1. Accounting
  2. General Accounting
  3. Accounting Features and Preferences
  4. Accounting Preferences
  5. General Accounting Preferences

General Accounting Preferences

The following types of preferences are available on the General subtab of the Accounting Preferences page:

General Ledger

Field

Description

Use Account Numbers

Choose to see both account numbers and names for general ledger accounts in lists, your chart of accounts, and most financial reports. Clearing this box gives you shorter fields on reports and forms.

When you set this preference, the account record's Name field displays the account name and the Display Name field displays the account number and account name. When you clear this preference, both fields display only the account name.

Use Legal Name in Account

Check this box to add the Legal Name field to the general ledger account record. This field is useful in countries where the legal name of an entity is required by law.

When this preference is enabled, the Legal Name field can be added to financial reports where account is an available component. It is also available in advanced searches, SuiteScript, SOAP web services, CSV import, and ODBC. If you clear the Use Legal Name in Account box after using the Legal Name field, the field is no longer available through the user interface, SuiteScript, SOAP web services, CSV import, or ODBC. However, system notes maintains an audit trail specific to the activity on the Legal Name field.

This box is clear by default.

Show All Transaction Types In Reconciliation

Check this box to display all transactions in the reconciliation pages, including positive or negative amounts of certain transaction types.

When this preference is enabled, the Reconcile Bank Statement and Reconcile Credit Card Statement pages display:

  • Negative amount transactions that are a Check, Credit Card Refund, Bank Transfer, Cash Sale, or Bill Credit

  • Positive amount transactions that are a Deposit, Credit Card Charge, Bank Transfer, Liability Payment, Bill Payment, Sales Tax Payment, or Expense Report

Important:

To reconcile Custom transactions, check the Show All Transaction Types In Reconciliation box.

Expand Account Lists

Choose your setting for account lists.

  • Clear this box to restrict lists to frequently use accounts. For example, income and expense accounts can be chosen on items to be resold, or expense accounts can be chosen on purchases.

    Important:

    To ensure that non-inventory data appears correctly in reports and registers, best practice is to associate non-inventory items with Income/Other Income accounts.

  • Check this box to enable additional choices in account lists. For example, select Cost of Goods Sold and balance sheet accounts for items, or asset accounts for vendors.

Combine Paychecks into Payroll Batch Totals

Check this box to hide individual employee paycheck totals, for roles which should not see them, when posting payroll batch totals to the general ledger. When you check this box, a message appears advising you to remove the Report Customization permission from any roles that should not see individual paychecks. This ensures that individual paychecks cannot be viewed by customizing the general ledger

Also, when this setting is enabled, filtering the general ledger by employee will be disabled. Any customized views of the general ledger that have an employee filter will have that filter removed.

When you clear this box, a popup appears warning that individual paycheck data will be visible on the general ledger.

Cash Basis Reporting

Check this box to set standard reports to be on a cash basis rather than accrual basis, for all reports that support this choice. This setting also determines the default for custom reports created from standard reports that support cash basis. You can modify this setting for an individual custom report by setting the Cash Basis option on the More Options page of the Report Builder or Financial Report Builder. For more information, including a list of reports where Cash Basis Reporting is available, see Setting Up Cash Basis Reporting.

Aging Reports Use

Click Due Date to age by the due date assigned for bills and invoices. Click Transaction Date to age by the date of the bill or invoice.

Void Transactions Using Reversing Journals

Enable this preference to create a reversing journal entry that voids checks and transactions on days or periods different from the original transaction date. When enabled, clicking the Void button on transactions creates a reversing journal entry.

Set Reversal Variance Date Equal to the Reversing Journal Date When Voided Transaction Is in a Closed Period

When the Void Transactions Using Reversing Journals accounting preference is enabled, this accounting preference is available. Check this box to require NetSuite to use the date specified in a reversing foreign currency gain and loss variances on voided transactions. If this box is not checked, NetSuite uses the current date for variance and reversal lines, rather than the date of the reversing journal entry.

Use Journal Entry Summarization on Intercompany Elimination

This box is checked by default. When checked, similar elimination journal entries are grouped into a single, summarized journal entry. For information, see Summarized Intercompany Elimination Journal Entries.

You can clear the box at any time to prevent NetSuite from grouping similar elimination journal entries.

Require Approvals on Journal Entries

Choose to require approval of journal entries entered by employees before they post to your general ledger. Employees with approval permission can mark their journal entries approved when entering them.

Note:

If you edit a sales order when using a role with permission to approve sales orders, a sales order status is not set to the Pending Approval status.

If you have enabled the Journal Entries approval routing preference and are using SuiteFlow for journal approval, this field does not display.

