Standard Internal Controls

The following internal controls do not require any setup after your NetSuite account is operational.

Accounts Receivable

Outstanding invoices are aged and added to an A/R aging report in real time.
Financial Close
- General ledger accounts automatically roll up into financial statement line items.
- The financial statement consolidation process is performed on a real-time basis.
- The general ledger is automatically configured to include all accounts with balances.
- All transactions automatically roll up into the general ledger in real-time.
- Transactions cannot be posted to closed periods in NetSuite.
- Out of balance transactions are automatically rejected.
- Transactions referencing a closed period are automatically rejected.
- Transactions containing an invalid or inactive GL segment, for example, account or cost center, are automatically rejected.
- CTA (cumulative translation adjustments) are automatically calculated in NetSuite.
- FX (currency translation) related adjustments are automatically calculated in NetSuite.
- Access to open and close the GL accounting period in NetSuite is restricted to selected users. After a GL period is closed, NetSuite subsequently does not allow posting of any GL-impacting entries to a closed period.
- Allocation weight is dynamically calculated when an allocation journal is generated, based on the current statistical account balance.
- Elimination journal entries are automatically generated based on intercompany transactions.
- Password strength for access to NetSuite accounts is required to comply with password policy.
- Calculation is automatic for a reversing journal entry that voids checks and transactions on days or periods different from the original transaction date.
- Journal entries require approval in line with Journal Entry Approval Policy prior to posting to the general ledger.
- Transactions posted outside of a posting period can be prevented or can initiate a warning.
- Limitations can be set on the individuals who can impact the account listed on an item record.
- A gapless numbering sequence is applied to all GL-posting transactions.
Financial Reporting
- Financial statements are automatically generated for each separate entity in NetSuite.
- Financial reports for each entity are automatically prepared in their local currency and are converted in real-time into headquarters currency for consolidation purposes.
Fixed Assets
- NetSuite automatically calculates depreciation expense.
- The Fixed Asset Module automatically calculates and posts the depreciation expense to the asset record and to the related journal entries to the General Ledger.
Inventory
- NetSuite values inventory at standard cost.
- Inventory transactions created and/or edited in closed periods can be disallowed.
IT General Controls
- A minimum password length is required to comply with password policy.
- Users are required to update their passwords with a regular frequency.
- System notes are captured on the creation of all records and are not editable by users.
- System notes are captured on the edit of all records and are not editable by users.
- System notes are captured on the import and export of all custom fields.
Order to Cash
- Items purchased in a sales order for a customer are automatically reflected in the invoice and are automatically sent to the customer by email when the Save & Email button on the Next Bill tab is clicked. The order status of the sales order is automatically changed to Partially Fulfilled (several invoices or installment) or Billed (single invoice).
- For orders on an installment basis, the billing schedule in the body of a sales order for a customer is automatically populated in NetSuite and can be viewed on the History tab of the customer record. This tab indicates scheduled billing dates and amounts for each date.
- Upon invoicing, NetSuite automatically generates an entry.
- NetSuite prevents creation of a customer with a blank credit limit.
- NetSuite creates invoices only after an order has been shipped.
- NetSuite restricts changes made to item quantity, pricing, and shipping income per sales order during the invoicing process.
- NetSuite books an entry to debit Accounts Receivable and to credit Revenue upon invoice creation.
- NetSuite places an order on hold when the customer exceeds the assigned credit limit. There is a workflow trigger, where an increase in the credit limit, if applicable, is generated and approved by the CFO.
- When a customer exceeds their credit limit, NetSuite can enforce an automatic hold or simply initiate a warning message.
- Orders that are entered into NetSuite, but not yet billed, can be included in customer credit limit calculations.
- Standard grace periods for overdue invoices prior to placing a customer on hold can be set up in line with the customer credit policy.
- Edits to previously approved sales orders are disallowed.
- NetSuite prohibits users from making any changes to a revenue recognition schedule for a transaction after the A/R period has been closed.
Procure to Pay
- Records and transactions can optionally be limited by the department of the individual entering or editing them.
- Records and transactions can optionally be limited by the class of the individual entering or editing them.
- Records and transactions can optionally be limited by the location of the individual entering or editing them.
Revenue

NetSuite does not allow revenue recognition greater than 100% of the total amount of the project.
Time Entry
- Time entry requires supervisor approval.
- There is a maximum number of hours an employee can enter for a specific week in line with the HCM policy.
- There is a maximum number of hours an employee can enter for a specific day in line with the HCM policy.
- There is a minimum number of hours an employee can enter for a specific day in line with the HCM policy.

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