If not, it is because another user selected an accounting book that you cannot access. Accounting books that you cannot access do not appear for selection or exclusion.
  
  When you save changes to one of your subsidiary’s settings, NetSuite applies changes across all accounting books, including those you cannot access.
  
  Note:
  You can enable the use of primary and secondary accounting books with this feature through the Subsidiary Settings for Period End Journal page. You can also enable secondary accounting books on the accounting book’s record, and on the subsidiary record on the Accounting Books subtab. NetSuite automatically updates the Subsidiary Settings page for a subsidiary, subsidiary record, and accounting book record with any change. NetSuite tracks changes in system notes for the Subsidiary Settings page for a subsidiary, and both records. The Subsidiaries list page and the subsidiary record in edit mode provide a link to the Subsidiary Settings Manager page. The Accounting Books list page and the accounting book record provide a link to Subsidiary Settings for Period End Journal page.
3. The Subsidiary column provides a link to the subsidiary record. The subsidiary record provides a link to the Subsidiary Settings page for that subsidiary. Values you define for a subsidiary automatically update the read-only Period End Journal Entries subtab. This subtab appears on the Preferences subtab on the subsidiary record.
4. The Country and Currency columns display values specific to the subsidiary row.
5. The last column displays the status of the row.
  - A check mark displays when there are no errors in the fields on the row.
  - A circling arrow displays when the row is loading.
  - An alert displays when there is an error in the one of the fields on the row. Point to the icon to read the tooltip, which provides information about how to correct the error.
Check the Create Balance Sheet Closing and Opening Journals box.

When you check this box, NetSuite adds a step to the Create Period End Journals task on the Period Close Checklist. The Balance Sheet Closing step follows the Income Closing step at the fiscal year end of the subsidiary. This step creates a balance sheet closing journal. This journal reduces the balance of balance sheet accounts to zero and posts any necessary balance amount to the account you specify. This balance sheet closing journal is the last period end journal in the fiscal year. Unless you have selected segments in the Group by These Segments list, the amount posted to the balance sheet closing account should be zero. In the same step, to reopen the balance sheet, NetSuite reverses the balance sheet closing journal on the first day of the next fiscal year. For information about the Period Close Checklist, see Using the Period Close Checklist.

When you check this box, you must select values for Balance Sheet Closing Account and Balance Sheet Opening Account.

Note:
The accounts that you can select must be of Equity account type.
1. In the Balance Sheet Closing Account list, select the appropriate account.
2. In the Balance Sheet Opening Account list, select the appropriate account.
When the GL Audit Numbering feature is enabled, an additional column lets you skip GL numbering for balance sheet closing journals. Check the Exclude Balance Sheet Closing Journals from GL Numbering box to skip numbering for the balance sheet closing journals.
Check the Create Income Summary Journals box.

When you check this box, NetSuite creates two period end journals in the Income Statement Closing step. This step is part of the Create Period End Journals task on the Period Close Checklist. (NetSuite creates more journals when you create period end journals by segment.) The first journal (or journals) reduces the income and expense accounts to zero. It posts the net income to the account defined for income summary profit or loss. If the net income is a gain, the offset posts to the income summary profit account. If the net income is a loss, the offset posts to the income summary loss account. The second journal (or journals) moves the balance from the income summary account used in the first journal to the retained earnings account.

When you check this box, you must select values for Income Summary Profit Account and Income Summary Loss Account.

Note:
The accounts that you can select must be of Equity account type.
1. In the Income Summary Profit Account list, select the appropriate account.
2. In the Income Summary Loss Account list, select the appropriate account.
In the Group By These Segments list, select the appropriate segment.

This multi-select list displays all the segment types that impact the general ledger. Possible segment types are class, department, location, and all custom segments with general ledger impact. Select the segment types for which you want to generate separate period end journals, if any. NetSuite generates separate period end journals for each selected segment type combination included in the source transactions for this subsidiary. For more information about custom segments, see Custom Fields and Segments on Period End Journals.
In the Require Memo On Period End Journals column, check the box to require a memo on period end journals.

When you check this box, you cannot create or save period end journals without a value in the Memo fields in the header and lines. The value entered in the Memo field during the journal creation process automatically populates the Memo fields in the header and lines.
Click Save.

Note:
NetSuite tracks changes made to a subsidiary’s defined values on the System Notes subtab of the Subsidiary Settings page for that specific subsidiary. For information about the Subsidiary Settings page for a subsidiary, see Subsidiary Settings for a Single Subsidiary.

To enable Period End Journal Entries for subsidiaries and define additional settings:

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