Allow User Events on Bulk Journal Approval

Choose to run user events such as SuiteScript and SuiteFlow (Workflow) after bulk journal approval.

Allow GL Custom Segment Deletion

Allow users with the Setup Accounting permission to delete custom segments. By default, this preference is not enabled.

If this preference is not enabled, custom segments cannot be deleted, but they can be inactivated.

Enable Accounting Period Window

Automatically maintain a minimum number of unlocked current and future accounting periods. By default, this preference is not enabled. Use the Minimum Period Window Size preference to set the number of unlocked periods for the window.

Enabling this feature also sets the Allow Transaction Date Outside of Posting Period preference to Disallow. You can reset the preference manually to Warn or Allow.

Minimum Period Window Size

Set the number of unlocked current and future accounting periods for the accounting period window. The window size must be at least 1, and the maximum is 1,000. NetSuite checks daily to verify that at least this number of current and future accounting periods are unlocked and automatically unlocks the next future period as needed. The query runs daily at 11 PM Auckland, New Zealand time zone (GMT +12).

Allow Transaction Date Outside of Posting Period

Set a preference for handling mismatched transaction entry. Select one of the following:

  • Disallow – When you choose this setting, users are not permitted to save a transaction unless the transaction date is within the date range for the posting period selected.

  • Warn – When you choose this setting, users are warned when a transaction date is not within the date range for the posting period selected. Users can click Ok on the warning and save the transaction.

  • Allow – When you choose this setting, users can enter a transaction even if the date is not within the date range for the posting period selected. No warning is given to the user before the transaction is saved.

GL Audit Numbering Method

Choose when the GL Audit Numbering task is available to be processed as part of closing a period. The GL Audit Numbering task can be performed only in the last month of the fiscal year, period, or quarter. When you run a GL audit numbering sequence by quarter or year, transactions in closed periods are also numbered.

Note:

The GL Audit Numbering Method field is visible only when the GL Audit Numbering feature is enabled. You can enable GL Audit Numbering at Setup > Company > Enable Features > Accounting under Basic Features. The Accounting Periods feature is a requirement for using the GL Audit Numbering feature.

Warning:

Changing the GL Audit Numbering Method preference may cause previously numbered transactions to be assigned new numbers.

Default Posting Period When Transaction Date in Closed Period

Choose the period in which the system should post a backdated transaction from a closed period.

  • Current Period – When you choose this setting, backdated transactions from a closed accounting period are posted to the current period. This setting is the default.

  • First Open Period – When you choose this setting, backdated transactions from a closed accounting period are posted to the first open accounting period.

Create and Edit Inventory Transactions Dated in Closed Periods

Clear this box to prevent changes to transactions that would result in inventory costing calculations in closed periods. Changes are not allowed in closed periods for new transactions or changes in fields that trigger inventory costing calculations for an item, even without posting to the general ledger.

Check this box to allow changes in closed periods for new transactions or changes in fields that trigger inventory costing calculations for an item.

Note:

When this preference is enabled in NetSuite OneWorld, this global preference affects all subsidiaries.

Note:

Even if you enable the preference and allow editing and creation transactions dated in a closed period, you may still see the following error that requires you to enter posting changes to an open period:

“The transaction date is not within an open accounting period. One or more fields on this transaction can trigger inventory costing calculations in a closed period. Click OK, and then do one of the following:

Change the transaction date to a date within an open accounting period if this is a new transaction.

Cancel the edits that affect the general ledger if you are editing a previously entered transaction.”

Allow Inventory Transactions Dated Outside the Posting Period

To ensure your employees adhere to required accounting practices, choose whether to allow setting a transaction date that is outside the posting period.

Check this box to allow dating a transaction outside the posting period.

Clear this box to prevent dating a transaction outside the posting period.

Allow Quick Close of Accounting Periods

Check this box to use the Quick Close feature. With one click, this feature enables you to mark complete, each task in the period close checklist for one or more open accounting periods.

Important:

You must have both the Set Up Accounting and Period Closing Management permissions to check this box. You must have the Period Closing Management permissions to see this box.

Allow Non-GL Changes Is Set by Default

When you check this box, NetSuite checks the Allow Non-G/L Changes box for each new accounting period you create. Accounting periods which were created before setting this preference are unchanged.

Enable Consolidation Period End Journals (Primary Accounting Book)

Check this box to create consolidation journals each period for each parent subsidiary that has the Period End Journal Entries feature enabled.

If you use multi-book accounting, this preference applies only to subsidiaries in the primary accounting book. The Enable Consolidation option on the accounting book record controls whether consolidation journals are created for secondary accounting books.

