Defining Period End Journal Entries Settings
The Period End Journal Entries feature requires additional setup before you can use it. You can define the additional settings on the Subsidiary Settings page for a specific subsidiary.
If you enable the Period End Journal Entries feature for at least one subsidiary, you cannot disable that feature on the Enable Features page.
To enable Period End Journal Entries for one subsidiary and define additional settings:
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Go to Setup > Company > Setup Tasks > Subsidiary Settings Manager.
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In the Settings column for a specific subsidiary, click the settings icon
.If you have permission to edit this Subsidiary Settings page, you can define the feature’s additional settings.
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Click Edit.
Note:If you use Workflows, the Workflow subtab is the default subtab.
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Click the Period End Journal Entries subtab.
For details about the Period End Journal Entries feature, see Period End Journal Entries.
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Check the Enable Period End Journal Entries box.
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 you cannot, 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 the 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 page for a specific subsidiary. You can also enable secondary accounting books on the accounting book’s record, and on the subsidiary record on the Accounting Books subtab. NetSuite updates the Subsidiary Settings Manager pages, subsidiary record, and accounting book record with any change. NetSuite tracks any changes in system notes on the Subsidiary Settings for subsidiary page, and both records. The Subsidiaries list page and the subsidiary record in edit mode provide a link to the Subsidiary Settings Manager page.
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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 sheets 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. 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.
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In the Balance Sheet Closing Account list, select the appropriate account.
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In the Balance Sheet Opening Account list, select the appropriate account.
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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.
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In the Income Summary Profit Account list, select the appropriate account.
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In the Income Summary Loss Account list, select the appropriate account.
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Check the Require Memo On Period End Journals box.
When you check this box, period end journals cannot be created or saved without a value in the Memo fields (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.
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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.
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When the GL Audit Numbering feature is enabled, the Exclude Balance Sheet Closing Journals from GL Numbering box appears. Check this box to skip numbering for the balance sheet closing journals.
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Click Save.
Note:On the subsidiary record, the Preferences subtab includes the read-only Period End Journal Entries subtab. NetSuite automatically updates this subtab with the values you define on the Subsidiary Settings page.
The values you define on the Subsidiary Settings for a subsidiary page are available to SuiteAnalytics Workbook. Search for the Subsidiary Settings record type. For information about SuiteAnalytics Workbook, see SuiteAnalytics Workbook Overview.