Accounts Receivable

Field

Description

Apply Payments Through Top-Level Customer Only

Check this box if you want to apply payments, deposits, and credit only the through the top level customer in a customer-subcustomer hierarchy. Leave this box clear if you want to be able to apply payments, deposits, and credits to any open invoice entered for any customer or subcustomer in a customer hierarchy.

This preference is available only if you have enabled the Consolidated Payments feature.

Show Only Open Transactions on Statements

Choose to view only open transactions when you view or print statements.

Customer Credit Limit Handling

Select your preferred handling method for when a customer exceeds their allowed credit limit:

  • Ignore – Select this method to enter sales orders and invoices without a warning for a customer at or above their credit limit.

  • Warn Only – Select this method to generate a warning when a sales order or invoice is entered that puts the customer at or above their credit limit. You can choose to enter or cancel the transaction after the warning has appeared.

  • Enforce Holds – Select this method to block the entry of a sales order or invoice that puts the customer at or above their credit limit. This method also blocks the addition of items to existing orders for customers at or above their credit limit.

Note:

This preference does not affect the entry of opportunities, estimates, or cash sales. The setting you choose applies to all employees unless you enable an override that permits individuals to set their own preference. To do so, an administrator must allow an override of the company setting at Setup > Company > General Preferences.

Open Transactions on Statements

Select your preferred handling method when you generate statements:

  • Open Transactions by Today – If you generate statements and check the Show Only Open Transactions box, only invoices with payment dates after the current date are included.

  • Open Transactions by Statement Date – If you generate statements and check the Show Only Open Transactions box, only transactions open by the statement date are included. The balance shown is as of the statement date.

Customer Credit Limit Includes Orders

Clear this box to include only billed orders when you make credit limit calculations. Check this box to include orders that are entered but not yet billed when you make credit limit calculations. This ensures that customers do not place orders over their credit limit.

Note:

Unbilled orders are included whether they are approved. Closed and canceled orders are not included in these calculations.

Days Overdue for Warning/Hold

Set this preference to manage customers that are delinquent in making payments. Define a grace period after the due date of invoices, after which, customers are unable to place new orders on terms until they have paid their overdue invoices.

In this field, enter the number of days overdue at which you want to generate a warning.

Include Tax for Term Discounts

Check this box to include taxes for term discount calculations. (See example below.)

For example, an invoice has terms of 1% Discount Net 30. If a customer pays within 30 days, they receive a 1% discount.

  • Total amount for items sold = $1,000

  • Tax = 10% ($100)

  • Shipping= $100

  • If the Include Tax for Term Discounts preference is on, the discount is 1% * $1,100.

  • If the Include Shipping for Term Discounts preference is on, the discount is 1% * $1,100.

  • If both preferences are on (Include Tax for Term Discounts and Include Shipping for Term Discounts), the discount is 1% * $1,200.

  • If both preferences are off (Include Tax for Term Discounts and Include Shipping for Term Discounts), the discount is 1% * $1,000.

Include Shipping for Term Discounts

Check this box to include shipping charges for term discount calculations.

Apply Payments without Invoice Numbers

Specify how NetSuite applies payments that are missing invoice numbers. For more information, see Setting Accounting Preferences.

Accounts Payable

Field

Description

Default Vendor Payments To Be Printed

Enable this preference to be able to check the Be Printed box by default when processing bill payments.

Vendor Credit Limit Warnings

Check this box to receive a warning when you exceed the credit limit for a vendor.

The setting you choose applies to all employees unless you enable an override that permits individuals to set their own preference. To do so, an administrator must allow an override of the company setting at Setup > Company > General Preferences.

Vendor Credit Limit Includes Orders

Clear this box to include only billed orders when you make vendor credit limit calculations. Check this box to include purchase orders that are entered but not yet billed when you make vendor credit limit calculations. This ensures that vendors do not have new orders entered over their credit limit. Unbilled orders are included whether they are approved. Closed and canceled orders are not included in these calculations.

Use In-Transit Vendor Payments by Default

Check to use in-transit vendor payments by default. This setting can be changed when you create individual vendor payments.

Vendor In-Transit Payment Account

Select an account to function as the interim Cash In Transit (CIT) account. This is the account where in-transit funds are held until they are confirmed by the vendor’s bank.

Vendor Prepayment Account

Defines the account selected by default when entering a new vendor prepayment transaction. You can configure the vendor prepayment account at the company level, or at the subsidiary level when using NetSuite OneWorld.

For information about setting up the vendor prepayment account, see Configuring a Default Vendor Prepayment Account.

Auto-Apply Vendor Prepayments

Check this box to automatically apply vendor prepayments to your bills. Using this preference, you do not need to manually apply vendor prepayments to bills. The Auto-Apply preference enters the vendor prepayment applications automatically in the background.

For more information about the Auto-Apply accounting preference, see Configuring Vendor Prepayments With Auto-Apply.

Allow Bill Consolidation of Purchase Orders with Different Terms

Check this box if you want purchase order bills to be consolidated even when they have different payment terms.

Classifications

Field

Description

Make Departments Mandatory

Check this box to make the Department field required on records and transactions.

Note:

If this box is checked and the field is not required, update or create a custom form and specify on the form that the field is required.

If you enable the preference to make departments required and use a custom form to display a department at both the header and line level, the selection is required at both the header and line level.

Make Classes Mandatory

Check this box to make the Class field required on records and transactions.

Note:

If this box is checked and the field is not required, update or create a custom form and specify on the form that the field is required.

If you enable the preference to make classes required and use a custom form to display a class at both the header and line level, the selection is required at both the header and line level.

Make Locations Mandatory

Check this box to make the Location field required on records and transactions.

Note:

If this box is checked and the field is not required, update or create a custom form and specify on the form that the field is required.

If you enable the preference to make locations required and use a custom form to display a location at both the header and line level, the selection is required at both the header and line level.

Allow Per-Line Departments (Divisions)

Clear this box to select a department in the header of a transaction. When this preference is disabled, the department chosen in the header applies to all line items on the transaction.

Check this box to associate a department with individual line items on a transaction. When this preference is enabled, you can choose a different department for each line item on transactions.

If you enable this preference, you can customize forms to select a department at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Allow Per-Line Classes (Sales Channels)

Clear this box to select a class in the header of a transaction. When this preference is disabled, the class chosen in the header applies to all line items on the transaction.

Check this box to associate a class with individual line items on a transaction. When this preference is enabled, you can choose a different class for each line item on transactions.

If you enable this preference, you can customize forms to select a class at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Allow Per-Line Locations (Warehouses)

Clear this box to select a location in the header of a transaction. When this preference is disabled, the location chosen in the header applies to all line items on the transaction.

Check this box to associate a location with individual line items on a transaction. When this preference is enabled, you can choose a different location for each line item on transactions.

If you enable this preference, you can customize forms to select a location at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Note:

If you use the Multi-Location Inventory feature, this preference is automatically enabled and does not display as an option on the Accounting Preferences page.

Always Allow Per-line Classifications on Journals

Check this box to enter line-item classes, departments, and locations on journal entries. For only journal entries, this preference overrides any other Allow Per Line Class/Dept/Location preferences you have set.

If you enable this preference, you can customize journals to select a classification at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Allow Non-balancing Classifications on Journal Entries

Check this box to prevent NetSuite from requiring journal entries to balance by department, class, or location. Clear this box to require that journal entries must always balance.

Allow Empty Classifications on Journals

Check this box if you want journal entries to override any other preferences set for required classes, departments, and locations. You can then create a journal entry that has line-items without classes, departments, and locations, even if you require them on other forms.

Important:

If you have enabled the Intercompany Time and Expense feature to allow intercompany time and expense transactions, and you have made classes, departments, or locations required, best practice is to enable the Allow Empty Classifications on Journal preference. For more information, see Enabling Intercompany Time and Expenses.

Revenue Recognition

Field

Description

Create Revenue Recognition Journals in GL

Provides a choice for posting revenue recognition journal entries:

  • Detail – A separate journal entry is created for each revenue recognition schedule.

  • Summary – Revenue recognition schedules are summarized for posting. The summaries are based on matching attributes. For details, see Using Summarized Revenue Recognition Journal Entries.

When you use advanced revenue management (essentials), reclassification journal entries can also be summarized. For details, see Summarized Reclassification Journal Entries.

Default Revenue Recognition Journal Date to

Choose to set the default transaction date of revenue recognition journal entries when you open the Create Revenue Recognition Journal Entries page. Select one of the following:

  • Last Day of Period – The date defaults to the last day of the period you select in the Posting period field.

  • Current Date – The date defaults to the current date.

Default Deferred Revenue Reclassification Account

Select the deferred revenue account to use by default for revenue reclassification between deferred revenue and unbilled receivable accounts. NetSuite requires a default account to avoid errors in the month-end reclassification process.

When the Advanced Revenue Management (Essentials) feature is enabled, this preference is not required if the Unbilled Receivable Adjustment Journal Grouping preference is set to Element.

You can also set a reclassification account in the Financial subtab of the customer record. The account set on the customer record overrides the system default.

When you use the Revenue Commitment feature, you can also set the reclassification account on sales orders.

Use System Percentage of Completion for Schedules

Check this box to calculate project completion automatically, based on approved time logged against the project. If you clear this box, you must enter the percentage of project completion manually on project records for revenue and expense recognition.

Revenue Recognition and Amortization: To override automatic calculation, enter a value in the Rev Rec Override Percent Complete field on the Financial subtab of the project. Use this same field to enter the percent complete when the preference is not checked.

Advanced Revenue Management (Essentials) ignores this preference except when you use Project Revenue Rules. Percent complete is automatically calculated based on approved time logged against the project. If you use Project Revenue Rules, you must check this box to calculate percent complete automatically.

Advanced Revenue Management (Essentials): To bypass automatic calculation, enter values for Period and Cumulative Percent Complete in the Percent Complete Override subtab on the Financial subtab of the project. Use the same subtab to enter the percent complete for Project Revenue Rules when the preference is not checked.

Classic Revenue Recognition Only

Field

Description

Default Foreign Currency Adjustment Revenue Account

The default revenue account to post foreign currency adjustments that result when exchange rates are different for billing and revenue postings. You must select an income account.

This account appears on customer records and on sales orders for the customer. You can override this default on the customer record or on a sales order.

Allow Users to Modify Revenue Recognition Schedule

Enable this preference to allow changes to be made to existing revenue recognition schedules. You can change the revenue recognition amount on a schedule only by changing the schedule to generate the new amount. The schedule amount must always equal the line amount. Only amounts that have not yet been recognized can be changed.

To prevent revenue recognition schedules from being changed after they are created, disable this preference.

Allow Users to Modify VSOE Values on Transactions

Check this box to permit changes to VSOE prices on sales transactions. Only amounts that have not yet been recognized can be changed. Also, the delivery status of an item can be changed until the item's revenue is recognized, regardless of this preference.

Prorate Revenue Recognition Dates For Partially Billed Sales Orders

This preference applies only to revenue recognition schedules that have Rev Rec Date Specified on Sales Order as the Term Source. The preference affects only the revenue recognition start and end dates for the invoices. Amounts and periods on the revenue recognition schedules are not affected.

When the box is checked, the revenue recognition start and end dates for invoices divide the period established by the sales order revenue recognition start and end dates proportionally for each partial invoice. This is the default.

When the box is cleared, the revenue recognition start and end dates for each invoice are the same as the start and end dates on the sales order.

Adv. Billing: Use Sales Order Amount

Set this preference to determine the source of the revenue amount when billing schedules and variable revenue recognition schedules are used.

  • Check this box to recognize revenue based on the percent complete in relation to the sales order. For example, if the sales order amount is $1,000, the invoice amount is $500 and the project is 50% complete, then 50% of the sales order amount is recognized ($500).

  • Clear this box to recognize revenue based on the invoice amount. For example, if the sales order amount is $1,000, the invoice amount is $500 and the project is 50% complete, then 50% of the invoice amount is recognized ($250).

Allow Revenue Commitments in Advance of Fulfillment

Check this box to permit the full recognition of revenue with revenue commitments before the completed delivery of products or services on the sales order. This preference provides similar capability to the Invoice in Advance of Fulfillment preference, see Invoicing on the Order Management tab.

Clearing the box for this preference restricts revenue recognition with a revenue commitment to the fulfilled items on a sales order.

Allow Revenue Commitment Reversals In Advance of Item Receipt

Check this box to permit the full reversal of revenue previously recognized on a revenue commitment, before the receipt of products on the return authorization and their return to inventory. This preference provides similar capability to the Refund in Advance of Return preference, see Returns on the Order Management tab.

Clearing the box for this preference restricts the reversal of revenue previously recognized on a revenue commitment, to the items received against a return authorization and returned to inventory.

Advanced Revenue Management Only

Some accounting preferences appear only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Field

Description

Revenue Arrangement Update Frequency

Select how revenue arrangements are synchronized with sales transactions.

  • When the Manual option is selected, go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans, and click Update Revenue Arrangements to update revenue arrangements. For additional information, see Updating Revenue Arrangements.

  • When you select Automatic, the system updates revenue arrangements every 3 hours.

Revenue Plan Update Frequency

Select how revenue recognition plans are synchronized with revenue arrangements.

  • When the Manual option is selected, you must click Update Revenue Plans on the revenue arrangement record or go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans, and click Update Revenue Plans to update multiple revenue recognition plans. For additional information, see Updating Revenue Recognition Plans.

    In NetSuite OneWorld, the subsidiary access of the logged in user determines which revenue elements have their plans updated.

  • When you select Automatic, the system updates revenue plans every 3 hours.

    When revenue recognition plans are updated automatically, administrator permissions are used and all plans are updated regardless of subsidiary restrictions in NetSuite OneWorld.

Disable Creation of Forecast Plans

Check the box to suspend creation of revenue recognition forecast plans. When you clear the box, creation of forecast plans resumes. By default the box is clear. If you suspend forecast plan creation and resume it later, the generation of forecast plans may take longer than usual.

When you disable forecast plan creation, the Revenue Recognition Forecast reports omit forecasted lines.

Allow Gaps in Revenue Recognition Record Numbers

Check the box to permit gaps in record numbering for revenue elements and revenue recognition plans. Allowing gaps streamlines the process when executing large numbers of records. The box is automatically checked for new NetSuite implementations.

If you clear the box, gaps in the record numbers occur only when revenue elements or revenue recognition plans are deleted.

Default Revenue Arrangement Form

Select the system form to use for revenue arrangements. The options are Standard Revenue Arrangement plus any custom forms created during implementation.

Default Revenue Recognition Journal Entry Form

Select the journal entry form to use for revenue recognition journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.

If you use workflows for journal entry approval routing, create a custom form for your system-generated revenue recognition journal entries and exclude it from your workflows. Then select that custom form as the value for this preference.

Default Reclassification Journal Entry Form

Select the journal entry form to use for deferred revenue reclassification journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.

If you use workflows for journal entry approval routing, create a custom form for your system-generated reclassification journal entries and exclude it from your workflows. Then select that custom form as the value for this preference.

Default Deferred Cost Journal Entry Form

Select the journal entry form to use for the deferred cost journal entry. The options are the Standard Journal Entry plus any custom journal entry forms created during implementation.

If you use workflows for journal entry approval routing, create a custom form for this system-generated journal entry and exclude it from your workflows. Then select that custom form as the value for this preference.

Default Standard Revenue Recognition Rule

Select the revenue recognition rule to use by default for items.

Default Catch Up Period

Select the catch up period to use by default when a revenue plan that has been on hold resumes. The options are as follows:

  • Blank – You must set the Catch Up Period on the revenue plan.

  • Current Period – This is the default.

  • First Open Period – The accounts receivable lock determines whether a period is closed.

Default Reforecast Method

Select the Reforecast Method to use by default for revenue forecast rules. If you select Manual, the Recalculation Adjustment Period Offset field is required on revenue forecast rules unless you select a different option when you create the rule. For information about the Recalculation Adjustment Period Offset field, see Reforecast Method.

Enable Fair Value Range Checking

Check this box to add the Fair Value Range Checking Policy dropdown list and its dependent fields to the fair value price record. The Fair Value Range Checking Policy is also added to the item revenue category record. This preference is checked by default. For more information, see Creating the Fair Value Price List.

This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Use Sales Price as Fair Value

When this box is checked, if a matching record is not found in the fair value price list, the allocation uses the sales price as the fair value. When the sales price is used as the fair value, the value of Is VSOE defaults to Yes in the revenue element. If the box is not checked, you receive an error message and must either define the fair value for the item or check the box for this preference.

This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Use Transaction Date as Revenue Arrangement Date

Check this box to use the source transaction date as the date for the revenue arrangement. When a project is attached to a source line item, the source transaction date is used, not the project date. If the source date is updated after the revenue arrangement is created, the revenue arrangement date does not change. The following source transactions are supported for this preference:

  • Sales order

  • Return authorization

  • Sales invoice

  • Credit memo

  • Cash sale

  • Cash refund

  • Journal entry

  • Intercompany journal entry

Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.

Use Subscription Billing Date as Revenue Arrangement Date

Check this box to use the Start Date in the subscription record header as the date for the revenue arrangement. If the subscription date is updated after the revenue arrangement is created, the revenue arrangement date does not change.

Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.

This preference is available only when the SuiteBilling feature is also enabled.

Use Project Date as Revenue Arrangement Date

Check this box to use the source project date as the date for the revenue arrangement. This date is the Start Date in the Project Dates section of the project record. If the project date is updated after the revenue arrangement is created, the revenue arrangement date does not change. This preference applies to project revenue recognition configured for charge-based project billing, not to projects attached to transaction line items. For more information, see Project Revenue Recognition.

Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.

This preference is available only when the Project Management feature is also enabled.

Require Invoice Approval When Revenue Plans Are Created on Billing

This preference applies only to revenue recognition plans that are created when the Create Revenue Plans On field is set to Billing.

Check this box if you use invoice approval routing and do not want revenue recognition plans to be created unless the invoice is approved. Clear the box is you want plans to be created when the invoice is created, regardless of the invoice approval status.

When you save your accounting preferences after turning this preference on or off, the evaluation and any revenue plan updates occur in the background. If you have a high number of unapproved invoices when you change the preference, the processing could be slow.

Unbilled Receivable Adjustment Journal Grouping

Select the grouping for reclassification of unbilled receivables. The options are as follows:

  • Element – The unbilled receivable adjustment is calculated for each revenue element. This is the default.

  • Arrangement – The unbilled receivable adjustment is calculated for the revenue arrangement as a whole. Arrangement level adjustments to deferred revenue are posted to the deferred revenue account specified by the accounting preference Default Deferred Revenue Reclassification Account.

  • Sub-Arrangement Group – The unbilled receivable adjustment is calculated for a group of revenue elements in an arrangement. The group is identified by the value of the Unbilled Receivable Group field on the revenue element. Revenue elements within the arrangement that have the same unbilled receivable group value are calculated together.

For details, see Groupings for Unbilled Receivable Adjustment Journal Entries.

This preference is book specific. When multi-book accounting is enabled, the preference appears on the accounting book record.

Unbilled Contract Asset Account

Select the account to use for the unbilled receivable adjustment during reclassification. The default is the system unbilled receivable account. You may select any account with an account type of other asset or other current asset.

Exclude Contract Assets From FX Reclassification

If you enabled Advanced Revenue Management (Essentials) after November 11, 2022, this preference is clear by default. If the box is clear, you cannot check it.

This accounting preference controls whether foreign currency revaluation for contract assets occurs during deferred revenue reclassification. When the box is clear, NetSuite includes foreign currency revaluation for the contract asset account in the reclassification process. The reclassification process uses the period-end currency exchange rate of the posting period to calculate contract assets. Reclassification creates an adjustment for foreign currency gain or loss on contract assets when a variance occurs. For information about the adjustment, see Foreign Currency Gain or Loss on Contract Asset.

If you enabled Advanced Revenue Management (Essentials) before November 11, 2022, this preference is checked by default. When the box is checked, reclassification does not include foreign currency revaluation for the contract asset account. The system records the exchange rate used by the first unbilled receivable adjustment journal entry for each revenue element. This fixed exchange rate is used to calculate all subsequent unbilled receivable adjustment journal entries for the revenue element. Any unrealized gain or loss due to exchange rate fluctuation is included in the period-end foreign currency revaluation for the unbilled receivables account. Deferred revenue balances may remain for foreign currency transactions after all revenue is recognized.

If you clear the box for this preference, you cannot check it again.

Enable Contingent Revenue Handling

Check this box to enable contingent revenue handling. When enabled, fields are added to item records and revenue elements for contingent revenue. For more information, see Contingent Revenue Handling.

This is a book-level preference. When multi-book accounting is enabled, this preference appears on the accounting book record, not on the Accounting Preferences page.

This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Create and Maintain Revenue Element Upon Closed Order

This preference is checked by default. Closed sales orders and closed lines on sales orders are included in the revenue arrangement update process. If you create a sales order and then close it, NetSuite creates a revenue arrangement for that sales order. If you update a closed sales order, the revenue arrangement will update with the appropriate changes.

The following is an example of this preference being checked:

Create a sales order for 10 units of an item. After you fulfill and bill 5 units, the item is discontinued. You close the line item on the sales order, and the revenue element is updated if this preference is checked. The quantity on the revenue element is adjusted and all amounts are updated. In multi-element arrangements, the revenue is reallocated.

Clear this preference to skip closed sales orders and closed lines on sales orders during the revenue arrangement update process. If you create a sales order and then close it, NetSuite does not create a revenue arrangement for that sales order. In the previous example, the revenue element is not updated if this preference is clear. You must create journal entries to correct the deferred revenue.

Number of Short-Term Revenue Periods

Enter the number of short-term revenue periods to include in the Deferred Revenue Waterfall report. Integers from 0 through 52 inclusive are valid values. The default is 12. Adjustment periods are included in the period count.

Enable Advanced Cost Amortization

Check this box to enable the accrual and amortization of eligible sales costs associated with the contract. When the box is checked, you record eligible sales costs on the revenue arrangement and revenue elements. Amortization of these costs is tracked on the revenue recognition plan.

For more information, see Advanced Cost Amortization.

Contract Acquisition Expense Account

This list is available only when the Enable Advanced Cost Amortization box is checked.

Select the account to use for the default contract acquisition expense in revenue arrangements.

Contract Acquisition Deferred Expense Account

This list is available only when the Enable Advanced Cost Amortization box is checked.

Select the account to use for the default contract acquisition deferred expense in revenue arrangements.

Contract Acquisition Expense Source Account

This list is available only when the Enable Advanced Cost Amortization box is checked.

Select the account to use for the default contract acquisition expense source in revenue arrangements.

When a value for this account appears in a revenue arrangement, the deferred cost journal entry credits this account instead of the Contract Acquisition Expense Account.

Amortization

Field

Description

Allow Users to Modify Amortization Schedule

Check this box to be able to change the amortization schedule after it is initially created. The schedule amount must always equal the line amount.

Note:

The schedule amount must always equal the line amount.

Allow Foreign Currency Amortization Schedules

(Available only in NetSuite U.K. editions) Check this box to be able to create amortization schedules using the foreign currency amounts instead of base currency amounts. For information about foreign currency amortization, see Foreign Currency Amortization.

Default Amortization Journal Date to

Select the default transaction date of amortization journal entries when you open the Create Amortization Journal Entries page. The options are as follows:

  • Last Day of Period – The date defaults to the last day of the period you select in the Posting period field.

  • Current Date – The date defaults to the current date.

Default Amortization Journal Entry Form

Select the journal entry form to use for amortization journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.

Number of Short-Term Expense Periods

Enter the number of short-term expense periods to include in the Deferred Expense Waterfall report. Integers from 0 through 52 inclusive are valid values. The default is 12.

OneWorld

The following preferences are available when the Intercompany Time and Expense feature is enabled:

Field

Description

Intercompany Time

Can be set to Allow (default) to permit time transactions where the employee and customer have different subsidiaries. Can be set to Disallow to prohibit these transactions.

Intercompany Expenses

Can be set to Allow (default) to permit expenses transactions where the employee and customer have different subsidiaries. Can be set to Disallow to prohibit these transactions. Can be set to Allow and Adjust to enable automated intercompany adjustments.

Budget

Field

Description

Enable Budget with Elimination Subsidiaries

Check this box to be able to create budgets for elimination subsidiaries.

Exchange Rate Integration

If you use the Currency Exchange Rate Types feature, note that exchange rate integration works only with the default currency exchange rate type.

Field

Description

Rate Provider

Choose the integrated foreign exchange rate provider for this NetSuite account.

Important:

If you change your exchange rate provider, you must re-agree to the Notice at Setup > Company > Enable Features > Company subtab.

For more information about the Currency Exchange Rate Integration feature, see Currency Exchange Rate Integration.

Use Triangulation Calculation by NetSuite

Check this box to permit NetSuite to use cross currency triangulation to calculate the exchange rate for a transaction where the two home currencies are not available from the selected rate provider.

When you check this box, three anchor currency fields appear in which you can specify intermediate currencies to be used in the triangulated calculation. See the following field description for additional details. For details about cross currency triangulation and how it works, see Triangulation Calculation.

Important:

Agree to the Notice, as required. NetSuite stores the user id and time and date stamp of account changes in system notes.

If you do not want to agree to the Notice, click I Disagree. The Currency Exchange Rate Integration feature provides only those rates received directly from the specified rate provider. For more information about methods for obtaining exchange rates, see Methods for Obtaining Exchange Rates.

Primary Anchor Currency

Secondary Anchor Currency

Tertiary Anchor Currency

When you check the Use Triangulation Calculation by NetSuite box and agree to the Notice, three anchor currency fields appear. Use these fields to specify one, two, or three intermediate currencies for use in the triangulation calculation.

When the two home currencies in a transaction are not available from the selected rate provider, anchor currencies, or intermediate currencies, are used to convert the source currency into the target currency. For example, CountryA wants to purchase items from CountryZ. CurrencyA and CurrencyZ are not available as standard currency pairs from the selected rate provider. However, both CurrencyA and CurrencyZ are available as standard pairs with CurrencyW. If you designate CurrencyW as your primary anchor currency, NetSuite sends a rate request to your provider for the pairs: CurrencyA/CurrencyW and CurrencyW/CurrencyZ. After NetSuite receives the exchange rates, cross currency triangulation produces the exchange rate to be used on the transaction between CountryA and CountryZ.

When you designate three anchor currencies, you are instructing NetSuite to make three separate attempts to find exchange rates for currency pairs. For example, if the primary anchor currency is not available as a standard pair from the selected rate provider, NetSuite makes a second attempt to obtain exchange rates between the two home currencies and the secondary anchor currency. If there are no standard pairs using the second anchor currency, NetSuite makes a third attempt to obtain exchange rates using the tertiary anchor currency.

You can specify any ISO standard currency as an anchor currency.

When you choose a currency in one list, that currency is unavailable in the other two lists.

If you do not choose an anchor currency, NetSuite provides only direct and inverse exchange rates. For information about direct and inverse exchange rates, see Methods for Obtaining Exchange Rates. For more information about anchor currencies, see Anchor Currencies.

Related Topics:

General Notices